Darling Ingredients Inc. Reports First Quarter 2020 Financial Results

IRVING, Texas, May 6, 2020 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR, "Darling") --

First Quarter 2020

    --  Net income of $85.5 million, or $0.51 per GAAP diluted share
    --  Net Sales of $852.8 million
    --  Adjusted EBITDA of $213.3 million
    --  Diamond Green Diesel ("DGD") earned $2.63 EBITDA per gallon on
        approximately 79 million gallons sold
    --  Repurchased $55 million of common stock

Darling reported net sales of $852.8 million for the first quarter of 2020, as compared with net sales of $835.1 million for the same period a year ago. Net income attributable to Darling for the three months ended March 28, 2020 was $85.5 million, or $0.51 per diluted share, compared to a net income of $18.0 million, or $0.11 per diluted share, for the first quarter of 2019.

"We delivered a strong first quarter performance consistent with the guidance we provided on our February 2020 earnings call, generating $213 million of combined adjusted EBITDA," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "The diversity of our global platform from food to feed to green hydrocarbon is helping us to weather the COVID-19 pandemic."

"We continue to execute our global strategy of creating sustainable ingredients for feed, food and fuel, from the waste streams of the food processing industry and being a leader in the production of green hydrocarbons to assist with global decarbonization. First and foremost, Darling has acted to ensure that we are providing a safe work environment for our employees across our network of 200+ locations around the world," added Stuewe. "We are also taking the necessary steps to safeguard our balance sheet in the current environment. While we anticipate some disruption and potential lighter volumes of raw materials processed in the coming quarter, accordingly, we are committed to managing and reducing operating expenses across the business. Consistent with this approach, we are targeting a deferral of 15% to 20% in capital expenditures until the uncertainty surrounding the COVID-19 outbreak improves."

"In April, DGD had accumulated over $600 million of cash, sufficient to fund the phase II 2020 expansion of DGD and provide each joint venture partner with a $125 million distribution. Also, Darling anticipates receiving an additional $65 to $75 million in July consistent with the distribution policy at DGD," stated Stuewe.

As of March 28, 2020, Darling had $76.4 million in cash and cash equivalents, and $795.9 million available under committed revolving credit agreements. Total debt outstanding at the end of the first quarter of 2020 was $1.75 billion.

Under Darling's current share repurchase authorization, the Company repurchased 2.2 million shares of common stock during the first quarter for a total of $55 million. Darling has approximately $126 million remaining under its current authorization.

Combined adjusted EBITDA was $213.3 million for the first quarter of 2020, compared to $133.3 million for the same period in 2019.

                Segment Financial Tables
       (in thousands)


              Three Months Ended March 28, 2020                           Feed Ingredients      Food Ingredients     Fuel Ingredients             Corporate    


       Net Sales                                                                      $512,625               $270,294               $69,923    
        $            -        $852,842

       Cost of sales and operating expenses                                            388,453                205,430                53,025                                646,908

       Gross Margin                                                                   $124,172                $64,864               $16,898    
        $            -        $205,934


       Loss on sale of assets                                                               50                      2                     9                                     61

       Selling, general and administrative expenses                                     53,947                 25,476                 1,654                 15,116           96,193

       Depreciation and amortization                                                    53,521                 20,305                 8,092                  2,753           84,671

       Equity in net income of Diamond Green Diesel                                          -                                     97,820                                 97,820

       Segment operating income/(loss)                                                 $16,654                $19,081              $104,963              $(17,869)        $122,829


       Equity in net income of unconsolidated subsidiaries                                $869  
      $                -  
       $             -   
        $            -            $869

       Segment Income/(loss)                                                           $17,523                $19,081              $104,963              $(17,869)        $123,698


              Segment EBITDA                                                       $70,175                $39,386               $15,235              $(15,116)        $109,680


       DGD Adjusted EBITDA (Darling's Share)                              
     $                - 
      $                -             $103,634    
        $            -        $103,634

              Adjusted EBITDA                                                      $70,175                $39,386              $118,869              $(15,116)        $213,314


