DARLING INGREDIENTS INC. REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS
Solid Feed Segment Performance and Recovery in the Food Segment
Strong Cash Flow Supported Continued Debt Reduction
Exploring Phase III Expansion of Diamond Green Diesel JV with Valero
November 7, 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 third quarter ended September 30, 2017.
Third Quarter 2017 Overview
Revenue of $937.7 million, up 9.8%
Net income of $7.8 million, or $0.05 per GAAP diluted share
Adjusted EBITDA of $110.5 million
Strong balance sheet with debt reduction of $18.5 million
Global raw material volumes steady, up 3.8%
Improved global pricing environment, with fats holding firm while protein prices were mixed
Food Segment highlighted by improved performance across gelatin markets
Diamond Greed Diesel (DGD) facility results tempered due to EPA uncertainty; JV exploring Phase III expansion
For the third quarter of 2017, the Company reported net sales of $937.7 million, as compared with net sales of $853.9 million for the third quarter of 2016. Net income attributable to Darling for the three months ended September 30, 2017 was $7.8 million, or $0.05 per diluted share, compared to a net income of $28.7 million, or $0.17 per diluted share, for the third quarter of 2016. The decrease in net income for the third quarter 2017 is due to higher selling, general and administrative expenses, depreciation expense related to new plant locations in our Feed Ingredients segment, and the absence of the blenders tax credit, which was included in the third quarter 2016 results but has not yet been reinstated for 2017.
Comments on the Third Quarter 2017
“The success of our diversified business model continues to deliver consistent earnings even in volatile markets. Our teams delivered solid results across our business segments supported by strong global rendering volumes and an improved performance in Rousselot and CTH. Despite general seasonality impacting our third quarter and a fire incident at our Rendac facility, we executed well on our key financial metrics,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc.
“We remain optimistic the EPA will support the earlier announced Renewable Fuel Standard (RFS2) mandates, and we remain confident that the blenders tax credit could soon be reinstated. Additionally, we are excited about our just announced joint intention with our partner, Valero Energy, to explore further expansion of DGD, potentially doubling its capacity to 550 million gallons annually by 2021.” concluded Mr. Stuewe.
The following information was filed by Darling Ingredients Inc. (DAR) on Tuesday, November 7, 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.