Click here to close now.


News Feed Item

Darling International Inc. Announces Results For Fourth Quarter And Fiscal 2013

IRVING, Texas, Feb. 26, 2014 /PRNewswire/ -- Darling International Inc. (NYSE: DAR) today reported fourth quarter net income of $22.5 million, or $0.18 per share, and net income of $109.0 million , or $0.91 per share, for its fiscal year ended December 28, 2013. 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 2013

For the fourth quarter of 2013, the Company reported net sales of $428.7 million as compared to $424.9 million for the fourth quarter of 2012. The $3.8 million increase in net sales is primarily attributable to the inclusion of two months of sales from our new Canadian subsidiary, Rothsay, a full quarter of sales from our recently acquired food residuals business, Terra Renewal Services (TRS), and improved raw material volumes in both the Rendering and Bakery segments, when compared to the fourth quarter of 2012. However, these increases were largely offset by significant reductions in finished product prices for both fats and proteins. In the Bakery segment, we experienced a sharp decline in finished product pricing due to an unprecedented reduction in corn prices, which dropped approximately $1.76 per bushel, or 29% during the quarter on a sequential basis or $3.12 per bushel or 41% relative to the fourth quarter 2012.

Net income for fourth quarter 2013 decreased to $22.5 million, or $0.18 per share, as compared to net income of $28.8 million, or $0.24 per share, for the 2012 comparable period. The $6.3 million decrease in net income for the fourth quarter resulted from lower finished product pricing, primarily in the Bakery segment; transaction costs of $14.4 million related to the Company's acquisition of Rothsay in October 2013 and the VION Ingredients business of VION Foods Inc. on January 7, 2014; the write-off of a $13 million bridge loan fee; and higher depreciation and amortization expenses related to a general increase in capital expenditures and the purchase accounting step-up in basis associated with the Rothsay and TRS acquisitions. These items were offset, in part, by a $27.5 million gain on a foreign exchange contract related to the acquisition of VION Ingredients; earnings resulting from the Rothsay and TRS acquisitions; and a tax benefit associated with the U.S. biofuels tax incentive. The Bakery segment was moderately protected by the Company's corn derivatives positions for the quarter, but the impact of the Company's raw material purchasing formulas in its Bakery segment supply contracts, which are based on the published market price of corn, significantly lagged the rapid decline of our finished product prices through the processing and sales cycles.

Darling International Chairman and Chief Executive Officer, Randall Stuewe, said, "As previously reported, the Diamond Green Diesel refinery we own in a joint venture with Valero Energy Corporation commenced operations earlier in the year. During the fourth quarter, the joint venture encountered issues typically consistent with the shakedown phase for a new facility in the refining industry. However, we proved that the technology is capable of producing a high quality renewable diesel, which has been well received by the fuel market and distribution infrastructure," continued Mr. Stuewe. "Diamond Green Diesel experienced a challenging fourth quarter related to supply chain issues typical of a startup of this magnitude. There were periods in both the third and fourth quarters when Diamond Green Diesel operated below nameplate capacity, resulting in a fourth quarter ownership position in higher priced feedstock relative to the rapidly declining fat prices that occurred during the quarter. Thus, Diamond Green Diesel was unable to benefit from the favorable market conditions that existed for inexpensive fats. Furthermore, as the EPA's 2013 biofuels mandate was met, RIN values started to decline; however, this decline was exacerbated by the uncertainty created by the EPA's initial proposal to hold the 2014 mandate for Advanced Biofuels and Biomass Based Diesel constant at 1.28 billion gallons. Currently, Diamond Green Diesel is operating at nameplate capacity."

In the first quarter of 2014, we anticipate additional transaction-related costs, which are estimated to be as follows:

  • $27.3 million redemption premium associated with the repurchase of our previously outstanding 8.5% Notes;
  • Approximately $14 million to $18 million of other acquisition-related costs; and
  • $12.6 million foreign exchange contract loss related to the acquisition of VION Ingredients

Fiscal 2013

Darling International Chairman and Chief Executive Officer, Randall Stuewe, said, "Fiscal 2013 was a year of tremendous growth for the Company. We focused on strategic, long-term opportunities while managing a massively volatile fourth quarter in 2013. A sharp decline in the fats market during the fourth quarter resulted from large global crop production increases and uncertainty surrounding the U.S. government's RFS2 mandated biofuel volumes for 2014. Our contractual market-based formulas worked, but were hard-pressed to fully protect our spread in a difficult environment of rapidly declining prices. Additionally, as we approached year end, buyers' reluctance to purchase forward further exacerbated inventories, which increased as the market prices fell. Our protein prices followed the decline in soybean meal prices during the quarter, but have since rebounded. As expected, our Bakery segment earnings dropped with the decrease in corn prices during 2013."

Mr. Stuewe further commented, "We closed the Rothsay transaction on October 28, 2013. Integration is going well with raw material volumes as expected. Additionally, we closed on VION Ingredients, now Darling Ingredients International, in early January, with integration going nicely and synergies being identified. Overall, in fiscal 2013 operating costs were effectively managed and a strong capital improvement program was deployed. We are excited about the Company's global positioning and the opportunities that lie ahead with our expanded global platform."

For fiscal 2013, the Company reported net sales of $1,723.6 million as compared to $1,701.4 million for fiscal 2012. Similar to the fiscal 2013 fourth quarter, the $22.1 million increase in sales resulted primarily from the acquisition of Rothsay and TRS and increased raw material volumes compared to fiscal year 2012. These increases were offset by declines in the finished product prices of Cookie Meal®, fats, and pet food grade poultry meal.

