DAR

DARLING INGREDIENTS INC

Consumer Defensive | Mid Cap

$0.67

EPS Forecast

$1,483

Revenue Forecast

Announcing earnings for the quarter ending 2024-12-31 soon
EX-99.1 2 exh991-pressreleaseq42.htm EXHIBIT 99.1 PRESS RELEASE Exhibit


EXHIBIT 99.1

News Release
darlingingredientsinclogoa27.jpg
                                                                                                                                                 

DARLING INGREDIENTS INC. REPORTS FOURTH QUARTER FISCAL 2019 FINANCIAL RESULTS

IRVING, TEXAS, February 25, 2020/PRNewswire/ Darling Ingredients Inc. (NYSE: DAR, "Darling") --

Fourth Quarter 2019
•
Net income of $242.6 million, or $1.44 per GAAP diluted share
•
Net Sales of $859.4 million
•
Adjusted EBITDA of $385.8 million
•
Adjusted EBITDA (excluding 2018 BTC) of $299.2 million

Full Year 2019
•
Net income of $312.6 million, or $1.86 per GAAP diluted share
•
Net Sales of $3.4 billion
•
Adjusted EBITDA of $826.3 million
•
Adjusted EBITDA (excluding 2018 BTC) of $739.7 million


Darling reported net sales of $859.4 million for the fourth quarter of 2019, as compared with net sales of $853.1 million for the same period a year ago. Net income attributable to Darling for the three months ended December 28, 2019 was $242.6 million, or $1.44 per diluted share, compared to a net income of $40.6 million, or $0.24 per diluted share, for the fourth quarter of 2018. Adjusted net income attributable to Darling for the fourth quarter of 2019 was $156.0 million or $0.92 per diluted share. The adjustment for the fourth quarter is associated with the 2018 retroactive blender’s tax credit (‘BTC’).

“Our investment in Diamond Green Diesel continues to provide us with outstanding results and the growth of low carbon fuel standards around the world, puts Darling at the forefront of the green revolution,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “Our global rendering operations continue to process higher volumes of raw materials, positioning us to be the preferred supplier of animal fats and oils for the biofuels industry.”

“Our food segment results showed solid growth in 2019 and we believe that the second half of 2020 will show additional strength as we complete the expansion of three additional Peptan facilities in the second and third quarters of this year,” added Stuewe. “Demand for collagen products continue to grow exponentially and our growth strategy of investing in additional production capacities enhances our sustainable portfolio of products and specialty ingredients.”

For the fiscal year ended 2019, Darling reported net sales of $3.4 billion, as compared with net sales of $3.4 billion for the fiscal year ended 2018. Net Income attributable to Darling for the fiscal year ended December 28, 2019 was $312.6 million, or $1.86 per diluted share, as compared to a net income of $101.5 million, or $0.60 per diluted share, for the fiscal year ended December 29, 2018. Adjusted net income attributable to Darling for the fiscal year of 2019 was $226.0 million or $1.34 per diluted share. The adjustment for the fiscal year is associated with the 2018 retroactive BTC.

Adjusted EBITDA, which is a Non-GAAP financial measure as outlined later in this release, was $385.8 million for the fourth quarter of 2019, which includes $276.2 million of Darling’s share of the DGD joint venture. Fourth quarter 2019 adjusted EBITDA excluding the 2018 BTC was $299.2 million. Adjusted EBITDA for the fiscal year of 2019 was $826.3 million, which included $389.4 million of Darling’s share of the DGD joint venture. Fiscal 2019 adjusted EBITDA excluding the 2018 BTC was $739.7 million.






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News Release
February 25, 2020
Page 2
 
 
 
 
 

As of December 28, 2019, Darling had $73 million in cash and cash equivalents, and $911.9 million available under committed revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding at the end of the fiscal year, was $1.6 billion.

