Darling Ingredients Inc. Reports Fourth Quarter and Fiscal Year 2023 Results
Fiscal Year 2023 Highlights
- Net income of
$647.7 million , or$3.99 per GAAP diluted share - Net sales of
$6.8 billion - Combined adjusted EBITDA of
$1,611.9 million - Global ingredients business EBITDA of
$1,109.9 million - Received
$163.6 million in cash dividends fromDiamond Green Diesel - Repurchased
$52.9 million of common stock
For the fiscal year ended
"
DGD sold 336.6 million gallons of renewable diesel for the fourth quarter 2023 at an average of
Combined adjusted EBITDA for the fourth quarter 2023 was
As of
"
Segment Financial Tables (in thousands)
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
Three Months Ended |
|
|
|
|
|
Net sales |
$ 1,045,642 |
$ 423,836 |
$ 144,605 |
$ - |
$ 1,614,083 |
Cost of sales and operating expenses |
755,062 |
311,163 |
111,427 |
- |
1,177,652 |
Gross Margin |
290,580 |
112,673 |
33,178 |
- |
436,431 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
1 |
(8,243) |
(40) |
- |
(8,282) |
Selling, general and administrative expenses |
77,281 |
30,195 |
6,714 |
18,430 |
132,620 |
Restructuring and asset impairment charges |
3,934 |
9,199 |
- |
- |
13,133 |
Acquisition and integration costs |
- |
- |
- |
1,726 |
1,726 |
Change in fair value of contingent consideration |
5,167 |
- |
- |
- |
5,167 |
Depreciation and amortization |
98,400 |
26,655 |
8,480 |
4,394 |
137,929 |
Equity in net income of |
- |
- |
4,690 |
- |
4,690 |
Segment operating income/(loss) |
$ 105,797 |
$ 54,867 |
$ 22,714 |
$ (24,550) |
$ 158,828 |
Equity in net income of other unconsolidated subsidiaries |
1,508 |
- |
- |
- |
1,508 |
Segment income/(loss) |
$ 107,305 |
$ 54,867 |
$ 22,714 |
$ (24,550) |
$ 160,336 |
|
|
|
|
|
|
Segment EBITDA |
$ 213,298 |
$ 90,721 |
$ 26,504 |
$ (18,430) |
$ 312,093 |
DGD adjusted EBITDA (Darling's Share) |
- |
- |
38,816 |
- |
38,816 |
Combined adjusted EBITDA |
$ 213,298 |
$ 90,721 |
$ 65,320 |
$ (18,430) |
$ 350,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
Three Months Ended |
|
|
|
|
|
Net sales |
$ 1,216,073 |
$ 387,733 |
$ 164,277 |
$ - |
$ 1,768,083 |
Cost of sales and operating expenses |
950,778 |
294,417 |
134,093 |
- |
1,379,288 |
Gross Margin |
265,295 |
93,316 |
30,184 |
- |
388,795 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
169 |
(117) |
14 |
- |
66 |
Selling, general and administrative expenses |
73,736 |
28,073 |
3,769 |
16,142 |
121,720 |
Restructuring and asset impairment charges |
- |
21,109 |
- |
- |
21,109 |
Acquisition and integration costs |
- |
- |
- |
2,738 |
2,738 |
Depreciation and amortization |
91,282 |
14,722 |
8,606 |
2,774 |
117,384 |
Equity in net income of |
- |
- |
123,448 |
- |
123,448 |
Segment operating income/(loss) |
$ 100,108 |
$ 29,529 |
$ 141,243 |
$ (21,654) |
$ 249,226 |
Equity in net loss of other unconsolidated subsidiaries |
(831) |
- |
- |
- |
(831) |
Segment income/(loss) |
$ 99,277 |
$ 29,529 |
$ 141,243 |
$ (21,654) |
$ 248,395 |
|
|
|
|
|
|
Segment EBITDA |
$ 191,390 |
$ 65,360 |
$ 26,401 |
$ (16,142) |
$ 267,009 |
DGD adjusted EBITDA (Darling's Share) |
- |
- |
145,984 |
- |
145,984 |
Combined adjusted EBITDA |
$ 191,390 |
$ 65,360 |
$ 172,385 |
$ (16,142) |
$ 412,993 |
Segment Financial Tables (in thousands)
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
Twelve Months Ended |
|
|
|
|
|
Net sales |
$ 4,472,592 |
$ 1,752,065 |
$ 563,423 |
$ - |
$ 6,788,080 |
Cost of sales and operating expenses |
3,385,859 |
1,310,581 |
446,620 |
- |
5,143,060 |
Gross Margin |
1,086,733 |
441,484 |
116,803 |
- |
1,645,020 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
