Darling Ingredients Inc. Delivers Strong Fourth Quarter and Fiscal Year 2021 Financial Results; Carries Momentum into 2022
Fourth Quarter 2021
- Net income of $155.8 million, or $0.94 per GAAP diluted share
- Net Sales of $1.3 billion
- Combined adjusted EBITDA of $306.8 million
- Global ingredients business EBITDA of $223.6 million
Fiscal Year 2021
- Net income of $650.9 million, or $3.90 per GAAP diluted share
- Net sales of $4.7 billion
- Combined adjusted EBITDA of $1.235 billion
- Global ingredients business record EBITDA of $851.4 million

IRVING, Texas, Feb. 28, 2022 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR) today reported net income of $155.8 million, or $0.94 per diluted share for fourth quarter 2021, compared to net income of $44.7 million, or $0.27 per diluted share, for fourth quarter 2020. The company also reported net sales of $1.3 billion for the fourth quarter of 2021, as compared with net sales of $1.0 billion for the same period a year ago. 

"Q4 was an outstanding quarter, capping off another record year for Darling Ingredients, " said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "Robust demand in our feed segment aligned with increasing demand at Diamond Green Diesel (DGD) positions us well for strong performance in 2022."

DGD sold a record 370 million gallons of renewable diesel in fiscal year 2021 at an average of $2.07 EBITDA per gallon. The DGD Norco, La. renewable diesel expansion project was commissioned in the fourth quarter and is operating above nameplate capacity.

"DGD is providing a solid return," Stuewe added. "Our announced agreement to purchase Valley Proteins strategically positions us to provide low CI feedstocks to fuel growing demand for renewable diesel. It also opens the door to potential new export opportunities as our world drives toward decarbonization."

The leverage ratio as measured by the company's bank covenant was 1.57x at the end of the year. The company reduced its Term Loan B outstanding balance by $100 million during 2021. Capital expenditures totaled approximately $274 million in 2021.  Repurchase of the company's common stock totaled $167.7 million in 2021.

For the 2021 fiscal year, Darling reported net sales of $4.7 billion, as compared with net sales of $3.6 billion for 2020. Net income attributable to Darling for 2021 was $650.9 million, or $3.90 per diluted share, as compared to net income of $296.8 million, or $1.78 per diluted share, for 2020.

As of Jan. 1, 2022, Darling had $69.1 million in cash and cash equivalents, and $1.29 billion available under its committed revolving credit agreement. Total debt outstanding at the end of the fiscal year was $1.46 billion.

Combined adjusted EBITDA was $306.8 million for the fourth quarter of 2021, compared to $214.5 million for the same period in 2020. For the 2021 fiscal year, combined adjusted EBITDA totaled $1.235 billion, compared to $841.5 million for fiscal year 2020.

Segment Financial Tables (in thousands)
(unaudited)


Three Months Ended January 1, 2022

Feed
Ingredients

Food
Ingredients

Fuel
Ingredients

Corporate

Total







Net sales

$       846,498

$       344,677

$       118,893

$               -

$     1,310,068

Cost of sales and operating expenses

621,581

272,972

94,371

-

988,924

Gross margin

$       224,917

$         71,705

$         24,522

$               -

$        321,144







Gain on sale of assets

(60)

(87)

(18)

-

(165)

Selling, general and administrative expenses

57,484

22,405

3,177

14,667

97,733

Depreciation and amortization

56,538

15,263

6,222

2,782

80,805

Acquisition and integration costs

-

-

-

1,396

1,396

Equity in net income of Diamond Green Diesel

-

-

69,663

-

69,663

Segment operating income/(loss)

$       110,955

$         34,124

$         84,804

$    (18,845)

$        211,038

Equity in net income of other unconsolidated subsidiaries

$           1,554

$                   -

$                   -

$               -

$            1,554

Segment Income/(loss)

$       112,509

$         34,124

$         84,804

$    (18,845)

$        212,592







Segment EBITDA

$       167,493

$         49,387

$         21,363

$    (14,667)

$        223,576

DGD adjusted EBITDA (Darling's Share)

$                   -

$                   -

$         83,192

$               -

$          83,192

Combined adjusted EBITDA

$       167,493

$         49,387

$       104,555

$    (14,667)

$        306,768







Three Months Ended January 2, 2021

Feed
Ingredients

Food
Ingredients

Fuel
Ingredients

Corporate

Total







Net sales

$       572,764

$       344,631

$       102,444

$               -

$     1,019,839

Cost of sales and operating expenses

426,593

268,348

76,251

-

771,192

Gross margin

$       146,171

$         76,283

$         26,193

$               -

$        248,647







Loss/(gain) on sale of assets

(274)

