Darling International Inc. Announces Increased Profits in Third Quarter Over First Two Fiscal Quarters
PRNewswire-FirstCall
IRVING, Texas

Darling International Inc. reported $3.5 million net income for its 2002 fiscal third quarter as compared to its combined net income for the first two fiscal quarters of 2002 which aggregated $1.8 million or an increase of 188%. Sales and earnings for its 2002 fiscal third quarter and nine months ended September 28, 2002 as compared to the same periods of the prior year are as follows:

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.

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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