Segment Financial Tables (in thousands)

 
Feed
Food
Fuel
 
 
Three Months Ended December 28, 2019
Ingredients
Ingredients
Ingredients
Corporate
Total
 
 
 
 
 
 
Net Sales
$
490,317

$
288,619

$
80,492

$
—

$
859,428

Cost of sales and operating expenses
375,990

221,527

43,016

—

640,533

Gross Margin
$
114,327

$
67,092

$
37,476

$
—

$
218,895

 
 
 
 
 
 
Selling, general and administrative expenses
$
57,872

$
29,234

$
2,179

$
19,669

$
108,954

Loss(Gain) on sale of assets
(377
)
343

297

—

263

Depreciation and amortization
55,185

20,556

7,891

2,821

86,453

Equity in net income of Diamond Green Diesel
—

—

270,062

—

270,062

Segment Operating Income
$
1,647

$
16,959

$
297,171

$
(22,490
)
$
293,287

Equity in Net Income of Unconsolidated Subsidiaries
$
1,515

$
—

$
—

$
—

$
1,515

Segment Income
$
3,162

$
16,959

$
297,171

$
(22,490
)
$
294,802

 
 
 
 
 
 
Segment EBITDA
$
56,832

$
37,515

$
35,000

$
(19,669
)
$
109,678

DGD Adjusted EBITDA (Darling's Share)
—

—

276,146

—

276,146

Adjusted EBITDA
$
56,832

$
37,515

$
311,146

$
(19,669
)
$
385,824


 
Feed
Food
Fuel
 
 
Three Months Ended December 29, 2018
Ingredients
Ingredients
Ingredients
Corporate
Total
 
 
 
 
 
 
Net Sales
$
485,190

$
291,669

$
76,271

$
—

$
853,130

Cost of sales and operating expenses
374,777

233,179

59,689

—

667,645

Gross Margin
$
110,413

$
58,490

$
16,582

$
—

$
185,485

 
 
 
 
 
 
Selling, general and administrative expenses
$
44,808

$
23,652

$
(714
)
$
8,611

$
76,357

Loss(Gain) on sale of assets
199

(38
)
76

—

237

Depreciation and amortization
53,359

20,263

8,603

3,052

85,277

Equity in net income of Diamond Green Diesel
—

—

50,124

—

50,124

Segment Operating Income
$
12,047

$
14,613

$
58,741

$
(11,663
)
$
73,738

Equity in Net Income of Unconsolidated Subsidiaries
$
(493
)
$
—

$
—

$
—

$
(493
)
Segment Income
$
11,554

$
14,613

$
58,741

$
(11,663
)
$
73,245

 
 
 
 
 
 
Segment EBITDA
$
65,406

$
34,876

$
17,220

$
(8,611
)
$
108,891

DGD Adjusted EBITDA (Darling's Share)
—

—

55,268

—

55,268

Adjusted EBITDA
$
65,406

$
34,876

$
72,488

$
(8,611
)
$
164,159





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News Release
February 25, 2020
Page 3
 
 
 
 
 
Segment Financial Tables continued (in thousands)

 
Feed
Food
Fuel
 
 
Twelve Months Ended December 28, 2019
Ingredients
Ingredients
Ingredients
Corporate
Total
 
 
 
 
 
 
Net Sales
$
1,970,561

$
1,119,085

$
274,259

$
—

$
3,363,905

Cost of sales and operating expenses
1,519,596

864,618

204,871

—

2,589,085

Gross Margin
$
450,965

$
254,467

$
69,388

$
—

$
774,820

 
 
 
 
 
 
Selling, general and administrative expenses
$
200,487

$
97,363

$
2,762

$
57,911

$
358,523

Loss(Gain) on sale of assets
(7,720
)
(13,175
)
313

—

(20,582
)
Depreciation and amortization
203,456

79,671

31,946

10,437

325,510

Equity in net income of Diamond Green Diesel
—

—

364,452

—

364,452

Segment Operating Income
$
54,742

$
90,608

$
398,819

$
(68,348
)
$
475,821

Equity in Net Income of Unconsolidated Subsidiaries
$
428

$
—

$
—

$
—

$
428

Segment Income
$
55,170

$
90,608

$
398,819

$
(68,348
)
$
476,249

 
 
 
 
 
 
Segment EBITDA
$
258,198

$
170,279

$
66,313

$
(57,911
)
$
436,879

DGD Adjusted EBITDA (Darling's Share)
—

—

389,416

—

389,416

Adjusted EBITDA
$
258,198

$
170,279

$
455,729

$
(57,911
)
$
826,295


 
Feed
Food
Fuel
 
 
Twelve Months Ended December 29, 2018
Ingredients
Ingredients
Ingredients
Corporate
Total
 