512

(22)

-

216

Selling, general and administrative expenses

56,289

26,000

5,369

14,459

102,117

Restructuring and asset impairment charges

-

-

38,167

-

38,167

Depreciation and amortization

61,219

22,827

9,513

2,908

96,467

Equity in net income of Diamond Green Diesel

-

-

62,684

-

62,684

Segment operating income/(loss)

$         28,937

$         26,944

$         35,850

$    (17,367)

$          74,364

Equity in net income of other unconsolidated subsidiaries

$              726

$                   -

$                   -

$               -

$               726

Segment income/(loss)

$         29,663

$         26,944

$         35,850

$    (17,367)

$          75,090







Segment EBITDA

$         90,156

$         49,771

$         20,846

$    (14,459)

$        146,314

DGD adjusted EBITDA (Darling's Share)

$                   -

$                   -

$         68,171

$               -

$          68,171

Combined adjusted EBITDA

$         90,156

$         49,771

$         89,017

$    (14,459)

$        214,485













Segment Financial Tables (in thousands) continued
(unaudited)


Twelve Months Ended January 1, 2022

Feed
Ingredients

Food
Ingredients

Fuel
Ingredients

Corporate

Total







Net sales

$    3,039,500

$    1,271,629

$       430,240

$               -

$     4,741,369

Cost of sales and operating expenses

2,206,248

979,232

313,905

-

3,499,385

Gross margin

$       833,252

$       292,397

$       116,335

$               -

$     1,241,984

Gain on sale of assets

(550)

(88)

(320)

-

(958)

Selling, general and administrative expenses

220,078

97,555

16,999

56,906

391,538

Restructuring and asset impairment charges

-

-

778

-

778

Depreciation and amortization

218,942

60,929

25,436

11,080

316,387

Acquisition and integration costs

-

-

-

1,396

1,396

Equity in net income of Diamond Green Diesel

-

-

351,627

-

351,627

Segment operating income/(loss)

$       394,782

$       134,001

$       425,069

$    (69,382)

$        884,470

Equity in net income of other unconsolidated subsidiaries

$           5,753

$                   -

$                   -

$               -

$            5,753

Segment income/(loss)

$       400,535

$       134,001

$       425,069

$    (69,382)

$        890,223







Segment EBITDA

$       613,724

$       194,930

$         99,656

$    (56,906)

$        851,404

DGD adjusted EBITDA (Darling's Share)

$                   -

$                   -

$       383,419

$               -

$        383,419

Combined adjusted EBITDA

$       613,724

$       194,930

$       483,075

$    (56,906)

$     1,234,823













Twelve Months Ended January 2, 2021

Feed
Ingredients

Food
Ingredients

Fuel
Ingredients

Corporate

Total







Net sales

$    2,072,104

$    1,185,701

$       314,118

$               -

$     3,571,923

Cost of sales and operating expenses

1,544,524

920,682

223,609

-

2,688,815

Gross margin

$       527,580

$       265,019

$         90,509

$               -

$        883,108

Loss/(gain) on sale of assets

19

482

(75)

-

426

Selling, general and administrative expenses

209,748

97,406

16,014

55,328

378,496

Restructuring and asset impairment charges

-

-

38,167

-

38,167

Depreciation and amortization

221,187

83,752

34,218

11,021

350,178

Equity in net income of Diamond Green Diesel

-

-

315,095

-

315,095

Segment operating income/(loss)

$         96,626

$         83,379

$       317,280

$    (66,349)

$        430,936

Equity in net income of other unconsolidated subsidiaries

$           3,193

$                   -

$                   -

$               -

$            3,193

Segment income/(loss)

$         99,819

$         83,379

$       317,280

$    (66,349)

$        434,129







Segment EBITDA

$       317,813

$       167,131

$         74,570

$    (55,328)

$        504,186

DGD adjusted EBITDA (Darling's Share)

$                   -

$                   -

$       337,348

$               -

$        337,348

Combined adjusted EBITDA

$       317,813

$       167,131

$       411,918

$    (55,328)

$        841,534

 

Darling Ingredients Inc. and Subsidiaries
Consolidated Balance Sheets
January 1, 2022 and January 2, 2021

  (in thousands)



January 1,


January 2,

2022


2021

ASSETS

(unaudited)



Current assets:





