Improvements Achieved Across Business Lines
Global Platform Expansion Driving Organic Growth in 2017
IRVING, Texas, May 11, 2017 /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, today announced financial results for the 2017 first quarter ended April 1, 2017.
First Quarter 2017 Overview
- Revenue of $880.1 million, up 12.9%
- Net income of $5.8 million, or $0.04 per GAAP diluted share
- Adjusted EBITDA of $102.5 million
- Continued strong global raw material volumes, up 4.3%
- Improved pricing environment across most product lines
- SG&A increase related to equity award accounting
- Diamond Greed Diesel issued partner dividend of $25 million each
For the first quarter of 2017, the Company reported net sales of $880.1 million, as compared with net sales of $779.6 million for the first quarter of 2016. Net income attributable to Darling for the three months ended April 1, 2017 was $5.8million, or $0.04 per diluted share, compared to a net income of $1.1 million, or $0.01 per diluted share, for the first quarter of 2016. The increase in net income for the first quarter 2017 is primarily due to higher finished product pricing for fats and proteins offset by the absence of the blenders tax credit, which was reported in the first quarter 2016 but which has not yet been reinstated for 2017.
"We capitalized on an improved environment with our first quarter results reflecting solid execution across our global platform leveraged by sequentially consistent and improved performance in our Feed and Food segments. Sequentially, Fuel segment results reflect the lack of the blenders tax credit and one-time settlements received last quarter," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "Diamond Green Diesel completed its second maintenance turnaround and issued a partner dividend of $25 million each. Our planned expansion of Diamond Green Diesel is progressing well and we continue to focus on growing our global platform while improving efficiencies and increasing capital returns. We're off to a good start in 2017."
- Feed Ingredients - First Quarter 2017 compared to First Quarter 2016: EBITDA $74.5 million (up 27.9 percent); Revenue $552.6 million (up 16.0 percent); Gross margin $120.0 million (up 15.9 percent); Raw material processed up 4.06 percent.
- Food Ingredients - First Quarter 2017 compared to First Quarter 2016: EBITDA $31.7 million (down 17.8 percent); Revenue $267.8 billion (up 8.02 percent); Gross margin $56.8 million (down 8.83 percent); Raw material processed was flat.
- Fuel Ingredients - First Quarter 2017 compared to First Quarter 2016: EBITDA $10.4 million (down 20.6 percent); Revenue $59.7 million (up 7.35 percent); Gross margin $13.6 million (down 9.56 percent); Raw material processed up 7.14 percent.
- Diamond Green Diesel Joint Venture - Operationally strong with second major turnaround completed in approximately 18 days. Margin compression due to reduced RIN values, higher fat prices and absence of the blenders tax credit. Issued partner dividends of $25 million each. Solid cash position and expansion to 275 million gallons of annual production is on schedule for completion in 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: 972-717-0300 |
