DARLING INGREDIENTS INC. REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS
Strong Global Feed Segment and Diamond Green Diesel Performance
Continued Aggressive Debt Reduction
August 9, 2017 - IRVING, TEXAS - 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 the 2017 second quarter ended July 1, 2017.
Second Quarter 2017 Overview
Revenue of $896.3 million, up 2.2%
Net income of $9.1 million, or $0.05 per GAAP diluted share
Adjusted EBITDA of $110.1 million
Strong balance sheet with debt reduction of $45 million
Global raw material volumes steady, up 1.4%
Mixed global pricing environment, strength in fats offset by weakness in proteins
Diamond Greed Diesel facility delivered expected performance and expansion continues to progress
For the second quarter of 2017, the Company reported net sales of $896.3 million, as compared with net sales of $877.3 million for the second quarter of 2016. Net income attributable to Darling for the three months ended July 1, 2017 was $9.1 million, or $0.05 per diluted share, compared to a net income of $32.0 million, or $0.19 per diluted share, for the second quarter of 2016. The decrease in net income for the second quarter 2017 is primarily due to weakness in our Food Ingredients segment, particularly the gelatin business, and the absence of the blenders tax credit, which was included in the second quarter 2016 but has not yet been reinstated for 2017.
Comments on the Second Quarter 2017
“We are pleased with second quarter performance across most of the segments in light of a mixed global pricing environment and headwinds in South America,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “Sequentially, the Feed segment delivered a very nice performance while the Food segment results were disappointing due to margin compression from rising raw material prices in our global gelatin business and ongoing macro-economic issues in Argentina. The Fuel segment excelled operationally in the midst of the stalled decision on the blenders tax credit. We remain optimistic that the political environment surrounding the biofuel industry today continues to support the Renewable Fuel Standard (RFS2) and the reinstatement of the blenders tax credit,” Mr. Stuewe commented.
“Additionally, our Board has approved the extension for an additional 24 months of our previously announced share repurchase program for up to $100 million to be exercised depending on market conditions,” added Mr. Stuewe. “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 next 24 months, unless extended or shortened by the Board of Directors,” concluded Mr. Stuewe.
Operational Update by Segment
Feed Ingredients - Margins held and the segment performed well supported by solid global raw material volumes, especially in Europe. North American protein markets were mixed with strong pet food demand offset by lagging
The following information was filed by Darling Ingredients Inc. (DAR) on Wednesday, August 9, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: DAR CIK: 916540 Form Type:10-Q Quarterly Report Accession Number: 0000916540-17-000024 Submitted to the SEC: Wed Aug 09 2017 4:27:27 PM EST Accepted by the SEC: Wed Aug 09 2017 Period: Saturday, July 1, 2017 Industry: Fats And Oils