814 |
(8,144) |
(91) |
- |
(7,421) |
Selling, general and administrative expenses |
310,363 |
128,464 |
23,543 |
80,164 |
542,534 |
Restructuring and asset impairment charges |
4,026 |
14,527 |
- |
- |
18,553 |
Acquisition and integration costs |
- |
- |
- |
13,884 |
13,884 |
Change in fair value of contingent consideration |
(7,891) |
|
|
|
(7,891) |
Depreciation and amortization |
360,249 |
94,991 |
34,466 |
12,309 |
502,015 |
Equity in net income of |
- |
- |
366,380 |
- |
366,380 |
Segment operating income/(loss) |
$ 419,172 |
$ 211,646 |
$ 425,265 |
$ (106,357) |
$ 949,726 |
Equity in net income of other unconsolidated subsidiaries |
5,011 |
- |
- |
- |
5,011 |
Segment income/(loss) |
$ 424,183 |
$ 211,646 |
$ 425,265 |
$ (106,357) |
$ 954,737 |
|
|
|
|
|
|
Segment EBITDA |
$ 775,556 |
$ 321,164 |
$ 93,351 |
$ (80,164) |
$ 1,109,907 |
DGD adjusted EBITDA (Darling's Share) |
- |
- |
501,987 |
- |
501,987 |
Combined adjusted EBITDA |
$ 775,556 |
$ 321,164 |
$ 595,338 |
$ (80,164) |
$ 1,611,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
Twelve Months Ended |
|
|
|
|
|
Net sales |
$ 4,539,000 |
$ 1,459,630 |
$ 533,574 |
$ - |
$ 6,532,204 |
Cost of sales and operating expenses |
3,473,506 |
1,102,250 |
426,853 |
- |
5,002,609 |
Gross Margin |
1,065,494 |
357,380 |
106,721 |
- |
1,529,595 |
|
|
|
|
|
|
Gain on sale of assets |
(3,426) |
(1,008) |
(60) |
- |
(4,494) |
Selling, general and administrative expenses |
258,781 |
101,681 |
13,690 |
62,456 |
436,608 |
Restructuring and asset impairment charges |
8,557 |
21,109 |
- |
- |
29,666 |
Acquisition and integration costs |
- |
- |
- |
16,372 |
16,372 |
Depreciation and amortization |
295,249 |
59,029 |
29,500 |
10,943 |
394,721 |
Equity in net income of |
- |
- |
372,346 |
- |
372,346 |
Segment operating income/(loss) |
$ 506,333 |
$ 176,569 |
$ 435,937 |
$ (89,771) |
$ 1,029,068 |
Equity in net income of other unconsolidated subsidiaries |
5,102 |
- |
- |
- |
5,102 |
Segment income/(loss) |
$ 511,435 |
$ 176,569 |
$ 435,937 |
$ (89,771) |
$ 1,034,170 |
|
|
|
|
|
|
Segment EBITDA |
$ 810,139 |
$ 256,707 |
$ 93,091 |
$ (62,456) |
$ 1,097,481 |
DGD adjusted EBITDA (Darling's Share) |
- |
- |
443,487 |
- |
443,487 |
Combined adjusted EBITDA |
$ 810,139 |
$ 256,707 |
$ 536,578 |
$ (62,456) |
$ 1,540,968 |
Segment EBITDA consists of segment income (loss), less equity in net income/loss from unconsolidated subsidiaries, less equity in net income of
|
|||
Consolidated Balance Sheets |
|||
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
(unaudited) |
|
Current assets: |
|
|
|
Cash and cash equivalents |
|
$ 126,502 |
$ 127,016 |
Restricted cash |
|
292 |
315 |
Accounts receivable, net |
|
626,008 |
559,695 |
Accounts receivable due from related party - |
|
172,283 |
116,878 |
Inventories |
|
758,739 |
673,621 |
Prepaid expenses |
|
105,657 |
85,665 |
Income taxes refundable |
|
23,599 |
18,583 |
Other current assets |
|
42,586 |
56,324 |
Total current assets |
|
1,855,666 |
1,638,097 |
|
|
|
|
Property, plant and equipment, net |
|
2,935,185 |
2,462,082 |
Intangible assets, net |
|
1,075,892 |
865,122 |
|
|
2,484,502 |
1,970,377 |
Investment in unconsolidated subsidiaries |
|
2,251,629 |
1,926,395 |
Operating lease right-of-use assets |
|
205,539 |
186,141 |
Other assets |
|
234,960 |
136,268 |
Deferred income taxes |
|
17,711 |
17,888 |
|
|
$ 11,061,084 |
$ 9,202,370 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
|
$ 60,703 |
$ 69,846 |
Accounts payable, principally trade |
|
425,588 |
472,491 |
Income taxes payable |
|
15,522 |
44,851 |
