Darling Ingredients Inc. Reports Third Quarter 2024 Results
Darling Ingredients (NYSE: DAR) reported Q3 2024 net income of $16.9 million, or $0.11 per diluted share, down from $125.0 million ($0.77 per share) in Q3 2023. Total net sales decreased to $1.4 billion from $1.6 billion year-over-year. The decline was primarily attributed to sharp decreases in fat prices and lower Diamond Green Diesel earnings.
Combined adjusted EBITDA was $236.7 million, compared to $334.3 million in Q3 2023. The company received $111.2 million in cash dividends from Diamond Green Diesel, which sold 316.6 million gallons of renewable diesel at $0.25 per gallon EBITDA. Darling reduced debt by approximately $192 million and expects full-year 2024 combined adjusted EBITDA between $1.15-1.175 billion.
Darling Ingredients (NYSE: DAR) ha riportato un utile netto per il terzo trimestre del 2024 di 16,9 milioni di dollari, o 0,11 dollari per azione diluita, in calo rispetto ai 125,0 milioni di dollari (0,77 dollari per azione) del terzo trimestre del 2023. Le vendite nette totali sono diminuite a 1,4 miliardi di dollari rispetto a 1,6 miliardi di dollari anno su anno. Il calo è stato principalmente attribuito ai forti ribassi nei prezzi dei grassi e ai minori guadagni di Diamond Green Diesel.
Il EBITDA adjusted combinato è stato di 236,7 milioni di dollari, rispetto ai 334,3 milioni di dollari del terzo trimestre del 2023. L'azienda ha ricevuto 111,2 milioni di dollari in dividendi in contante da Diamond Green Diesel, che ha venduto 316,6 milioni di galloni di diesel rinnovabile a 0,25 dollari per gallone di EBITDA. Darling ha ridotto il debito di circa 192 milioni di dollari e prevede un EBITDA adjusted combinato per l'intero anno 2024 compreso tra 1,15 e 1,175 miliardi di dollari.
Darling Ingredients (NYSE: DAR) reportó un ingreso neto en el tercer trimestre de 2024 de 16,9 millones de dólares, o 0,11 dólares por acción diluida, una disminución respecto a 125,0 millones de dólares (0,77 dólares por acción) en el tercer trimestre de 2023. Las ventas netas totales disminuyeron a 1,4 mil millones de dólares desde 1,6 mil millones de dólares en el año anterior. La caída se atribuyó principalmente a la fuerte disminución en los precios de las grasas y a las menores ganancias de Diamond Green Diesel.
El EBITDA ajustado combinado fue de 236,7 millones de dólares, en comparación con 334,3 millones de dólares en el tercer trimestre de 2023. La compañía recibió 111,2 millones de dólares en dividendos en efectivo de Diamond Green Diesel, que vendió 316,6 millones de galones de diesel renovable a 0,25 dólares por galón de EBITDA. Darling redujo su deuda en aproximadamente 192 millones de dólares y espera un EBITDA ajustado combinado para todo 2024 entre 1,15 y 1,175 mil millones de dólares.
Darling Ingredients (NYSE: DAR)는 2024년 3분기 순이익이 1,690만 달러, 즉 희석 주당 0.11달러로, 2023년 3분기 1억 2,500만 달러 (주당 0.77달러)에서 감소했다고 보고했습니다. 총 순매출이 전년 대비 16억 달러에서 14억 달러로 감소했습니다. 이 감소는 주로 지방 가격의 급격한 하락과 다이아몬드 그린 디젤의 수익 감소에 기인했습니다.
조정된 EBITDA 총액은 2억 3,670만 달러로, 2023년 3분기의 3억 3,430만 달러와 비교되었습니다. 이 회사는 다이아몬드 그린 디젤로부터 1억 1,120만 달러의 현금 배당금을 수령했으며, 이는 3억 1,660만 갤런의 재생 디젤을 갤런당 0.25달러의 EBITDA로 판매했습니다. Darling은 약 1억 9,200만 달러의 부채를 줄였으며, 2024년 전체 연도 조정 EBITDA가 11억 5천만 달러에서 11억 7천 5백만 달러 사이가 될 것으로 예상하고 있습니다.
