IRVING, Texas, May 6, 2020 /PRNewswire/ -- Darling
Ingredients Inc. (NYSE: DAR, "Darling") --
First Quarter 2020
- Net income of $85.5 million, or
$0.51 per GAAP diluted share
- Net Sales of $852.8 million
- Adjusted EBITDA of $213.3
million
- Diamond Green Diesel ("DGD")
earned $2.63 EBITDA per gallon on
approximately 79 million gallons sold
- Repurchased $55 million of common
stock
Darling reported net sales of $852.8
million for the first quarter of 2020, as compared with net
sales of $835.1 million for the same
period a year ago. Net income attributable to Darling for the
three months ended March 28, 2020 was
$85.5 million, or $0.51 per diluted share, compared to a net income
of $18.0 million, or $0.11 per diluted share, for the first quarter of
2019.
"We delivered a strong first quarter performance consistent with
the guidance we provided on our February
2020 earnings call, generating $213
million of combined adjusted EBITDA," said Randall C. Stuewe, Chairman and Chief Executive
Officer of Darling Ingredients Inc. "The diversity of our global
platform from food to feed to green hydrocarbon is helping us to
weather the COVID-19 pandemic."
"We continue to execute our global strategy of creating
sustainable ingredients for feed, food and fuel, from the waste
streams of the food processing industry and being a leader in the
production of green hydrocarbons to assist with global
decarbonization. First and foremost, Darling has acted to ensure
that we are providing a safe work environment for our employees
across our network of 200+ locations around the world," added
Stuewe. "We are also taking the necessary steps to safeguard our
balance sheet in the current environment. While we anticipate some
disruption and potential lighter volumes of raw materials processed
in the coming quarter, accordingly, we are committed to managing
and reducing operating expenses across the business. Consistent
with this approach, we are targeting a deferral of 15% to 20% in
capital expenditures until the uncertainty surrounding the COVID-19
outbreak improves."
"In April, DGD had accumulated over $600
million of cash, sufficient to fund the phase II 2020
expansion of DGD and provide each joint venture partner with a
$125 million distribution. Also,
Darling anticipates receiving an additional $65 to $75 million
in July consistent with the distribution policy at DGD," stated
Stuewe.
As of March 28, 2020, Darling had
$76.4 million in cash and cash
equivalents, and $795.9 million
available under committed revolving credit agreements. Total debt
outstanding at the end of the first quarter of 2020 was
$1.75 billion.
Under Darling's current share repurchase authorization, the
Company repurchased 2.2 million shares of common stock during the
first quarter for a total of $55
million. Darling has approximately $126 million remaining under its current
authorization.
Combined adjusted EBITDA was $213.3
million for the first quarter of 2020, compared to
$133.3 million for the same period in
2019.
Segment Financial
Tables (in thousands)
|
|
Three Months Ended
March 28, 2020
|
Feed
Ingredients
|
Food
Ingredients
|
Fuel
Ingredients
|
Corporate
|
Total
|
|
|
|
|
|
|
Net Sales
|
$
512,625
|
$
270,294
|
$
69,923
|
$
-
|
$
