IRVING, Texas, May 9, 2019 /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 2019
first quarter ended March 30,
2019.
First Quarter 2019 Overview
- Revenue of $835.1
million
- Net income of $18.0
million
- Adjusted EBITDA of $103.4
million
- Difficult winter and North
America flooding impacted operations
- Continued strong global raw material volumes, up 2.7 percent
year over year
- High global slaughter volumes, China trade disruptions and African Swine
Fever (ASF) created lower pricing environment for Feed segment fats
and proteins
- Collagen business drove record Food segment
earnings
- Diamond Green Diesel ("DGD")
JV issued $17.7 million partner
dividend in early April
- Launched and priced U.S. Bonds refinance in late March,
extending maturity from 2022 to 2027 with more favorable
terms
For the first quarter of 2019, the Company reported net sales of
$835.1 million, as compared with net
sales of $875.4 million for the first
quarter of 2018. Net income attributable to Darling for the
three months ended March 30, 2019 was
$18.0 million, or $0.11 per diluted share, compared to a net income
of $97.3 million, or $0.58 per diluted share, for the first quarter of
2018. The year-over-year decrease in net income for the first
quarter 2019 is primarily due to the inclusion of the 2017
retroactive blenders tax credit ("BTC") in the results for the
first quarter 2018, as compared to no BTC, to date, in 2019.
Additionally, lower pet grade protein margins, higher energy costs
due to a difficult winter, FX variance and costs associated with
North America flooding negatively
impacted earnings.
Comments on the First Quarter 2019
"Our teams executed well during the first quarter 2019 despite
headwinds impacting our finished product pricing, challenging
weather events disrupting some of our operations in North America and African Swine Fever
pressuring the global marketplace," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc. "Global volumes trended higher,
the Food segment reported record results, and we delivered overall
improved adjusted EBITDA when adjusting the prior year for the BTC
and a stronger U.S. dollar."
"Construction is underway on Super Diamond that increases annual
production capacity at our Diamond Green Diesel JV to 675 million
gallons of renewable diesel plus additional renewable naphtha. We
anticipate completion in fourth quarter 2021," Stuewe
concluded.
- Feed Ingredients – EBITDA 64.5M (down 5.7%); Revenue $495.8M (up 2.1%); Margin $113.4M (down 2.9%). Raw material processed (up
2.8%).
- Food Ingredients – EBITDA $43.2M (up 32.9%); Revenue $279.2M (down 8.6%); Margin $65.0M (up 15.5%). Raw material processed
consistent year-over-year.
- Fuel Ingredients – EBITDA $10.8M (down 57.9%); Revenue $60.1M (down 28.5%); Margin $10.0M (down 58.5%).Raw material processed up
3.3%. Results reflect lack of 2017 retroactive BTC recorded in
Q1 2018.
- Diamond Green Diesel Joint
Venture (DGD) – EBITDA $0.84 per gallon on 71.1M gallons of sales. On an operating basis,
with no hedge loss, entity earned $1.22 per gallon. Averaging Q4 2018 and Q1 2019
EBITDA per gallon results in a net run rate of $1.24 EBITDA per gallon. JV issued $17.7M partner dividend early April 2019. Super Diamond, phase three expansion
cost estimate of $1.1 billion
expected to be substantially funded by entity's cash flows.
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 :
972-281-4478
|