Cash and cash equivalents

$              68,906


$              81,617


Restricted cash

166


103


Accounts receivable, net

469,092


405,387


Inventories

457,465


405,922


Prepaid expenses

53,711


47,793


Income taxes refundable

1,075


3,883


Other current assets

38,599


42,289


              Total current assets

1,089,014


986,994

Property, plant and equipment, net

1,840,080


1,863,814

Intangible assets, net

397,801


473,680

Goodwill

1,219,116


1,260,240

Investment in unconsolidated subsidiaries

1,349,247


804,682

Operating lease right-of-use assets

155,464


146,563

Other assets

66,795


60,682

Deferred income taxes

16,211


16,676



$         6,133,728


$         5,613,331

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Current portion of long-term debt

$              24,407


$              27,538


Accounts payable, principally trade

307,118


255,340


Income taxes payable

32,310


17,497


Current operating lease liabilities

38,168


39,459


Accrued expenses

350,681


335,471


              Total current liabilities

752,684


675,305

Long-term debt, net of current portion

1,438,974


1,480,531

Long-term operating lease liabilities

120,314


109,707

Other noncurrent liabilities

111,029


117,371

Deferred income taxes

362,942


276,208


              Total liabilities

2,785,943


2,659,122

Commitments and contingencies




Total Darling's stockholders' equity

3,280,960


2,891,909

Noncontrolling interests

66,825


62,300


              Total stockholders' equity

3,347,785


2,954,209



$         6,133,728


$         5,613,331

 

Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021

(in thousands, except per share data)















Three Months Ended




Twelve Months Ended



(unaudited)


$ Change




  (unaudited)


$ Change



January 1,


January 2,


Favorable




January 1,


January 2,


Favorable



2022


2021


(Unfavorable)




2022


2021


(Unfavorable)

Net sales

$    1,310,068


$    1,019,839


$        290,229




$    4,741,369


$     3,571,923


$     1,169,446

Costs and expenses:















Cost of sales and operating expenses

988,924


771,192


(217,732)




3,499,385


2,688,815


(810,570)


Loss (gain) on sale of assets

(165)


216


381




(958)


426


1,384


Selling, general and administrative expenses

97,733


102,117


4,384




391,538


378,496


(13,042)


Restructuring and asset impairment charges

-


38,167


38,167




778


38,167


37,389


Depreciation and amortization

80,805


96,467


15,662




316,387


350,178


33,791


Acquisition and integration costs

1,396


-


(1,396)




1,396


-


(1,396)

Total costs and expenses

1,168,693


1,008,159


(160,534)




4,208,526


3,456,082


(752,444)


Equity in net income of Diamond Green Diesel

69,663


62,684


6,979




351,627


315,095


36,532

Operating income

211,038


74,364


136,674




884,470


430,936


453,534

Other expense:















Interest expense

(14,972)


(16,883)


1,911




(62,077)


(72,686)


10,609


Foreign currency losses

(900)


(1,581)


681




(2,199)


(2,290)


91


Other expense, net

(1,341)


(256)


(1,085)




(4,551)


(5,534)


983

Total other expense

(17,213)


(18,720)


1,507




(68,827)


(80,510)


11,683

Equity in net income














    of other unconsolidated subsidiaries

1,554


726


828




5,753


3,193


2,560

Income before income taxes

195,379


56,370


139,009




821,396


353,619


467,777

Income tax expense

37,782


10,231


(27,551)




164,106


53,289


(110,817)

Net income

157,597


46,139


111,458




657,290


300,330


356,960

Net income attributable to















noncontrolling interests

(1,843)


(1,394)


(449)




(6,376)


(3,511)


(2,865)

Net income attributable to Darling

$       155,754


$         44,745


$        111,009




$       650,914


$        296,819


$        354,095
















Basic income per share:

$             0.96


$             0.28


$              0.68




$             4.01


$              1.83


$              2.18

Diluted income per share:

$             0.94


$             0.27


$              0.67




$             3.90


$              1.78


$              2.12
















Number of diluted common shares:

166,267


167,920






167,096


167,208



 

Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended January 1, 2022 and January 2, 2021

(in thousands)






Twelve Months Ended





(unaudited)







January 1,


January 2,

Cash flows from operating activities:

2022


2021


Net income


$  657,290


$    300,330


Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization

316,387


350,178



Deferred income taxes

96,812


15,814



Loss/(gain) on sale of assets

(958)


426



Asset impairment


138


37,802



Decrease in long-term pension liability

(4,742)


(6,555)



Stock-based compensation expense

21,837


23,222



Write-off deferred loan costs

1,130


3,052



Deferred loan cost amortization

4,038


5,357



Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries

(357,380)


