Darling Ingredients Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended July 4, 2015; Provides Capital Expenditure Guidance for the Full Year of 2015
Aug 13 15
Darling Ingredients Inc. announced unaudited consolidated earnings results for the second quarter and six months ended July 4, 2015. For the quarter, the company announced net sales of $859,315,000 compared to $1,031,283,000 for the same period a year ago. Operating income was $39,292,000 compared to $75,485,000 for the same period a year ago. Income before income taxes was $9,602,000 compared to $50,078,000 for the same period a year ago. Net income was $ 4,937,000 compared to $34,575,000 for the same period a year ago. Net income attributable to the company was $3,080,000 compared to $32,757,000 for the same period a year ago. Basic and diluted income per share was $0.02 against $0.20 a year ago. Adjusted diluted earnings per share attributable to company were $0.13 against $0.33 a year ago. EBITDA was $105.5 million against $98.3 million for the previous quarter. Adjusted EBITDA was $105,537,000 against $142,983,000 a year ago. This increase is largely due to lower raw material prices, lower acquisition and integration expenses and cost reductions. Pro-forma adjusted Pro-EBITDA (Non-GAAP) was $106,745,000 against $152,120,000 a year ago. Capital spending through the second quarter was $98.7 million compared to $103 million in the comparable period of 2014.
For the six months, the company announced net sales of $1,734,009,000 compared to $1,977,575,000 for the same period a year ago. Operating income was $71,117,000 compared to $74,921,000 for the same period a year ago. Income before income taxes was $13,541,000 compared to loss before income taxes $19,218,000 for the same period a year ago. Net income was $ 6,761,000 compared to net loss of $16,431,000 for the same period a year ago. Net income attributable to the company was $3,189,000 compared to net loss attributable to the company $20,046,000 for the same period a year ago. Basic and diluted income per share was $0.02 against loss per share of $0.12 a year ago. Net cash provided by operating activities was $187,550,000 against $41,024,000 a year ago. Capital expenditures were $98,722,000 against $103,531,000 a year ago. Adjusted diluted earnings per share attributable to company were $0.21 against $0.53 a year ago. The company generated Adjusted EBITDA of $203.8 million, as compared to $208.1 million in the same period of 2014. On a Pro forma Adjusted EBITDA basis, the company would have generated $210.3 million as compared to a Pro forma Adjusted EBITDA of $282.1 million in the same period in 2014. The decrease in the Pro forma Adjusted EBITDA is attributable to lower finished product prices and the impact of foreign exchange rates as a function of the strengthening U.S. dollar as compared mainly to the euro and Canadian dollar, which were partially offset by an increase in raw material volumes.
The company expects to incur additional CapEx between $110 million and $130 million for the remainder of 2015, which includes planned investments in the 5 new processing plants and normal CapEx. The company expects its effective tax rate to decrease significantly to approximately 25% for the year 2015.