Second Quarter 2022
Darling Ingredients Inc. Delivers Another Record Quarter

Second Quarter 2022

  • Net income of $202 million, or $1.23 per GAAP diluted share
  • Net Sales of $1.65 billion
  • Combined adjusted EBITDA of $402.6 million
  • Repurchased $48.7 million of stock

IRVING, Texas, Aug. 9, 2022 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR) today reported another record quarter, with net income of $202 million, or $1.23 per diluted share for the second quarter 2022, compared to net income of $196.6 million, or $1.17 per diluted share, for the second quarter 2021. The company also reported net sales of $1.65 billion for the second quarter of 2022, as compared with net sales of $1.2 billion for the same period a year ago. 

"Darling Ingredients delivered another record quarter, setting an all-time quarterly high of $402.6 million in combined adjusted EBITDA," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "This quarter's outstanding performance illustrates our diversified platform of specialty ingredients and decarbonization solutions and our ability to adapt to dynamic market conditions."

For the six months ended July 2, 2022, Darling Ingredients reported net sales of $3 billion, compared to net sales of $2.2 billion for the same period in 2021. Net income attributed to Darling Ingredients for the first six months of 2022 was $390 million, or  $2.37 per diluted share, as compared to net income of $348.3 million, or $2.08 per diluted share, for the first six months of 2021. 

Combined adjusted EBITDA was $402.6 million for the second quarter 2022, compared to $353.7 million for the same period in 2021.  On a year-to-date basis, combined adjusted EBITDA totaled $733.2 million for 2022, as compared to $638.5 million for the same period in 2021.

Under Darling Ingredients' share repurchase program, the company repurchased approximately 700,000 shares of common stock during the second quarter for a total of $48.7 million, bringing the total stock repurchased year to date 2022 as of July 2, 2022, to approximately 971,000 shares of common stock for a total of $65.9 million

As of July 2, 2022, Darling had $146.8 million in cash and cash equivalents, and $1.4 billion available under its committed revolving credit agreement. Total debt outstanding as of July 2, 2022 was $2.9 billion. The leverage ratio as measured by the company's bank covenant was 2.59 as of July  2, 2022. Second quarter capital expenditures totaled approximately $79.9 million.  

On May 2, 2022, Darling Ingredients completed the acquisition of Valley Proteins, one of the largest independent rendering companies in the United States. On Aug. 1, 2022, the company completed its acquisition of FASA Group, the largest independent rendering company in Brazil. The company used cash on hand and borrowings under the company's amended credit agreement to fund the acquisitions.

Darling Ingredients reaffirms its previously announced forecast for full year 2022 of $1.55-$1.6 billion combined adjusted EBITDA.

 







Segment Financial Tables (in thousands)

(unaudited)



Feed Ingredients

Food Ingredients

Fuel Ingredients

Corporate

Total

Three Months Ended July 2, 2022






Net sales

$          1,170,347

$            369,181

$            110,660

$                   -

$          1,650,188

Cost of sales and operating expenses

864,306

280,964

86,237

-

1,231,507

Gross Margin

306,041

88,217

24,423

-

418,681







Gain on sale of assets

(964)

(73)

(18)

-

(1,055)

Selling, general and administrative expenses

64,863

22,855

4,277

15,781

107,776

Restructuring and asset impairment charges

8,557

-

-

-

8,557

Acquisition and integration costs

-

-

-

5,358

5,358

Depreciation and amortization

68,938

14,449

6,936

2,790

93,113

Equity in net income of Diamond Green Diesel

-

-

73,680

-

73,680

Segment operating income/(loss)

$             164,647

$              50,986

$              86,908

$          (23,929)

$             278,612

Equity in net income of other unconsolidated subsidiaries

2,272

-

-

-

2,272

Segment income/(loss)

$             166,919

$              50,986

$              86,908

$          (23,929)

$             280,884







Segment EBITDA

$             242,142

$              65,435

$              20,164

$          (15,781)

$             311,960

DGD adjusted EBITDA (Darling's Share)

-

-

90,611

-

90,611

Combined adjusted EBITDA

$             242,142

$              65,435

$            110,775

$          (15,781)

$             402,571







 








