IRVING, Texas, Nov. 10, 2016 /PRNewswire/ --
3rd Quarter 2016 Highlights
- Net income of $28.7 million, or $0.17 per GAAP diluted share
- Revenue of $853.9 million
- Adjusted EBITDA of $106.2 million
- Margin expansion tempered by Food Segment production challenges and inventory adjustment
- Record grain harvests drove lower finished product pricing for global fats and an oversupply of proteins
- Diamond Green Diesel ('DGD') delivers strongest earnings to date
- Solid cash flow generation with aggressive debt reduction of $60 million
Darling Ingredients Inc. (NYSE: DAR), a global leader in converting edible and inedible bio-nutrient streams into a wide range of ingredients and specialty products for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries, today announced financial results for the third quarter ending October 1, 2016.
For the third quarter of 2016, the Company reported net sales of $853.9 million, as compared with net sales of $853.8 million for the third quarter of 2015. Net income attributable to Darling for the three months ended October 1, 2016 was $28.7 million, or $0.17 per diluted share, compared to a net loss of ($9.1) million, or ($0.06) per diluted share, for the third quarter of 2015. The increase in net income is primarily attributable to higher earnings from DGD due to the inclusion of the blenders' tax credit which was not available as of the end of the third quarter of 2015, higher Renewable Identification Number ("RIN") values, and an income tax benefit. Adjusted EBITDA for Darling for the three months ended October 1, 2016 was $106.2 million compared to Adjusted EBITDA of $106.1 million for the three months ended October 3, 2015.
Randall C. Stuewe, Chairman and CEO of Darling Ingredients Inc., said, "We continue to execute against our strategic plan to de-lever and grow while managing through considerable volatility in many of our markets. Our Feed Ingredients segment results were predictably lower due to record North American crop harvests weighing on global pricing for fats and proteins. However, strong tonnage offset some price volatility, and our model is adjusting to lower finished product values. Food segment performance disappointed due to several moving parts, including major annual plant turnarounds and softness in China compressing margin expansion. Our Fuel segment was seasonally driven and continued to perform well with strong demand for biofuel feedstock in Europe. We intend to manage the volatile markets through the fourth quarter and carry good momentum into 2017."
- Feed Ingredients - EBITDA $78.9 million (down 5.5% sequentially); Revenue $531.4 million (down 2.1% sequentially); Gross margin $117.8 million (down 7.1% sequentially); Raw material processed flat sequentially.
- Food Ingredients - EBITDA $25.3 million (down 32.4% sequentially); Revenue $262.0 million (down 3.7% sequentially); Gross margin $50.7 million (down 12.3% sequentially); Raw material processed down 3.7% sequentially.
- Fuel Ingredients - EBITDA $12.9 million (down 6.5% sequentially); Revenue $60.4 million (down 3.0% sequentially); Gross margin $14.2 million (down 9.0% sequentially); Raw material processed down 3.3% sequentially.
- Diamond Green Diesel Joint Venture - EBITDA $45.0 million at entity level, $22.5 million Darling's share; Facility expansion final engineering complete, with construction expected to be completed in early Q2 2018.
For More Information, contact: | |
Melissa A. Gaither, VP IR and Global Communications | Email: mgaither@darlingii.com |
251 O'Connor Ridge Blvd., Suite 300, Irving, Texas 75038 | Phone: 972-281-4478 |
