2nd Quarter 2016 Highlights
- Net income of $32.0 million,
or $0.19 per GAAP diluted
share
- Revenue of $877.3
million
- Adjusted EBITDA of $124.0
million, improved sequential EBITDA of 25.3%
- North American Feed Segment contributed improved sequential
earnings and EBITDA margin expansion
- Strong demand for Global Feed Ingredients, Consistent
performance from Food Segment and DGD normalizes
IRVING, Texas, Aug. 11, 2016 /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,
industrial, fuel, bioenergy, and fertilizer industries, today
announced financial results for the second quarter ending
July 2, 2016.
For the second quarter of 2016, the Company reported net sales
of $877.3 million, compared with net
sales of $859.3 million for the
second quarter of 2015. The increased revenue was attributable to
higher finished product pricing for global fats in the Feed
Ingredients segment, as well as continued strength in global raw
material volumes.
Net income attributable to Darling for the three months ended
July 2, 2016, was $32.0 million, or $0.19 per diluted share, compared to a net income
of $3.1 million, or $0.02 per diluted share, for the second quarter
of 2015. Adjusted EBITDA for Darling for the three months ended
July 2, 2016 was $124.0 million compared to Adjusted EBITDA of
$105.5 million for the three months
ended July 4, 2015. Higher earnings
were driven by improved margins in the non-formula portion of the
Feed Ingredients segment, increased earnings from biofuels and fuel
ingredients in the Fuel segment and lower selling, general and
administrative expenses globally.
Randall C. Stuewe, Chairman and
CEO, said of the Company's performance, "The results show how we
can capture notable gains when market conditions improve. Our
business model continues to work and our team did a nice job of
executing in highly volatile markets. Our Feed Ingredients segment
led the way this quarter, capturing margin as prices improved for
global fats and proteins from the first quarter. In the Food
segment, we delivered a consistent performance, although softness
impacted China. Our Fuel segment
saw solid results, with Canadian biodiesel leading the way. In
addition, Diamond Green Diesel saw
earnings recover, with EBITDA doubling from the previous quarter.
We've lowered our cost structure, continued to pay down debt and
created a robust global business model that is diversified and
increasingly focused on premium, value-add products. In the second
quarter, the optionality within several of our businesses enabled
us to take full advantage of a stronger market."
- Feed Ingredients – EBITDA $83.5 million (up 43.2% sequentially); Revenue
$542.9 million (up 14.0%
sequentially); Gross margin $126.8
million (up 22.5% sequentially); Raw material processed flat
sequentially
- Food Ingredients – EBITDA $37.3 million (down 3.4% sequentially); Revenue
$272.1 million (up 9.8%
sequentially); Gross margin $57.8
million (down 7.2% sequentially); Raw material processed
flat sequentially
- Fuel Ingredients – EBITDA $13.8 million (up 6.2% sequentially); Revenue
$62.2 million (up 11.9%
sequentially); Gross margin $15.6
million (up 4.7% sequentially); Raw material processed up
7.1% sequentially
- Diamond Green Diesel Joint
Venture – EBITDA $36.7
million at entity level, $18.3
million Darling's share; $156
million tax credit received and a partner dividend of
$25 million each received
April 2016; Facility expansion's
final engineering phase progressing, construction expected to be
completed in Q4 2017
For More Information, contact:
Melissa A. Gaither, VP IR and Global
Communications
Email: mgaither@darlingii.com
Phone: 972-717-0300