Darling International Inc.
Fourth Quarter 2007
For the fourth quarter of 2007, the Company reported net sales of $175.4 million compared to $128.1 million for the fourth quarter of 2006. Higher finished product prices and the purchase of finished product for resale accounted for the majority of the $47.3 million increase.
Net income for the fourth quarter of 2007 increased to $14.4 million, or $0.18 per share, as compared to $6.1 million, or $0.07 per share, for the 2006 comparable period. The $8.3 million increase in net income for the fourth quarter resulted primarily from significantly higher prices for finished products and a $1.2 million gain on the recording of income received under the Alternative Fuel Mixture Credits, which were partially offset by a $2.2 million charge related to the Company's settlement of a litigation matter involving a contract dispute.
Darling International Inc. Chairman and Chief Executive Officer Randall Stuewe said, "We are very pleased with our results for the fourth quarter and 2007, and believe we have significant momentum moving into 2008."
Fiscal Year 2007
For fiscal year 2007, the Company reported net sales of $645.3 million as compared to $407.0 million for fiscal year 2006. The $238.3 million increase in sales is primarily attributable to higher finished product prices and the inclusion for the full year of the operations resulting from the Company's acquisition of substantially all of the assets of National By-Products on May 15, 2006.
For the fiscal year ended December 29, 2007, the Company reported net income of $45.5 million, or $0.56 per share, as compared to $5.1 million or $0.07 per share for the 2006 comparable period. The $40.4 million increase in net income for fiscal year 2007 resulted primarily from: (i) higher finished product prices; (ii) resulting synergies of the integration of National By-Products; (iii) increased raw material volume; and (iv) a $2.2 million gain on the closing of a transaction for sale of a judgment against a service provider, which was partially offset by: (i) a $2.2 million charge related to the Company's settlement of a litigation matter involving a contract dispute; (ii) a $1.2 million charge related to a mass termination withdrawal liability arising from a multi-employer pension plan termination; and (iii) the 2006 impact of a $4.5 million in charges related to prepayment fees and write-off of deferred loan costs in connection with termination of the Company's previous subordinated debt and senior credit facility.
Darling International will host a conference call to discuss the Company's fiscal 2007 financial results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Thursday, February 28, 2008. To listen to the conference call, participants calling from within North America should dial 800-341-2312; international participants should dial 347-284-6935. Please refer to confirmation code 40047541. Please call approximately ten minutes before the start of the call to ensure that you are connected.
The call will also be available as a live audio web cast that can be accessed on the company website at http://www.darlingii.com/investors/investors.asp or http://www.earnings.com/. Following its completion, a replay of the call can be accessed until March 6, 2008 by dialing 866-891-3570, or 585-295-6791 outside of North America. The access code for the replay is 93701760. The conference call will also be archived on the company's website for seven days.
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, meat and bone meal, and hides. These products are primarily sold to agricultural, leather, oleo-chemical and bio-diesel manufacturers around the world. In addition, the Company provides grease trap collection services and sells equipment to restaurants.
For more information, please visit http://www.darlingii.com/.
{This media release contains forward-looking statements regarding the business operations and prospects of Darling and industry factors affecting it. These statements are identified by words such as "may," "will," " begin," "look forward," "expect," "believe," "intend," "anticipate," "should," "estimate," "continue," "momentum" 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 beyond its control, including business and economic conditions in its existing markets and in global demands for grain and oilseed commodities and biofuels that could cause actual results to differ materially from those projected in the forward-looking statements. Other risks and uncertainties regarding Darling, its business and the industry in which it operates are referenced from time to time in the Company's filings with the Securities and Exchange Commission. Darling is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}
Contact:
John O. Muse, Executive Vice President of Finance and Administration, or Brad Phillips, Treasurer, Phone: 972-717-0300
Darling International Inc. Consolidated Operating Results For the Periods Ended December 29, 2007 and December 30, 2006 (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended Dec. 29, Dec. 30, $ Change Dec. 29, Dec. 30, $ Change 2007 2006 Favor- 2007 2006 Favor- able able (Unfavor- (Unfavor- able) able) Net sales $175,445 $128,130 $47,315 $645,313 $406,990 $238,323 Costs and expenses: Cost of sales and operating expenses 127,395 99,143 (28,252) 483,453 321,416 (162,037) Selling, general and administrative expenses 16,838 11,721 (5,117) 57,999 45,649 (12,350) Depreciation and amortization 6,028 5,822 (206) 23,214 20,686 (2,528) Total costs and expenses 150,261 116,686 (33,575) 564,666 387,751 (176,915) Operating income 25,184 11,444 13,740 80,647 19,239 61,408 Other income (expense): Interest expense (920) (1,860) 940 (5,045) (7,184) 2,139 Other, net 66 (291) 357 (570) (4,682) 4,112 Total other income (expense) (854) (2,151) 1,297 (5,615) (11,866) 6,251 Income from operations before income taxes 24,330 9,293 15,037 75,032 7,373 67,659 Income taxes (9,959) (3,204) (6,755) (29,499) (2,266) (27,233) Net Income $14,371 $6,089 $8,282 $45,533 $5,107 $40,426 Basic earnings per share $0.18 $0.08 $0.10 $0.56 $0.07 $0.49 Diluted earnings per share $0.18 $0.07 $0.11 $0.56 $0.07 $0.49
First Call Analyst:
FCMN Contact: bphillips@darlingii.com
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/