Vertically Integrated Supply Chain Supports Strong
Performance Across Operational Segments
IRVING, Texas, Nov. 6, 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 3Q ended
September 28, 2019.
3Q 2019 Overview
- Revenue of $842.0M
- Net income of $25.7M, or
$0.15 per GAAP diluted share
- Combined adjusted EBITDA of $147.8M (Darling's adjusted EBITDA plus Darling's
share of Diamond Green Diesel (DGD)
adjusted EBITDA.)
- Repurchased 636,634 shares during Q3 and subsequently
407,076 shares in Q4
- DGD delivered $1.35 EBITDA per
gallon with Darling's share of JV earnings reflected in
consolidated operating income under Fuel Segment
- Global slaughter remains at record levels, providing ample
raw material supplies
- Global fat pricing improved but remained stagnant as
North America biodiesel industry
awaiting Blenders Tax Credit (BTC)
- Global protein pricing weaker due to excess supplies and
Chinese demand destruction due to African Swine Fever
(ASF)
- Rousselot delivered improved results with stronger sales in
the Health and Nutrition category
- DGD II plant construction on time and budget; DGD III in
engineering and cost estimating for Port
Arthur, TX
- Debt paydown of $33.6M
Third quarter of 2019, the Company reported net sales of
$842.0M, as compared with net sales
of $812.6M for Q3 2018. The
$29.4M increase in net sales resulted
from higher finished product fat prices, strong contribution from
higher sales values for Food Segment collagen ingredients and
higher sales volume that more than offset lower protein
pricing.
Net income attributable to Darling for the three months ended
September 28, 2019 was $25.7M, or $0.15
per diluted share, compared to a net loss of ($6.0)M, or $(0.04)
per diluted share, for the Q3 of 2018. The increase was
primarily due to DGD earning $32M in
Q3 2019 as compared to a $(2.6)M loss
due to extended downtime in the Q3 2018 for completion of the
expansion, as well as a $7.2M
write-down of our China blood
plasma inventory in the Q3 2018 due to the African Swine Fever
(ASF) outbreak.
Under Darling's current share repurchase authorization, the
Company repurchased 636,634 shares of common stock during the third
quarter and subsequently an additional 407,076 shares in the fourth
quarter, totaling $7.5M.
Comments on the 3Q 2019
"We reported solid third quarter results, underscored by the
strength of our vertically integrated supply chain and excellent
execution amid continued trade uncertainty and escalating disease
disruption due to African Swine Fever," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc. "Overall, our operating
segments delivered exceptional results with improved earnings in
our Feed Segment as we navigated volatile global markets. Led by
our Rousselot Functional Ingredients and Health & Nutrition
platform, our Food Segment is solidly positioned to capture growing
global demand for collagen ingredients. In the Fuel Segment, higher
sales volumes supported solid performance across operations despite
the lack of the Blenders Tax Credit."
Segment update – Three months ended year over year
- Feed Ingredients – EBITDA $72.3M (up 22.1%); Revenue $497.0M (up 2.9%); Margin $117.2M (up 18.4%); Raw material processed up
0.9%
- Food Ingredients – EBITDA $39.3M (up 20%); Revenue $276.5M (up 4.2%); Margin $61.8M (up 13.5%); Raw material processed down
9.2%
- Fuel Ingredients – Combined EBITDA* $48.7M (up 238%); Revenue $68.6M (up 6.2%); Margin $10.1M (down 9.4%); Raw material processed up
6.2%
* Includes Darling's share of DGD EBITDA –
referenced per the earnings call slides posted on
https://ir.darlingii.com/
For More Information, contact:
Melissa A. Gaither, VP IR and Global
Communications
5601 N. MacArthur Blvd., Irving,
Texas 75038
Email: mgaither@darlingii.com
Phone: 972-281-4478