Darling Ingredients Inc. Reports Third Quarter 2020 Financial Results

IRVING, Texas, Nov. 4, 2020 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR, "Darling") --

Third Quarter 2020

• Net income of $101.1 million, or $0.61 per GAAP diluted share
• Net Sales of $850.6 million
• Combined adjusted EBITDA of $218.5 million
• Diamond Green Diesel ("DGD") earned $2.41 EBITDA per gallon on approximately 80 million gallons sold
• Global Ingredients business trailing twelve month EBITDA of $467.6 million demonstrates the continued strength and diversity of the platform

Darling reported net sales of $850.6 million for the third quarter of 2020, as compared with net sales of $842.0 million for the same period a year ago.  Net income attributable to Darling for the three months ended September 26, 2020 was $101.1 million, or $0.61 per diluted share, compared to a net income of $25.7 million, or $0.15 per diluted share, for the third quarter of 2019.

"Better results in our food segment combined with a strong performance in our international fuel segment, drove the results for our best quarterly performance of 2020," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "We continue to see improved margins in our global rendering through better cost management and our hydrolyzed collagen sales most affected by the economic impact of COVID have seen a solid turnaround."

"DGD had record sales volume of 80 million gallons for the third quarter as our vertically integrated supply chain that supports the lowest cost production system and the lowest carbon scoring feedstocks in North America continued to produce strong results. The plant turnaround in October was completed on schedule as we look to finish up 2020 on a positive note producing 285 million gallons of renewable diesel for the year," Stuewe added.

"Our balance sheet remains strong as we paid down our outstanding term loan B by $145 million during the third quarter. Our leverage ratio as measured by our bank covenant was 1.93 at the end of the third quarter as we continue to work on achieving an investment grade rating in the future. Our capital expenditures stood at approximately $185 million for the first nine months of 2020, as we continue to effectively manage our capital expenditures," commented Stuewe.

For the nine months ended September 26, 2020, Darling reported net sales of $2.6 billion, as compared with net sales of $2.5 billion for the same period of 2019. Net Income attributable to Darling for the first nine months of 2020 was $252.1 million, or $1.51 per diluted share, as compared to a net income of $70.0 million, or $0.42 per diluted share, for the first nine months of 2019.

In October 2020, Darling acquired a private company that owned rendering plants located in Belgium for approximately $29 million. This acquisition adds approximately 50 million pounds of protein meals and 50 million pounds of animal fats to Darling's capabilities, giving the company a stronger position in rendered poultry products in Belgium.

As of September 26, 2020, Darling had $66.0 million in cash and cash equivalents, and $934.3 million available under committed revolving credit agreements. Total debt outstanding at the end of the third quarter of 2020 was $1.5 billion.

Combined adjusted EBITDA was $218.5 million for the third quarter of 2020, compared to $147.8 million for the same period in 2019. On a year-to-date basis, combined adjusted EBITDA totaled $627.0 million for 2020, compared to $440.5 million on a year-to-date basis for 2019.

About Darling
Darling Ingredients Inc. (NYSE: DAR) is one of the world's leading producers of organic ingredients, producing a wide array of sustainable protein and fat products while being one of the largest producers of renewable clean energy. With operations on five continents, Darling collects waste streams from the agri-food industry, repurposing into specialty ingredients, such as hydrolyzed collagen, edible and feed-grade fats, animal proteins and meals, plasma, pet food ingredients, fuel feedstocks, and green bioenergy. The Company sells its products around the globe and works to strengthen our promise for a better tomorrow, creating product applications for health, nutrients and bioenergy while optimizing our services to the food chain. Darling is a 50% joint partner in Diamond Green Diesel (DGD), North America's largest renewable diesel manufacturer, currently producing approximately 275 million gallons of renewable diesel annually which products reduce Green House Gas (GHG) emissions by up to 85% compared to fossil fuels. For additional information, visit the Company's website at http://www.darlingii.com. For more information on Darling's ESG efforts, visit  http://www.darlingii.com/csr.

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SOURCE Darling Ingredients Inc.