Darling Ingredients : Delivers Strong Fourth Quarter and Fiscal Year 2021 Financial Results; Carries Momentum into 2022 - Form 8-K
March 28, 2022 at 06:05 pm EST
Share
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
•Diamond Green Diesel sold a record 370.2 million gallons of renewable diesel at an average of $2.07 EBITDA per gallon
•Valley Proteins acquisition will strengthen low carbon feedstock supply
IRVING, TEXAS -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.
News Release
February 28, 2022
Page 2
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.
News Release
February 28, 2022
Page 3
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
News Release
February 28, 2022
Page 4
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
News Release
February 28, 2022
Page 5
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
News Release
February 28, 2022
Page 6
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
News Release
February 28, 2022
Page 7
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)
Distribution 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)
Acquisition, 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 by 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 by 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
News Release
February 28, 2022
Page 8
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
2021
2020
(Unfavorable)
2021
2020
(Unfavorable)
Revenues:
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 accretion expense
23,653
11,222
(12,431)
58,326
44,882
(13,444)
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
News Release
February 28, 2022
Page 9
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 loss
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 other 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)
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 the 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.
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February 28, 2022
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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.
{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
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February 28, 2022
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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.}
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Darling Ingredients Inc. published this content on 28 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2022 23:02:58 UTC.
Darling Ingredients Inc. develops and produces sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer industries. Its segments include Feed Ingredients, Food Ingredients and Fuel Ingredients. Feed Ingredients operating segment includes its global activities related to the collection and processing of beef, poultry and pork animal by-products in North America, Europe and South America into non-food grade oils and protein meals, and others. Food Ingredients operating segment includes its global activities related to the purchase and processing of beef and pork bone chips, beef hides, pig skins, and fish skins into collagen, and others. Fuel Ingredients operating segment includes its global activities related to the conversion of organic sludge and food waste into biogas in Europe, and others.