852,842
|
Cost of sales and
operating expenses
|
388,453
|
205,430
|
53,025
|
-
|
646,908
|
Gross
Margin
|
$
124,172
|
$
64,864
|
$
16,898
|
$
-
|
$
205,934
|
|
|
|
|
|
|
Loss on sale of
assets
|
50
|
2
|
9
|
-
|
61
|
Selling, general and
administrative expenses
|
53,947
|
25,476
|
1,654
|
15,116
|
96,193
|
Depreciation and
amortization
|
53,521
|
20,305
|
8,092
|
2,753
|
84,671
|
Equity in net income
of Diamond Green Diesel
|
-
|
-
|
97,820
|
-
|
97,820
|
Segment operating
income/(loss)
|
$
16,654
|
$
19,081
|
$
104,963
|
$ (17,869)
|
$
122,829
|
Equity in net income
of unconsolidated subsidiaries
|
$
869
|
$
-
|
$
-
|
$
-
|
$
869
|
Segment
Income/(loss)
|
$
17,523
|
$
19,081
|
$
104,963
|
$ (17,869)
|
$
123,698
|
|
|
|
|
|
|
Segment
EBITDA
|
$
70,175
|
$
39,386
|
$
15,235
|
$
(15,116)
|
$
109,680
|
DGD Adjusted EBITDA
(Darling's Share)
|
$
-
|
$
-
|
$
103,634
|
$
-
|
$
103,634
|
Adjusted
EBITDA
|
$
70,175
|
$
39,386
|
$
118,869
|
$
(15,116)
|
$
213,314
|
|
|
|
|
|
|
Three Months Ended
March 30, 2019
|
Feed
Ingredients
|
Food
Ingredients
|
Fuel
Ingredients
|
Corporate
|
Total
|
|
|
|
|
|
|
Net Sales
|
$
495,819
|
$
279,164
|
$
60,121
|
$
-
|
$
835,104
|
Cost of sales and
operating expenses
|
386,859
|
214,004
|
50,050
|
-
|
650,913
|
Gross
Margin
|
$
108,960
|
$
65,160
|
$
10,071
|
$
-
|
$
184,191
|
|
|
|
|
|
|
Loss/(gain) on sale
of assets
|
(4,391)
|
114
|
27
|
-
|
(4,250)
|
Selling, general and
administrative expenses
|
48,831
|
21,887
|
(754)
|
15,039
|
85,003
|
Depreciation and
amortization
|
49,369
|
19,511
|
7,798
|
2,486
|
79,164
|
Equity in net income
of Diamond Green Diesel
|
-
|
-
|
24,277
|
-
|
24,277
|
Segment operating
income/(loss)
|
$
15,151
|
$
23,648
|
$
27,277
|
$ (17,525)
|
$
48,551
|
Equity in net loss of
unconsolidated subsidiaries
|
$
(504)
|
$
-
|
$
-
|
$
-
|
$
(504)
|
Segment
income/(loss)
|
$
14,647
|
$
23,648
|
$
27,277
|
$ (17,525)
|
$
48,047
|
|
|
|
|
|
|
Segment
EBITDA
|
$
64,520
|
$
43,159
|
$
10,798
|
$
(15,039)
|
$
103,438
|
DGD Adjusted EBITDA
(Darling's Share)
|
$
-
|
$
-
|
$
29,828
|
$
-
|
$
29,828
|
Adjusted
EBITDA
|
$
64,520
|
$
43,159
|
$
40,626
|
$
(15,039)
|
$
133,266
|
Darling
Ingredients Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 28, 2020 and December 28, 2019
(in thousands)
|
|
|
March 28,
|
|
December
28,
|
2020
|
|
2019
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
76,339
|
|
$
72,935
|
|
Restricted
cash
|
106
|
|
110
|
|
Accounts receivable,
net
|
397,700
|
|
406,338
|
|
Inventories
|
381,432
|
|
362,957
|
|
Prepaid
expenses
|
45,107
|
|
46,599
|
|
Income taxes
refundable
|
3,106
|
|
3,317
|
|
Other current
assets
|
26,270
|
|
25,032
|
|
Total current assets
|
930,060
|
|
917,288
|
Property, plant and
equipment, net
|
1,764,120
|
|
1,802,411
|
Intangible assets,
net
|
497,779
|
|
526,394
|
Goodwill
|
1,202,592
|
|
1,223,291
|
Investment in
unconsolidated subsidiaries
|
802,184
|
|
689,354
|
Operating lease
right-of-use assets
|
123,859
|
|
124,726
|
Other
assets
|
42,653
|
|
47,400
|
Deferred income
taxes
|
14,532
|
|
14,394
|
|
$
5,377,779
|
|
$
5,345,258
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
86,397
|
|
$
90,996
|
|
Accounts payable,
principally trade
|
211,596
|
|
239,252
|
|
Income taxes
payable
|
