Tyson Foods 2006 Annual Report Download - page 62

60 Ty s on Foods, Inc. 2006 Annual Report
Eleven-Year Financial Summary
in millions, except per share and ratio data 2006 2005 2004 2003
Summary of Operations
Sales $25,559 $26,014 $26,441 $24,549
Cost of sales 24,631 24,294 24,558 22,810
Gross profit 928 1,720 1,883 1,739
Operating income (loss) (77) 745 917 832
Net interest expense238 227 275 296
Income tax expense (benefit) (102) 156 232 186
Cumulative effect of change in accounting principle, net of tax (5) –––
Net income (loss) $(196) $ 372 $ 403 $ 337
Year end shares outstanding 355 355 353 353
Diluted average shares outstanding 345 357 357 352
Cumulative effect of change in accounting principle, net of tax:
Diluted earnings (loss) per share$(0.02) $ – $ – $ –
Class A basic earnings (loss) per share(0.01) –––
Class B basic earnings (loss) per share(0.02) –––
Net income (loss):
Diluted earnings (loss) per share(0.58) 1.04 1.13 0.96
Class A basic earnings (loss) per share(0.53) 1.11 1.20 1.00
Class B basic earnings (loss) per share(0.58) 1.00 1.08 0.90
Dividends per share:
Class A 0.160 0.160 0.160 0.160
Class B 0.144 0.144 0.144 0.144
Depreciation and amortization $517 $ 501 $ 490 $ 458
Balance Sheet Data
Capital expenditures $531 $ 571 $ 486 $ 402
Total assets 11,121 10,504 10,464 10,486
Net property, plant and equipment 3,945 4,007 3,964 4,039
Total debt 3,979 2,995 3,362 3,604
Shareholders’ equity$4,440 $4,671 $4,292 $3,954
Other Key Financial Measures
Return on sales (0.8)% 1.4% 1.5% 1.4%
Annual sales growth (decline)(1.7)% (1.6)% 7.7% 5.1%
Gross margin3.6% 6.6% 7.1% 7.1%
Return on beginning shareholders’ equity(4.2)% 8.7% 10.2% 9.2%
Return on invested capital (1.0)% 9.7% 12.1% 10.9%
Effective tax rate 34.8% 29.5% 36.6% 35.5%
Total debt to capitalization 47.3% 39.1% 43.9% 47.7%
Book value per share $12.51 $13.19 $12.19 $11.21
Closing stock price high 18.70 19.47 21.06 14.42
Closing stock price low$12.92 $14.12 $12.59 $7.28
NOTES TO ELEVEN-YEAR FINANCIAL SUMMARY
1. Fiscal 2004 and 1998 were 53-week years, while the other years presented were 52-week years.
2. The results for fiscal 2006 include $63 million of pretax charges primarily related to closing one chicken plant, two beef plants and two prepared foods plants and $19 million
of pretax charges related to a cost reduction initiative and other business consolidation efforts.
3. The Company reclassified gains and losses related to the disposal of fixed assets from other expense to cost of sales for fiscal 2005, 2004 and 2003.
4. The results for fiscal 2005 include $33 million of pretax charges related to a legal settlement involving the Company’s live swine operations, a non-recurring income tax net
benefit of $15 million including benefit from the reversal of certain income tax reserves, partially offset by an income tax charge related to the one-time repatriation of foreign
income under the American Jobs Creation Act, $14 million of pretax charges primarily related to closing two poultry and one prepared foods operations, $12 million of pretax
gains related to vitamin antitrust litigation settlements received, $8 million of pretax losses related to hurricane losses and an $8 million pretax gain related to the sale of the
Company’s remaining interest in Specialty Brands, Inc.
5. The results for fiscal 2004 include $61 million of pretax BSE-related charges, $40 million of pretax charges primarily related to closing one poultry and three prepared foods
operations, $25 million of pretax charges related to the impairment of intangible assets and $21 million of pretax charges related to fixed asset write-downs.
6. The results for fiscal 2003 include $167 million of pretax gains related to vitamin antitrust litigation settlements received and $76 million of pretax charges related to closing
four poultry operations.
7. The results for fiscal 2002 include a $27 million pretax charge related to the identifiable intangible asset write-down of the Thomas E. Wilson brand, $26 million pretax charge related
to live swine restructuring, $22 million pretax gain related to the sale of Specialty Brands, Inc. and $30 million pretax gain related to vitamin antitrust litigation settlements received.