              Three Months Ended March 30, 2019                           Feed Ingredients      Food Ingredients     Fuel Ingredients             Corporate    


       Net Sales                                                                      $495,819               $279,164               $60,121    
        $            -        $835,104

       Cost of sales and operating expenses                                            386,859                214,004                50,050                                650,913

       Gross Margin                                                                   $108,960                $65,160               $10,071    
        $            -        $184,191


       Loss/(gain) on sale of assets                                                   (4,391)                   114                    27                                (4,250)

       Selling, general and administrative expenses                                     48,831                 21,887                 (754)                15,039           85,003

       Depreciation and amortization                                                    49,369                 19,511                 7,798                  2,486           79,164

       Equity in net income of Diamond Green Diesel                                          -                                     24,277                                 24,277

       Segment operating income/(loss)                                                 $15,151                $23,648               $27,277              $(17,525)         $48,551


       Equity in net loss of unconsolidated subsidiaries                                $(504) 
      $                -  
       $             -   
        $            -          $(504)

       Segment income/(loss)                                                           $14,647                $23,648               $27,277              $(17,525)         $48,047


              Segment EBITDA                                                       $64,520                $43,159               $10,798              $(15,039)        $103,438


       DGD Adjusted EBITDA (Darling's Share)                              
     $                - 
      $                -              $29,828    
        $            -         $29,828

              Adjusted EBITDA                                                      $64,520                $43,159               $40,626              $(15,039)        $133,266


                Darling Ingredients Inc. and Subsidiaries
                                                       Condensed Consolidated Balance Sheets
                                                        March 28, 2020 and December 28, 2019
                                                                    (in thousands)

              March 28,         
     December 28,

           2020                                                   2019




           Current assets:

              Cash and cash equivalents                                           $76,339                 $72,935

              Restricted cash                                                         106                     110

              Accounts receivable, net                                            397,700                 406,338

              Inventories                                                         381,432                 362,957

              Prepaid expenses                                                     45,107                  46,599

              Income taxes refundable                                               3,106                   3,317

              Other current assets                                                 26,270                  25,032

                                             Total current assets                                  930,060                 917,288

            Property, plant and equipment,
             net                                                                               1,764,120               1,802,411

            Intangible assets, net                                                               497,779                 526,394

           Goodwill                                                                           1,202,592               1,223,291

            Investment in unconsolidated
             subsidiaries                                                                        802,184                 689,354

            Operating lease right-of-use
             assets                                                                              123,859                 124,726

           Other assets                                                                          42,653                  47,400

            Deferred income taxes                                                                 14,532                  14,394

                                                                                              $5,377,779              $5,345,258




           Current liabilities:

                               Current portion of long-term debt                                   $86,397                 $90,996

                               Accounts payable, principally trade                                 211,596                 239,252

              Income taxes payable                                                  8,593                   8,895

                               Current operating lease liabilities                                  37,472                  37,805

              Accrued expenses                                                    307,688                 311,391

                                             Total current liabilities                             651,746                 688,339

            Long-term debt, net of
             current portion                                                                   1,664,858               1,558,429

            Long-term operating lease
             liabilities                                                                          91,250                  91,424

            Other noncurrent liabilities                                                         111,145                 115,785

            Deferred income taxes                                                                250,338                 247,931

                                             Total liabilities                                   2,769,337               2,701,908

           Commitments and contingencies

            Total Darling's stockholders'
             equity                                                                            2,543,565               2,565,819

            Noncontrolling interests                                                              64,877                  77,531

                                             Total stockholders' equity                         $2,608,442              $2,643,350

                                                                                              $5,377,779              $5,345,258

                Darling Ingredients Inc. and Subsidiaries
                                                      Consolidated Operating Results
                                          For the Periods Ended March 28, 2020 and March 30, 2019
                                                   (in thousands, except per share data)

              (First Quarter Unaudited)

              Three Months Ended

             $ Change

              March 28,                             
              March 30,                          

                                                                               2020                                  2019                                    

     Net sales                                                            $852,842                              $835,104                                            $17,738

