Darling Ingredients Inc. Reports Fourth Quarter And Fiscal 2015 Financial Results: Highlights Efficient Growth Through Deflationary Commodity Cycle And Continued Focus On Debt Reduction
PR Newswire

IRVING, Texas, March 2, 2016 /PRNewswire/ --

4th Quarter 2015 Highlights

  • Net income of $84.4 million, or $0.52 per GAAP diluted share; $0.54 per (Non-GAAP) Adjusted diluted share
  • Revenue of $809.7 million
  • Food and Fuel Segments contribute solidly….Feed Segment navigated volatile Q4 pricing

Fiscal 2015 Highlights

  • Consolidated revenue of $3.4 billion
  • Adjusted EBITDA of $412.5 million
  • Full year debt reduction of $118 million
  • Change in working capital cash improvement fiscal 2014 to fiscal 2015 of $72.7 million
  • SG&A reduction of $52 million compared to 2014
  • Diamond Green Diesel EBITDA $177.0 million for 2015 at entity level; Darling's share $88.5 million for 2015
  • Completed construction on three plants and one expansion in 2015, two additional plants on schedule for completion during 2016

Darling Ingredients Inc. (NYSE: DAR), a global leader in converting edible and inedible bio-nutrient streams into a wide range of ingredients and specialty products for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries, today announced financial results for the fiscal 2015 fourth quarter and year ended January 2, 2016.

For the fourth quarter of 2015, the Company reported net sales of $809.7 million, a $190.5 million decline from fourth quarter 2014. For fiscal 2015, the Company reported net sales of $3.40 billion, compared to $3.96 billion for fiscal 2014. While global raw material volumes were stronger year over year, revenue declines were primarily attributable to sustained weakness in global commodities and continued FX translation impacts.

Darling's Adjusted EBITDA for the three months ended January 2, 2016 was $102.7 million, a decrease of $6.0 million compared to fourth quarter 2014.  

Darling continued its emphasis on organic growth during the year with the completion of two wet pet food plants, one bakery feeds plant, and a major expansion at our Dubuque, Iowa gelatin plant. Two new rendering plants are scheduled for completion in the second half of 2016. 

Comments on the Fourth Quarter and Fiscal 2015 Year End

Randall C. Stuewe, Darlings Ingredients Inc. Chairman and Chief Executive Officer, said of the Company's quarterly and fiscal year performance, "2015 was a year characterized by continued global commodity deflation.  Our team delivered solid execution led by international businesses with growth and cost saving efficiencies achieved around the globe. While challenging conditions persisted through the fourth quarter, we delivered respectable quarterly results and exit 2015 a stronger company, highlighted by lower debt, strong cash flows and strategic investments in new plants and operating efficiencies.

"During the fourth quarter, our Food and Fuel segments performed well, generating strong EBITDA margins driven primarily by improved pricing and higher volumes, but were partially offset by continued FX challenges. In our Feed segment, we successfully navigated some short-term challenges that negatively impacted results, but pricing of these products rebounded nicely in early Q1 2016.

"While still early in 2016, our current view is that we will see improved conditions for fats and oils demand globally as we proceed into spring.  We continue to be focused on areas that we can control across all levels of the organization. We believe that the significant cost savings we achieved in 2015 position us for success in 2016. Our focus continues to be on de-levering the balance sheet, while at the same time preserving the flexibility to continue to identify and execute growth opportunities that will position the Company for future success," concluded Mr. Stuewe.

For the complete press release and full financial results, please visit the Company's website at http://ir.darlingii.com.

For More Information, contact:

Melissa A. Gaither, V.P. Investor Relations and Global Communications

Email: mgaither@darlingii.com

251 O'Connor Ridge Blvd., Suite 300

Phone: 972-717-0300

Irving, Texas 75038