Darling International Inc. Announces Results For Fourth Quarter And Fiscal 2012

  Darling International Inc. Announces Results For Fourth Quarter And Fiscal

PR Newswire

IRVING, Texas, Feb. 27, 2013

IRVING, Texas, Feb. 27, 2013 /PRNewswire/ -- Darling International Inc. (NYSE:
DAR)today reportedfourth quarter net income of $28.8 million, or $0.24 per
share, and net income of $130.8 million, or $1.11 per share, for its fiscal
year ended December 29, 2012. Sales and results of operations for the fourth
quarter and fiscal year as compared to the same periods of the prior year are
as follows:

Fourth Quarter 2012

For the fourth quarter of 2012, the Company reported net sales of $424.9
million as compared to $430.9 million for the fourth quarter of 2011. The
$6.0 million decrease in sales is primarily attributable to lower selling
prices for the Company's finished products as compared to 2011. During the
fourth quarter 2012 as compared to the third quarter 2012, the Company
experienced more than a 12% decrease in fat prices, primarily due to reduced
global biodiesel demand and an increase in supply of competing fats for animal
feed. The drop in net sales was partially offset by a slight increase in pet
food grade poultry meal and California protein prices.

Net income for the fourth quarter of 2012 decreased to $28.8 million, or $0.24
per share, as compared to net income of $29.5 million, or $0.25 per share, for
the 2011 comparable period. The $0.7 million decrease in net income for the
fourth quarter resulted from lower raw material volumes as a result of weaker
slaughter and processor rates during late 2012, lower finished fat prices and
the impact of a $2.1 million gain related to a 2011 fourth quarter purchase
accounting contingency that did not re-occur in 2012.

Fiscal 2012

Darling International Chairman and Chief Executive Officer, Randall Stuewe,
said "Fiscal 2012 was another strong year. We enjoyed strong performances
from both segments although lower fat prices and trade restrictions on MBM
weighed heavily on the Rendering segment earnings during the last half of the
year. Since fourth quarter, we have seen values for our finished products
improve and trade at more typical relationships to their alternatives. Our
Bakery segment rebounded nicely in the second half of the year as volumes and
earnings returned to expected levels. Diamond Green Diesel construction
progressed and we anticipate a second quarter 2013 commissioning. Overall, we
are pleased with our performance and positioning going into 2013."

For fiscal year 2012, the Company reported net sales of $1,701.4 million as
compared to $1,797.2 million for fiscal year 2011. The $95.8 million decrease
in sales resulted primarily from lower rendering finishedfat prices as well
as lower raw material volumes in both the Rendering and Bakery segments.

For fiscal year 2012, the Company reported net income of $130.8 million, or
$1.11 per share, as compared to $169.4 million, or $1.47 per share, for the
2011 comparable period. The $38.6 million decrease in net income for fiscal
2012 resulted primarily from lower finishedfat selling prices, lower raw
material volumes, and the impact of increased payroll and related expenses,
and an increase in expense from a Fiscal 2011 purchase accounting contingency
gain that did not re-occur in Fiscal 2012.

Darling International Inc. is the largest and only publicly traded provider of
rendering, used cooking oil and bakery residuals recycling and recovery
solutions to the nation's food industry. The Company recycles beef, pork, and
poultry by-product streams into useable ingredients such as tallow, feed-grade
fats, meat and bone meal, poultry meal and hides. The Company also recovers
and converts used cooking oil and commercial bakery residuals into valuable
feed and fuel ingredients. These products are primarily sold to agricultural,
pet food, leather, oleo-chemical and bio-fuel manufacturers around the world.
In addition, the Company provides grease trap collection services and sells
used cooking oil collection equipment to restaurants.

For additional information, visit the Company's web site at

Darling International will host a conference call to discuss the Company's
fourth quarter and fiscal year 2012 financial results at 8:30 am Eastern Time
(7:30 am Central Time) on Thursday, February 28, 2013. To listen to the
conference call, participants calling from within North America should dial
877-317-6789; international participants should dial 412-317-6789. Please
refer to access code 10023124. Please call approximately ten minutes before
the start of the call to ensure that you are connected.

