Fourth Quarter 2019
Full Year 2019
Darling reported net sales of $859.4 million for the fourth quarter of 2019, as compared with net sales of $853.1 million for the same period a year ago. Net income attributable to Darling for the three months ended December 28, 2019 was $242.6 million, or $1.44 per diluted share, compared to a net income of $40.6 million, or $0.24 per diluted share, for the fourth quarter of 2018. Adjusted net income attributable to Darling for the fourth quarter of 2019 was $156.0 million or $0.92 per diluted share. The adjustment for the fourth quarter is associated with the 2018 retroactive blender's tax credit ('BTC').
"Our investment in Diamond Green Diesel continues to provide us with outstanding results and the growth of low carbon fuel standards around the world, puts Darling at the forefront of the green revolution," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "Our global rendering operations continue to process higher volumes of raw materials, positioning us to be the preferred supplier of animal fats and oils for the biofuels industry."
"Our food segment results showed solid growth in 2019 and we believe that the second half of 2020 will show additional strength as we complete the expansion of three additional Peptan facilities in the second and third quarters of this year," added Stuewe. "Demand for collagen products continue to grow exponentially and our growth strategy of investing in additional production capacities enhances our sustainable portfolio of products and specialty ingredients."
For the fiscal year ended 2019, Darling reported net sales of $3.4 billion, as compared with net sales of $3.4 billion for the fiscal year ended 2018. Net Income attributable to Darling for the fiscal year ended December 28, 2019 was $312.6 million, or $1.86 per diluted share, as compared to a net income of $101.5 million, or $0.60 per diluted share, for the fiscal year ended December 29, 2018. Adjusted net income attributable to Darling for the fiscal year of 2019 was $226.0 million or $1.34 per diluted share. The adjustment for the fiscal year is associated with the 2018 retroactive BTC.
Adjusted EBITDA, which is a Non-GAAP financial measure as outlined later in this release, was $385.8 million for the fourth quarter of 2019, which includes $276.2 million of Darling's share of the DGD joint venture. Fourth quarter 2019 adjusted EBITDA excluding the 2018 BTC was $299.2 million. Adjusted EBITDA for the fiscal year of 2019 was $826.3 million, which included $389.4 million of Darling's share of the DGD joint venture. Fiscal 2019 adjusted EBITDA excluding the 2018 BTC was $739.7 million.
As of December 28, 2019, Darling had $73 million in cash and cash equivalents, and $911.9 million available under committed revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding at the end of the fiscal year, was $1.6 billion.
By Greg Aldrich, Ph.D.
The options for plant-based proteins in pet food are expanding all the time.
By Debbie Phillips-Donaldson
Despite the pandemic and economic turmoil, pet food saw healthy sales increases in 2020, as did market leaders.