 
 
 
 
 
Net Sales
$
1,952,555

$
1,139,126

$
296,045

$
—

$
3,387,726

Cost of sales and operating expenses
1,497,973

918,141

230,260

—

2,646,374

Gross Margin
$
454,582

$
220,985

$
65,785

$
—

$
741,352

 
 
 
 
 
 
Selling, general and administrative expenses
$
176,722

$
91,546

$
(4,770
)
$
45,766

$
309,264

Loss(Gain) on sale of assets
725

(282
)
266

—

709

Restructure Cost
—

14,965

—

—

14,965

Depreciation and amortization
194,292

80,988

34,981

10,931

321,192

Equity in net income of Diamond Green Diesel
—

—

159,779

—

159,779

Segment Operating Income
$
82,843

$
33,768

$
195,087

$
(56,697
)
$
255,001

Equity in Net Income of Unconsolidated Subsidiaries
$
(550
)
$
—

$
—

$
—

$
(550
)
Segment Income
$
82,293

$
33,768

$
195,087

$
(56,697
)
$
254,451

 
 
 
 
 
 
Segment EBITDA
$
277,135

$
129,721

$
70,289

$
(45,766
)
$
431,379

DGD Adjusted EBITDA (Darling's Share)
—

—

174,013

—

174,013

Adjusted EBITDA
$
277,135

$
129,721

$
244,302

$
(45,766
)
$
605,392








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News Release
February 25, 2020
Page 4
 
 
 
 
 
Darling Ingredients Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 28, 2019 and December 29, 2018
(in thousands)
 
 
December 28,
 
December 29,
 
 
2019
 
2018
ASSETS
(unaudited)
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
$
72,935

 
$
107,262

 
Restricted cash
110

 
107

 
Accounts receivable, less allowance for bad debts of
  $8,802 at December 28, 2019 and $7,830 at December 29, 2018
406,338

 
385,737

 
Inventories
362,957

 
341,028

 
Prepaid expenses
46,599

 
35,247

 
Income taxes refundable
3,317

 
6,462

 
Other current assets
25,032

 
22,099

 
Total current assets
917,288

 
897,942

 
 
 
 
Property, plant and equipment, net
1,802,411

 
1,687,858

Intangible assets, less accumulated amortization, net
526,394

 
595,862

Goodwill
1,223,291

 
1,229,159

Investment in unconsolidated subsidiaries
689,354

 
410,177

Operating lease right-of-use assets
124,726

 
—

Other assets
47,400

 
53,375

Deferred income taxes
14,394

 
14,981

 
 
$
5,345,258

 
$
4,889,354

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
$
90,996

 
$
7,492

 
Accounts payable, principally trade
239,252

 
219,479

 
Income taxes payable
8,895

 
4,043

 
Current operating lease liabilities
37,805

 
—

 
Accrued expenses
311,391

 
309,484

 
Total current liabilities
688,339

 
540,498

Long-term debt, net of current portion
1,558,429

 
1,666,940

Long-term operating lease liabilities
91,424

 
—

Other non-current liabilities
115,785

 
115,032

Deferred income taxes
247,931

 
231,063

 
Total liabilities
2,701,908

 
2,553,533

 
 
 
 
 
Commitments and contingencies
 
 
 
Total Darling's stockholders' equity:
2,565,819

 
2,273,048

Noncontrolling interests
77,531

 
62,773

 
Total stockholders' equity
$
2,643,350

 
$
2,335,821

 
 
$
5,345,258

 
$
4,889,354







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News Release
February 25, 2020
Page 5
 
 
 
 
 
Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Periods Ended December 28, 2019 and December 29, 2018
(in thousands, except per share data)

 
(Fourth Quarter Unaudited)
 
 
 
 
 
 
Three Months Ended
Fiscal Year Ended
 
 
 
 
 
$ Change
 
 
 
 
$ Change
 
December 28,
 
December 29,
 
Favorable
December 28,
 
December 29,
 
Favorable
 
2019
 
2018
 
(Unfavorable)
2019
 
2018
 
(Unfavorable)
Net sales
$
859,428

 
$
853,130

 
$
6,298

$
3,363,905

 
$
3,387,726

 
$
(23,821
)
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
Cost of sales and operating expenses
640,533