For fiscal 2013, the Company reported net income of $109.0 million, or $0.91 per share, as compared to $130.8 million, or $1.11 per share, for the 2012 comparable period. Similar to the fiscal 2013 fourth quarter, the $21.8 million decrease in net income for fiscal 2013 resulted from acquisition-related costs, increased SG&A costs, lower finished product pricing in the Bakery segment, the write-off of bridge loan fees, and higher depreciation and amortization costs associated with increased capital expenditures and the accounting basis step-up related to the acquisitions. These decreases were partially offset by the foreign exchange contract gain, earnings from Rothsay and TRS, higher raw material volumes, earnings from the DGD joint venture, and the tax benefit associated with the U.S. biofuels tax incentive.

Darling International Inc. is the world's largest publicly-traded producer of sustainable natural ingredients from edible and inedible bio-nutrients creating a wide range of products and customized specialty solutions for clients in the food, pharmaceutical, pet food, feed, fuel, bioenergy, technical and fertilizer industries. With operations on five continents, the Company transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, tallow, feed-grade fats, meat and bone meal, poultry meal, yellow grease, fuel feed stocks, green energy, natural casings and hides. Value-added products include food grade fats, bone products, organic fertilizers and plasma meals. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap collection services and sells used cooking oil collection equipment to restaurants and collects and land applies industrial residuals. For additional information, visit the Company's website at

Darling International will host a conference call to discuss the Company's fourth quarter and fiscal year 2013 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Thursday, February 27, 2014.

To listen to the conference call, participants calling from within North America should dial 877-270-2148; international participants should dial 412-902-6510. Please refer to access code 10040827. 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 . Beginning one hour after its completion, a replay of the call can be accessed through March 6, 2014, by dialing 877-344-7529 domestically, or 412-317-0088 if outside North America. The access code for the replay is 10040827. 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 International 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 that may occur in the future. These statements reflect Darling International'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 the Company's ability to successfully integrate and operate Rothsay and Darling Ingredients International, disturbances in world financial, credit, commodities, stock markets and climatic conditions; unanticipated 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 biofuels 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; risks related to diseases of animal origin affecting markets for the Company's products; risks associated with the renewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling International and Valero Energy Corporation, including possible operating disruptions and marketing challenges; risks relating to possible third party claims of intellectual property infringement; economic disruptions resulting from the European debt crisis; continued or escalated conflict in the Middle East; and the Company's relatively high level of indebtedness, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. Other risks and uncertainties regarding Darling International, 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 International 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 28, 2013 and December 29, 2012

(Dollars in thousands, except per share amounts)

(Fourth Quarter Unaudited)

Three Months Ended

Twelve Months Ended

$ Change

$ Change

Dec. 28,

Dec. 29,


Dec. 28,

Dec. 29,








Net sales



$     3,834



$    22,121

Costs and expenses:

Cost of sales and operating expenses



$    (4,316)



$   (24,497)

Selling, general and administrative expenses







Depreciation and amortization







Acquisition costs





Total costs and expenses







Operating income 







Other income/(expense):

Interest expense







Foreign currency gain





Other, net







Total other income/(expense)







Equity in net income/loss of unconsolidated subsidiary







Income from operations before income taxes







Income taxes 







Net income 

$ 22,493

$ 28,802

$    (6,309)

$  108,967

$  130,770

$   (21,803)

Basic income per share:

$   0.18

$   0.24

$     (0.06)

$     0.91

$     1.11

$     (0.20)

Diluted income per share:

$   0.18

$   0.24

$     (0.06)

$     0.91

$     1.11

$     (0.20)

For More Information, contact:

Melissa Gaither, Director of Investor Relations

251 O'Connor Ridge Blvd., Suite 300
Irving, Texas 75038
Phone: +1-972-717-0300

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
SYS-CON Events announced today that Catchpoint, a global leader in monitoring, and testing the performance of online applications, has been named "Silver Sponsor" of DevOps Summit New York, which will take place on June 7-9, 2016 at the Javits Center in New York City. Catchpoint radically transforms the way businesses manage, monitor, and test the performance of online applications. Truly understand and improve user experience with clear visibility into complex, distributed online systems.Founde...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
"eFolder does a lot of different things but we protect data and we are focused on protecting data no matter where it resides," explained Carlo Tapia, Product Marketing Manager at eFolder, in this interview at Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Cloud computing is unquestionably one of the driving forces of DevOps, as the automation of operations transforms enterprise software development. DevOps, however, is more than a technology trend, as it represents a move toward silo-busting, self-organizing horizontal teams that drive business velocity. At the same time, enterprise Digital Transformation represents an upheaval across the enterprise, as customer preferences and behavior drive enterprise technology decisions. This transformation ...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
In demand-intensive mobile and web applications, an emerging pattern is to host the Systems of Engagement in the cloud (for maximum responsiveness) but keep the Systems of Record with the other important business systems in the company datacenter, often on a tightly secured mainframe. But what about the space in between? In this IBM Redpaper publication, we show that the IBM Bluemix cloud platform offers technologies that make it easy for cloud-based SoEs to securely connect to on-premises IBM...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
OpsHub, Inc. has announced enhanced support for DevOps and Migration for both Team Foundation Server and Visual Studio On-line in a heterogeneous environment. With added support for build and release entities in OpsHub Integration Manager (OIM) Microsoft customers can now leverage Visual Studio build and release services to manage DevOps processes in a heterogeneous environment. With the enhanced support customers can manage the DevOps process in Team Foundation Server while undertaking activit...