     Costs and expenses:

                                    Cost of sales and operating
                                     expenses                                 646,908                               650,913                                              4,005

                                    Loss (gain) on sale of assets                  61                               (4,250)                                           (4,311)

                                    Selling, general and administrative
                                     expenses                                  96,193                                85,003                                           (11,190)

                                    Depreciation and amortization              84,671                                79,164                                            (5,507)

      Total costs and expenses                                              827,833                               810,830                                           (17,003)

                                    Equity in net income of Diamond
                                     Green Diesel                              97,820                                24,277                                             73,543

     Operating income                                                      122,829                                48,551                                             74,278


     Other expense:

     Interest expense                         (19,090)                             (19,876)                                               786

                                    Foreign currency gain/(loss)                1,664                                 (732)                                             2,396

                                    Other income (expense), net               (1,881)                              (2,525)                                               644

      Total other expense                                                  (19,307)                             (23,133)                                             3,826

     Equity in net income/(loss)

          of unconsolidated
           subsidiaries                                                         869                                 (504)                                             1,373

      Income before income taxes                                            104,391                                24,914                                             79,477

     Income tax expense                                                     18,300                                 5,274                                           (13,026)


     Net income                                                             86,091                                19,640                                             66,451

     Net income attributable to

     noncontrolling interests                    (581)                              (1,628)                                             1,047

      Net income attributable to
       Darling                                                  $85,510                               $18,012                                        $67,498

      Basic income per share:                                     $0.52                                 $0.11                                          $0.41

      Diluted income per share:                                   $0.51                                 $0.11                                          $0.40

      Number of diluted common
       shares:                                                              167,927                               168,660

                Darling Ingredients Inc. and Subsidiaries
                                                                              Consolidated Statement of Cash Flows
                                                                      Periods Ended March 28, 2020 and March 30, 2019
                                                                                      (in thousands)

              Three Months Ended

              March 28,                       
     March 30,

      Cash flows from operating activities:                                                                                2020                                2019

              Net income                                                   $86,091                                             $19,640

                        Adjustments to
                          reconcile net income
                          to net cash provided
                          by operating

                         Depreciation and
                          amortization                                                 84,671                                              79,164

                        Loss/(gain) on
                          disposal of
                          property, plant,
                          equipment and
                          other assets                                                     61                                             (4,250)

                         Gain on insurance
                          proceeds from
                          settlement                                                                                                       (845)

                         Deferred taxes                                                 6,377                                             (2,901)

                          (decrease) in
                          pension liability                                             (264)                                                646

                          expense                                                      10,818                                              10,327

                          deferred loan
                          costs                                                                                                               27

                         Deferred loan cost
                          amortization                                                  1,416                                               1,574

                        Equity in net
                          income of Diamond
                          Green Diesel and
                          subsidiaries                                               (98,689)                                           (23,773)

                        Changes in
                          operating assets
                          and liabilities,
                          net of effects

                               receivable                                                 487                                              11,692

                              Income taxes
                               payable                                                    348                                               7,270

                              Inventories and
                               prepaid expenses                                      (24,999)                                            (5,063)

                              Accounts payable
                               and accrued
                               expenses                                              (16,790)                                           (43,016)

                              Other                                                  (14,981)                                            (1,891)

                                                        Net cash provided by operating
                                                         activities                                                         34,546                              48,601

     Cash flows from investing activities:

                         Capital expenditures                                        (61,599)                                           (84,269)

                         Acquisitions, net of
                          cash acquired                                                                                                  (1,431)

                        Gross proceeds from
                          disposal of
                          property, plant and
                          equipment and other
                          assets                                                          379                                               7,868

                         Proceeds from
                          insurance settlement                                                                                               845

                         Payments related to
                          routes and other
                          intangibles                                                 (3,416)                                            (2,778)

                                                        Net cash used by investing activities                             (64,636)                           (79,765)

     Cash flows from financing activities:

                         Proceeds from long-
                          term debt                                                     8,264                                               2,138