 
667,645

 
27,112

2,589,085

 
2,646,374

 
57,289

Loss (gain) on sale of assets
263

 
237

 
(26
)
(20,582
)
 
709

 
21,291

Selling, general and administrative expenses
108,954

 
76,357

 
(32,597
)
358,523

 
309,264

 
(49,259
)
Restructuring and impairment charges
—

 
—

 
—

—

 
14,965

 
14,965

Depreciation and amortization
86,453

 
85,277

 
(1,176
)
325,510

 
321,192

 
(4,318
)
Total costs and expenses
836,203

 
829,516

 
(6,687
)
3,252,536

 
3,292,504

 
39,968

Equity in net income of Diamond Green Diesel
270,062

 
50,124

 
219,938

364,452

 
159,779

 
204,673

Operating income
293,287

 
73,738

 
219,549

475,821

 
255,001

 
220,820

Other expense:
 
 
 
 
 
 
 
 
 
 
Interest expense
(18,586
)
 
(20,209
)
 
1,623

(78,674
)
 
(86,429
)
 
7,755

Debt extinguishment costs
—

 
—

 
—

(12,126
)
 
(23,509
)
 
11,383

Foreign currency loss
(657
)
 
651

 
(1,308
)
(1,311
)
 
(6,431
)
 
5,120

Gain/(loss) on disposal of subsidiaries
2,967

 
(45
)
 
3,012

2,967

 
(12,545
)
 
15,512

Other income (expense), net
487

 
(3,459
)
 
3,946

(6,671
)
 
(7,562
)
 
891

Total other expense
(15,789
)
 
(23,062
)
 
7,273

(95,815
)
 
(136,476
)
 
40,661

Equity in net income/(loss) of unconsolidated subsidiaries
1,515

 
(493
)
 
2,008

428

 
(550
)
 
978

Income before income taxes
279,013

 
50,183

 
228,830

380,434

 
117,975

 
262,459

Income taxes expense
35,567

 
8,039

 
(27,528
)
59,467

 
12,031

 
(47,436
)
Net income
243,446

 
42,144

 
201,302

320,967

 
105,944

 
215,023

Net income attributable to noncontrolling interests
(837
)
 
(1,496
)
 
659

(8,367
)
 
(4,448
)
 
(3,919
)
Net income/(loss) attributable to Darling
$
242,609

 
$
40,648

 
$
201,961

$
312,600

 
$
101,496

 
$
211,104

Basic income/(loss) per share:
$
1.48

 
$
0.25

 
$
1.23

$
1.90

 
$
0.62

 
$
1.28

Diluted income/(loss) per share:
$
1.44

 
$
0.24

 
$
1.20

$
1.86

 
$
0.60

 
$
1.26

 
 
 
 
 
 
 
 
 
 
 
Number of diluted common shares:
168,152

 
168,379

 
 
168,378

 
167,910

 
 









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News Release
February 25, 2020
Page 6
 
 
 
 
 
Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Fiscal Years Ended December 28, 2019 and December 29, 2018
(in thousands)
 
Fiscal Year Ended
 
December 28,
 
December 29,
Cash flows from operating activities:
2019
 
2018
Net income
$
320,967

 
$
105,944

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
325,510

 
321,192

Deferred income taxes
20,530

 
(16,974
)
Loss/(gain) on sale of assets
(20,582
)
 
709

Loss/(gain) on disposal of subsidiaries
(2,967
)
 
12,545

Asset impairment
—

 
2,907

Gain on insurance proceeds from insurance settlement
(6,600
)
 
(1,253
)
Increase in long-term pension liability
1,831

 
1,463

Stock-based compensation expense
21,007

 
18,779

Debt extinguishment costs
12,126

 
23,509

Write-off deferred loan costs
270

 
320

Deferred loan cost amortization
5,846

 
7,870

Equity in net income of unconsolidated subsidiaries
(364,880
)
 
(159,229
)
Distribution of earnings from unconsolidated subsidiaries
69,213

 
67,638

Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
  Accounts receivable
(26,086
)
 
(6,347
)
  Income taxes refundable/payable
9,542

 
(9,809
)
  Inventories and prepaid expenses
(39,111
)
 
