First Quarter 2022
- Net income of $188.1 million, or
$1.14 per GAAP diluted share
- Net Sales of $1.37 billion
- Combined adjusted EBITDA of $330.7
million
- Global ingredients business EBITDA of $244.1 million
- Repurchased $17.2 million of
stock
IRVING,
Texas, May 10, 2022 /PRNewswire/ -- Darling
Ingredients Inc. (NYSE: DAR) today reported net income of
$188.1 million, or $1.14 per diluted share for first quarter 2022,
compared to net income of $151.8
million, or $0.90 per diluted
share, for first quarter 2021. The company also reported net sales
of $1.37 billion for the first
quarter of 2022, as compared with net sales of $1.0 billion for the same period a year
ago.
"Our global ingredients business had a record quarter, earning
$244.1 million in EBITDA, driven by
strong raw material volumes across the globe, robust finished
products prices, including record high fat prices, and growing
demand for green energy," said Randall C.
Stuewe, Chairman and Chief Executive Officer of Darling
Ingredients Inc. "Adding $86.6
million in EBITDA from Diamond Green
Diesel, Darling Ingredients earned $330.7 million in combined adjusted EBITDA for
the first quarter of 2022. We kicked off the year with a very
strong first quarter and carry tremendous momentum for the rest of
the year."
Darling Ingredients forecasts full year 2022 combined adjusted
EBITDA at $1.55-$1.6 billion. The global ingredients business is
estimated to exceed $1 billion in
EBITDA. Diamond Green Diesel is
estimated to produce 750 million gallons of renewable diesel at
$1.25 per gallon EBITDA, bringing
Darling Ingredients' share of EBITDA for DGD to $468.8 million.
First quarter capital expenditures totaled approximately
$71.6 million. The company also
repurchased approximately $17.2
million of stock in the first quarter of 2022. As of
April 2, 2022, Darling had
$99.5 million in cash and cash
equivalents, and $1.1 billion
available under its committed revolving credit agreement. Total
debt outstanding as of April 2, 2022
was $1.7 billion. The leverage ratio
as measured by the company's bank covenant was 1.69 as of
April 2, 2022. On May 2, 2022, the company completed its
acquisition of Valley Proteins. The company used borrowings
under its senior credit facility to fund the acquisition.
Combined adjusted EBITDA was $330.7
million for the first quarter 2022, compared to $284.8 million for the same period in 2021.
Segment Financial
Tables (in thousands)
(unaudited)
|
|
|
|
|
|
|
|
Feed
Ingredients
|
Food
Ingredients
|
Fuel
Ingredients
|
Corporate
|
Total
|
Three Months Ended
April 2, 2022
|
|
|
|
|
|
Net sales
|
$
879,438
|
$
354,814
|
$
132,082
|
$
-
|
$
1,366,334
|
Cost of sales and
operating expenses
|
645,523
|
270,312
|
104,742
|
-
|
1,020,577
|
Gross Margin
|
233,915
|
84,502
|
27,340
|
-
|
345,757
|
|
|
|
|
|
|
Gain on sale of
assets
|
(341)
|
(9)
|
(39)
|
-
|
(389)
|
Selling, general and
administrative expenses
|
56,209
|
26,844
|
3,920
|
15,059
|
102,032
|
Acquisition and
integration costs
|
-
|
-
|
-
|
3,773
|
3,773
|
Depreciation and
amortization
|
54,350
|
15,450
|
6,674
|
2,772
|
79,246
|
Equity in net income of
Diamond Green Diesel
|
-
|
-
|
71,804
|
-
|
71,804
|
Segment operating
income/(loss)
|
$
123,697
|
$
42,217
|
$
88,589
|
$ (21,604)
|
$
232,899
|
Equity in net income of
other unconsolidated subsidiaries
|
1,360
|
-
|
-
|
-
|
1,360
|
Segment
income/(loss)
|
$
125,057
|
$
42,217
|
$
88,589
|
$ (21,604)
|
$
234,259
|
|
|
|
|
|
|
Segment
EBITDA
|
$
178,047
|
$
57,667
|
$
23,459
|
$
(15,059)
|
$ 244,114
|
DGD adjusted EBITDA
(Darling's Share)
|
-
|
-
|
86,560
|
-
|
86,560
|
Combined adjusted
EBITDA
|
$
178,047
|
$
57,667
|
$
110,019
|
$
(15,059)
|
$ 330,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feed
Ingredients
|
Food
Ingredients
|
Fuel
Ingredients
|
