Strong Global Feed Segment and Diamond Green Diesel
Performance
Continued Aggressive Debt Reduction
IRVING, Texas, Aug. 9, 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 second quarter ended
July 1, 2017.
Second Quarter 2017 Overview
- Revenue of $896.3 million, up
2.2%
- Net income of $9.1 million, or
$0.05 per GAAP diluted share
- Adjusted EBITDA of $110.1
million
- Strong balance sheet with debt reduction of $45 million
- Global raw material volumes steady, up 1.4%
- Mixed global pricing environment, strength in fats offset by
weakness in proteins
- Diamond Green Diesel facility
delivered expected performance and expansion continues to
progress
For the second quarter of 2017, the Company reported net sales
of $896.3 million, as compared with
net sales of $877.3 million for the
2016 second quarter. Net income attributable to Darling for
the three months ended July 1, 2017
was $9.1 million, or $0.05 per diluted share, compared to a net income
of $32.0 million, or $0.19 per diluted share, for the 2016 second
quarter. The decrease in net income is primarily due to
weakness in our Food Ingredients segment, particularly the gelatin
business, and the absence of the blenders tax credit, which was
included in the second quarter 2016 but has not yet been reinstated
for 2017.
Second Quarter 2017 Commentary
"We are pleased with second quarter performance across most of
the segments in light of a mixed global pricing environment and
headwinds in South America," said
Randall C. Stuewe, Chairman and
Chief Executive Officer of Darling Ingredients Inc. "Sequentially,
the Feed segment delivered a very nice performance while the Food
segment results were disappointing due to margin compression from
rising raw material prices in our global gelatin business and
ongoing macro-economic issues in Argentina. The Fuel segment excelled
operationally in the midst of the stalled decision on the blenders
tax credit. We remain optimistic that the political environment
surrounding the biofuel industry today continues to support the
Renewable Fuel Standard (RFS2) and the reinstatement of the
blenders tax credit," Mr. Stuewe commented.
"Additionally, our Board has approved the extension for an
additional 24 months of our previously announced share repurchase
program for up to $100 million, to be
executed depending on market conditions," added Mr.
Stuewe. "The repurchases may be made from time to time on the
open market at prevailing market prices or in negotiated
transactions off the market. Repurchases may occur over the
next 24 months, unless extended or shortened by the Board of
Directors," concluded Mr.
Stuewe.
Operational Update by Segment: Second Quarter 2017 Compared
to Second Quarter 2016
- Feed Ingredients – EBITDA $83.4 million (flat); Revenue $549.1 million (up 1.1 percent); Gross margin
$126.9 million (flat); Raw material
processed up 2.2 percent.
- Food Ingredients – EBITDA $29.2 million (up 2.5 percent); Revenue
$279.8 million (up 2.8 percent);
Gross margin $56.0 million (down 3.2
percent); Raw material processed up 0.6 percent.
- Fuel Ingredients – EBITDA $9.8 million (down 29 percent); Revenue
$67.4 million (up 8.2 percent); Gross
margin $12.7 million (down 18.4
percent); Raw material processed down 3.5 percent.
- Diamond Green Diesel Joint
Venture – Solid performance with $0.61 EBITDA per gallon without the blenders tax
credit in 2017 versus 2016. Capacity expansion expected in Q2
2018.
For More Information, contact:
Melissa A. Gaither, VP IR and Global
Communications
Email : mgaither@darlingii.com
Phone : 972-717-0300