2,391

  Accounts payable and accrued expenses
32,436

 
14,534

  Other
3,569

 
12,426

Net cash provided by operating activities
362,621

 
398,615

Cash flows from investing activities:
 
 
 
Capital expenditures
(359,498
)
 
(321,896
)
Acquisition, net of cash acquired
(1,431
)
 
(107,727
)
Investment of unconsolidated subsidiary
(2,000
)
 
(12,250
)
Proceeds from sale of investment in subsidiaries
3,671

 
82,760

Gross proceeds from disposal of property, plant and equipment and other assets
18,235

 
19,328

Proceeds from insurance settlement
6,600

 
1,253

Payments related to routes and other intangibles
(3,651
)
 
(3,883
)
Net cash used by investing activities
(338,074
)
 
(342,415
)
Cash flows from financing activities:
 
 
 
Proceeds from long-term debt
517,606

 
624,620

Payments on long-term debt
(581,163
)
 
(686,628
)
Borrowings from revolving credit facility
469,227

 
543,898

Payments on revolving credit facility
(461,669
)
 
(510,974
)
Net cash overdraft financing
38,367

 
3,460

Deferred loan costs
(7,027
)
 
(9,668
)
Issuance of common stock
39

 
182

Repurchase of common stock
(19,260
)
 
—

Minimum withholding taxes paid on stock awards
(4,472
)
 
(2,215
)
Distributions to noncontrolling interests
(6,533
)
 
(10,257
)
Net cash used by financing activities
(54,885
)
 
(47,582
)
Effect of exchange rate changes on cash
(3,986
)
 
(8,165
)
Net decrease in cash, cash equivalents and restricted cash
(34,324
)
 
453

Cash, cash equivalents and restricted cash at beginning of period
107,369

 
106,916

Cash, cash equivalents and restricted cash at end of period
$
73,045

 
$
107,369

Supplemental disclosure of cash flow information:
 
 
 
Accrued capital expenditures
$
6,487

 
$
5,951

Cash paid during the period for:
 
 
 
Interest, net of capitalized interest
$
79,132

 
$
75,006

Income taxes, net of refunds
$
27,778

 
$
33,162

Non-cash financing activities:
 
 
 
Operating lease right of use asset obtained in exchange for new lease liabilities
$
40,596

 
$
—

Debt issued for assets
$
25

 
$
22




darlingingredientsinclogoa27.jpg
News Release
February 25, 2020
Page 7
 
 
 
 
 

Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
December 31, 2019 and December 31, 2018
(in thousands)

 
December 31,
 
December 31,
 
2019
 
2018
 
 
 
 
Assets:
 
 
 
Total current assets
$
668,026

 
$
186,258

Property, plant and equipment, net
713,489

 
576,384

Other assets
30,710

 
24,601

Total assets
$
1,412,225

 
$
787,243

 
 
 
 
Liabilities and members' equity:
 
 
 
Total current portion of long term debt
$
341

 
$
189

Total other current liabilities
75,802

 
40,619

Total long term debt
8,742

 
8,485

Total other long term liabilities
4,422

 
539

Total members' equity
1,322,918

 
737,411

Total liabilities and members' equity
$
1,412,225

 
$
787,243


Diamond Green Diesel Joint Venture
Operating Financial Results
Three Months and Fiscal Year Ended December 31, 2019 and December 31, 2018
(in thousands)


 
(Fourth Quarter Unaudited)
 
 
 
 
 
 
Three Months Ended
Twelve Months Ended
 
 
 
 
 
$ Change
 
 
 
 
$ Change
 
December 31,
 
December 31,
 
Favorable
December 31,
 
December 31,
 
Favorable
 
2019
 
2018
 
(Unfavorable)
2019
 
2018
 
(Unfavorable)
Revenues:
 
 
 
 
 
 
 
 
 
 
Operating revenues
$
357,857

 
$
270,542

 
$
87,315

$
1,217,504

 
$
677,663

 
$
539,841

Expenses:
 
 
 
 
 
 
 
 
 
 
Total costs and expenses less depreciation, amortization and accretion expense
236,149

