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Tyson Foods 8-K Report, Financial Results (Aug 5, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 5, 2024
Period End
August 5, 2024
Security
TSN
In the record · 2016–202610-K1110-Q338-K142

TSN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed August 5, 2024. Cited figures are marked; the original filing is the authoritative source.

Tyson Foods, Inc. (NYSE: TSN) reported results for its third quarter ended June 29, 2024, in a press release furnished as Exhibit 99.1.

Sales were $13,353 milliona versus $13,140 million a year earlier, GAAP operating income was $341 million versus a loss of $350 million, and GAAP diluted EPS was $0.54 versus a loss of $1.18. Adjusted operating income (non-GAAP) was $491 million and adjusted EPS was $0.87. For the first nine months, sales were $39,744 million, GAAP operating income was $884 million, and cash provided by operating activities was $1,973 million, with free cash flow (non-GAAP) of $1,089 million.

Management described a "positive turnaround" and cited the highest adjusted operating income in seven quarters, with Chicken and Beef segment results both shown in the reconciliation tables. The company updated its fiscal 2024 outlook: total company adjusted operating income of $1.6 billion to $1.8 billionb, with segment guidance of a Beef adjusted operating loss of ($400) million to ($300) million, Pork of $100 million to $200 million, Chicken of $850 million to $950 million, and Prepared Foods of $850 million to $950 million. Sales are expected to be relatively flat year over year, capital expenditures are expected at $1.2 billion to $1.3 billion, and net interest expense is expected to approximate $395 million.

Liquidity was $4.8 billionc as of June 29, 2024, and the company expects to use existing liquidity to retire $1.25 billion of senior notes due August 2024. The balance sheet shows total debt rising, with long-term debt of $9,701 million at June 29, 2024 versus $7,611 million at September 30, 2023, and cash and cash equivalents of $2,569 million versus $573 million. The filing's non-GAAP reconciliations, including Adjusted EBITDA and net debt ratios, are presented as supplemental measures and the company states investors should rely primarily on GAAP results.

02—Key points

Key Highlights

  1. Third-quarter GAAP operating income of $341 million, compared with a loss of $350 million in the prior-year quarter, which included a $448 million goodwill impairment.
  2. Third-quarter GAAP diluted EPS of $0.54 versus a loss of $1.18; adjusted EPS (non-GAAP) of $0.87 versus $0.15.
  3. Third-quarter sales of $13,353 million, up from $13,140 million; Beef sales of $5,241 million and Chicken sales of $4,076 million.
  4. Chicken segment adjusted operating income of $307 million in Q3 versus a loss of $63 million a year earlier; Beef adjusted operating loss of $69 million.
  5. Nine-month free cash flow (non-GAAP) of $1,089 million, versus a negative $135 million in the prior-year period, as operating cash flow rose to $1,973 million.
  6. Fiscal 2024 outlook: total company adjusted operating income of $1.6 billion to $1.8 billion, with sales expected to be relatively flat and capital expenditures of $1.2 billion to $1.3 billion.
  7. Total liquidity of $4.8 billion as of June 29, 2024, with plans to use existing liquidity to retire $1.25 billion of senior notes due August 2024.

03—Questions

Frequently Asked Questions

  1. How did Tyson Foods perform in the third quarter of fiscal 2024?

    Sales were $13,353 million, up from $13,140 million. GAAP operating income was $341 million compared with a $350 million loss a year earlier, and GAAP diluted EPS was $0.54 versus a $1.18 loss. Adjusted operating income (non-GAAP) was $491 million and adjusted EPS was $0.87.

  2. What is Tyson's updated outlook for fiscal 2024?

    The company expects total adjusted operating income of $1.6 billion to $1.8 billion, sales relatively flat versus fiscal 2023, capital expenditures of $1.2 billion to $1.3 billion, and net interest expense of approximately $395 million. Segment guidance includes a Beef adjusted operating loss of ($400) million to ($300) million and Chicken adjusted operating income of $850 million to $950 million.

  3. Why did the Beef segment remain a loss-maker?

    The filing shows a Beef operating loss of $69 million in the third quarter and $310 million for the nine months on a GAAP basis, and a fiscal 2024 adjusted operating loss guidance of ($400) million to ($300) million. The filing does not give a specific cause beyond these reported figures.

  4. How is Tyson's debt and cash position changing?

    Cash and cash equivalents rose to $2,569 million at June 29, 2024 from $573 million at September 30, 2023, while long-term debt increased to $9,701 million from $7,611 million. Liquidity was $4.8 billion, and the company plans to use existing liquidity to retire $1.25 billion of senior notes due August 2024.

  5. What non-GAAP measures does the company emphasize, and how should investors view them?

    The company presents adjusted operating income, adjusted EPS, EBITDA, Adjusted EBITDA, and free cash flow as supplemental measures. The filing states that these should not substitute for GAAP results and that investors should rely primarily on GAAP results. The company also states it cannot reconcile projected adjusted results to projected GAAP results without unreasonable effort.

04—Continue

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