8,593
|
|
8,895
|
|
Current operating
lease liabilities
|
37,472
|
|
37,805
|
|
Accrued
expenses
|
307,688
|
|
311,391
|
|
Total current liabilities
|
651,746
|
|
688,339
|
Long-term debt, net
of current portion
|
1,664,858
|
|
1,558,429
|
Long-term operating
lease liabilities
|
91,250
|
|
91,424
|
Other noncurrent
liabilities
|
111,145
|
|
115,785
|
Deferred income
taxes
|
250,338
|
|
247,931
|
|
Total liabilities
|
2,769,337
|
|
2,701,908
|
Commitments and
contingencies
|
|
|
|
Total Darling's
stockholders' equity
|
2,543,565
|
|
2,565,819
|
Noncontrolling
interests
|
64,877
|
|
77,531
|
|
Total stockholders' equity
|
$
2,608,442
|
|
$
2,643,350
|
|
|
$
5,377,779
|
|
$
5,345,258
|
Darling
Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Periods Ended March 28, 2020 and March 30, 2019
(in thousands, except per share data)
|
|
|
|
(First Quarter
Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
$ Change
|
|
|
March 28,
|
|
March 30,
|
|
Favorable
|
|
|
2020
|
|
2019
|
|
(Unfavorable)
|
Net sales
|
$ 852,842
|
|
$ 835,104
|
|
$
17,738
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of sales and
operating expenses
|
646,908
|
|
650,913
|
|
4,005
|
|
Loss (gain) on sale
of assets
|
61
|
|
(4,250)
|
|
(4,311)
|
|
Selling, general and
administrative expenses
|
96,193
|
|
85,003
|
|
(11,190)
|
|
Depreciation and
amortization
|
84,671
|
|
79,164
|
|
(5,507)
|
Total costs and
expenses
|
827,833
|
|
810,830
|
|
(17,003)
|
|
Equity in net income
of Diamond Green Diesel
|
97,820
|
|
24,277
|
|
73,543
|
Operating
income
|
122,829
|
|
48,551
|
|
74,278
|
Other
expense:
|
|
|
|
|
|
|
Interest
expense
|
(19,090)
|
|
(19,876)
|
|
786
|
|
Foreign currency
gain/(loss)
|
1,664
|
|
(732)
|
|
2,396
|
|
Other income
(expense), net
|
(1,881)
|
|
(2,525)
|
|
644
|
Total other
expense
|
(19,307)
|
|
(23,133)
|
|
3,826
|
Equity in net
income/(loss)
|
|
|
|
|
|
of
unconsolidated subsidiaries
|
869
|
|
(504)
|
|
1,373
|
Income before income
taxes
|
104,391
|
|
24,914
|
|
79,477
|
Income tax
expense
|
18,300
|
|
5,274
|
|
(13,026)
|
Net income
|
86,091
|
|
19,640
|
|
66,451
|
Net income
attributable to
|
|
|
|
|
|
|
noncontrolling
interests
|
(581)
|
|
(1,628)
|
|
1,047
|
Net income
attributable to Darling
|
$
85,510
|
|
$
18,012
|
|
$
67,498
|
|
|
|
|
|
|
|
Basic income per
share:
|
$
0.52
|
|
$
0.11
|
|
$
0.41
|
Diluted income per
share:
|
$
0.51
|
|
$
0.11
|
|
$
0.40
|
|
|
|
|
|
|
|
Number of diluted
common shares:
|
167,927
|
|
168,660
|
|
|
Darling
Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended March 28, 2020 and March 30, 2019 (in
thousands)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 28,
|
|
March 30,
|
Cash flows from
operating activities:
|
2020
|
|
2019
|
|
Net income
|
$
86,091
|
|
$
19,640
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
84,671
|
|
79,164
|
|
|
Loss/(gain) on
disposal of property, plant, equipment and other assets
|
61
|
|
(4,250)
|
|
|
Gain on insurance
proceeds from insurance settlement
|
-
|
|
(845)
|
|
|
Deferred
taxes
|
6,377
|
|
(2,901)
|
|
|
Increase (decrease)
in long-term pension liability
|
(264)
|
|
646
|
|
|
Stock-based
compensation expense
|
10,818
|
|
10,327
|
|
|
Write-off deferred
loan costs
|
-
|
|
27
|
|
|
Deferred loan cost