Current operating lease liabilities |
|
55,325 |
49,232 |
Accrued expenses |
|
440,999 |
432,023 |
Total current liabilities |
|
998,137 |
1,068,443 |
Long-term debt, net of current portion |
|
4,366,370 |
3,314,969 |
Long-term operating lease liabilities |
|
154,903 |
141,703 |
Other non-current liabilities |
|
349,809 |
298,933 |
Deferred income taxes |
|
498,174 |
481,832 |
Total liabilities |
|
6,367,393 |
5,305,880 |
Commitments and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Common stock, |
|
1,744 |
1,736 |
Additional paid-in capital |
|
1,697,787 |
1,660,084 |
Treasury stock, at cost |
|
(629,008) |
(554,451) |
Accumulated other comprehensive loss |
|
(198,346) |
(383,874) |
Retained earnings |
|
3,733,254 |
3,085,528 |
Total Darling's stockholders' equity |
|
4,605,431 |
3,809,023 |
Noncontrolling interests |
|
88,260 |
87,467 |
Total Stockholders' Equity |
|
4,693,691 |
3,896,490 |
|
|
$ 11,061,084 |
$ 9,202,370 |
Consolidated Operating Results
For the Three and Twelve Months Ended (in thousands, except per share data) |
||||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
(unaudited) |
|
$ Change |
|
(unaudited) |
|
$ Change |
||||
|
|
|
|
|
|
Favorable |
|
|
|
|
|
Favorable |
|
|
2023 |
|
2022 |
|
(Unfavorable) |
|
2023 |
|
2022 |
|
(Unfavorable) |
Net sales |
$ 1,614,083 |
|
$ 1,768,083 |
|
$ (154,000) |
|
$ 6,788,080 |
|
$ 6,532,204 |
|
$ 255,876 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and operating expenses |
1,177,652 |
|
1,379,288 |
|
201,636 |
|
5,143,060 |
|
5,002,609 |
|
(140,451) |
|
(Gain) loss on sale of assets |
(8,282) |
|
66 |
|
8,348 |
|
(7,421) |
|
(4,494) |
|
2,927 |
|
Selling, general and administrative expenses |
132,620 |
|
121,720 |
|
(10,900) |
|
542,534 |
|
436,608 |
|
(105,926) |
|
Restructuring and asset impairment charges |
13,133 |
|
21,109 |
|
7,976 |
|
18,553 |
|
29,666 |
|
11,113 |
|
Acquisition and integration costs |
1,726 |
|
2,738 |
|
1,012 |
|
13,884 |
|
16,372 |
|
2,488 |
|
Change in fair value of contingent consideration |
5,167 |
|
- |
|
(5,167) |
|
(7,891) |
|
- |
|
7,891 |
|
Depreciation and amortization |
137,929 |
|
117,384 |
|
(20,545) |
|
502,015 |
|
394,721 |
|
(107,294) |
Total costs and expenses |
1,459,945 |
|
1,642,305 |
|
182,360 |
|
6,204,734 |
|
5,875,482 |
|
(329,252) |
|
|
Equity in net income of |
4,690 |
|
123,448 |
|
(118,758) |
|
366,380 |
|
372,346 |
|
(5,966) |
Operating income |
158,828 |
|
249,226 |
|
(90,398) |
|
949,726 |
|
1,029,068 |
|
(79,342) |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(68,453) |
|
(46,139) |
|
(22,314) |
|
(259,223) |
|
(125,566) |
|
(133,657) |
|
Foreign currency gain (loss) |
(206) |
|
(5,272) |
|
5,066 |
|
8,133 |
|
(11,277) |
|
19,410 |
|
Other income (expense), net |
2,825 |
|
242 |
|
2,583 |
|
16,310 |
|
(3,609) |
|
19,919 |
Total other expense |
(65,834) |
|
(51,169) |
|
(14,665) |
|
(234,780) |
|
(140,452) |
|
(94,328) |
|
Equity in net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
of other unconsolidated subsidiaries |
1,508 |
|
(831) |
|
2,339 |
|
5,011 |
|
5,102 |
|
(91) |
|
Income from operations before income taxes |
94,502 |
|
197,226 |
|
(102,724) |
|
719,957 |
|
893,718 |
|
(173,761) |
|
Income tax expense |
7,246 |
|
37,995 |
|
30,749 |
|
59,568 |
|
146,626 |
|
87,058 |
|
Net income |
87,256 |
|
159,231 |
|
(71,975) |
|
660,389 |
|
747,092 |
|
(86,703) |
|
Net income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests |
(2,740) |
|
(2,671) |
|
(69) |
|
(12,663) |
|
(9,402) |
|
(3,261) |
Net income attributable to Darling |
$ 84,516 |
|
$ 156,560 |
|
$ (72,044) |
|
$ 647,726 |
|