Darling Ingredients (NYSE: DAR) a annoncé un résultat net de 16,9 millions de dollars pour le troisième trimestre 2024, soit 0,11 dollar par action diluée, en baisse par rapport à 125,0 millions de dollars (0,77 dollar par action) pour le troisième trimestre 2023. Les ventes nettes totales ont diminué à 1,4 milliard de dollars contre 1,6 milliard de dollars l'année précédente. Cette baisse a été principalement attribuée à une forte baisse des prix des graisses et à des revenus réduits de Diamond Green Diesel.
Le résultat EBITDA ajusté combiné s'élevait à 236,7 millions de dollars, contre 334,3 millions de dollars au troisième trimestre 2023. L'entreprise a reçu 111,2 millions de dollars en dividendes en espèces de Diamond Green Diesel, qui a vendu 316,6 millions de gallons de diesel renouvelable à 0,25 dollar par gallon d'EBITDA. Darling a réduit sa dette d'environ 192 millions de dollars et s'attend à un EBITDA ajusté combiné pour l'année 2024 compris entre 1,15 et 1,175 milliard de dollars.
Darling Ingredients (NYSE: DAR) berichtete für das dritte Quartal 2024 einen Nettogewinn von 16,9 Millionen Dollar bzw. 0,11 Dollar pro verwässerter Aktie, was einen Rückgang von 125,0 Millionen Dollar (0,77 Dollar pro Aktie) im dritten Quartal 2023 darstellt. Der gesamte Nettoumsatz sank von 1,6 Milliarden Dollar auf 1,4 Milliarden Dollar
Das kombinierte bereinigte EBITDA betrug 236,7 Millionen Dollar, verglichen mit 334,3 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erhielt 111,2 Millionen Dollar an Bar-Dividenden von Diamond Green Diesel, das 316,6 Millionen Gallonen erneuerbaren Diesel zu einem EBITDA von 0,25 Dollar pro Gallone verkaufte. Darling reduzierte die Schulden um etwa 192 Millionen Dollar und rechnet für das Gesamtjahr 2024 mit einem kombinierten bereinigten EBITDA zwischen 1,15 und 1,175 Milliarden Dollar.
- Debt reduction of $192 million during Q3
- Received $111.2 million in cash dividends from Diamond Green Diesel
- Strong renewable diesel sales volume of 316.6 million gallons in Q3
- Net income declined 86.5% YoY to $16.9 million
- Total net sales decreased 12.5% YoY to $1.4 billion
- Combined adjusted EBITDA fell 29.2% YoY to $236.7 million
- DGD EBITDA per gallon dropped to $0.25 from higher levels in previous periods
Insights
Third Quarter 2024
- Net income of
, or$16.9 million per GAAP diluted share$0.11 - Total net sales of
$1.4 billion - Combined adjusted EBITDA of
$236.7 million - Received
in cash dividends from Diamond Green Diesel$111.2 million
"During the third quarter, Darling Ingredients continued to navigate challenging markets. Even with these headwinds, our core ingredients cash flows and dividends from DGD allowed us to reduce debt by about
For the nine months ended September 28, 2024, Darling Ingredients reported net sales of
DGD sold 316.6 million gallons of renewable diesel for the third quarter 2024 at an average of
Combined adjusted EBITDA for the third quarter of 2024 was
As of September 28, 2024, Darling Ingredients had
