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