Corporate
|
Total
|
Three Months Ended
April 3, 2021
|
|
|
|
|
|
Net sales
|
$
651,444
|
$
298,065
|
$
97,207
|
$
-
|
$
1,046,716
|
Cost of sales and
operating expenses
|
474,581
|
226,413
|
71,790
|
-
|
772,784
|
Gross Margin
|
176,863
|
71,652
|
25,417
|
-
|
273,932
|
|
|
|
|
|
|
Loss/(gain) on sale of
assets
|
(139)
|
55
|
20
|
-
|
(64)
|
Selling, general and
administrative expenses
|
52,620
|
25,191
|
4,867
|
14,720
|
97,398
|
Restructure and
impairment charges
|
-
|
-
|
778
|
-
|
778
|
Depreciation and
amortization
|
54,609
|
14,883
|
6,155
|
2,887
|
78,534
|
Equity in net income of
Diamond Green Diesel
|
-
|
-
|
102,225
|
-
|
102,225
|
Segment operating
income/(loss)
|
$
69,773
|
$
31,523
|
$
115,822
|
$ (17,607)
|
$
199,511
|
Equity in net income of
other unconsolidated subsidiaries
|
612
|
-
|
-
|
-
|
612
|
Segment
income/(loss)
|
$
70,385
|
$
31,523
|
$
115,822
|
$ (17,607)
|
$
200,123
|
|
|
|
|
|
|
Segment
EBITDA
|
$
124,382
|
$
46,406
|
$
20,530
|
$
(14,720)
|
$ 176,598
|
DGD adjusted EBITDA
(Darling's Share)
|
-
|
-
|
108,200
|
-
|
108,200
|
Combined adjusted
EBITDA
|
$
124,382
|
$
46,406
|
$
128,730
|
$
(14,720)
|
$ 284,798
|
Darling Ingredients
Inc. and Subsidiaries
Consolidated Balance Sheets
April 2, 2022 and January 1, 2022
(thousands)
|
|
|
|
April 2,
2022
|
January 1,
2022
|
ASSETS
|
|
(unaudited)
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
$
99,460
|
$
68,906
|
Restricted
cash
|
|
100
|
166
|
Accounts receivable,
net
|
|
517,783
|
469,092
|
Inventories
|
|
491,694
|
457,465
|
Prepaid
expenses
|
|
60,562
|
53,711
|
Income taxes
refundable
|
|
25,047
|
1,075
|
Other current
assets
|
|
64,387
|
38,599
|
Total current
assets
|
|
1,259,033
|
1,089,014
|
|
|
|
|
Property, plant and
equipment, net
|
|
1,867,880
|
1,840,080
|
Intangible assets,
net
|
|
409,627
|
397,801
|
Goodwill
|
|
1,236,524
|
1,219,116
|
Investment in
unconsolidated subsidiaries
|
|
1,563,840
|
1,349,247
|
Operating lease
right-of-use assets
|
|
165,128
|
155,464
|
Other assets
|
|
97,709
|
66,795
|
Deferred income
taxes
|
|
15,875
|
16,211
|
|
|
$
6,615,616
|
$ 6,133,728
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
|
$
35,337
|
$
24,407
|
Accounts payable,
principally trade
|
|
351,253
|
307,118
|
Income taxes
payable
|
|
25,117
|
32,310
|
Current operating lease
liabilities
|
|
41,649
|
38,168
|
Accrued
Expenses
|
|
360,058
|
350,681
|
Total current
liabilities
|
|
813,414
|
752,684
|
Long-term debt, net of
current portion
|
|
1,677,925
|
1,438,974
|
Long-term operating
lease liabilities
|
|
125,242
|
120,314
|
Other non-current
liabilities
|
|
109,647
|
111,029
|
Deferred income
taxes
|
|
393,738
|
362,942
|
Total
liabilities
|
|
3,119,966
|
2,785,943
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.01 par
value;
|
|
1,734
|
1,717
|
Additional
paid-in capital
|
|
1,637,930
|
1,627,816
|
Treasury stock, at
cost
|
|
(438,906)
|
(374,721)
|
Accumulated
other comprehensive loss
|
|
(311,369)
|
(321,690)
|
Retained
earnings
|
|
2,535,891
|
2,347,838
|
Total Darling's
stockholders' equity
|
|
3,425,280
|
3,280,960
|
Noncontrolling
interests
|
|
70,370
|
66,825
|
Total Stockholders'
Equity
|
|
3,495,650
|
3,347,785
|
|
|
$
6,615,616
|
$ 6,133,728
|
Darling Ingredients
Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Months Ended April 2, 2022 and April 3,
2021
(in thousands, except per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
(unaudited)
|
|
$ Change
|
|
|
April 2,
|
|
April 3,
|
|
Favorable
|
|
|
2022
|
|
2021
|
|
(Unfavorable)
|
Net sales
|
$
1,366,334
|
|
$
1,046,716
|
|
$
319,618
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of sales and
operating expenses
|
1,020,577
|
|
772,784
|
|
(247,793)
|
|
Gain on sale of
assets
|
(389)
|
|
(64)
|
|
325
|
|
Selling, general and
administrative expenses
|
102,032