(318,288)



Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries

4,611


207,328



Changes in operating assets and liabilities, net of effects from acquisitions:






     Accounts receivable

(79,954)


22,362



     Income taxes refundable/payable

18,826


4,200



     Inventories and prepaid expenses

(72,919)


(18,666)



     Accounts payable and accrued expenses

84,580


11,200



     Other


14,724


(13,111)




Net cash provided by operating activities

704,420


624,651

Cash flows from investing activities:





Capital expenditures

(274,126)


(280,115)


Acquisitions, net of cash acquired

(2,059)


(29,793)


Investment in Diamond Green Diesel

(189,000)


-


Investment in other unconsolidated subsidiaries

(4,449)


-


Loan to Diamond Green Diesel

(25,000)


-


Gross proceeds from disposal of property, plant and equipment and other assets

4,645


2,797


Proceeds from insurance settlement

-


293


Payments related to routes and other intangibles

(274)


(3,810)




Net cash used in investing activities

(490,263)


(310,628)

Cash flows from financing activities:





Proceeds from long-term debt

43,824


34,569


Payments on long-term debt

(142,133)


(232,726)


Borrowings from revolving credit facility

620,601


495,691


Payments on revolving credit facility

(515,424)


(480,604)


Net cash overdraft financing

(3,845)


(37,692)


Deferred loan costs


(3,809)


(4,292)


Issuance of common stock

50


67


Repurchase of common stock

(167,708)


(55,044)


Minimum withholding taxes paid on stock awards

(46,894)


(11,918)


Acquisition of noncontrolling interest

-


(8,784)


Distributions to noncontrolling interests

(6,022)


(6,253)




Net cash used in financing activities

(221,360)


(306,986)

Effect of exchange rate changes on cash flows

(5,445)


1,638

Net (decrease)/increase in cash, cash equivalents and restricted cash

(12,648)


8,675

Cash, cash equivalents and restricted cash at beginning of year

81,720


73,045

Cash, cash equivalents and restricted cash at end of period

$     69,072


$       81,720

Supplemental disclosure of cash flow information:





Accrued capital expenditures

$        6,585


$        (4,967)


Cash paid during the period for:






Interest, net of capitalized interest

$     58,449


$       66,216



Income taxes, net of refunds

$     46,399


$       36,779


Non-cash operating activities:






Operating lease right of use asset obtained in exchange for new lease liabilities

$     56,642


$       58,052


Non-cash financing activities:






Debt issued for service contract assets

$            126


$          8,123

 

Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
December 31, 2021 and December 31, 2020

(in thousands)






December  31,


December  31,





2021


2020

Assets:







Total current assets


$        686,294


$       383,557


Property, plant and equipment, net


2,710,747


1,238,726


Other assets


51,514


36,082



Total assets


$     3,448,555


$    1,658,365








Liabilities and members' equity:






Total current portion of long term debt


$        165,092


$              517


Total other current liabilities


295,860


99,787


Total long term debt


344,309


8,705


Total other long term liabilities


17,531


3,758


Total members' equity


2,625,763


1,545,598



Total liabilities and members' equity


$     3,448,555


$    1,658,365

 

Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Twelve-Month Periods Ended December 31, 2021 and December 31, 2020

(in thousands)


















Three Months Ended




Twelve Months Ended





(unaudited)


$ Change






$ Change





December 31,


December 31,


Favorable




December 31,


December 31,


Favorable


Revenues:

2021


2020


(Unfavorable)




2021


2020


(Unfavorable)



Operating revenues

$        936,940


$        266,760


$          670,180




$     2,342,332


$     1,267,477


$     1,074,855


Expenses:
















Total costs and expenses less

















depreciation, amortization and accretion expense

770,555


130,417


(640,138)




1,575,494


592,781


(982,713)



Depreciation, amortization and

23,653


11,222


(12,431)




58,326


44,882


(13,444)




accretion expense















Total costs and expenses

794,208


141,639


(652,569)




1,633,820


637,663


(996,157)



Operating income 

142,732


125,121


17,611




708,512


629,814


78,698


Other income

154


560


(406)




678


1,636


(958)




Interest and debt expense, net

(3,560)


(313)


(3,247)




(5,936)


(1,260)


(4,676)




Net income 

$        139,326


$        125,368


$            13,958




$        703,254


$        630,190


$          73,064



















 

Darling Ingredients Inc. reports Adjusted EBITDA results, which is a Non-GAAP financial measure, as a complement to results provided in accordance with generally accepted accounting principles (GAAP) (for additional information, see "Use of Non-GAAP Financial Measures" included later in this media release). The Company believes that Adjusted EBITDA provides additional useful information to investors. Adjusted EBITDA, as the Company uses the term, is calculated below:

