- Revenue of $853.8
million
- Adjusted EBITDA of $106.1
million, improved sequentially
- Net loss of $(9.1) million
for third quarter was a result of increased tax expense due to a
delay in the passage of anticipated tax legislation
- Income before taxes of $0.5
million for third quarter
- EBITDA for 3Q15 over 3Q14 comparable when adjusted for
Foreign Exchange (FX) rates
- Debt reduction continuing with total debt reduced by
$75.8 million year to date
- Operating Initiatives taking hold:
- Segment margins stable to improving
- Working capital improving
- Operating cost and efficiency improvement
- De-leveraging in line with plan
IRVING, Texas, Nov. 12 , 2015 /PRNewswire/ -- 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 announced financial results for the third quarter
ended October 3, 2015.
For the third quarter of 2015, the Company reported net sales of
$853.8 million, as compared with net
sales of $978.7 million for the third
quarter of 2014. The $124.9 million
decrease in net sales is attributable to lower finished product
prices, primarily in the global competing ingredients prices and
the foreign exchange rate impact of a weaker euro and Canadian
dollar. Overall, global raw material volumes were stronger year
over year.
Net loss attributable to Darling for the three months ended
October 3, 2015, was $(9.1) million, or $(0.06) per diluted share, compared to a net
income of $14.3 million, or
$0.09 per diluted share, in the three
months ended September 27, 2014. This
decrease is attributable to the impact of foreign exchange rates as
a function of the strengthening U.S. dollar as compared mainly to
the euro and Canadian dollar and the impact of tax expense, which
includes discrete items that do not have a direct relationship with
pre-tax earnings and a deferred tax asset write-down in a foreign
jurisdiction, which were partially offset by improvements in
operations. If extenders legislation is passed this year which is
the same or similar to last year's package including the Biofuel
Tax Credit and the Look-Through Rule, we expect the effective tax
rate for the year to be about the same as last year, which was
16%.
Comments on Third Quarter 2015
"Despite a difficult pricing environment, we continued to
execute in the third quarter on our long term strategy of building
our global platform to create sustainable feed, food and fuel
ingredients for a growing world population. Our Feed segment
continues to perform well, with global rendering recording strong
volumes and predictable earnings. Scheduled plant turnarounds at 3
gelatin factories during the quarter significantly impacted the
Food segment earnings. The Fuel segment delivered as expected but
was down sequentially due to the tough environment in the US
bio-diesel industry. We remain confident that the reinstatement of
the US Tax Extenders will retroactively deliver the blenders tax
credit as expected," said Randall
Stuewe, Darling Ingredients Inc. Chairman and Chief
Executive Officer.
"Operationally, our global team continues to find ways to
improve our cost structure and maintain our margins. Targets for
working capital improvement, operating cost reductions and SG&A
improvement are all being met. From a balance sheet perspective, we
remain focused on delivering and setting the stage for future
growth," concluded Mr. Stuewe.
For the complete press release and full financial results,
please visit the Company's website at http://ir.darlingii.com.