Feed Ingredients

Food Ingredients

Fuel Ingredients

Corporate

Total

Three Months Ended July 3, 2021






Net sales

$             771,932

$            317,031

$            109,706

$                   -

$          1,198,669

Cost of sales and operating expenses

556,424

238,539

83,110

-

878,073

Gross Margin

215,508

78,492

26,596

-

320,596







Gain on sale of assets

(122)

(48)

(58)

-

(228)

Selling, general and administrative expenses

54,977

25,542

4,474

14,139

99,132

Depreciation and amortization

53,971

15,850

6,698

2,703

79,222

Equity in net income of Diamond Green Diesel

-

-

125,788

-

125,788

Segment operating income/(loss)

$             106,682

$              37,148

$            141,270

$          (16,842)

$             268,258

Equity in net income of other unconsolidated subsidiaries

1,940

-

-

-

1,940

Segment income/(loss)

$             108,622

$              37,148

$            141,270

$          (16,842)

$             270,198







Segment EBITDA

$             160,653

$              52,998

$              22,180

$          (14,139)

$             221,692

DGD adjusted EBITDA (Darling's Share)

-

-

132,001

-

132,001

Combined adjusted EBITDA

$             160,653

$              52,998

$            154,181

$          (14,139)

$             353,693







 

 







Segment Financial Tables (in thousands) continued

(unaudited)



Feed Ingredients

Food Ingredients

Fuel Ingredients

Corporate

Total

Six Months Ended July 2, 2022






Net sales

$          2,049,785

$            723,995

$            242,742

$                   -

$          3,016,522

Cost of sales and operating expenses

1,509,829

551,276

190,979

-

2,252,084

Gross Margin

539,956

172,719

51,763

-

764,438







Gain on sale of assets

(1,305)

(82)

(57)

-

(1,444)

Selling, general and administrative expenses

121,072

49,699

8,197

30,840

209,808

Restructuring and asset impairment charges

8,557

-

-

-

8,557

Acquisition and integration costs

-

-

-

9,131

9,131

Depreciation and amortization

123,288

29,899

13,610

5,562

172,359

Equity in net income of Diamond Green Diesel

-

-

145,484

-

145,484

Segment operating income/(loss)

$             288,344

$              93,203

$            175,497

$          (45,533)

$             511,511

Equity in net income of other unconsolidated subsidiaries

3,632

-

-

-

3,632

Segment income/(loss)

$             291,976

$              93,203

$            175,497

$          (45,533)

$             515,143







Segment EBITDA

$             420,189

$            123,102

$              43,623

$          (30,840)

$             556,074

DGD adjusted EBITDA (Darling's Share)

-

-

177,171

-

177,171

Combined adjusted EBITDA

$             420,189

$            123,102

$            220,794

$          (30,840)

$             733,245







 








Feed Ingredients

Food Ingredients

Fuel Ingredients

Corporate

Total

Six Months Ended July 3, 2021






Net sales

$          1,423,376

$            615,096

$            206,913

$                   -

$          2,245,385

Cost of sales and operating expenses

1,031,005

464,952

154,900

-

1,650,857

Gross Margin

392,371

150,144

52,013

-

594,528







Loss (gain) on sale of assets

(261)

7

(38)

-

(292)

Selling, general and administrative expenses

107,597

50,733

9,341

28,859

196,530

Restructuring and asset impairment charges

-

-

778

-

778

Depreciation and amortization

108,580

30,733

12,853

5,590

157,756

Equity in net income of Diamond Green Diesel

-

-

228,013

-

228,013

Segment operating income/(loss)

$             176,455

$              68,671

$            257,092

$          (34,449)

$             467,769

Equity in net income of other unconsolidated subsidiaries

2,552

-

-

-

2,552

Segment income/(loss)

$             179,007

$              68,671

$            257,092

$          (34,449)

$             470,321







Segment EBITDA

$             285,035

$              99,404

$              42,710

$          (28,859)

$             398,290

DGD adjusted EBITDA (Darling's Share)

-

-

240,201

-

240,201

Combined adjusted EBITDA

$             285,035

$              99,404

$            282,911

$          (28,859)

$             638,491







 

