Board Increases Share Repurchase Program up to $200 Million of Common Stock
Diamond Green Diesel JV Completes Expansion Turnaround,
Announces Super Diamond Phase III Growth Plans to Include
Additional Renewable Naphtha
IRVING, Texas, Nov. 6,
2018 /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 the
pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy,
and fertilizer industries, today announced results for the 3Q18
ended September 29, 2018.
- Revenue $812.6M versus
$936.3M 3Q17
- Net loss $(6.0)M, or
$(0.04) per GAAP diluted
share
- Adjusted EBITDA - $97.0M
- Debt paydown - $12.0M
- Diamond Green Diesel (DGD)
extended downtime strongly influenced results with higher costs and
lower volumes; pressured fat selling prices
- Record slaughter volumes created ample supplies of fats and
proteins
- China trade disputes
pressuring global trade flows of animal proteins
- Food segment stabilized, Fuel segment delivered improved
results without Blenders Tax Credit (BTC)
- DGD expansion online early October at nameplate 275M gallons annual capacity
- DGD JV approved Super Diamond Phase III expansion to
675M total gallons annually plus
additional renewable Naphtha
Net loss reflects lower finished product selling prices and an
increase in cost of sales from inventory write downs of
approximately $7.2M from lower market
values caused by African Swine Fever outbreak.
"We clearly delivered lower than expected results in 3Q.
Extended downtime at DGD largely influenced results and reshuffling
our supply chain for fats and used cooking oil impacted feed
segment. China trade
disputes, record global grain stocks and a stronger U.S. dollar
weighed on finished product pricing," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc. "The silver lining is we had
record raw material volumes globally, and DGD is fully operational.
We expect to produce 65-70M gallons
in Q4 with spot margins above $1.25
per gallon.
"Feed segment impacted by lower pricing environment and
deflationary lag in our U.S. raw material formulas combined with an
inventory write down of Chinese plasma related to ASF. Food segment
improved sequentially and delivered consistent year-over-year
results with solid performance from our Rousselot collagen platform
and higher sales volumes in China.
Fuel segment, strong volumes supported improved performance across
Europe offset slightly weaker
results in North American biodiesel due to lower RIN pricing and
the absence of the BTC, which we remain optimistic it will
re-instate late 4Q18."
"We continue to execute our World of Growth strategy, growing
our core business and acquired Arkansas-based Triple – T Foods in early
October. The acquisition further expands our premium protein
business in the growing specialty pet food industry. We are excited
to announce board approval for Phase III Super Diamond expansion to
675 million annual gallons of renewable diesel with construction of
a second independent parallel plant, construction of a new
renewable Naphtha, or green gasoline, plant and improved logistics
capability. Total estimated cost is approximately $1.1B. Completion expected in 4Q of 2021. Margins
remain attractive, and we look forward to meeting increased demands
for sustainable low-carbon fuel and capturing higher LCFS margins
from our increased capacity," concluded Mr. Stuewe.
- Feed Ingredients – EBITDA $59.2M (down 27%); Revenue $482.7M (down 16.1%); Margin $98.9M (down 21.5%). Raw material processed up
6.4%.
- Food Ingredients – EBITDA $32.7M (down 5.5%); Revenue $265.2M (down 11.3%); Margin $54.5M (down 9.5%). Raw material processed
consistent.
- Fuel Ingredients – EBITDA $13.9M (up 71.6%); Revenue $64.6M (up 4.4%); Margin $11.1M (up 46.1%). Raw material processed up
3.6%
- DGD JV – EBITDA $0.04 per gallon without BTC.
Contact:
Melissa Gaither, VP IR, Global
Communications
mgaither@darlingii.com
972-281-4478