For the full fiscal year, Darling Ingredients expects earnings of
Darling Ingredients Inc. and Subsidiaries Consolidated Operating Results For the Three and Nine Months Ended September 28, 2024 and September 30, 2023 (in thousands, except per share data, unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
$ Change | $ Change | ||||||||||
September 28, | September 30, | Favorable | September 28, | September 30, | Favorable | ||||||
2024 | 2023 | (Unfavorable) | 2024 | 2023 | (Unfavorable) | ||||||
Net sales to third parties | $ 1,157,075 | $ 1,348,602 | $ (191,527) | $ 3,551,392 | $ 4,233,769 | $ (682,377) | |||||
Net sales to related party - Diamond Green Diesel | 264,816 | 276,602 | (11,786) | 746,090 | 940,228 | (194,138) | |||||
Total net sales | 1,421,891 | 1,625,204 | (203,313) | 4,297,482 | 5,173,997 | (876,515) | |||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses (excludes | 1,108,319 | 1,238,733 | 130,414 | 3,353,406 | 3,965,408 | 612,002 | |||||
(Gain)/loss on sale of assets | 251 | 929 | 678 | (101) | 861 | 962 | |||||
Selling, general and administrative expenses | 115,717 | 137,697 | 21,980 | 384,591 | 409,914 | 25,323 | |||||
Restructuring and asset impairment charges | — | — | — | — | 5,420 | 5,420 | |||||
Acquisition and integration costs | 218 | 3,430 | 3,212 | 5,402 | 12,158 | 6,756 | |||||
Change in fair value of contingent consideration | 16,156 | (5,559) | (21,715) | (42,215) | (13,058) | 29,157 | |||||
Depreciation and amortization | 123,553 | 125,994 | 2,441 | 375,667 | 364,086 | (11,581) | |||||
Total costs and expenses | 1,364,214 | 1,501,224 | 137,010 | 4,076,750 | 4,744,789 | 668,039 | |||||
Equity in net income of Diamond Green Diesel | 2,430 | 54,389 | (51,959) | 125,046 | 361,690 | (236,644) | |||||
Operating income | 60,107 | 178,369 | (118,262) | 345,778 | 790,898 | (445,120) | |||||
Other expense: | |||||||||||
Interest expense | (66,846) | (70,278) | 3,432 | (198,947) | (190,770) | (8,177) | |||||
Foreign currency gain/(loss) | (134) | 845 | (979) | 515 | 8,339 | (7,824) | |||||
Other income, net | 4,735 | 2,247 | 2,488 | 12,823 | 13,485 | (662) | |||||
Total other expense | (62,245) | (67,186) | 4,941 | (185,609) | (168,946) | (16,663) | |||||
Equity in net income of other unconsolidated | 3,782 | 1,534 | 2,248 | 9,109 | 3,503 | 5,606 | |||||
Income from operations before income taxes | 1,644 | 112,717 | (111,073) | 169,278 | 625,455 | (456,177) | |||||
Income tax expense/(benefit) | (17,471) | (15,364) | 2,107 | (12,790) | 52,322 | 65,112 | |||||
Net income | 19,115 | 128,081 | (108,966) | 182,068 | 573,133 | (391,065) | |||||
Net income attributable to noncontrolling | (2,166) | (3,055) | 889 | (5,096) | (9,923) | 4,827 | |||||
Net income attributable to Darling | $ 16,949 | $ 125,026 | $ (108,077) | $ 176,972 | $ 563,210 | $ (386,238) | |||||
Basic income per share: | $ 0.11 | $ 0.78 | $ (0.67) | $ 1.11 | $ 3.52 | $ (2.41) | |||||
Diluted income per share: | $ 0.11 | $ 0.77 | $ (0.66) | $ 1.10 | $ 3.47 | $ (2.37) | |||||