                         Payments on long-
                          term debt                                                   (8,638)                                           (10,974)

                         Borrowings from
                          revolving credit
                          facility                                                    219,933                                             156,829

                         Payments on revolving
                          credit facility                                           (100,782)                                          (138,147)

                         Net cash overdraft
                          financing                                                   (9,594)                                             14,525

                         Issuance of common
                          stock                                                            67                                                  12

                         Repurchase of common
                          stock                                                      (55,044)

                         Minimum withholding
                          taxes paid on stock
                          awards                                                      (4,328)                                            (3,190)

                         Acquisition of
                          interest                                                    (8,784)

                         Distributions to
                          interests                                                     (688)

                                                        Net cash provided by financing
                                                         activities                                                         40,406                              21,193

      Effect of exchange rate changes on cash flows                                                                     (6,916)                            (1,575)

      Net increase/(decrease) in cash, cash
       equivalents and restricted cash                                                                                    3,400                            (11,546)

      Cash, cash equivalents and restricted cash at
       beginning of year                                                                                                 73,045                             107,369

      Cash, cash equivalents and restricted cash at
       end of period                                                                                                    $76,445                             $95,823


     Supplemental disclosure of cash flow information:

                         Accrued capital
                          expenditures                                               $(1,630)                                           $(8,623)

                         Cash paid during the
                          period for:

                         Interest, net of
                          interest                                                     $5,863                                             $21,602

                         Income taxes, net
                          of refunds                                                  $11,453                                              $2,894

                         Non-cash operating

                        Operating lease
                          right of use
                          obtained in
                          exchange for new
                          lease liabilities                                            $9,121                                              $4,794

                         Non-cash financing

                         Debt issued for
                          service contract
                          assets                                                          $21                                      
     $          -

                Diamond Green Diesel Joint Venture
                                            Condensed Consolidated Balance Sheets
                                            March 31, 2020 and December 31, 2019
                                                       (in thousands)

              March  31,      
     December  31,

                                                                                             2020               2019


                               Total current
                                assets                                                   $821,602           $668,026

                               Property, plant
                                and equipment,
                                net                                                       779,961            713,489

                               Other assets                                                30,446             30,710

              Total assets                                   $1,632,009         $1,412,225

      Liabilities and members' equity:

                               Total current
                                portion of
                                long term debt                                               $496               $341

                               Total other
                                liabilities                                                70,758             75,802

                               Total long term
                                debt                                                        8,936              8,742

                               Total other
                                long term
                                liabilities                                                 4,273              4,422

                               Total members'
                                equity                                                  1,547,546          1,322,918

                               Total liabilities and
                                     members' equity                                   $1,632,009         $1,412,225

                Diamond Green Diesel Joint Venture
                                                                         Operating Financial Results
                                                             Three Months Ended March 31, 2020 and March 31, 2019
                                                                                (in thousands)

              (First Quarter Unaudited)

              Three Months Ended

              $ Change

              March 31,                                
     March 31,            

     Revenues:                                                                        2020                                        2019   

                             revenues                                                $358,615                                    $302,718                   $55,897


                            Total costs and
                             expenses less

                            depreciation, amortization and
                             accretion expense                                        151,347                                     243,063                    91,716

                             and                                                       11,774                                      11,418                     (356)

              accretion expense                                                                                                       

     Total costs and expenses                                                      163,121                                     254,481                    91,360

                            Operating income                                          195,494                                      48,237                   147,257

     Other income                                                                      461                                         641                     (180)

                            Interest and debt expense, net                              (315)                                      (324)                        9

              Net income                                    $195,640                                     $48,554                  $147,086

Darling Ingredients Inc. reports Adjusted EBITDA results, which is a Non-GAAP financial measure, as a complement to results provided in accordance with generally accepted accounting principles (GAAP) (for additional information, see "Use of Non-GAAP Financial Measures" included later in this media release). The Company believes that Adjusted EBITDA provides additional useful information to investors. Adjusted EBITDA, as the Company uses the term, is calculated below:

                  Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA

         Three months ended March 28, 2020 and March 30, 2019


              Three Months Ended

                Adjusted EBITDA                                                                                  
              March 28,                                                                 
              March 30,

                (U.S. dollars in thousands)                                                                                                        2020                                                                                       2019

       Net income attributable to Darling                                                                                                           $85,510                                                                                    $18,012

       Depreciation and amortization                                                                                                                 84,671                                                                                     79,164

       Interest expense                                                                                                                              19,090                                                                                     19,876

       Income tax expense                                                                                                                            18,300                                                                                      5,274

       Foreign currency loss/(gain)                                                                                                                 (1,664)                                                                                       732

       Other expense, net                                                                                                                             1,881                                                                                      2,525

       Equity in net (income) of Diamond Green Diesel                                                                                              (97,820)                                                                                  (24,277)

       Equity in net (income)/loss of unconsolidated subsidiaries                                                                                     (869)                                                                                       504

       Net income attributable to noncontrolling interests                                                                                              581                                                                                      1,628

              Adjusted EBITDA (Non-GAAP)                                                                                                   $109,680                                                                                   $103,438

       Foreign currency exchange impact                                                                                                               2,158                   (1)                                                                    -

               Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)                                                                    $111,838                                                                                   $103,438

       DGD Joint Venture Adjusted EBITDA (Darling's Share)                                                                                         $103,634                                                                                    $29,828


       Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA                                                                           $213,314                                                                                   $133,266


                     (1) The average rate assumption used in this calculation was the actual fiscal average rate for the three months ended 
               March 28, 2020 of EUR1.00:USD$1.10 and CAD$1.00:USD$0.75, as compared to
                      the average rate for the three months ended 
                March 30, 2019 of  EUR1.00:USD$1.14 and CAD$1.00:USD$0.75, respectively.

About Darling

Darling Ingredients Inc. is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and fuel ingredients and collects and processes residual bakery products into feed ingredients. In addition, the Company provides environmental services, such as grease trap collection and disposal services to food service establishments. The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. For additional information, visit the Company's website at http://www.darlingii.com.

Darling Ingredients Inc. will host a conference call to discuss the Company's first quarter 2020 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Thursday, May 7, 2020. To listen to the conference call, participants calling from within North America should dial 1-844-868-8847; international participants should dial 1-412-317-6593. Please refer to access code 10142656. 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://ir.darlingii.com. Beginning one hour after its completion, a replay of the call can be accessed through May 14, 2020, by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada) and 1-412-317-0088 (international callers). The access code for the replay is 10142656. The conference call will also be archived on the Company's website.

Use of Non-GAAP Financial Measures:

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.

As a result, the Company's management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company's Senior Secured Credit Facilities and 5.25% Notes and 3.625% Notes that were outstanding at March 28, 2020. However, the amounts shown in this presentation for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company's Senior Secured Credit Facilities and 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange impact on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains "forward-looking" statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as "believe," "anticipate," "expect," "estimate," "intend," "could," "may," "will," "should," "planned," "potential," "continue," "momentum," and other words referring to events that may occur in the future. These statements reflect Darling Ingredient'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, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; 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 and selling prices for the Company's products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas("GHG") emissions that adversely affect programs like the U.S. government's renewable fuel standard, low carbon fuel standards ("LCFS") and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of 2009 H1N1 flu (initially known as "Swine Flu"), Highly pathogenic strains of avian influenza (collectively known as "Bird Flu"), severe acute respiratory syndrome ("SARS"), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of African Swine Fever ("ASF") in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company's compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE, ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion project; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully, risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company's pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward looking statements included in this release or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company's ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company's announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company's filings with the Securities and Exchange Commission. Darling Ingredients Inc. 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.}

                  For More Information,

     Jim Stark, Vice
      President, Investor
     Email : james.stark@darlingii.com

     5601 MacArthur Blvd.,
      Irving, Texas 75038               
     Phone : 972-281-4823

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SOURCE Darling Ingredients Inc.