$ 737,690 |
|
$ (89,964) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share: |
$ 0.53 |
|
$ 0.98 |
|
$ (0.45) |
|
$ 4.05 |
|
$ 4.58 |
|
$ (0.53) |
|
Diluted income per share: |
$ 0.52 |
|
$ 0.96 |
|
$ (0.44) |
|
$ 3.99 |
|
$ 4.49 |
|
$ (0.50) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of diluted common shares: |
161,935 |
|
163,504 |
|
|
|
162,387 |
|
164,121 |
|
|
|
|||||||
Consolidated Statement of Cash Flows |
|||||||
For the Twelve Months Ended |
|||||||
(in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
||
|
|
|
|
(unaudited) |
|
|
|
Cash flows from operating activities: |
2023 |
|
2022 |
|
|||
|
Net income |
|
$ 660,389 |
|
$ 747,092 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||
|
|
Depreciation and amortization |
502,015 |
|
394,721 |
|
|
|
|
Gain on sale of assets |
(7,421) |
|
(4,494) |
|
|
|
|
Asset impairment |
4,734 |
|
29,666 |
|
|
|
|
Deferred taxes |
|
(22,241) |
|
46,734 |
|
|
|
Change in fair value of contingent consideration |
(7,891) |
|
- |
|
|
|
|
Decrease in long-term pension liability |
(1,040) |
|
(7,037) |
|
|
|
|
Stock-based compensation expense |
33,156 |
|
25,005 |
|
|
|
|
Write-off deferred loan costs |
653 |
|
- |
|
|
|
|
Deferred loan cost amortization |
6,216 |
|
4,984 |
|
|
|
|
Equity in net income of |
(371,391) |
|
(377,448) |
|
|
|
|
Distributions of earnings from |
168,277 |
|
95,546 |
|
|
|
|
Changes in operating assets and liabilities, net of effects from acquisitions: |
|
|
|
|
|
|
|
Accounts receivable |
(10,832) |
|
(56,543) |
|
|
|
|
Income taxes refundable/payable |
(39,933) |
|
(3,495) |
|
|
|
|
Inventories and prepaid expenses |
49,582 |
|
(130,170) |
|
|
|
|
Accounts payable and accrued expenses |
(82,939) |
|
65,936 |
|
|
|
|
Other |
|
17,929 |
|
(16,758) |
|
|
|
|
Net cash provided by operating activities |
899,263 |
|
813,739 |
|
Cash flows from investing activities: |
|
|
|
|
|||
|
Capital expenditures |
(555,480) |
|
(391,309) |
|
||
|
Acquisitions, net of cash acquired |
(1,093,183) |
|
(1,772,437) |
|
||
|
Investment in |
(75,000) |
|
(264,750) |
|
||
|
Investment in other unconsolidated subsidiaries |
(27) |
|
- |
|
||
|
Loan to |
- |
|
(50,000) |
|
||
|
Loan repayment from |
25,000 |
|
50,000 |
|
||
|
Gross proceeds from sale of property, plant and equipment and other assets |
10,748 |
|
13,442 |
|
||
|
Proceeds from insurance settlement |
14,014 |
|
- |
|
||
|
Payments related to routes and other intangibles |
(1,524) |
|
(1,492) |
|
||
|
|
|
Net cash used in investing activities |
(1,675,452) |
|
(2,416,546) |
|
Cash flows from financing activities: |
|
|
|
|
|||
|
Proceeds from long-term debt |
817,101 |
|
1,934,885 |
|
||
|
Payments on long-term debt |
(319,367) |
|
(63,078) |
|
||
|
Borrowings from revolving credit facility |
2,666,360 |
|
1,873,795 |
|
||
|
Payments on revolving credit facility |
(2,194,902) |
|
(1,897,280) |
|
||
|
Net cash overdraft financing |
(9,780) |
|
24,069 |
|
||
|
Acquisition hold-back payments |
(3,793) |
|
- |
|
||
|
Deferred loan costs |
(9) |
|
(16,780) |
|
||
|
Repurchase of common stock |
(52,941) |
|
(125,531) |
|
||
|
Minimum withholding taxes paid on stock awards |
(17,296) |
|
(46,944) |
|
||
|
Distributions to noncontrolling interests |
(9,081) |
|
(4,532) |
|
||
|
|
|
Net cash provided by financing activities |
876,292 |
|
1,678,604 |
|
Effect of exchange rate changes on cash flows |
14,179 |
|
5,299 |
|
|||
Net increase in cash, cash equivalents and restricted cash |
114,282 |
|
81,096 |
|
|||
Cash, cash equivalents and restricted cash at beginning of period |
150,168 |
|
69,072 |
|
|||