Number of diluted common shares: | 160,991 | 162,425 | 161,534 | 162,537 |
Segment Financial Tables (in thousands, unaudited) | |||||
Feed | Food | Fuel | Corporate | Total | |
Three Months Ended September 28, 2024 | |||||
Total net sales | $ 927,457 | $ 357,292 | $ 137,142 | $ — | $ 1,421,891 |
Cost of sales and operating expenses | 727,642 | 271,861 | 108,816 | — | 1,108,319 |
Gross margin | 199,815 | 85,431 | 28,326 | — | 313,572 |
Loss (gain) on sale of assets | 204 | 49 | (2) | — | 251 |
Selling, general and administrative expenses | 67,445 | 28,351 | 7,757 | 12,164 | 115,717 |
Acquisition and integration costs | — | — | — | 218 | 218 |
Change in fair value of contingent consideration | 16,156 | — | — | — | 16,156 |
Depreciation and amortization | 85,480 | 26,743 | 9,297 | 2,033 | 123,553 |
Equity in net income of Diamond Green Diesel | — | — | 2,430 | — | 2,430 |
Segment operating income/(loss) | $ 30,530 | $ 30,288 | $ 13,704 | $ (14,415) | $ 60,107 |
Equity in net income of other unconsolidated subsidiaries | 3,782 | — | — | — | 3,782 |
Segment income/(loss) | $ 34,312 | $ 30,288 | $ 13,704 | $ (14,415) | $ 63,889 |
Segment EBITDA (Non-GAAP) | $ 132,166 | $ 57,031 | $ 20,571 | $ (12,164) | $ 197,604 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) | — | — | 39,085 | — | 39,085 |
Combined Adjusted EBITDA (Non-GAAP) | $ 132,166 | $ 57,031 | $ 59,656 | $ (12,164) | $ 236,689 |
Feed | Food | Fuel | Corporate | Total | |
Three Months Ended September 30, 2023 | |||||
Total net sales | $ 1,047,796 | $ 455,744 | $ 121,664 | $ — | $ 1,625,204 |
Cost of sales and operating expenses | 804,312 | 338,208 | 96,213 | — | 1,238,733 |
Gross margin | 243,484 | 117,536 | 25,451 | — | 386,471 |
Loss (gain) on sale of assets | 833 | 117 | (21) | — | 929 |
Selling, general and administrative expenses | 80,985 | 31,463 | 5,666 | 19,583 | 137,697 |
Acquisition and integration costs | — | — | — | 3,430 | 3,430 |
Change in fair value of contingent consideration | (5,559) | — | — | — | (5,559) |
Depreciation and amortization | 88,954 | 25,418 | 9,026 | 2,596 | 125,994 |
Equity in net income of Diamond Green Diesel | — | — | 54,389 | — | 54,389 |
Segment operating income/(loss) | $ 78,271 | $ 60,538 | $ 65,169 | $ (25,609) | $ 178,369 |
Equity in net income of other unconsolidated subsidiaries | 1,534 | — | — | — | 1,534 |
Segment income/(loss) | $ 79,805 | $ 60,538 | $ 65,169 | $ (25,609) | $ 179,903 |
Segment EBITDA (Non-GAAP) | $ 161,666 | $ 85,956 | $ 19,806 | $ (19,583) | $ 247,845 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) | — | — | 86,450 | — | 86,450 |
Combined Adjusted EBITDA (Non-GAAP) | $ 161,666 | $ 85,956 | $ 106,256 | $ (19,583) | $ 334,295 |
Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of Diamond Green Diesel, plus depreciation and amortization, acquisition and integration costs, restructuring and asset impairment charges, change in fair value of contingent consideration, plus Darling's share of DGD Adjusted EBITDA.
