Darling International Inc.
For the 2003 second quarter, the Company's net sales grew 30.4% to $78.5 million as compared to $60.2 million for the 2002 second quarter. Increases in finished product prices and finished products purchased for resale accounted for the majority of the $18.3 million net sales increase. For the 2003 second quarter, the Company reported net income of $3.2 million as compared to $1.2 million for the 2002 comparable period. The $2.0 million increase in net income for 2003 resulted from increases in net sales, a reduction in depreciation and amortization and interest expense, which more than offset increases in cost of sales, selling, general and administrative expense, other expenses, and income taxes.
For the six months ended June 28, 2003, the Company reported net sales grew 23.8% to $147.2 million as compared to $118.9 million for the 2002 comparable period. Increases in finished product prices and finished products purchased for resale accounted for the majority of the $28.3 million net sales increase. For the six months ended June 28, 2003, the Company reported net income of $6.6 million as compared to $1.8 million for the 2002 comparable period. The $4.8 million increase in net income for 2003 resulted from increases in net sales, a reduction in depreciation and amortization and interest expense, which more than offset increases in cost of sales, selling, general and administrative expense, income taxes, and a reduction in other income.
Darling International Inc. is the largest publicly traded, food processing by-products recycling company in the United States. The Company recycles used restaurant cooking oil and by-products from the beef, pork and poultry processing industries into useable products such as tallow, feed-grade fats and meat and bone meal. These products are primarily sold to animal feed and oleo-chemical manufacturers around the world. In addition, the Company provides grease trap collection services and sells equipment to restaurants.
The Company's shares are traded on the American Stock Exchange under the symbol DAR. In AMEX trading on August 11, 2003, Darling stock closed at $2.45 per share.
{This media release contains forward-looking statements regarding the business operations of Darling. These statements are identified by words such as "may," "will," "expect," "believe," "intend," "anticipate," "should", "estimate," continue," and other words referring to events to occur in the future. These statements reflect Darling's current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties, including business and economic conditions in its existing markets. Other risks and uncertainties regarding Darling, the industry in which it operates and the implementation of its business strategy are described in Darling's Form 10-Qs, the most recent filed August 12, 2003; Form 10-K filed March 26, 2003; Proxy Statement filed April 17, 2003 and Amendment No. 2 to the Registration Statement as filed on April 30, 2003. Darling undertakes no obligation to update any forward-looking statements made in this media release.}
Darling International Inc. Consolidated Operating Results For the Periods Ended June 28, 2003 and June 29, 2002 (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 28, June 29, $Change June 28, June 29, $Change 2003 2002 Favorable 2003 2002 Favorable (Unfavorable) (Unfavorable) Net sales $78,536 $60,189 $18,347 $147,187 $118,868 $28,319 Costs and expenses: Cost of sales and operating expenses 60,033 44,623 (15,410) 111,083 88,367 (22,716) Selling, general and administrative expenses 8,879 8,285 (594) 17,399 15,443 (1,956) Depreciation and amortization 3,623 3,937 314 7,280 8,025 745 Total costs and expenses 72,535 56,845 (15,690) 135,762 111,835 (23,927) Operating income 6,001 3,344 2,657 11,425 7,033 4,392 Other income (expense): Interest expense (419) (1,385) 966 (911) (5,270) 4,359 Other, net (453) 746 (1,199) 130 1,493 (1,363) Total other expense (872) (639) (233) (781) (3,777) 2,996 Income from continuing operations before income taxes 5,129 2,705 2,424 10,644 3,256 7,388 Income taxes (1,949) (1,358) (591) (4,045) (1,372) (2,673) Income from continuing operations 3,180 1,347 1,833 6,599 1,884 4,715 Loss from discontinued operations, net of tax --- (98) 98 --- (52) 52 Net income 3,180 1,249 1,931 6,599 1,832 4,767 Preferred dividends and accretion (A) (342) (255) (87) (697) (255) (442) Net income applicable to common shareholders $ 2,838 $ 994 $ 1,844 $ 5,902 $ 1,577 $ 4,325 Basic income per share $ 0.05 $ 0.03 $ 0.02 $ 0.10 $ 0.06 $ 0.04 Diluted income per share $ 0.05 $ 0.03 $ 0.02 $ 0.09 $ 0.06 $ 0.03 (A) Preferred dividends accrued were $154,000 during the three months ended June 28, 2003. Accretion of the preferred stock discount was $188,000 during the three months ended June 28, 2003. Preferred dividends accrued were $310,000 during the six months ended June 28, 2003. Accretion of the preferred stock discount was $387,000 during the six months ended June 28, 2003. FOR MORE INFORMATION CONTACT: John O. Muse, Executive Vice President of Finance and Administration, or Brad Phillips, Treasurer Phone: 972-717-0300
SOURCE: Darling International Inc.
CONTACT: John O. Muse, Executive Vice President of Finance and
Administration, or Brad Phillips, Treasurer, both of Darling International
Inc., +1-972-717-0300
Web site: http://www.darlingii.com/