Strong Operational Performance with Strategic Realignment in
Food Segment
Diamond Green Diesel JV Expansion in Commissioning Stage
IRVING, Texas, Aug. 8, 2018 /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,
announced financial results for 2Q18 ended June 30, 2018.
2Q 2018 Overview
- Revenue of $846.6
million
- Net income/(loss) of $(30.4)
million, or $(0.18) per GAAP
diluted share
- Adjusted EBITDA of $115.1
million
- Debt paydown of $44.0
million
- Global raw material volumes up 4.0%
- Argentina gelatin facility
closed and profitable sales volumes relocated
- Exited TRS "Industrial Residuals Business" while retaining
Used Cooking Oil ("UCO") business
- Diamond Green Diesel ("DGD")
results reflect expansion and turnaround in process
- DGD JV issued $25 million
partner dividend
- Euro bonds refinanced, lowering borrowing cost and extending
maturity
Second quarter 2018 of $846.6
million, compared to $894.9
million for 2Q17. Net sales reduction reflects the reclass
of billed freight per new revenue standard. Net loss of
$(30.4) million, or $(0.18) per diluted share, compared to net income
of $9.1 million, or $0.05 per diluted share, for 2Q17. The net
loss reflects debt extinguishment costs of $23.5 million, a loss of $15.5 million from the sale of Terra Renewal
Services subsidiary, and $15.0
million of restructuring charges due to Argentina gelatin plant closure. Excluding
these items, adjusted net income for 2Q18 was $17.7 million, or $0.11
cents per share.
Comments on 2Q 2018
"Operationally we had a solid second quarter. Performance
improved sequentially and year-over-year, and we took strategic
actions to strengthen our portfolio and position the company for
future growth," said Randall C.
Stuewe, Chairman and CEO of Darling Ingredients Inc. "Strong
slaughter activity drove global tonnage up 4.0 percent, and our
expansion projects and recent acquisitions contributed as expected.
The feed segment delivered improved results across our
geographies.
"Food segment results reflect the Argentina gelatin plant closure due to ongoing
macroeconomic headwinds and redeployment of production to our other
gelatin locations. The facility represented approximately 3 percent
of Food segment sales, and we are now filling orders for most
high-margin customers from other Rousselot facilities. This
strategic realignment will optimize our gelatin assets and better
leverage our existing Rousselot system. In the Fuel segment,
operational efficiencies and favorable pricing generated consistent
performance when adjusted for the 2017 BTC received in 1Q. We
remain optimistic the BTC will once again be made retroactive for
2018.
"DGD, our 50/50 JV with Valero to produce a premium low-carbon
fuel additive, completed construction on the 275-million-gallon
expansion and should be online mid-August. Spot margins
remain attractive, and we look forward to the significant
contribution this facility is expected to bring," concluded Mr.
Stuewe.
Segment Update
- Feed Ingredients – EBITDA $84.1 million flat; Revenue $498.8 million (down 9.2 percent); Margin
$128.0 million (up 0.9 percent). Raw
material processed up 5.4 percent.
- Food Ingredients – EBITDA $14.7 million (down 50.0 percent,) or
$29.7 million (up 1.4 percent) when
adjusted for restructuring charges of $15.0
million; Revenue $276.7
million flat; Margin $51.9
million (down 7.3 percent). Raw material processed
consistent.
- Fuel Ingredients – EBITDA $13.6 million (up 37.8 percent); Revenue
$71.1 million (up 5.5 percent);
Margin $13.7 million (up 7.9
percent). Raw material processed down 6.9 percent.
- Diamond Green Diesel JV – EBITDA $1.05 EBITDA per gallon without the BTC.
For More
Information:
|
|
Melissa A. Gaither,
VP IR and Global Communications
|
Email :
mgaither@darlingii.com
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251 O'Connor Ridge
Blvd., Suite 300, Irving, Texas 75038
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Phone :
972-281-4478
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