IRVING, Texas, Aug. 6, 2020 /PRNewswire/ -- Darling
Ingredients Inc. (NYSE: DAR, "Darling") --
Second Quarter 2020
- Net income of $65.4 million, or
$0.39 per GAAP diluted share
- Net Sales of $848.7 million
- Combined adjusted EBITDA of $195.2
million
- Core business EBITDA of $126.1
million, $16 million better
than Q1-2020; $24 million better than
Q2-2019, excluding the $13.1 million
gain on the sale of assets in Q2-2019
- Diamond Green Diesel ("DGD") earned $1.91 EBITDA per gallon on approximately 72
million gallons sold
- In July, Darling received an $80
million distribution from DGD, total distributions received
in 2020 is $205 million
Darling reported net sales of $848.7
million for the second quarter of 2020, as compared with net
sales of $827.3 million for the same
period a year ago. Net income attributable to Darling for the
three months ended June 27, 2020 was
$65.4 million, or $0.39 per diluted share, compared to a net income
of $26.3 million, or $0.16 per diluted share, for the second quarter
of 2019.
"We had another solid quarter of execution from our employees
worldwide who delivered a strong second quarter financial
performance, generating $195 million
of combined adjusted EBITDA," said Randall
C. Stuewe, Chairman and Chief Executive Officer of Darling
Ingredients Inc. "Our core business navigated through a turbulent
second quarter with our feed segment posting its best quarterly
EBITDA of $85.2 million in over the
last three years. We did benefit from over 40 million pounds of
depopulated hog volumes through our processing locations during the
quarter."
"Darling's diversification provides our global business platform
earnings sustainability as demonstrated in the second quarter. Our
DGD JV financial performance was impacted by the sharp decline in
the energy sector as a result of the COVID pandemic, but still
produced good results which were enhanced by a better performance
in our feed segment. Excluding the gain on the sale of assets in
the food segment from a year ago, this year's food segment
performance was on par to 2019," added Stuewe.
"We did use the DGD distribution proceeds received in April to
pay down our outstanding debt in the second quarter, lowering our
leverage ratio to 2.39 as measured by our bank covenant. We remain
diligent on our capital expenditures, investing approximately
$123 million for the first six months
of 2020. We continue to target a deferral of 15% to 20% in capital
expenditures as the uncertainty surrounding COVID-19 persists,"
commented Stuewe.
The Darling Ingredients Board has approved replenishing the
Company's previously announced share repurchase program back to
$200 million of availability and have
extended the term of the program for an additional two years to
August 13, 2022, to be exercised
depending on market conditions. 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 authorized period unless extended or shortened by the Board of
Directors.
In accordance with the distribution policy at Diamond Green
Diesel, Darling received an $80
million distribution from DGD in July
2020. Total distributions received in the first six months
of 2020 total $205 million.
For the six months ended June 27,
2020, Darling reported net sales of $1.7 billion, as compared with net sales of
$1.7 billion for the same period of
2019. Net Income attributable to Darling for the first six months
of 2020 was $150.9 million, or
$0.90 per diluted share, as compared
to a net income of $44.3 million, or
$0.26 per diluted share, for the
first six months of 2019.
As of June 27, 2020, Darling had
$76.2 million in cash and cash
equivalents, and $939.7 million
available under committed revolving credit agreements. Total debt
outstanding at the end of the second quarter of 2020 was
$1.6 billion.
Combined adjusted EBITDA was $195.2
million for the second quarter of 2020, compared to
$159.4 million for the same period in
2019. On a year-to-date basis, combined adjusted EBITDA totaled
$408.5 million for 2020, compared to
$292.7 million on a year-to-date
basis for 2019.
For More
Information, contact:
|
Jim Stark, Vice
President, Investor Relations
|
Email :
james.stark@darlingii.com
|
5601 MacArthur Blvd.,
Irving, Texas 75038
|
Phone :
972-281-4823
|
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