amortization
|
1,416
|
|
1,574
|
|
|
Equity in net income
of Diamond Green Diesel and other unconsolidated
subsidiaries
|
(98,689)
|
|
(23,773)
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
487
|
|
11,692
|
|
|
Income taxes
refundable/payable
|
348
|
|
7,270
|
|
|
Inventories and prepaid
expenses
|
(24,999)
|
|
(5,063)
|
|
|
Accounts payable and accrued
expenses
|
(16,790)
|
|
(43,016)
|
|
|
Other
|
(14,981)
|
|
(1,891)
|
|
|
|
Net cash provided by
operating activities
|
34,546
|
|
48,601
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(61,599)
|
|
(84,269)
|
|
Acquisitions, net of
cash acquired
|
-
|
|
(1,431)
|
|
Gross proceeds from
disposal of property, plant and equipment and other
assets
|
379
|
|
7,868
|
|
Proceeds from
insurance settlement
|
-
|
|
845
|
|
Payments related to
routes and other intangibles
|
(3,416)
|
|
(2,778)
|
|
|
|
Net cash used by
investing activities
|
(64,636)
|
|
(79,765)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
long-term debt
|
8,264
|
|
2,138
|
|
Payments on long-term
debt
|
(8,638)
|
|
(10,974)
|
|
Borrowings from
revolving credit facility
|
219,933
|
|
156,829
|
|
Payments on revolving
credit facility
|
(100,782)
|
|
(138,147)
|
|
Net cash overdraft
financing
|
(9,594)
|
|
14,525
|
|
Issuance of common
stock
|
67
|
|
12
|
|
Repurchase of common
stock
|
(55,044)
|
|
-
|
|
Minimum withholding
taxes paid on stock awards
|
(4,328)
|
|
(3,190)
|
|
Acquisition of
noncontrolling interest
|
(8,784)
|
|
-
|
|
Distributions to
noncontrolling interests
|
(688)
|
|
-
|
|
|
|
Net cash provided by
financing activities
|
40,406
|
|
21,193
|
Effect of exchange
rate changes on cash flows
|
(6,916)
|
|
(1,575)
|
Net
increase/(decrease) in cash, cash equivalents and restricted
cash
|
3,400
|
|
(11,546)
|
Cash, cash
equivalents and restricted cash at beginning of year
|
73,045
|
|
107,369
|
Cash, cash
equivalents and restricted cash at end of period
|
$
76,445
|
|
$
95,823
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Accrued capital
expenditures
|
$
(1,630)
|
|
$
(8,623)
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest, net of
capitalized interest
|
$
5,863
|
|
$
21,602
|
|
|
Income taxes, net of
refunds
|
$
11,453
|
|
$
2,894
|
|
Non-cash operating
activities:
|
|
|
|
|
|
Operating lease right
of use obtained in exchange for new lease liabilities
|
$
9,121
|
|
$
4,794
|
|
Non-cash financing
activities:
|
|
|
|
|
|
Debt issued for
service contract assets
|
$
21
|
|
$
-
|
Diamond Green
Diesel Joint Venture
Condensed Consolidated Balance Sheets
March 31, 2020 and December 31, 2019
(in thousands)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
Assets:
|
|
|
(unaudited)
|
|
|
|
Total current
assets
|
|
$
821,602
|
|
$
668,026
|
|
Property, plant and
equipment, net
|
|
779,961
|
|
713,489
|
|
Other
assets
|
|
30,446
|
|
30,710
|
|
|
Total
assets
|
|
$
1,632,009
|
|
$
1,412,225
|
|
|
|
|
|
|
|
Liabilities and
members' equity:
|
|
|
|
|
|
Total current portion
of long term debt
|
|
$
496
|
|
$
341
|
|
Total other current
liabilities
|
|
70,758
|
|
75,802
|
|
Total long term
debt
|
|
8,936
|
|
8,742
|
|
Total other long term
liabilities
|
|
4,273
|
|
4,422
|
|
Total members'
equity
|
|
1,547,546
|
|
1,322,918
|
|
|
Total liabilities and
