Improvements Achieved Across Business Lines
Global Platform Expansion Driving Organic Growth in
2017
IRVING, Texas, May 11, 2017 /PRNewswire/ -- Darling
Ingredients Inc. (NYSE: DAR), a global 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, industrial, fuel, bioenergy, and fertilizer industries,
today announced financial results for the 2017 first quarter ended
April 1, 2017.
First Quarter 2017 Overview
- Revenue of $880.1 million, up
12.9%
- Net income of $5.8 million, or
$0.04 per GAAP diluted share
- Adjusted EBITDA of $102.5
million
- Continued strong global raw material volumes, up
4.3%
- Improved pricing environment across most product
lines
- SG&A increase related to equity award
accounting
- Diamond Greed Diesel issued partner dividend of $25 million each
For the first quarter of 2017, the Company reported net sales of
$880.1 million, as compared with net
sales of $779.6 million for the first
quarter of 2016. Net income attributable to Darling for the
three months ended April 1, 2017 was
$5.8 million, or $0.04 per diluted share, compared to a net income
of $1.1 million, or $0.01 per diluted share, for the first quarter of
2016. The increase in net income for the first quarter 2017
is primarily due to higher finished product pricing for fats and
proteins offset by the absence of the blenders tax credit, which
was reported in the first quarter 2016 but which has not yet been
reinstated for 2017.
"We capitalized on an improved environment with our first
quarter results reflecting solid execution across our global
platform leveraged by sequentially consistent and improved
performance in our Feed and Food segments. Sequentially, Fuel
segment results reflect the lack of the blenders tax credit and
one-time settlements received last quarter," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc. "Diamond Green Diesel completed its second
maintenance turnaround and issued a partner dividend of
$25 million each. Our planned
expansion of Diamond Green Diesel is
progressing well and we continue to focus on growing our global
platform while improving efficiencies and increasing capital
returns. We're off to a good start in
2017."
- Feed Ingredients – First Quarter 2017 compared to
First Quarter 2016: EBITDA $74.5
million (up 27.9 percent); Revenue $552.6 million (up 16.0 percent); Gross margin
$120.0 million (up 15.9 percent); Raw
material processed up 4.06 percent.
- Food Ingredients – First Quarter 2017 compared to
First Quarter 2016: EBITDA $31.7
million (down 17.8 percent); Revenue $267.8 billion (up 8.02 percent); Gross margin
$56.8 million (down 8.83 percent);
Raw material processed was flat.
- Fuel Ingredients – First Quarter 2017 compared to
First Quarter 2016: EBITDA $10.4
million (down 20.6 percent); Revenue $59.7 million (up 7.35 percent); Gross margin
$13.6 million (down 9.56 percent);
Raw material processed up 7.14 percent.
- Diamond Green Diesel Joint
Venture – Operationally strong with second major
turnaround completed in approximately 18 days. Margin compression
due to reduced RIN values, higher fat prices and absence of the
blenders tax credit. Issued partner dividends of $25 million each. Solid cash position and
expansion to 275 million gallons of annual production is on
schedule for completion in Q2 2018.
For More
Information, contact:
|
Melissa A. Gaither,
VP IR and Global Communications
|
Email :
mgaither@darlingii.com
|
251 O'Connor Ridge
Blvd., Suite 300, Irving, Texas 75038
|
Phone :
972-717-0300
|