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign
Currency                      
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021
(unaudited) 



Three Months Ended



Twelve Months Ended 

Adjusted EBITDA 

January 1,


January 2,



January 1,


January 2,

(U.S. dollars in thousands)

2022


2021



2022


2021











Net income attributable to Darling

$          155,754


$            44,745



$          650,914


$          296,819

Depreciation and amortization

80,805


96,467



316,387


350,178

Interest expense

14,972


16,883



62,077


72,686

Income tax expense

37,782


10,231



164,106


53,289

Restructuring and asset impairment charges

-


38,167



778


38,167

Acquisition and integration costs

1,396


-



1,396


-

Foreign currency losses

900


1,581



2,199


2,290

Other expense, net

1,341


256



4,551


5,534

Equity in net income of Diamond Green Diesel

(69,663)


(62,684)



(351,627)


(315,095)

Equity in net income of other unconsolidated subsidiaries

(1,554)


(726)



(5,753)


(3,193)

Net income attributable to noncontrolling interests

1,843


1,394



6,376


3,511


Adjusted EBITDA (Non-GAAP)

$          223,576


$          146,314



$          851,404


$          504,186

Foreign currency exchange impact 

2,903

(1)

-



(18,888)

(2)

-


 Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)

$          226,479


$          146,314



$          832,516


$          504,186

DGD Joint Venture Adjusted EBITDA (Darling's Share)

$            83,192


$            68,171



$          383,419


$          337,348











Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA 

$          306,768


$          214,485



$       1,234,823


$          841,534











(1) The average rate assumption used in this calculation was the actual fiscal average rate for the three months ended

January 1, 2022 of €1.00:USD$1.14 and CAD$1.00:USD$0.79, as compared to the average rate for the three months ended

January 2, 2021 of  €1.00:USD$1.19 and CAD$1.00:USD$0.77, respectively.

(2) The average rate assumption used in this calculation was the actual fiscal average rate for the twelve months ended

January 1, 2022 of €1.00:USD$1.18 and CAD$1.00:USD$0.80, as compared to the average rate for the twelve months ended

January 2, 2021 of €1.00:USD$1.14 and CAD$1.00:USD$0.75, respectively.

About Darling

Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates 250 plants in 17 countries and repurposes nearly 10% of the world's meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertilizer, animal proteins and meals and pet food ingredients. To learn more, visit darlingii.com. Follow us on LinkedIn.

Darling Ingredients Inc. will host a conference call to discuss the Company's fourth quarter and fiscal year 2021 financial results at 9 a.m. Eastern Time (8 a.m. Central Time) on Tuesday, March 1, 2022.  To listen to the conference call, participants calling from within North America should dial 1-844-868-8847; international participants should dial 1-412-317-6593.  Please refer to access code 10163722. 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 webcast that can be accessed on the Company website at http://ir.darlingii.com. Beginning one hour after its completion, a replay of the call can be accessed through March 8, 2022, by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada) and 1-412-317-0088 (international callers).  The access code for the replay is 82060219.  The conference call will also be archived on the Company's website.

Use of Non-GAAP Financial Measures:

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP.  Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.

As a result, the Company's management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company's Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes that were outstanding at January 1, 2022. However, the amounts shown in this presentation for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company's Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange impact on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains "forward-looking" statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as "believe," "anticipate," "expect," "estimate," "intend," "could," "may," "will," "should," "planned," "potential," "continue," "momentum," and other words referring to events that may occur in the future.  These statements reflect Darling Ingredient'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, each of which could cause actual results to differ materially from those indicated in the forward-looking statements.  These factors include, among others, existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company's products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas("GHG") emissions that adversely affect programs like the U.S. government's renewable fuel standard, low carbon fuel standards ("LCFS") and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of 2009 H1N1 flu (initially known as "Swine Flu"), Highly pathogenic strains of avian influenza (collectively known as "Bird Flu"), severe acute respiratory syndrome ("SARS"), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of African Swine Fever ("ASF") in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company's compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE, ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion project; failure to close on strategic acquisitions, such as Valley Proteins; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully,  risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company's pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward looking statements included in this release or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company's ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company's announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company's filings with the Securities and Exchange Commission.  Darling Ingredients Inc. 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:   

Suann Guthrie


VP, Investor Relations, Sustainability & Communications


(469) 214-8202

 

SOURCE Darling Ingredients Inc.