members' equity
|
|
$
1,632,009
|
|
$
1,412,225
|
Diamond Green
Diesel Joint Venture
Operating Financial Results
Three Months Ended March 31, 2020 and March 31, 2019
(in thousands)
|
|
|
|
|
(First Quarter
Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
$ Change
|
|
|
|
March 31,
|
|
March 31,
|
|
Favorable
|
Revenues:
|
2020
|
|
2019
|
|
(Unfavorable)
|
|
Operating
revenues
|
$
358,615
|
|
$
302,718
|
|
$
55,897
|
Expenses:
|
|
|
|
|
|
|
Total costs and
expenses less
|
|
|
|
|
|
|
|
depreciation,
amortization and accretion expense
|
151,347
|
|
243,063
|
|
91,716
|
|
Depreciation,
amortization and
|
11,774
|
|
11,418
|
|
(356)
|
|
|
accretion
expense
|
|
|
|
|
`
|
Total costs and
expenses
|
163,121
|
|
254,481
|
|
91,360
|
|
Operating
income
|
195,494
|
|
48,237
|
|
147,257
|
Other
income
|
461
|
|
641
|
|
(180)
|
|
|
Interest and debt
expense, net
|
(315)
|
|
(324)
|
|
9
|
|
|
Net
income
|
$
195,640
|
|
$
48,554
|
|
$
147,086
|
Darling Ingredients Inc. reports Adjusted EBITDA results, which
is a Non-GAAP financial measure, as a complement to results
provided in accordance with generally accepted accounting
principles (GAAP) (for additional information, see "Use of Non-GAAP
Financial Measures" included later in this media release). The
Company believes that Adjusted EBITDA provides additional useful
information to investors. Adjusted EBITDA, as the Company uses the
term, is calculated below:
Reconciliation of
Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma
Adjusted EBITDA Three months ended March 28, 2020 and March
30, 2019
|
|
|
|
Three Months
Ended
|
Adjusted
EBITDA
|
March 28,
|
|
March 30,
|
(U.S. dollars in
thousands)
|
2020
|
|
2019
|
|
|
|
|
|
Net income
attributable to Darling
|
$
85,510
|
|
$
18,012
|
Depreciation and
amortization
|
84,671
|
|
79,164
|
Interest
expense
|
19,090
|
|
19,876
|
Income tax
expense
|
18,300
|
|
5,274
|
Foreign currency
loss/(gain)
|
(1,664)
|
|
732
|
Other expense,
net
|
1,881
|
|
2,525
|
Equity in net
(income) of Diamond Green Diesel
|
(97,820)
|
|
(24,277)
|
Equity in net
(income)/loss of unconsolidated subsidiaries
|
(869)
|
|
504
|
Net income
attributable to noncontrolling interests
|
581
|
|
1,628
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
109,680
|
|
$
103,438
|
Foreign currency
exchange impact
|
2,158
|
(1)
|
-
|
|
Pro forma
Adjusted EBITDA to Foreign Currency (Non-GAAP)
|
$
111,838
|
|
$
103,438
|
DGD Joint Venture
Adjusted EBITDA (Darling's Share)
|
$
103,634
|
|
$
29,828
|
|
|
|
|
|
Darling plus
Darling's share of DGD Joint Venture Adjusted
EBITDA
|
$
213,314
|
|
$
133,266
|
|
|
|
|
|
(1) The average
rate assumption used in this calculation was the actual fiscal
average rate for the three months ended March 28, 2020 of €1.00:USD$1.10 and
CAD$1.00:USD$0.75, as compared to the average rate for the three
months ended March 30, 2019
of €1.00:USD$1.14 and CAD$1.00:USD$0.75,
respectively.
|
About Darling
Darling Ingredients Inc. is a global developer and producer of
sustainable natural ingredients from edible and inedible
bio-nutrients, creating a wide range of ingredients and specialty
solutions for customers in the pharmaceutical, food, pet food,
feed, technical, fuel, bioenergy, and fertilizer industries.
