Irving / TX. (di) Darling Ingredients Inc., 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 the three months ended March 28, 2020. Highlights:
- Net income of USD 85.5 million, or USD 0.51 per GAAP diluted share
- Net Sales of USD 852.8 million
- Adjusted Ebitda of USD 213.3 million
- Diamond Green Diesel (DGD) earned USD 2.63 Ebitda per gallon on approximately 79 million gallons sold
- Repurchased USD 55 million of common stock
Darling reported net sales of USD 852.8 million for the first quarter of 2020, as compared with net sales of USD 835.1 million for the same period a year ago. Net income attributable to Darling for the three months ended March 28, 2020 was USD 85.5 million, or USD 0.51 per diluted share, compared to a net income of USD 18.0 million, or USD 0.11 per diluted share, for the first quarter of 2019.
«We delivered a strong first quarter performance consistent with the guidance we provided on our February 2020 earnings call, generating USD 213 million of combined adjusted Ebitda,» said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. «The diversity of our global platform from food to feed to green hydrocarbon is helping us to weather the Covid-19 pandemic.»
«We continue to execute our global strategy of creating sustainable ingredients for feed, food and fuel, from the waste streams of the food processing industry and being a leader in the production of green hydrocarbons to assist with global decarbonization. First and foremost, Darling has acted to ensure that we are providing a safe work environment for our employees across our network of 200+ locations around the world,» added Stuewe. «We are also taking the necessary steps to safeguard our balance sheet in the current environment. While we anticipate some disruption and potential lighter volumes of raw materials processed in the coming quarter, accordingly, we are committed to managing and reducing operating expenses across the business. Consistent with this approach, we are targeting a deferral of 15 percent to 20 percent in capital expenditures until the uncertainty surrounding the Covid-19 outbreak improves.»
«In April, DGD had accumulated over USD 600 million of cash, sufficient to fund the phase II 2020 expansion of DGD and provide each joint venture partner with a USD 125 million distribution. Also, Darling anticipates receiving an additional USD 65 to USD 75 million in July consistent with the distribution policy at DGD,» stated Stuewe.
As of March 28, 2020, Darling had USD 76.4 million in cash and cash equivalents, and USD 795.9 million available under committed revolving credit agreements. Total debt outstanding at the end of the first quarter of 2020 was USD 1.75 billion.
Under Darling’s current share repurchase authorization, the Company repurchased 2.2 million shares of common stock during the first quarter for a total of USD 55 million. Darling has approximately USD 126 million remaining under its current authorization.
Combined adjusted Ebitda was USD 213.3 million for the first quarter of 2020, compared to USD 133.3 million for the same period in 2019.
For additional information please read the Company’s PDF file below (162 KB):
20200507-DARLING-Q1-2020.