Darling International Inc.
For the 2002 third quarter, the Company reported net income of $3.5 million as compared to a net loss of $3.5 million for the third quarter of 2001. After a $0.4 million deduction for preferred dividends and accretion, the Company reported income from continuing operations of $0.06 per share applicable to common shareholders as compared to a loss from continuing operations of ($0.21) per share for the third quarter of 2001. The $7.0 million increase in net income for the third quarter 2002 resulted from increased net sales and a reduction in depreciation and amortization and interest expense, which more than offset increases in operating costs, income taxes and a loss from discontinued operations recorded for the sale in October 2002 of the Company's Linkwood, Maryland facility.
For the nine months ended September 28, 2002, the Company reported net income of $5.3 million as compared to a net loss of $10.4 million for the 2001 comparable period. After a $0.6 million deduction for preferred dividends and accretion, the Company reported income from continuing operations of $0.13 per share applicable to common shareholders as compared to a loss from continuing operations of ($0.62) per share for the 2001 comparable period. The $15.7 million increase in net income for the nine months ended September 28, 2002, resulted from increases in net sales and other income, and a reduction in depreciation and amortization and interest expense, which more than offset increases in operating costs, income taxes and a loss from discontinued operations.
The Company's Chief Executive Officer, Denis J. Taura, stated that "the Company's strong third quarter performance reflects the benefits of the Company's recapitalization completed in May 2002, operating in an environment of relatively stable commodity prices and effectively managing the critical components of the Company's operations."
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 November 11, 2002, Darling stock closed at $0.94 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 13, 2002; Form 10-K/A filed April 29, 2002; Proxy Statement filed April 29, 2002 and Amendment No. 1 to the Registration Statement as filed on June 5, 2002. 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 September 28, 2002 and September 29, 2001
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 28, Sept. 29, $ Change Sept. 28, Sept. 29, $ Change
2002 2001 Favorable 2002 2001 Favorable
(Unfavorable) (Unfavorable)
Net sales $72,933 $61,500 $11,433 $191,890 $176,819 $15,071
Costs and expenses:
Cost of sales and
operating
expenses 54,272 47,993 (6,279) 142,729 136,778 (5,951)
Selling, general
and
administrative
expenses 7,333 6,742 (591) 22,776 20,396 (2,380)
Depreciation and
amortization 4,246 5,508 1,262 12,271 17,700 5,429
Total costs and
expenses 65,851 60,243 (5,608) 177,776 174,874 (2,902)
Operating income 7,082 1,257 5,825 14,114 1,945 12,169
Other income (expense):
Interest expense (700) (3,956) 3,256 (5,971) (10,450) 4,479
Other, net (233) (505) 272 1,261 (1,042) 2,303
Total other
expense (933) (4,461) 3,528 (4,710) (11,492) 6,782
Income (loss) from
continuing
operations before
income taxes 6,149 (3,204) 9,353 9,404 (9,547) 18,951
Income taxes (2,340) --- (2,340) (3,733) --- (3,733)
Income (loss)
from continuing
operations 3,809 (3,204) 7,013 5,671 (9,547) 15,218
Loss from
discontinued
operation, net
of tax (356) (315) (41) (386) (842) 456
Net income (loss) 3,453 (3,519) 6,972 5,285 (10,389) 15,674
Preferred dividends
and accretion (A) (375) --- (375) (630) --- (630)
Net income (loss)
applicable to
common
shareholders $3,078 $(3,519) $6,597 $4,655 $(10,389) $15,044
Basic and diluted
income (loss) per
share:
Continuing
operations $0.06 $(0.21) $0.27 $0.13 $(0.62) $0.75
Discontinued
operations (0.01) (0.02) 0.01 (0.01) (0.05) 0.04
Total $0.05 $(0.23) $0.28 $0.12 $(0.67) $0.79
(A) Preferred dividends accrued were $152,000 and $252,000 during the
three and nine months ended September 28, 2002, respectively.
Accretion of the preferred stock discount were $223,000 and
$378,000 during the three and nine months ended September 28, 2002,
respectively.
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
Inc., +1-972-717-0300
Web site: http://www.darlingii.com/