With operations on five continents, the Company collects and
transforms all aspects of animal by-product streams into useable
and specialty ingredients, such as collagen, edible fats,
feed-grade fats, animal proteins and meals, plasma, pet food
ingredients, organic fertilizers, yellow grease, fuel feedstocks,
green energy, natural casings and hides. The Company also
recovers and converts recycled oils (used cooking oil and animal
fats) into valuable feed and fuel ingredients and collects and
processes residual bakery products into feed ingredients. In
addition, the Company provides environmental services, such as
grease trap collection and disposal services to food service
establishments. The Company sells its products domestically and
internationally and operates within three industry segments: Feed
Ingredients, Food Ingredients and Fuel Ingredients. For additional
information, visit the Company's website at
http://www.darlingii.com.
Darling Ingredients Inc. will host a conference call to discuss
the Company's first quarter 2020 financial results at 8:30 am Eastern Time (7:30
am Central Time) on Thursday, May
7, 2020. To listen to the conference call,
participants calling from within North
America should dial 1-844-868-8847; international
participants should dial 1-412-317-6593. Please refer to
access code 10142656. Please call approximately ten minutes
before the start of the call to ensure that you are connected.
The call will also be available as a live audio webcast that can
be accessed on the Company website at http://ir.darlingii.com.
Beginning one hour after its completion, a replay of the call can
be accessed through May 14, 2020, by
dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada) and 1-412-317-0088 (international
callers). The access code for the replay is 10142656.
The conference call will also be archived on the Company's
website.
Use of Non-GAAP Financial Measures:
Adjusted EBITDA is not a recognized accounting measurement under
GAAP; it should not be considered as an alternative to net income,
as a measure of operating results, or as an alternative to cash
flow as a measure of liquidity and is not intended to be a
presentation in accordance with GAAP. Adjusted EBITDA is
presented here not as an alternative to net income, but rather as a
measure of the Company's operating performance. Since EBITDA
(generally, net income plus interest expenses, taxes, depreciation
and amortization) is not calculated identically by all companies,
this presentation may not be comparable to EBITDA or Adjusted
EBITDA presentations disclosed by other companies. Adjusted EBITDA
is calculated in this presentation and represents, for any relevant
period, net income/(loss) plus depreciation and amortization,
goodwill and long-lived asset impairment, interest expense,
(income)/loss from discontinued operations, net of tax, income tax
provision, other income/(expense) and equity in net loss of
unconsolidated subsidiary. Management believes that Adjusted EBITDA
is useful in evaluating the Company's operating performance
compared to that of other companies in its industry because the
calculation of Adjusted EBITDA generally eliminates the effects of
financing, income taxes and certain non-cash and other items that
may vary for different companies for reasons unrelated to overall
operating performance.
As a result, the Company's management uses Adjusted EBITDA as a
measure to evaluate performance and for other discretionary
purposes. In addition to the foregoing, management also uses or
will use Adjusted EBITDA to measure compliance with certain
financial covenants under the Company's Senior Secured Credit
Facilities and 5.25% Notes and 3.625% Notes that were outstanding
at March 28, 2020. However, the
amounts shown in this presentation for Adjusted EBITDA differ from
the amounts calculated under similarly titled definitions in the
Company's Senior Secured Credit Facilities and 5.25% Notes and
3.625% Notes, as those definitions permit further adjustments to
reflect certain other non-recurring costs, non-cash charges and
cash dividends from the DGD Joint Venture. Additionally, the
Company evaluates the impact of foreign exchange impact on
operating cash flow, which is defined as segment operating income
(loss) plus depreciation and amortization.