Feed | Food | Fuel | Corporate | Total | |
Nine Months Ended September 28, 2024 | |||||
Total net sales | $ 2,751,452 | $ 1,127,415 | $ 418,615 | $ — | $ 4,297,482 |
Cost of sales and operating expenses | 2,171,282 | 846,766 | 335,358 | — | 3,353,406 |
Gross margin | 580,170 | 280,649 | 83,257 | — | 944,076 |
Loss (gain) on sale of assets | 541 | (208) | (434) | — | (101) |
Selling, general and administrative expenses | 218,598 | 88,939 | 24,911 | 52,143 | 384,591 |
Acquisition and integration costs | — | — | — | 5,402 | 5,402 |
Change in fair value of contingent consideration | (42,215) | — | — | — | (42,215) |
Depreciation and amortization | 259,493 | 82,983 | 26,687 | 6,504 | 375,667 |
Equity in net income of Diamond Green Diesel | — | — | 125,046 | — | 125,046 |
Segment operating income/(loss) | $ 143,753 | $ 108,935 | $ 157,139 | $ (64,049) | $ 345,778 |
Equity in net income of other unconsolidated subsidiaries | 9,109 | — | — | — | 9,109 |
Segment income/(loss) | $ 152,862 | $ 108,935 | $ 157,139 | $ (64,049) | $ 354,887 |
Segment EBITDA (Non-GAAP) | $ 361,031 | $ 191,918 | $ 58,780 | $ (52,143) | $ 559,586 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) | — | — | 230,787 | — | 230,787 |
Combined Adjusted EBITDA (Non-GAAP) | $ 361,031 | $ 191,918 | $ 289,567 | $ (52,143) | $ 790,373 |
Feed | Food | Fuel | Corporate | Total | |
Nine Months Ended September 30, 2023 | |||||
Total net sales | $ 3,426,950 | $ 1,328,229 | $ 418,818 | $ — | $ 5,173,997 |
Cost of sales and operating expenses | 2,630,797 | 999,418 | 335,193 | — | 3,965,408 |
Gross margin | 796,153 | 328,811 | 83,625 | — | 1,208,589 |
Loss/(gain) on sale of assets | 813 | 99 | (51) | — | 861 |
Selling, general and administrative expenses | 233,082 | 98,269 | 16,829 | 61,734 | 409,914 |
Restructuring and asset impairment charges | 92 | 5,328 | — | — | 5,420 |
Acquisition and integration costs | — | — | — | 12,158 | 12,158 |
Change in fair value of contingent consideration | (13,058) | — | — | — | (13,058) |
Depreciation and amortization | 261,849 | 68,336 | 25,986 | 7,915 | 364,086 |
Equity in net income of Diamond Green Diesel | — | — | 361,690 | — | 361,690 |
Segment operating income/(loss) | $ 313,375 | $ 156,779 | $ 402,551 | $ (81,807) | $ 790,898 |
Equity in net income of other unconsolidated subsidiaries | 3,503 | — | — | — | 3,503 |
Segment income/(loss) | $ 316,878 | $ 156,779 | $ 402,551 | $ (81,807) | $ 794,401 |
Segment EBITDA (Non-GAAP) | $ 562,258 | $ 230,443 | $ 66,847 | $ (61,734) | $ 797,814 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) | — | — | 463,171 | — | 463,171 |
Combined Adjusted EBITDA (Non-GAAP) | $ 562,258 | $ 230,443 | $ 530,018 | $ (61,734) | $ 1,260,985 |
Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of Diamond Green Diesel, plus depreciation and amortization, acquisition and integration costs, restructuring and asset impairment charges, change in fair value of contingent consideration, plus Darling's share of DGD Adjusted EBITDA.
Darling Ingredients Inc. and Subsidiaries Balance Sheet Disclosures As of September 28, 2024 and December 30, 2023 (in thousands) | |||
(unaudited) | |||
September 28, | December 30, | ||
2024 | 2023 | ||
Cash and cash equivalents | $ 114,778 | $ 126,502 | |
Property, plant and equipment, net | $ 2,856,229 | $ 2,935,185 | |
Current portion of long-term debt | $ 114,326 | $ 60,703 | |
Long-term debt, net of current portion | $ 4,131,891 | $ 4,366,370 | |
Other Financial Data | |||
As of September 28, 2024 | |||
(unaudited) | |||
September 28, | |||
2024 | |||
Revolver availability | $ 1,008,322 | ||
Capital expenditures - YTD | $ 259,133 | ||
Projected Leverage Ratio | 4.04x |
Diamond Green Diesel Joint Venture Operating Financial Results For the Three and Nine Months Ended September 30, 2024 and September 30, 2023 (in thousands, unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
$ Change | $ Change | ||||||||||
September 30, | September 30, | Favorable | September 30, | September 30, | Favorable | ||||||
2024 | 2023 | (Unfavorable) | 2024 | 2023 | (Unfavorable) | ||||||
Revenues: | |||||||||||
Operating revenues | $ 1,224,679 | $ 1,430,666 | $ (205,987) | $ 3,819,870 | $ 5,356,827 | $ (1,536,957) | |||||