 
160,004

 
(76,145
)
869,258

 
490,030

 
(379,228
)
Depreciation, amortization and accretion expense
12,193

 
10,544

 
(1,649
)
50,767

 
29,434

 
(21,333
)
Blenders tax credit
(430,586
)
 
—

 
430,586

(430,586
)
 
(160,394
)
 
270,192

Total costs and expenses
(182,244
)
 
170,548

 
352,792

489,439

 
359,070

 
130,369

Operating income
540,101

 
99,994

 
440,107

728,065

 
318,593

 
409,472

Other income
340

 
571

 
(231
)
2,121

 
1,919

 
202

Interest and debt expense, net
(317
)
 
(318
)
 
1

(1,282
)
 
(955
)
 
(327
)
Net income
$
540,124

 
$
100,247

 
$
439,877

$
728,904

 
$
319,557

 
$
409,347






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News Release
February 25, 2020
Page 8
 
 
 
 
 
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 and twelve months ended December 28, 2019 and December 29, 2018
 
 
(Unaudited)
 
 
 
 
 
 
Three Months Ended
 
Fiscal Year Ended
Adjusted EBITDA
 
December 28,
 
December 29,
 
December 28,
 
December 29,
(U.S. dollars in thousands)
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Net income/(loss) attributable to Darling
 
$
242,609

 
$
40,648

 
$
312,600

 
$
101,496

Depreciation and amortization
 
86,453

 
85,277

 
325,510

 
321,192

Interest expense
 
18,586

 
20,209

 
78,674

 
86,429

Income tax expense/(benefit)
 
35,567

 
8,039

 
59,467

 
12,031

Restructuring and impairment charges
 
—

 
—

 
—

 
14,965

Foreign currency loss/(gain)
 
657

 
(651
)
 
1,311

 
6,431

Other expense/(income), net
 
(487
)
 
3,459

 
6,671

 
7,562

Debt extinguishment costs
 
—

 
—

 
12,126

 
23,509

Loss/(gain) on sale of subsidiary
 
(2,967
)
 
45

 
(2,967
)
 
12,545

Equity in net (income)/loss of Diamond Green Diesel
 
(270,062
)
 
(50,124
)
 
(364,452
)
 
(159,779
)
Equity in net (income)/loss of unconsolidated subsidiaries
 
(1,515
)
 
493

 
(428
)
 
550

Net income attributable to noncontrolling interests
 
837

 
1,496

 
8,367

 
4,448

Adjusted EBITDA
 
$
109,678

 
$
108,891

 
$
436,879

 
$
431,379

Foreign currency exchange impact
 
2,149

(1
)
—

 
16,898

(1
)
—

Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)
 
$
111,827

 
$
108,891

 
$
453,777

 
$
431,379

 
 
 
 
 
 
 
 
 
DGD Joint Venture Adjusted EBITDA (Darling's share)
 
$
276,146

 
$
55,268

 
$
389,416

 
$
174,013

Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA
 
$
385,824

 
$
164,159

 
$
826,295

 
$
605,392

 
 
 
 
 
 
 
 
 
(1) The average rates assumption used in the calculation was the actual fiscal average rate for the three months ended December 28, 2019 of €1.00:USD$1.11 and CAD$1.00:USD$0.76 as compared to the average rate for the three months ended December 29, 2018 of €1.00:USD$1.14 and CAD$1.00:USD $0.76, respectively. The average rates assumption used in the calculation was the actual fiscal average rate for the fiscal year ended December 28, 2019 of €1.00:USD$1.12 and CAD$1.00:USD $0.75 as compared to the average rate for the fiscal year ended December 29, 2018 of €1.00:USD$1.18 and CAD$1.00:USD$0.77, 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.



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News Release
February 25, 2020
Page 9
 
 
 
 
 
Darling Ingredients Inc. will host a conference call to discuss the Company’s fourth quarter and fiscal year end 2019 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Wednesday, February 26, 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 10139036. 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 March 4, 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 10139036. 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 December 28, 2019. 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




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News Release
February 25, 2020
Page 10
 
 
 
 
 
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 Unites 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”), 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; escalation in the outbreak of the coronavirus; 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, 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, including our ongoing enterprise resource planning project; 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 likely 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 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
5601 N. MacArthur Blvd., Irving, Texas 75038
 
Email : james.stark@darlingii.com
Phone : 972-281-4823