2nd Quarter 2016 Highlights
- Net income of $32.0 million, or $0.19 per GAAP diluted share
- Revenue of $877.3 million
- Adjusted EBITDA of $124.0 million, improved sequential EBITDA of 25.3%
- North American Feed Segment contributed improved sequential earnings and EBITDA margin expansion
- Strong demand for Global Feed Ingredients, Consistent performance from Food Segment and DGD normalizes
IRVING, Texas, Aug. 12, 2016 /PRNewswire/ -- 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, industrial, fuel, bioenergy, and fertilizer industries, today announced financial results for the second quarter ending July 2, 2016.
For the second quarter of 2016, the Company reported net sales of $877.3 million, compared with net sales of $859.3 million for the second quarter of 2015. The increased revenue was attributable to higher finished product pricing for global fats in the Feed Ingredients segment, as well as continued strength in global raw material volumes.
Net income attributable to Darling for the three months ended July 2, 2016, was $32.0 million, or $0.19 per diluted share, compared to a net income of $3.1 million, or $0.02 per diluted share, for the second quarter of 2015. Adjusted EBITDA for Darling for the three months ended July 2, 2016 was $124.0 million compared to Adjusted EBITDA of $105.5 million for the three months ended July 4, 2015. Higher earnings were driven by improved margins in the non-formula portion of the Feed Ingredients segment, increased earnings from biofuels and fuel ingredients in the Fuel segment and lower selling, general and administrative expenses globally.
Randall C. Stuewe, Chairman and CEO, said of the Company's performance, "The results show how we can capture notable gains when market conditions improve. Our business model continues to work and our team did a nice job of executing in highly volatile markets. Our Feed Ingredients segment led the way this quarter, capturing margin as prices improved for global fats and proteins from the first quarter. In the Food segment, we delivered a consistent performance, although softness impacted China. Our Fuel segment saw solid results, with Canadian biodiesel leading the way. In addition, Diamond Green Diesel saw earnings recover, with EBITDA doubling from the previous quarter. We've lowered our cost structure, continued to pay down debt and created a robust global business model that is diversified and increasingly focused on premium, value-add products. In the second quarter, the optionality within several of our businesses enabled us to take full advantage of a stronger market."
- Feed Ingredients – EBITDA $83.5 million (up 43.2% sequentially); Revenue $542.9 million (up 14.0% sequentially); Gross margin $126.8 million (up 22.5% sequentially); Raw material processed flat sequentially
- Food Ingredients – EBITDA $37.3 million (down 3.4% sequentially); Revenue $272.1 million (up 9.8% sequentially); Gross margin $57.8 million (down 7.2% sequentially); Raw material processed flat sequentially
- Fuel Ingredients – EBITDA $13.8 million (up 6.2% sequentially); Revenue $62.2 million (up 11.9% sequentially); Gross margin $15.6 million (up 4.7% sequentially); Raw material processed up 7.1% sequentially
- Diamond Green Diesel Joint Venture – EBITDA $36.7 million at entity level, $18.3 million Darling's share; $156 million tax credit received and a partner dividend of $25 million each received April 2016; Facility expansion's final engineering phase progressing, construction expected to be completed in Q4 2017
For More Information, contact:
Melissa A. Gaither, VP IR and Global Communications