IRVING, Texas, Oct. 5, 2015 /PRNewswire/ -- In light of
recent rating agency moves, Darling Ingredients Inc. (NYSE: DAR), a
global leader in converting edible and inedible bio-nutrient
streams into a wide range of ingredients and specialty products for
customers in the pharmaceutical, food, pet food, feed, technical,
fuel, bioenergy, and fertilizer industries, today provided
clarification on the Company's debt strategy, debt ratio and
related issues.
- As previously indicated during the Company's second quarter
earnings call, Darling Ingredients anticipates the total leverage
ratio for the third quarter to be in the range of 4.50:1.00.
- The Company's recent amendment to its credit agreement to
increase the maximum total leverage ratio the Company may not
exceed from 5.00:1.00 to 5.50:1.00 is designed to provide improved
long-term flexibility to manage its growth and global operations.
The amendment is in no way related to current business conditions,
and does not indicate a change in the anticipated third quarter
debt ratio as discussed above.
- While Diamond Green Diesel
(DGD), the Company's joint venture with Valero Energy Corporation,
was challenged during the third quarter due to significant declines
in RIN values and softening ULSD prices, DGD's performance is not
factored into the calculation of the debt ratios and related
covenants for the Company since it is an unconsolidated subsidiary
with independent, nonrecourse debt.
"Our global ingredients business continues to perform and make
adjustments as discussed during our second quarter 2015 earnings
call," said Randall Stuewe, Darling
Ingredients Inc. Chairman and Chief Executive Officer.
The Company is scheduled to release its third quarter 2015
financial results on Thursday, November 12,
2015, and to hold a conference call and webcast on
Friday, November 13, 2015 to discuss
these results.
About Darling
Darling Ingredients Inc. is the world's largest publicly-traded
developer and producer of sustainable natural ingredients from
edible and inedible bio-nutrients, creating a wide range of
ingredients and customized specialty solutions for customers in the
pharmaceutical, food, pet food, feed, technical, fuel, bioenergy
and fertilizer industries. With operations on five
continents, the Company collects and transforms all aspects of
animal by-product streams into useable and specialty ingredients,
such as gelatin, edible fats, feed-grade fats, animal proteins and
meals, plasma, pet food ingredients, organic fertilizers, yellow
grease, fuel feedstocks, green energy, natural casings and
hides. The Company also recovers and converts used cooking
oil and commercial bakery residuals into valuable feed and fuel
ingredients. In addition, the Company provides grease trap
services to food service establishments, environmental services to
food processors and sells restaurant cooking oil delivery and
collection equipment. For additional information, visit the
Company's website at http://ir.darlingii.com.
{This media release contains "forward-looking" statements
regarding the business operations and prospects of Darling
Ingredients Inc. and industry factors affecting it. These
statements are identified by words such as "believe,"
"anticipate," "expect," "estimate," "intend," "could," "may,"
"will," "should," "planned," "potential," "continue," "momentum,"
and other words referring to events that may occur in the
future. These statements reflect Darling Ingredient's current
view of future events and are based on its assessment of, and are
subject to, a variety of risks and uncertainties beyond its
control, each of which could cause actual results to differ
materially from those indicated in the forward-looking
statements. These factors include, among others, existing and
unknown future limitations on the ability of the Company's direct
and indirect subsidiaries to make their cash flow available to the
Company for payments on the Company's indebtedness or other
purposes; unanticipated costs or operating problems related to the
acquisition and integration of Rothsay and Darling Ingredients
International (including transactional costs and integration of the
new enterprise resource planning (ERP) system); global demands for
bio-fuels and grain and oilseed commodities, which have exhibited
volatility, and can impact the cost of feed for cattle, hogs and
poultry, thus affecting available rendering feedstock and selling
prices for the Company's products; reductions in raw material
volumes available to the Company due to weak margins in the meat
production industry as a result of higher feed costs, reduced
consumer demand or other factors, reduced volume from food service
establishments, reduced demand for animal feed, or otherwise;
reduced finished product prices; continued decline in fat and used
cooking oil finished product prices; changes to worldwide
government policies relating to renewable fuels and greenhouse gas
emissions that adversely affect programs like the Renewable Fuel
Standards Program (RFS2) and tax credits for biofuels both in
the United States and abroad;
possible product recall resulting from developments relating to the
discovery of unauthorized adulterations to food or food additives;
the occurrence of Bird Flu including, but not limited to H5N1 flu,
bovine spongiform encephalopathy (or "BSE"), porcine epidemic
diarrhea ("PED") or other diseases associated with animal origin in
the United States or elsewhere;
unanticipated costs and/or reductions in raw material volumes
related to the Company's compliance with the existing or unforeseen
new U.S. or foreign regulations (including, without limitation,
China) affecting the industries in
which the Company operates or its value added products (including
new or modified animal feed, Bird Flu, PED or BSE or similar or
unanticipated regulations); risks associated with the renewable
diesel plant in Norco, Louisiana
owned and operated by a joint venture between Darling Ingredients
and Valero Energy Corporation, including possible unanticipated
operating disruptions; risks relating to possible third party
claims of intellectual property infringement; increased
contributions to the Company's pension and benefit plans, including
multiemployer and employer-sponsored defined benefit pension plans
as required by legislation, regulation or other applicable U.S. or
foreign law or resulting from a U.S. mass withdrawal event; bad
debt write-offs; loss of or failure to obtain necessary permits and
registrations; continued or escalated conflict in the Middle East, North
Korea, Ukraine or
elsewhere; and/or unfavorable export or import markets. These
factors, coupled with volatile prices for natural gas and diesel
fuel, climate conditions, currency exchange fluctuations, general
performance of the U.S. and global economies, disturbances in world
financial, credit, commodities and stock markets, and any decline
in consumer confidence and discretionary spending, including the
inability of consumers and companies to obtain credit due to lack
of liquidity in the financial markets, among others, could
negatively impact the Company's results of operations. Among other
things, future profitability may be affected by the Company's
ability to grow its business, which faces competition from
companies that may have substantially greater resources than the
Company. The Company's announced share repurchase program may be
suspended or discontinued at any time and purchases of shares under
the program are subject to market conditions and other factors,
which are likely to change from time to time. Other risks and
uncertainties regarding Darling Ingredients Inc., its business and
the industries in which it operates are referenced from time to
time in the Company's filings with the Securities and Exchange
Commission. Darling Ingredients Inc. is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
For More Information, contact:
Melissa A. Gaither, Director
Investor Relations
251 O'Connor Ridge Blvd., Suite 300
Irving, Texas
75038
Phone:
972-717-0300
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SOURCE Darling Ingredients Inc.