Darling International Inc.
For the 2002 first quarter, the Company reported net income of $0.6 million or $0.04 per share as compared to a net loss of $1.1 million for the 2001 first quarter or ($0.07) per share. This reversed a trend of sixteen consecutive quarters of net losses. The 2002 net income was reduced by $2.8 million due to non-recurring forbearance fees and interest on debt which was converted into common stock effective with the recapitalization of the Company as approved by the shareholders on May 10, 2002. Partially offsetting this was a reduction in depreciation and amortization of $2.4 million to $4.4 million as compared to $6.8 million for the first quarter of 2001. This reduction resulted from various assets becoming fully depreciated during fiscal 2001 whose carrying values were increased when the Company adopted Fresh Start Accounting in 1994.
For the 2002 first quarter, a decline in net sales of $1.9 million to $61.7 million as compared to $63.6 million for the 2001 first quarter was offset by a decline in cost of sales and operating expenses of $1.9 million to $46.4 million for the 2002 first quarter as compared to $48.3 million for the 2001 first quarter. The decline in sales was primarily due to a decline in finished goods prices of products sold by the Company and a decrease in raw material processed. The reduction in operating expenses was primarily due to a reduction in energy cost. For the 2002 first quarter, operating income increased $2.2 million to $3.7 million as compared to $1.5 million for the 2001 first quarter.
Darling International Inc. is a publicly traded recycling company which is listed on the American Stock Exchange under the symbol DAR. 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.
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 and its ability to negotiate satisfactory ongoing arrangements with its senior lenders. 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 November 13, 2001; Form 10-K/A filed April 29, 2002; and Darling's Proxy Statement filed April 29, 2002. Darling undertakes no obligation to update any forward-looking statements made in this media release.
Darling International Inc. Consolidated Condensed Statements of Operations For the Quarters Ended March 30, 2002 and March 31, 2001 (Dollars in thousands, except per share amounts) (Unaudited) March 30, March 31, 2002 2001 % Change Net sales $61,681 $63,634 -3.1 Operating cash flow (A) $ 8,126 $ 8,317 -2.3 Depreciation and amortization $ 4,392 $ 6,814 -35.5 Operating income $ 3,734 $ 1,503 +148.44 Net income (loss) $ 583 $(1,149) NM Income (loss) per share (diluted) $ 0.04 $ (0.07) NM (A) Operating income before depreciation and amortization.
CONTACT: John O. Muse, Executive Vice President of Finance and Administration, or Brad Phillips, Treasurer, both of Darling International Inc., +1-972-717-0300.
SOURCE: Darling International Inc.
Contact: John O. Muse, Executive Vice President of Finance and
Administration, or Brad Phillips, Treasurer, both of Darling International