The call will also be available as a live audio webcast that can be accessed
on the company website at http://www.darlingii.com/investors.aspx. Beginning
one hour after its completion, a replay of the call can be accessed through
March 7, 2013, by dialing 877-344-7529 domestically, or 412-317-0088 if
outside North America. The access code for the replay is 10023124. The
conference call will also be archived on the Company's website.

{This media release contains forward-looking statements regarding the business
operations and prospects of Darling and industry factors affecting it. These
statements are identified by words such as "may," "will," " begin," " look
forward," "expect," "believe," "intend," "anticipate," "should," "potential,"
"estimate," "continue," "momentum" and other words referring to events to
occur in the future. These statements reflect Darling'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, including disturbances in world
financial, credit, commodities and stock markets; potential changes in
national and international regulations affecting the Company's products; a
decline in consumer confidence and discretionary spending; the general
performance of the U.S. and global economies; 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; risks, including future expenditure, relating
to Darling's joint venture with Valero Energy Corporation to construct and
complete a renewable diesel plant in Norco, Louisiana and possible
difficulties completing and obtaining operational viability with the plant on
a timely basis, or at all; risks relating to possible third party claims of
intellectual property infringement; risks associated with the development of
competitive sources for alternative renewable diesel or comparable fuels;
challenges associated with the Company's ongoing enterprise resource planning
system project; economic disruptions resulting from the European debt crisis;
and continued or escalated conflict in the Middle East, each of which could
cause actual results to differ materially from those projected in the
forward-looking statements. Other risks and uncertainties regarding Darling,
its business and the industry in which it operates are referenced from time to
time in the Company's filings with the Securities and Exchange Commission.
Darling 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.}

Darling International Inc.
Consolidated Operating Results
For the Periods Ended December 29, 2012 and December 31, 2011
(Dollars in thousands, except per share amounts)
                    Three Months Ended                 Twelve Months Ended
                                        $ Change                               $ Change
                    Dec. 29,  Dec. 31,  Favorable      Dec. 29,    Dec. 31,    Favorable
                    2012      2011      (Unfavorable)  2012        2011        (Unfavorable)
Net sales           $424,915  $430,866  $(5,951)       $1,701,429  $1,797,249  $(95,820)
Costs and expenses:
 Cost of sales
 andoperating      $314,088  $314,784  $   696      $1,232,604  $1,268,221  $ 35,617
 Selling, general
 andadministrative 38,927    35,863    (3,064)        151,713     136,135     (15,578)
 Depreciation and   22,413    21,220    (1,193)        85,371      78,909      (6,462)
Total costs and     375,428   371,867   (3,561)        1,469,688   1,483,265   13,577
Operating income   49,487    58,999    (9,512)        231,741     313,984     (82,243)
 Interest expense   (5,508)   (7,781)   2,273          (24,054)    (37,163)    13,109
 Other, net         1,866     (662)     2,528          1,760       (2,955)     4,715
Total other         (3,642)   (8,443)   4,801          (22,294)    (40,118)    17,824
Equity in net loss
 Unconsolidated     (937)     (228)     (709)          (2,662)     (1,572)     (1,090)
Income from
operations before   44,908    50,328    (5,420)        206,785     272,294     (65,509)
income taxes
Income taxes        (16,106)  (20,831)  4,725          (76,015)    (102,876)   26,861
Net income         $         $         $  (695)      $          $          $(38,648)
                    28,802   29,497                  130,770     169,418
Basic income per    $       $       $ (0.01)      $       $       $  (0.36)
share:              0.24     0.25                    1.11        1.47
Diluted income per  $       $       $ (0.01)      $       $       $  (0.36)
share:              0.24     0.25                    1.11        1.47

For More Information, contact:
Melissa Gaither, Director of Investor      251 O'Connor Ridge Blvd., Suite 300
Relations or
Brad Phillips, Treasurer                   Irving, Texas 75038
                                           Phone: 972-717-0300

SOURCE Darling International Inc.

Website: http://www.darlingii.com
Press spacebar to pause and continue. Press esc to stop.