Tyson Foods Q1 2023 Financial Results
EBITDA Reconciliations
$ in millions, except per share data (Unaudited)
Net income
Less: Interest income
Add: Interest expense
Add: Income tax expense
Add: Depreciation
Add: Amortization³
EBITDA
Adjustments to EBITDA:
(Less)/Add: Production facilities fire insurance proceeds, net of costs"
Add: Restructuring and related charges
Total Adjusted EBITDA
Total gross debt
Less: Cash and cash equivalents
Less: Short-term investments
Total net debt
Ratio Calculations:
Gross debt/EBITDA
Net debt/EBITDA
Gross debt/Adjusted EBITDA
Net debt/Adjusted EBITDA
Three Months Ended
Fiscal Year Ended
December 31, 2022
January 1, 2022
October 1, 2022
Twelve Months Ended
December 31, 2022
320
1,126
$
3,249
$
2,443
(9)
(3)
(17)
(23)
84
100
365
349
114
284
900
730
243
236
945
952
58
62
246
242
$
810
$
1,805
$
5,688
$
4,693
(35)
(45)
45
(114)
(104)
$
21
$
796
$
$
$
66
$
87
1,760 $
5,640
$
4,676
$
8,321
$
8,349
(1,031)
(654)
(1)
(2)
$
7,289
$
7,693
1.5x
1.3x
1.5x
1.3x
1.8x
1.6x
1.8x
1.6x
H
(T) Tyson
EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA) represents the ratio of our debt, net of cash, cash equivalents and short-term investments, to EBITDA (and to Adjusted EBITDA). EBITDA, Adjusted EBITDA, net debt
to EBITDA and net debt to Adjusted EBITDA are presented as supplemental financial measurements in the evaluation of our business. Adjusted EBITDA is a tool intended to assist our management and investors in comparing our performance on a consistent basis for purposes of business decision-
making by removing the impact of certain items that management believes do not directly reflect our core operations on an ongoing basis.
We believe the presentation of these financial measures helps management and investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, enhances understanding of our financial performance and highlights operational
trends. These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies; however, the measurements of EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) may not be comparable to
those of other companies, which may limit their usefulness as comparative measures. EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) are not measures required by or calculated in accordance with GAAP and should not be considered as substitutes for net income or
any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity. EBITDA (and Adjusted EBITDA) is a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain
of the items added to net income to determine EBITDA (and Adjusted EBITDA) involve outlays of cash. As a result, actual cash available to service our debt obligations will be different from EBITDA (and Adjusted EBITDA). Investors should rely primarily on our GAAP results and use non-GAAP financial
measures only supplementally in making investment decisions.
3 Excludes the amortization of debt issuance and debt discount expense of $2 million for the three months ended December 31, 2022 and January 1, 2022, and $11 million for the fiscal year ended October 1, 2022 and the twelve months ended December 31, 2022 as it is included in interest expense.
4 Relates to fires at production facilities in Chicken in the fourth quarter of fiscal 2021 and Beef in the fourth quarter of fiscal 2019. Amount includes insurance proceeds, net of costs incurred, of $35 million recognized in Cost of Sales in the first quarter of fiscal 2023 and $23 million recognized in Cost
of Sales and $22 million net proceeds recognized in Other, net in the first quarter of fiscal 2022.
TYSON FOODS, INC. FEBRUARY 6, 2023
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