Cash, cash equivalents and restricted cash at end of period |
$ 264,450 |
|
$ 150,168 |
|
Diamond Green Diesel Joint Venture |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
|
|||||||
(in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
Assets: |
|
|
|
|
|
|
|
|
Total current assets |
|
$ 1,877,430 |
|
$ 1,304,805 |
|
|
|
Property, plant and equipment, net |
|
3,838,800 |
|
3,866,854 |
|
|
|
Other assets |
|
89,697 |
|
61,665 |
|
|
|
|
Total assets |
|
$ 5,805,927 |
|
$ 5,233,324 |
|
|
|
|
|
|
|
|
|
Liabilities and members' equity: |
|
|
|
|
|
||
|
Total current portion of long term debt |
|
$ 278,639 |
|
$ 217,066 |
|
|
|
Total other current liabilities |
|
417,918 |
|
515,023 |
|
|
|
Total long term debt |
|
737,097 |
|
774,783 |
|
|
|
Total other long term liabilities |
|
16,996 |
|
17,249 |
|
|
|
Total members' equity |
|
4,355,277 |
|
3,709,203 |
|
|
|
|
Total liabilities and members' equity |
|
$ 5,805,927 |
|
$ 5,233,324 |
|
Diamond Green Diesel Joint Venture |
||||||||||||||
Operating Financial Results |
||||||||||||||
For the Three and Twelve Months Ended |
||||||||||||||
(in thousands) |
||||||||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
||||||||
|
|
|
|
|
$ Change |
|
|
|
|
$ Change |
||||
|
|
|
|
|
|
|
Favorable |
|
|
|
|
|
|
Favorable |
Revenues: |
2023 |
|
2022 |
|
(Unfavorable) |
|
|
2023 |
|
2022 |
|
(Unfavorable) |
||
|
Operating revenues |
$ 1,633,795 |
|
$ 1,594,552 |
|
$ 39,243 |
|
|
$ 6,990,622 |
|
|
|
$ 1,489,456 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Total costs and expenses less |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
lower of cost or market inventory |
1,495,293 |
|
1,302,584 |
|
(192,709) |
|
|
5,925,778 |
|
4,614,192 |
|
(1,311,586) |
|
Lower of cost or market (LCM) inventory |
60,871 |
|
- |
|
(60,871) |
|
|
60,871 |
|
- |
|
(60,871) |
|
|
Depreciation, amortization and |
58,881 |
|
36,054 |
|
(22,827) |
|
|
230,921 |
|
125,656 |
|
(105,265) |
|
|
|
accretion expense |
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
1,615,045 |
|
1,338,638 |
|
(276,407) |
|
|
6,217,570 |
|
4,739,848 |
|
(1,477,722) |
||
|
Operating income |
18,750 |
|
255,914 |
|
(237,164) |
|
|
773,052 |
|
761,318 |
|
11,734 |
|
Other income |
3,454 |
|
1,244 |
|
2,210 |
|
|
10,317 |
|
3,170 |
|
7,147 |
||
Interest and debt expense, net |
(12,072) |
|
(10,262) |
|
(1,810) |
|
|
(49,857) |
|
(19,796) |
|
(30,061) |
||
|
Income before income tax expense |
10,132 |
|
246,896 |
|
(236,764) |
|
|
733,512 |
|
744,692 |
|
(11,180) |
|
|
Income tax expense |
752 |
|
|
|
(752) |
|
|
752 |
|
|
|
(752) |
|
|
Net income |
$ 9,380 |
|
$ 246,896 |
|
$ (237,516) |
|
|
$ 732,760 |
|
$ 744,692 |
|
$ (11,932) |
Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro-Forma |
||||||||||
Adjusted EBITDA to Foreign Currency |
||||||||||
For the Three and Twelve Months Ended |
||||||||||
(in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|||||
Adjusted EBITDA |
(unaudited) |
|
|
|
|
(unaudited) |
|
|
|
|
( |
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Darling |
$ 84,516 |
|
$ 156,560 |
|
|
$ 647,726 |
|
$ 737,690 |
|
|
Depreciation and amortization |
137,929 |
|
117,384 |
|
|
502,015 |
|
394,721 |
|
|
Interest expense |
68,453 |
|
46,139 |
|
|
259,223 |
|
125,566 |
|
|
Income tax expense |
7,246 |
|
37,995 |
|
|
59,568 |
|
146,626 |
|
|
Restructuring and asset impairment charges |
13,133 |
|
21,109 |
|
|
18,553 |
|
29,666 |
|
|
Acquisition and integration costs |
1,726 |
|
2,738 |
|
|
13,884 |
|
16,372 |
|
|
Change in fair value of contingent consideration |
|
5,167 |
|
- |
|
|
(7,891) |
|
- |
|
Foreign currency (gain) loss |