|
|
97,398
|
|
(4,634)
|
|
Restructuring and asset
impairment charges
|
-
|
|
778
|
|
778
|
|
Acquisition and
integration costs
|
3,773
|
|
-
|
|
(3,773)
|
|
Depreciation and
amortization
|
79,246
|
|
78,534
|
|
(712)
|
Total costs and
expenses
|
1,205,239
|
|
949,430
|
|
(255,809)
|
|
Equity in net income of
Diamond Green Diesel
|
71,804
|
|
102,225
|
|
(30,421)
|
Operating
income
|
232,899
|
|
199,511
|
|
33,388
|
Other
expense:
|
|
|
|
|
|
|
Interest
expense
|
(15,603)
|
|
(16,428)
|
|
825
|
|
Foreign currency
loss
|
(1,100)
|
|
(410)
|
|
(690)
|
|
Other expense,
net
|
(742)
|
|
(1,159)
|
|
417
|
Total other
expense
|
(17,445)
|
|
(17,997)
|
|
552
|
Equity in net income of
other unconsolidated subsidiaries
|
1,360
|
|
612
|
|
748
|
Income from operations
before income taxes
|
216,814
|
|
182,126
|
|
34,688
|
Income tax
expense
|
26,083
|
|
28,708
|
|
2,625
|
Net income
|
190,731
|
|
153,418
|
|
37,313
|
Net income attributable
to noncontrolling interests
|
(2,678)
|
|
(1,652)
|
|
(1,026)
|
Net income attributable
to Darling
|
$
188,053
|
|
$
151,766
|
|
$
36,287
|
|
|
|
|
|
|
|
Basic income per
share:
|
$
1.17
|
|
$
0.93
|
|
$
0.24
|
Diluted income per
share:
|
$
1.14
|
|
$
0.90
|
|
$
0.24
|
|
|
|
|
|
|
|
Number of diluted
common shares:
|
164,601
|
|
167,749
|
|
|
Darling Ingredients
Inc. and Subsidiaries
Consolidated Statement of Cash Flows
For the Periods Ended April 2, 2022 and April 3, 2021
(in thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
April 2,
|
|
April 3,
|
Cash flows from
operating activities:
|
2022
|
|
2021
|
|
Net income
|
|
$ 190,731
|
|
$ 153,418
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
79,246
|
|
78,534
|
|
|
Gain on sale of
assets
|
(389)
|
|
(64)
|
|
|
Asset
impairment
|
-
|
|
138
|
|
|
Deferred
taxes
|
|
23,826
|
|
11,809
|
|
|
Decrease in long-term
pension liability
|
(269)
|
|
(448)
|
|
|
Stock-based
compensation expense
|
6,323
|
|
8,415
|
|
|
Write-off deferred loan
costs
|
-
|
|
598
|
|
|
Deferred loan cost
amortization
|
1,131
|
|
1,040
|
|
|
Equity in net income of
Diamond Green Diesel and other unconsolidated
subsidiaries
|
(73,164)
|
|
(102,837)
|
|
|
Distributions of
earnings from Diamond Green Diesel and other unconsolidated
subsidiaries
|
-
|
|
57
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
(41,317)
|
|
10,721
|
|
|
Income taxes
refundable/payable
|
(31,224)
|
|
(760)
|
|
|
Inventories and prepaid
expenses
|
(42,891)
|
|
(27,188)
|
|
|
Accounts payable and accrued
expenses
|
58,964
|
|
(13,462)
|
|
|
Other
|
|
(18,775)
|
|
18,834
|
|
|
|
Net cash provided by
operating activities
|
152,192
|
|
138,805
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(71,618)
|
|
(60,751)
|
|
Acquisitions, net of
cash acquired
|
(59,003)
|
|
(340)
|
|
Investment in Diamond
Green Diesel
|
(164,750)
|
|
-
|
|
Investment in other
unconsolidated subsidiaries
|
-
|
|
(4,449)
|
|
Gross proceeds from
disposal of property, plant and equipment and other
assets
|
974
|
|
1,629
|
|
Payments related to
routes and other intangibles
|
(100)
|
|
(347)
|
|
|
|
Net cash used in
investing activities
|
(294,497)
|
|
(64,258)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from long-term
debt
|
9,657
|
|
9,262
|
|
Payments on long-term
debt
|
(12,128)
|
|
(60,444)
|
|
Borrowings from
revolving credit facility
|
369,902
|
|
111,000
|
|
Payments on revolving
credit facility
|
(134,000)
|
|
(97,000)
|
|
Net cash overdraft
financing
|
9,830
|
|
499
|
|
Deferred loan
costs
|
(1,810)
|
|
-
|
|
Issuance of common
stock
|
-
|
|
|
|
Repurchase of common
stock
|
(17,189)
|
|
-
|
|
Minimum withholding
taxes paid on stock awards
|
(43,351)
|
|
(42,268)
|
|
Distributions to
noncontrolling interests
|
-
|
|
(2,143)
|
|
|
|
Net cash
provided/(used) in financing activities
|
180,911
|
|
(81,044)
|
Effect of exchange rate