Cautionary Statements Regarding Forward-Looking Information:
{This media release contains "forward-looking" statements
regarding the business operations and prospects of Darling
Ingredients Inc. and industry factors affecting it. These
statements are identified by words such as "believe," "anticipate,"
"expect," "estimate," "intend," "could," "may," "will," "should,"
"planned," "potential," "continue," "momentum," and other words
referring to events that may occur in the future. These
statements reflect Darling Ingredient's current view of future
events and are based on its assessment of, and are subject to, a
variety of risks and uncertainties beyond its control, each of
which could cause actual results to differ materially from those
indicated in the forward-looking statements. These factors
include, among others, existing and unknown future limitations on
the ability of the Company's direct and indirect subsidiaries to
make their cash flow available to the Company for payments on the
Company's indebtedness or other purposes; global demands for
bio-fuels and grain and oilseed commodities, which have exhibited
volatility, and can impact the cost of feed for cattle, hogs and
poultry, thus affecting available rendering feedstock and selling
prices for the Company's products; reductions in raw material
volumes available to the Company due to weak margins in the meat
production industry as a result of higher feed costs, reduced
consumer demand or other factors, reduced volume from food service
establishments, or otherwise; reduced demand for animal feed;
reduced finished product prices, including a decline in fat and
used cooking oil finished product prices; changes to worldwide
government policies relating to renewable fuels and greenhouse
gas("GHG") emissions that adversely affect programs like the U.S.
government's renewable fuel standard, low carbon fuel standards
("LCFS") and tax credits for biofuels both in the United States and abroad; possible product
recall resulting from developments relating to the discovery of
unauthorized adulterations to food or food additives; the
occurrence of 2009 H1N1 flu (initially known as "Swine Flu"),
Highly pathogenic strains of avian influenza (collectively known as
"Bird Flu"), severe acute respiratory syndrome ("SARS"), bovine
spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea
("PED") or other diseases associated with animal origin in
the United States or elsewhere,
such as the outbreak of African Swine Fever ("ASF") in China and elsewhere; the occurrence of
pandemics, epidemics or disease outbreaks, such as the current
COVID-19 outbreak; unanticipated costs and/or reductions in raw
material volumes related to the Company's compliance with the
existing or unforeseen new U.S. or foreign (including, without
limitation, China) regulations
(including new or modified animal feed, Bird Flu, SARS, PED, BSE,
ASF or similar or unanticipated regulations) affecting the
industries in which the Company operates or its value added
products; risks associated with the DGD Joint Venture, including
possible unanticipated operating disruptions and issues relating to
the announced expansion project; risks and uncertainties relating
to international sales and operations, including imposition of
tariffs, quotas, trade barriers and other trade protections imposed
by foreign countries; difficulties or a significant disruption in
our information systems or failure to implement new systems and
software successfully, risks relating to possible third party
claims of intellectual property infringement; increased
contributions to the Company's pension and benefit plans, including
multiemployer and employer-sponsored defined benefit pension plans
as required by legislation, regulation or other applicable U.S. or
foreign law or resulting from a U.S. mass withdrawal event; bad
debt write-offs; loss of or failure to obtain necessary permits and
registrations; continued or escalated conflict in the Middle East, North
Korea, Ukraine or
elsewhere; uncertainty regarding the exit of the U.K. from the
European Union; and/or unfavorable export or import markets. These
factors, coupled with volatile prices for natural gas and diesel
fuel, climate conditions, currency exchange fluctuations, general
performance of the U.S. and global economies, disturbances in world
financial, credit, commodities and stock markets, and any decline
in consumer confidence and discretionary spending, including the
inability of consumers and companies to obtain credit due to lack
of liquidity in the financial markets, among others, could cause
actual results to vary materially from the forward looking
statements included in this release or negatively impact the
Company's results of operations. Among other things, future
profitability may be affected by the Company's ability to grow its
business, which faces competition from companies that may have
substantially greater resources than the Company. The Company's
announced share repurchase program may be suspended or discontinued
at any time and purchases of shares under the program are subject
to market conditions and other factors, which are likely to change
from time to time. Other risks and uncertainties regarding Darling
Ingredients Inc., its business and the industries in which it
operates are referenced from time to time in the Company's filings
with the Securities and Exchange Commission. Darling
Ingredients Inc. is under no obligation to (and expressly disclaims
any such obligation to) update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise.}
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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SOURCE Darling Ingredients Inc.