Darling Ingredients Inc. and Subsidiaries
Consolidated Balance Sheets
July 2, 2022 and January 1, 2022
(thousands)




July 2, 2022

January 1, 2022

ASSETS


(unaudited)


Current assets:




Cash and cash equivalents


$                           146,730

$                             68,906

Restricted cash


110

166

Accounts receivable, net


574,727

469,092

Inventories


578,402

457,465

Prepaid expenses


77,065

53,711

Income taxes refundable


27,330

1,075

Other current assets


57,462

38,599

Total current assets


1,461,826

1,089,014





Property, plant and equipment, net


2,237,199

1,840,080

Intangible assets, net


760,079

397,801

Goodwill


1,555,814

1,219,116

Investment in unconsolidated subsidiaries


1,736,242

1,349,247

Operating lease right-of-use assets


177,328

155,464

Other assets


81,886

66,795

Deferred income taxes


16,312

16,211



$                        8,026,686

$                        6,133,728

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Current portion of long-term debt


$                             32,695

$                             24,407

Accounts payable, principally trade


414,584

307,118

Income taxes payable


28,452

32,310

Current operating lease liabilities


45,498

38,168

Accrued Expenses


398,598

350,681

Total current liabilities


919,827

752,684

Long-term debt, net of current portion


2,881,134

1,438,974

Long-term operating lease liabilities


133,663

120,314

Other non-current liabilities


128,399

111,029

Deferred income taxes


397,140

362,942

Total liabilities


4,460,163

2,785,943

Commitments and contingencies




Stockholders' equity:




     Common stock, $0.01 par value;


1,735

1,717

Additional paid-in capital


1,646,468

1,627,816

     Treasury stock, at cost


(491,717)

(374,721)

Accumulated other comprehensive loss


(400,907)

(321,690)

Retained earnings


2,737,887

2,347,838

Total Darling's stockholders' equity


3,493,466

3,280,960

Noncontrolling interests


73,057

66,825

Total Stockholders' Equity


3,566,523

3,347,785



$                        8,026,686

$                        6,133,728





 


Darling Ingredients Inc. and Subsidiaries 
Consolidated Operating Results
For the Three-Month and Six-Month Periods Ended July 2, 2022 and July 3, 2021
(in thousands, except per share data) 






Three Months Ended


Six Months Ended




(unaudited)


$ Change


(unaudited)


$ Change




July 2,


July 3,


Favorable


July 2,


July 3,


Favorable




2022


2021


(Unfavorable)


2022


2021


(Unfavorable)

Net sales


$    1,650,188


$    1,198,669


$        451,519


$    3,016,522


$    2,245,385


$        771,137

Costs and expenses:














Cost of sales and operating expenses


1,231,507


878,073


(353,434)


2,252,084


1,650,857


(601,227)


Gain on sale of assets


(1,055)


(228)


827


(1,444)


(292)


1,152


Selling, general and administrative expenses


107,776


99,132


(8,644)


209,808


196,530


(13,278)


Restructuring and asset impairment charges


8,557


-


(8,557)


8,557


778


(7,779)


Acquisition and integration costs


5,358


-


(5,358)


9,131


-


(9,131)


Depreciation and amortization


93,113


79,222


(13,891)


172,359


157,756


(14,603)

Total costs and expenses


1,445,256


1,056,199


(389,057)


2,650,495


2,005,629


(644,866)


Equity in net income of Diamond Green Diesel


73,680


125,788


(52,108)


145,484


228,013


(82,529)

Operating income


278,612


268,258


10,354


511,511


467,769


43,742

Other expense:














Interest expense


(24,008)


(15,268)


(8,740)


(39,611)


(31,696)


(7,915)


Foreign currency loss


(4,412)


(684)


(3,728)


(5,512)


(1,094)


(4,418)


Other expense, net


(302)


(1,198)


896


(1,044)


(2,357)


1,313

Total other expense


(28,722)


(17,150)


(11,572)


(46,167)


(35,147)


(11,020)

Equity in net income













    of other unconsolidated subsidiaries


2,272


1,940


332


3,632


2,552


1,080

Income from operations before income taxes


252,162


253,048


(886)