changes on cash flows
|
(8,118)
|
|
(3,847)
|
Net increase /
(decrease) in cash, cash equivalents and restricted cash
|
30,488
|
|
(10,344)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
69,072
|
|
81,720
|
Cash, cash equivalents
and restricted cash at end of period
|
$
99,560
|
|
$
71,376
|
Diamond Green Diesel
Joint Venture
Consolidated Balance Sheets
March 31, 2022 and December 31, 2021
(in thousands)
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
|
2022
|
|
2021
|
Assets:
|
|
|
(unaudited)
|
|
|
|
Total current
assets
|
|
$ 950,802
|
|
$
686,294
|
|
Property, plant and
equipment, net
|
|
2,934,686
|
|
2,710,747
|
|
Other assets
|
|
59,196
|
|
51,514
|
|
|
Total assets
|
|
$
3,944,684
|
|
$ 3,448,555
|
|
|
|
|
|
|
|
Liabilities and
members' equity:
|
|
|
|
|
|
Total current portion
of long term debt
|
|
$ 165,356
|
|
$
165,092
|
|
Total other current
liabilities
|
|
367,478
|
|
295,860
|
|
Total long term
debt
|
|
340,591
|
|
344,309
|
|
Total other long term
liabilities
|
|
17,328
|
|
17,531
|
|
Total members'
equity
|
|
3,053,931
|
|
2,625,763
|
|
|
Total liabilities and
members' equity
|
|
$
3,944,684
|
|
$ 3,448,555
|
Diamond Green Diesel
Joint Venture
Operating Financial Results
For the Three-Months ended March 31, 2022 and March 31,
2021
(in thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
(unaudited)
|
|
$ Change
|
|
|
|
March 31,
|
|
March 31,
|
|
Favorable
|
Revenues:
|
2022
|
|
2021
|
|
(Unfavorable)
|
|
Operating
revenues
|
$
980,692
|
|
$
431,633
|
|
$
549,059
|
Expenses:
|
|
|
|
|
|
|
Total costs and
expenses less depreciation, amortization and accretion
expense
|
807,572
|
|
215,234
|
|
(592,338)
|
|
Depreciation,
amortization and accretion expense
|
26,492
|
|
11,687
|
|
(14,805)
|
Total costs and
expenses
|
834,064
|
|
226,921
|
|
(607,143)
|
|
Operating
income
|
146,628
|
|
204,712
|
|
(58,084)
|
Other income
(expense)
|
(11)
|
|
58
|
|
(69)
|
|
|
Interest and debt
expense, net
|
(3,009)
|
|
(320)
|
|
(2,689)
|
|
|
Net
income
|
$
143,608
|
|
$
204,450
|
|
$
(60,842)
|
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 to Foreign Currency For the Three
Months ended April 2, 2022 and April 3, 2021 (unaudited)
|
|
|
|
Three Months
Ended
|
Adjusted
EBITDA
|
April 2,
|
|
April 3,
|
(U.S. dollars in
thousands)
|
2022
|
|
2021
|
|
|
|
|
|
Net income attributable
to Darling
|
$ 188,053
|
|
$ 151,766
|
Depreciation and
amortization
|
79,246
|
|
78,534
|
Interest
expense
|
15,603
|
|
16,428
|
Income tax
expense
|
26,083
|
|
28,708
|
Restructuring and asset
impairment charges
|
-
|
|
778
|
Acquisition and
integration costs
|
3,773
|
|
-
|
Foreign currency
loss
|
1,100
|
|
410
|
Other expense,
net
|
742
|
|
1,159
|
Equity in net income of
Diamond Green Diesel
|
(71,804)
|
|
(102,225)
|
Equity in net income of
other unconsolidated subsidiaries
|
(1,360)
|
|
(612)
|
Net income attributable
to noncontrolling interests
|
2,678
|
|
1,652
|
|
Adjusted EBITDA
(Non-GAAP)
|
$ 244,114
|
|
$ 176,598
|
Foreign currency
exchange impact
|
7,227
|
(1)
|
|
|
Pro forma
Adjusted EBITDA to Foreign Currency (Non-GAAP)
|
$ 251,341
|
|
$ 176,598
|
DGD Joint Venture
Adjusted EBITDA (Darling's Share)
|
$
86,560
|
|
$ 108,200
|
|
|
|
|
|
Darling plus Darling's
share of DGD Joint Venture Adjusted EBITDA
|
$ 330,674
|
|
$ 284,798
|
|
(1) The average rate
assumption used in this calculation was the actual fiscal average
rate for the three months ended April 2, 2022 of €1.00:USD$1.12 and
CAD$1.00:USD$0.79, as compared to the average rate for the three
months ended April 3, 2021 of €1.00:USD$1.20 and
CAD$1.00:USD$0.79, respectively.
|
About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly
traded company turning food waste into sustainable products and a
leading producer of renewable energy. Recognized as a