Expenses: | |||||||||||
Total costs and expenses less | 1,126,200 | 1,257,766 | 131,566 | 3,300,483 | 4,430,485 | 1,130,002 | |||||
Lower of cost or market (LCM) | 20,310 | — | (20,310) | 57,814 | — | (57,814) | |||||
Depreciation, amortization and | 68,303 | 55,118 | (13,185) | 195,503 | 172,040 | (23,463) | |||||
Total costs and expenses | 1,214,813 | 1,312,884 | 98,071 | 3,553,800 | 4,602,525 | 1,048,725 | |||||
Operating income | 9,866 | 117,782 | (107,916) | 266,070 | 754,302 | (488,232) | |||||
Other income | 5,058 | 2,701 | 2,357 | 14,336 | 6,863 | 7,473 | |||||
Interest and debt expense, net | (10,093) | (11,705) | 1,612 | (30,372) | (37,785) | 7,413 | |||||
Income before income tax expense | 4,831 | 108,778 | (103,947) | 250,034 | 723,380 | (473,346) | |||||
Income tax benefit | $ (29) | $ — | 29 | $ (58) | $ — | 58 | |||||
Net income | $ 4,860 | $ 108,778 | $ (103,918) | $ 250,092 | $ 723,380 | $ (473,288) |
Diamond Green Diesel Joint Venture Consolidated Balance Sheets September 30, 2024 and December 31, 2023 (in thousands) | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(unaudited) | |||
Assets: | |||
Cash | $ 195,666 | $ 236,794 | |
Total other current assets | 1,472,709 | 1,640,636 | |
Property, plant and equipment, net | 3,886,783 | 3,838,800 | |
Other assets | 104,317 | 89,697 | |
Total assets | $ 5,659,475 | $ 5,805,927 | |
Liabilities and members' equity: | |||
Revolver | $ — | $ 250,000 | |
Total other current portion of long term debt | 29,496 | 28,639 | |
Total other current liabilities | 384,496 | 417,918 | |
Total long term debt | 714,783 | 737,097 | |
Total other long term liabilities | 17,043 | 16,996 | |
Total members' equity | 4,513,657 | 4,355,277 | |
Total liabilities and members' equity | $ 5,659,475 | $ 5,805,927 |
Darling Ingredients Inc. reports Adjusted EBITDA results, which is a Non-GAAP financial measure, as a compliment 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 and Nine Months Ended September 28, 2024 and September 30, 2023 (in thousands, unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
Adjusted EBITDA | September 28, | September 30, | September 28, | September 30, | ||||
( | 2024 | 2023 | 2024 | 2023 | ||||
Net income attributable to Darling | 16,949 | 125,026 | 176,972 | 563,210 | ||||
Depreciation and amortization | 123,553 | 125,994 | 375,667 | 364,086 | ||||
Interest expense | 66,846 | 70,278 | 198,947 | 190,770 | ||||
Income tax expense (benefit) | (17,471) | (15,364) | (12,790) | 52,322 | ||||
Restructuring and asset impairment charges | — | — | — | 5,420 | ||||
Acquisition and integration costs | 218 | 3,430 | 5,402 | 12,158 | ||||
Change in fair value of contingent consideration | 16,156 | (5,559) | (42,215) | (13,058) | ||||
Foreign currency loss/(gain) | 134 | (845) | (515) | (8,339) | ||||
Other income, net | (4,735) | (2,247) | (12,823) | (13,485) | ||||
Equity in net income of Diamond Green Diesel | (2,430) | (54,389) | (125,046) | (361,690) | ||||
Equity in net income of other unconsolidated subsidiaries | (3,782) | (1,534) | (9,109) | (3,503) | ||||
Net income attributable to noncontrolling interests | 2,166 | 3,055 | 5,096 | 9,923 | ||||
Adjusted EBITDA (Non-GAAP) | $ 197,604 | $ 247,845 | $ 559,586 | $ 797,814 | ||||
Foreign currency exchange impact | (601) | (1) | — | (76) | (2) | — | ||
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) | $ 197,003 | $ 247,845 | $ 559,510 | $ 797,814 | ||||
DGD Joint Venture Adjusted EBITDA (Darling's share) (Non-GAAP) | $ 39,085 | $ 86,450 | $ 230,787 | $ 463,171 | ||||
Combined Adjusted EBITDA (Non-GAAP) | $ 236,689 | $ 334,295 | $ 790,373 | $ 1,260,985 | ||||
(1) The average rates for the three months ended September 28, 2024 were | ||||||||
(2) The average rates for the nine months ended September 28, 2024 were |
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about
Darling Ingredients will host a conference call on Thursday, October 24, 2024, at 9 a.m. Eastern Time (8 a.m. Central Time) to discuss third quarter 2024 financial results, which will be released earlier that day, and provide an update on company operations. A presentation with accompanying supplemental financial data will also be available at darlingii.com/investors.
