Consistent Operational Performance with Improvements in Food
and Fuel Segments
IRVING, Texas, Aug. 7, 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 2Q 2019
ended June 29, 2019.
2Q 2019 Overview
- Revenue of $827.3M
- Net income of $26.3M, or
$0.16 per GAAP diluted share
- Adjusted EBITDA of $115.5M
- Diamond Green Diesel (DGD)
delivers $1.25 EBITDA per
gallon
- Consolidated adjusted pro forma EBITDA $159.4M
- DGD issued partner dividend of $17.7M in April
2019, with a subsequent dividend of $37.8M in July
2019
- US bond refinanced, lowering borrowing cost and extending
maturity with extinguishment costs incurred in quarter
Second quarter 2019, net sales were $827.3M, as compared to $846.6M for 2Q 2018. The reduction in net sales
of $(19.3M) is mainly the result of
lower global protein prices and the divestiture of the Company's
industrial residuals business in May
2018, partially offset by the increase in sales volumes of
the specialty pet food business and increased collagen sales
values.
Net income attributable to Darling for the three months ended
June 29, 2019 was $26.3M, or $0.16
per diluted share, compared to a net loss of $(30.4M), or $(0.18) per diluted share, for 2Q 2018. The
increase in net income over the same period in fiscal 2018 reflects
the absence of the following one-time costs realized last year:
debt extinguishment costs of $23.5M
related to Euro bond refinancing; the loss of $15.5M from the sale of Terra Renewal Services
subsidiary; and $15.0M of
restructuring and impairment charges incurred as a result of the
Hurlingham, Argentina, gelatin
plant closure.
"Overall, earnings improved for the second quarter with
combined, pro forma adjusted EBITDA of $159.4 million, inclusive of core Darling and
Diamond Green Diesel adjusted EBITDA
results and $13.2 million gain from
the China property sale.
Operationally, our global rendering business faced negative market
conditions on our finished product pricing due to unresolved trade
agreements with China and
continued fallout from the African Swine Fever epidemic," said
Randall C. Stuewe, Chairman and
Chief Executive Officer of Darling Ingredients Inc. "Our food
segment showed strong performance again bolstered by volume growth
from new product launches, primarily related to our growing global
collagen business. Our Fuel segment delivered consistently without
the Blender's Tax Credit (BTC).
"Diamond Green Diesel, our 50/50
joint venture with Valero, performed well and met expected entity
level EBITDA of $1.25 per gallon.
Subsequent to the end of the first quarter, we also received two
partner dividends totaling $55.5
million, with $17.7 million
being recorded in the second quarter and the remainder to be posted
in our 2019 third quarter. Additionally, Super Diamond, our 400-mm
gallon expansion project, remains on track to start up at the end
of 2021."
Segment Update – Three months ended year over year
- Feed Ingredients – EBITDA $64.5M (down 23.2%); Revenue $487.4M (down 2.3%); Margin $110.5M (down 14.2%). Raw material processed up
1.6%.
- Food Ingredients – EBITDA $50.3M (up 241.5%); Revenue $274.8M (down 0.7%); Margin $60.4M (up 16.5%). Raw material processed down
4.6%.
- Fuel Ingredients – EBITDA $11.3M (down 16.5); Revenue $65.0M (down 8.5%); Margin $11.7M (down 14.8%). Raw material processed up
13.3%.
- Diamond Green
Diesel – EBITDA Entity $87.8M; EBITDA Darling's Share $43.9M (up 254.0%); $1.25 EBITDA per gallon sold
For More Information, contact:
Melissa A. Gaither, VP IR and Global
Communications
Email : mgaither@darlingii.com