Consistent Operational Performance with Improvements in Food and Fuel Segments

Darling Ingredients Inc. a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries,has announced financial results for the 2019 second quarter ended June 29, 2019.

Second Quarter 2019 Overview

• Revenue of $827.3 million
• Net income of $26.3 million, or $0.16 per GAAP diluted share
• Adjusted EBITDA of $115.5 million
• Diamond Green Diesel (DGD) delivers $1.25 EBITDA per gallon
• Consolidated adjusted pro forma EBITDA $159.4 million
• DGD issued partner dividend of $17.7 million in April 2019, with a subsequent dividend of $37.8 million in July 2019
• US bond refinanced, lowering borrowing cost and extending maturity with extinguishment costs incurred in quarter

For the second quarter of 2019, the Company reported net sales of $827.3 million, as compared with net sales of $846.6 million for the second quarter of 2018. The reduction in net sales of $(19.3) million is mainly the result of lower global protein prices and the divestiture of the Company’s industrial residuals business in May 2018 which was partially offset by the increase in sales volumes of the specialty pet food business and increased collagen sales values.

Net income attributable to Darling for the three months ended June 29, 2019 was $26.3 million, or $0.16 per diluted share, compared to a net loss of $(30.4) million, or $(0.18) per diluted share, for the second quarter of 2018.  The increase in net income over the same period in fiscal 2018 reflects the absence of the following one-time costs realized last year: debt extinguishment costs of $23.5 million related to Euro bond refinancing; the loss of $15.5 million from the sale of Terra Renewal Services subsidiary; and $15.0 million of restructuring and impairment charges incurred as a result of the Hurlingham, Argentina, gelatin plant closure.