sustainability leader, the company operates 250 plants in 17
countries and repurposes nearly 10% of the world's meat industry
waste streams into value-added products, such as green energy,
renewable diesel, collagen, fertilizer, animal proteins and meals
and pet food ingredients. To learn more, visit darlingii.com.
Follow us on LinkedIn.
Darling Ingredients Inc. will host a conference call to discuss
the Company's first quarter 2022 financial results at 9 a.m. Eastern Time (8
a.m. Central Time) on Wednesday, May
11, 2022. 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 and ask to be joined to the
Darling Ingredients Inc. call. 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 May 18, 2022, 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 8161187.
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 expense, 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.
Pro forma Adjusted EBITDA to Foreign Currency is not a
recognized accounting measurement under GAAP. The Company evaluates
the impact of foreign currency on its adjusted EBITDA. DGD Joint
Venture Adjusted EBITDA (Darling's share) is not reflected in the
Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign
Currency (Non-GAAP).
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, 5.25% Notes and 3.625% Notes that were outstanding at
April 2, 2022. 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, 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.
Information reconciling forward-looking combined adjusted EBITDA
to net income is unavailable to the Company without unreasonable
effort. The Company is not able to provide reconciliations of
combined adjusted EBITDA to net income because certain items
required for such reconciliations are outside of the Company's
control and/or cannot be reasonably predicted, such as the impact
of volatile commodity prices on the Company's operations, impact of
foreign currency exchange fluctuations, depreciation and
amortization and the provision for income taxes. Preparation of
such reconciliations for Darling Ingredients Inc. and the Company's
joint venture, Diamond Green Diesel,
would require a forward-looking balance sheet, statement of income
and statement of cash flow, prepared in accordance with GAAP for
each entity, and such forward-looking financial statements are
unavailable to the Company without unreasonable effort. The Company
provides a range for its combined adjusted EBITDA outlook that it
believes will be achieved; however, it cannot accurately predict
all the components of the combined adjusted EBITDA calculation.
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," "forecast," 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 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 United 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"), severe acute respiratory syndrome ("SARS"), 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; the occurrence of
pandemics, epidemics or disease outbreaks, such as the current
COVID-19 outbreak; 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, SARS, 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; failure to close on strategic
acquisitions, such as FASA; 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, 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; including the Russia-Ukraine war; uncertainty regarding the 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 cause actual results to vary materially from
the forward looking statements included in this release or
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.}
Contact:
|
Suann
Guthrie
|
|
VP, Investor Relations,
Sustainability & Communications
|
|
(469) 214-8202;
Suann.Guthrie@darlingii.com
|
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SOURCE Darling Ingredients Inc.