206 |
|
5,272 |
|
|
(8,133) |
|
11,277 |
|
|
Other (income) expense, net |
(2,825) |
|
(242) |
|
|
(16,310) |
|
3,609 |
|
|
Equity in net income of |
(4,690) |
|
(123,448) |
|
|
(366,380) |
|
(372,346) |
|
|
Equity in net (income) loss of other unconsolidated subsidiaries |
(1,508) |
|
831 |
|
|
(5,011) |
|
(5,102) |
|
|
Net income attributable to noncontrolling interests |
2,740 |
|
2,671 |
|
|
12,663 |
|
9,402 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ 312,093 |
|
$ 267,009 |
|
|
$ 1,109,907 |
|
$ 1,097,481 |
|
|
Foreign currency exchange impact |
(7,932) |
(1) |
- |
|
|
(10,830) |
(2) |
- |
|
|
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) |
$ 304,161 |
|
$ 267,009 |
|
|
$ 1,099,077 |
|
$ 1,097,481 |
|
|
DGD Joint Venture Adjusted EBITDA (Darling's Share) |
$ 38,816 |
|
$ 145,984 |
|
|
$ 501,987 |
|
$ 443,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA |
$ 350,909 |
|
$ 412,993 |
|
|
$ 1,611,894 |
|
$ 1,540,968 |
|
|
|
|
|||||||||
(1) The average rate assumption used in this calculation were the actual average rate for the three months ended |
|
|||||||||
of €1.00: |
||||||||||
|
|
|||||||||
|
||||||||||
(2) The average rate assumption used in this calculation were the actual average rate for the twelve months ended |
|
|||||||||
of €1.00: |
|
|||||||||
|
|
About
A pioneer in circularity,
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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. It 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, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated above and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, interest expense, income tax provision, other income/(expense) and equity in net (income)/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).
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
DGD Joint Venture Adjusted EBITDA (Darling's share) is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income or equity in net income of
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
EBITDA per gallon is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of
Cautionary Statements Regarding Forward-Looking Information:
This media release includes "forward-looking" statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "guidance," "outlook," "project," "planned," "contemplate," "potential," "possible," "proposed," "intend," "believe," "anticipate," "expect," "may," "will," "would," "should," "could," and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this release are forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control.
Important factors that could cause actual results to differ materially from the Company's expectations include: 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; reduced demands or prices for biofuels, biogases or renewable electricity; global demands for 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, reduced volume due to government regulations affecting animal production 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, used cooking oil, protein or collagen (including, without limitation, collagen peptides and gelatin) finished product prices; changes to government policies around the world relating to renewable fuels and greenhouse gas ("GHG") emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like the
Darling Ingredients Contacts |
|
Investors: |
|
|
Senior VP, Investor Relations, |
|
(469) 214-8202; suann.guthrie@darlingii.com |
|
|
Media: |
|
|
Director, |
|
(972) 541-7115; jillian.fleming@darlingii.com |
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