Solid Feed Segment Performance and Recovery in the Food
Segment
Exploring Phase III Expansion of Diamond Green Diesel JV with
Valero
IRVING, Texas, Nov. 7, 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 third quarter ended
September 30, 2017.
Third Quarter 2017 Overview
- Revenue of $937.7 million, up
9.8%
- Net income of $7.8 million, or
$0.05 per GAAP diluted share
- Adjusted EBITDA of $110.5
million
- Strong balance sheet with debt reduction of $18.5 million
- Global raw material volumes strong, up 3.8%
- Improved global pricing environment, with fats holding firm
while protein prices were mixed
- Food Segment highlighted by improved performance across
gelatin markets
- Diamond Green Diesel (DGD)
facility results tempered due to EPA uncertainty; JV exploring
Phase III expansion
For the third quarter of 2017, the Company reported net sales of
$937.7 million, as compared with net
sales of $853.9 million for the third
quarter of 2016. Net income attributable to Darling for the
three months ended September 30, 2017
was $7.8 million, or $0.05 per diluted share, compared to a net income
of $28.7 million, or $0.17 per diluted share, for the third quarter of
2016. The decrease in net income for the third quarter 2017
is due to higher selling, general and administrative expenses,
depreciation expense related to new plant locations in our Feed
Ingredients segment, and the absence of the blenders tax credit,
which was included in the third quarter 2016 results but has not
yet been reinstated for 2017.
Comments on the Third Quarter 2017
"The success of our diversified business model continued to
deliver consistent earnings even in volatile markets. Our teams
delivered solid results across our business segments supported by
strong global rendering volumes and an improved performance in
Rousselot and CTH. Despite general seasonality impacting our
third quarter and a fire incident at our Rendac facility, we
executed well on our key financial metrics," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc.
"We remain optimistic the EPA will support the earlier announced
Renewable Fuel Standard (RFS2) mandates, and we remain confident
that the blenders tax credit could soon be reinstated.
Additionally, we are excited about our just announced joint
intention with our partner, Valero Energy, to explore further
expansion of DGD, potentially doubling its capacity to 550 million
gallons annually by 2021," concluded Mr.
Stuewe.
Operational Update by Segment
- Feed Ingredients – EBITDA up 2.0 percent to
$80.5 million; revenue up 8.3 percent
to $575.5 million; gross margin up
6.9 percent $125.9 million; raw
material processed up 3.8 percent.
- Food Ingredients – EBITDA up 36.4 percent to
$34.5 million; revenue up 14.6
percent to $300.3 million; gross
margin up 18.6 percent to $60.1
million; raw material processed up 9.2 percent.
- Fuel Ingredients – EBITDA down 37.2 percent to
$8.1 million; revenue up 2.3 percent
$61.9 million; gross margin down 46.5
percent to $7.6 million; raw material
processed down 2.2 percent.
- Diamond Green Diesel Joint
Venture (DGD) –Delivered in line despite legislative
uncertainty. EBITDA of $0.49 per
gallon with negative impact from lack of blenders tax credit in
2017 versus 2016. JV exploring further expansion to 550 million
gallons of annual production beyond current 275 million gallon
capacity planned for Q2 2018 completion.
For More
Information:
|
|
Melissa A. Gaither,
VP IR and Global Communications
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Email :
mgaither@darlingii.com
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251 O'Connor Ridge
Blvd., Suite 300, Irving, Texas 75038
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Phone :
972-281-4478
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