To access the call as a listener, please register for the audio-only webcast.
To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on October 24, 2024, or call 844-868-8847 (
A replay of the call will be available online via the webcast registration link and via phone at 877-344-7529 (
Use of Non-GAAP Financial Measures:
Segment EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to segment income (loss), 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 segment income (loss), but rather as a measure of the segment's operating performance. Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of Diamond Green Diesel, plus depreciation and amortization, acquisition and integration costs, restructuring and asset impairment charges, change in fair value of contingent consideration, plus Darling's share of DGD Adjusted EBITDA. Management believes that Segment EBITDA is useful in evaluating the segment's operating performance because the calculation of Segment EBITDA generally eliminates non-cash and certain other items for reasons unrelated to overall operating performance and also believes this information is useful to investors.
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, foreign currency loss/(gain), net income/(loss) attributable to non-controlling interests, interest expense, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiaries. 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, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
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,
Pro forma Adjusted EBITDA to Foreign Currency 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. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company's operating performance on a constant currency basis and also believes this information is useful to investors.
DGD Joint Venture Adjusted EBITDA (Darling's share) is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. 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 Diamond Green Diesel, 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. The Company calculates DGD Joint Venture Adjusted EBITDA (Darling's share) by taking DGD's operating income plus DGD's depreciation, amortization and accretion expense and then multiplying by
Combined 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. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Joint Venture Adjusted EBITDA (Darling's share). Management believes that Combined 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, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
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 operations and statement of cash flows, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company at times provides guidance 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.
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 Diamond Green Diesel, 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. EBITDA per gallon is presented here not as an alternative to net income or equity in income of Diamond Green Diesel, but rather as a measure of Diamond Green Diesel's operating performance. Since EBITDA per gallon (generally, net income plus interest expense, taxes, depreciation and amortization divided by total gallons sold) is not calculated identically by all companies, this presentation may not be comparable to EBITDA per gallon presentations disclosed by other companies. Management believes that EBITDA per gallon is useful in evaluating Diamond Green Diesel's operating performance compared to that of other companies in its industry because the calculation of EBITDA per gallon generally eliminates the effects of financing, income taxes and certain non-cash and other items presented on a per gallon basis that may vary for different companies for reasons unrelated to overall operating performance.
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 renewable fuel standards, low carbon fuel standards ("LCFS"), renewable fuel mandates and tax credits for biofuels, or loss or diminishment of tax credits due to failure to satisfy any eligibility requirements, including, without limitation, in relation to the blender tax credit or the Clean Fuels Production Credit ("CFPC"); climate related adverse results, including with respect to the Company's climate goals, targets or commitments; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives or products which do not meet specifications, contract requirements or regulatory standards; 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
Darling Ingredients Contacts | |
Investors: | Suann Guthrie |
Senior VP, Investor Relations, Sustainability & Communications | |
(469) 214-8202; suann.guthrie@darlingii.com | |
Media: | Jillian Fleming |
Director, Global Communications | |
(972) 541-7115; jillian.fleming@darlingii.com |
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SOURCE Darling Ingredients Inc.
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