468,976


435,174


33,802

Income tax expense


47,333


54,979


7,646


73,416


83,687


10,271

Net income


204,829


198,069


6,760


395,560


351,487


44,073

Net income attributable to














noncontrolling interests


(2,833)


(1,487)


(1,346)


(5,511)


(3,139)


(2,372)

Net income attributable to Darling


$       201,996


$       196,582


$            5,414


$       390,049


$       348,348


$          41,701















Basic income per share:


$             1.25


$             1.21


$              0.04


$             2.41


$             2.14


$              0.27

Diluted income per share:


$             1.23


$             1.17


$              0.06


$             2.37


$             2.08


$              0.29















Number of diluted common shares:


164,745


167,597




164,673


167,673































                                                                           



Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended July 2, 2022 and July 3, 2021
(in thousands)          








Six Months Ended (Unaudited)





July 2,


July 3,

Cash flows from operating activities:

2022


2021


Net income


$   395,560


$ 351,487


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






Depreciation and amortization

172,359


157,756



Gain on sale of assets

(1,444)


(292)



Asset impairment

8,557


138



Deferred taxes


35,674


49,572



Decrease in long-term pension liability

(547)


(622)



Stock-based compensation expense

13,369


14,011



Write-off deferred loan costs

-


598



Deferred loan cost amortization

2,207


2,047



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

(149,116)


(230,565)



Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries

1,631


2,497



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






     Accounts receivable

(47,046)


(34,911)



     Income taxes refundable/payable

(28,834)


9,116



     Inventories and prepaid expenses

(95,199)


(39,992)



     Accounts payable and accrued expenses

72,351


2,770



     Other


(18,487)


14,327




Net cash provided by operating activities

361,035


297,937

Cash flows from investing activities:





Capital expenditures

(151,478)


(126,094)


Acquisitions, net of cash acquired

(1,235,537)


(2,059)


Investment in Diamond Green Diesel

(239,750)


-


Investment in other unconsolidated subsidiaries

-


(4,449)


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

2,161


3,064


Payments related to routes and other intangibles

(179)


(347)




Net cash used in investing activities

(1,624,783)


(129,885)

Cash flows from financing activities:





Proceeds from long-term debt

1,663,612


20,679


Payments on long-term debt

(23,600)


(73,393)


Borrowings from revolving credit facility

777,902


207,000


Payments on revolving credit facility

(937,921)


(220,000)


Net cash overdraft financing

12


16,487


Deferred loan costs

(10,707)


-


Issuance of common stock

-


50


Repurchase of common stock

(65,887)


(75,663)


Minimum withholding taxes paid on stock awards

(45,836)


(43,853)


Distributions to noncontrolling interests

-


(2,164)




Net cash provided/(used) in financing activities

1,357,575


(170,857)

Effect of exchange rate changes on cash flows

(16,059)


(997)

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

77,768


(3,802)

Cash, cash equivalents and restricted cash at beginning of period

69,072


81,720

Cash, cash equivalents and restricted cash at end of period

$   146,840


$   77,918















 

Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
June 30, 2022 and December 31, 2021
(in thousands)






June 30,


December  31,





2022


2021

Assets:



 (unaudited)




Total current assets


$     1,065,686

#

$        686,294


Property, plant and equipment, net


3,131,430


2,710,747


Other assets


52,324


51,514



Total assets


$     4,249,440


$     3,448,555








Liabilities and members' equity:






Total current portion of long term debt


$        165,439


$        165,092


Total other current liabilities


333,651


295,860


Total long term debt


336,743


344,309


Total other long term liabilities


17,148


17,531


Total members' equity


3,396,459


2,625,763



Total liabilities and members' equity


$     4,249,440


$     3,448,555















 

Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Six-Month Periods Ended June 30, 2022 and June 30, 2021
(in thousands)






Three Months Ended



Six Months Ended





(unaudited)


$ Change



(unaudited)


$ Change





June 30,


June 30,


Favorable



June 30,


June 30,


Favorable

Revenues:


2022


2021


(Unfavorable)



2022


2021


(Unfavorable)


Operating revenues


$     1,455,886


$        571,859


$          884,027



$  2,436,578


$ 1,003,492


$  1,433,086

Expenses:















Total costs and expenses less
















depreciation, amortization and accretion expense


1,274,665


307,857


(966,808)



2,082,237


523,091


(1,559,146)


Depreciation, amortization and


31,317


11,995


(19,322)



57,809


23,682


(34,127)



accretion expense














Total costs and expenses


1,305,982


319,852


(986,130)



2,140,046


546,773


(1,593,273)


Operating income


149,904


252,007


(102,103)



296,532


456,719


(160,187)

Other income


722


353


369



711


411


300



Interest and debt expense, net


(3,266)


(784)


(2,482)



(6,275)


(1,104)


(5,171)



Net income


$        147,360


$        251,576


$        (104,216)



$     290,968


$    456,026


$    (165,058)

















 

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 For the Three-Month and Six-Month Periods Ended July 2, 2022 and July 3, 2021




Three Months Ended



Six Months Ended

Adjusted EBITDA


July 2,


July 3,



July 2,


July 3,

(U.S. dollars in thousands)


2022


2021



2022


2021












Net income attributable to Darling


$          201,996


$          196,582


#

$          390,049


$          348,348

Depreciation and amortization


93,113


79,222



172,359


157,756

Interest expense


24,008


15,268



39,611


31,696

Income tax expense


47,333


54,979



73,416


83,687

Restructuring and asset impairment charges


8,557


-



8,557


778

Acquisition and integration costs


5,358


-



9,131


-

Foreign currency loss


4,412


684



5,512


1,094

Other expense, net


302


1,198



1,044


2,357

Equity in net income of Diamond Green Diesel


(73,680)


(125,788)



(145,484)


(228,013)

Equity in net income of other unconsolidated subsidiaries


(2,272)


(1,940)



(3,632)


(2,552)

Net income attributable to noncontrolling interests


2,833


1,487



5,511


3,139


Adjusted EBITDA (Non-GAAP)


$          311,960


$          221,692



$          556,074


$          398,290

Foreign currency exchange impact


15,928

(1)




23,155

(2)



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


$          327,888


$          221,692



$          579,229


$          398,290

DGD Joint Venture Adjusted EBITDA (Darling's Share)


$            90,611


$          132,001



$          177,171


$          240,201












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


$          402,571


$          353,693



$          733,245


$          638,491













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

July 2, 2022 of €1.00:USD$1.06 and CAD$1.00:USD$0.78, as compared to the average rate for the three months ended

July 3, 2021 of  €1.00:USD$1.21 and CAD$1.00:USD$0.81, respectively.




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



July 2, 2022 of €1.00:USD$1.09 and CAD$1.00:USD$0.79, as compared to the average rate for the six months ended




July 3, 2021 of  €1.00:USD$1.20 and CAD$1.00:USD$0.80, respectively.



 

About Darling

Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates more than 250 plants in 17 countries and repurposes approximately 15% 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 and follow us on LinkedIn.

Darling Ingredients Inc. will host a conference call to discuss the Company's second quarter 2022 financial results at 9 am Eastern Time (8 am Central Time) on Wednesday, Aug. 10, 2022.

Due to historically high call volume, the company is offering participants the opportunity to register in advance for the conference through the following link: https://dpregister.com/sreg/10169154/f3a6e5cbb6.
Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them immediate access to the call on Aug. 10, 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 asked to be joined to the Darling Ingredients call. 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 Aug. 17, 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 8664057.  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.

Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP. The Company evaluates the impact of foreign currency on its adjusted EBITDA. DGD Joint Venture Adjusted EBITDA (Darling's share) is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP).

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, 6% Notes, 5.25% Notes and 3.625% Notes that were outstanding at July 2, 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, 6% Notes, 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.

Information reconciling forward-looking combined adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of combined adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company's operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for Darling Ingredients Inc. and the Company's joint venture, Diamond Green Diesel, would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides a range for its combined adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the combined adjusted EBITDA calculation.

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," "combined adjusted EBITDA guidance" 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; 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, including the Russia-Ukraine war; 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; Suann.Guthrie@darlingii.com 

 

SOURCE Darling Ingredients Inc.

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