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Darling Ingredients

Financials

Price	19.80	EPS	1
Shares	168	P/E	28
MCap	3,335	P/FCF	13
Net Debt	1,491	EBIT	144
TEV	4,826	TEV/EBIT	34
TTM 2019-09-28, in MM, except price, ratios

Filings

10-Q	2020-06-27	Filed 2020-08-05
10-Q	2020-03-28	Filed 2020-05-06
10-K	2019-12-28	Filed 2020-02-25
10-Q	2019-09-28	Filed 2019-11-06
10-Q	2019-06-29	Filed 2019-08-07
10-Q	2019-03-30	Filed 2019-05-08
10-K	2018-12-29	Filed 2019-02-27
10-Q	2018-09-29	Filed 2018-11-06
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-30	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-07-01	Filed 2017-08-09
10-Q	2017-04-01	Filed 2017-05-11
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-10-01	Filed 2016-11-10
10-Q	2016-07-02	Filed 2016-08-11
10-Q	2016-04-02	Filed 2016-05-12
10-K	2016-01-02	Filed 2016-03-01
10-Q	2015-10-03	Filed 2015-11-12
10-Q	2015-07-04	Filed 2015-08-13
10-Q	2015-04-04	Filed 2015-05-14
10-K	2015-01-03	Filed 2015-03-04
10-Q	2014-09-27	Filed 2014-11-06
10-Q	2014-06-28	Filed 2014-08-07
10-Q	2014-03-29	Filed 2014-05-08
10-K	2013-12-28	Filed 2014-02-26
10-Q	2013-09-28	Filed 2013-11-07
10-Q	2013-06-29	Filed 2013-08-08
10-Q	2013-03-30	Filed 2013-05-09
10-K	2012-12-29	Filed 2013-02-27
10-Q	2012-09-29	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-02-29
10-Q	2011-10-01	Filed 2011-11-10
10-Q	2011-07-02	Filed 2011-08-11
10-Q	2011-04-02	Filed 2011-05-12
10-K	2011-01-01	Filed 2011-03-02
10-Q	2010-10-02	Filed 2010-11-10
10-Q	2010-07-03	Filed 2010-08-12
10-Q	2010-04-03	Filed 2010-05-13
10-K	2010-01-02	Filed 2010-03-03

Reports

8-K	2020-08-05	Earnings, Other Events, Exhibits
8-K	2020-05-06
8-K	2020-05-05
8-K	2020-03-02
8-K	2020-02-25
8-K	2020-01-15
8-K	2020-01-02
8-K	2019-11-06
8-K	2019-09-09
8-K	2019-08-07
8-K	2019-05-14
8-K	2019-05-08
8-K	2019-05-07
8-K	2019-05-01
8-K	2019-04-02
8-K	2019-03-28
8-K	2019-03-27
8-K	2019-03-19
8-K	2019-02-27
8-K	2018-11-07
8-K	2018-11-05
8-K	2018-11-05
8-K	2018-10-11
8-K	2018-10-05
8-K	2018-08-08
8-K	2018-05-21
8-K	2018-05-16
8-K	2018-05-09
8-K	2018-05-08
8-K	2018-05-02
8-K	2018-04-25
8-K	2018-04-23
8-K	2018-02-27
8-K	2018-01-15

Darling Ingredients Earnings 2020-06-27

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

dar-20200627

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


	(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 27, 2020
	OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _______ to _______

Commission File Number 001-13323

DARLING INGREDIENTS INC.

(Exact name of registrant as specified in its charter)

Delaware

36-2495346

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification Number)

5601 N MacArthur Blvd., Irving, Texas 75038

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (972) 717-0300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock $0.01 par value per share

DAR

New York Stock Exchange

(“NYSE”)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period

for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act.

☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 161,961,180 shares of common stock, $0.01 par value, outstanding at July 30, 2020.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 27, 2020

TABLE OF CONTENTS


		Page No.
	PART I: FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets	3
	June 27, 2020 (unaudited) and December 28, 2019

	Consolidated Statements of Operations (unaudited)	4
	Three and Six Months Ended June 27, 2020 and June 29, 2019

	Consolidated Statements of Comprehensive Income/(Loss) (unaudited)	5
	Three and Six Months Ended June 27, 2020 and June 29, 2019

	Consolidated Statement of Stockholders' Equity (unaudited)	6
	Six Months Ended June 27, 2020 and June 29, 2019

	Consolidated Statements of Cash Flows (unaudited)	8
	Six Months Ended June 27, 2020 and June 29, 2019

	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATIONS	42


Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES  ABOUT MARKET RISK	63


Item 4.	CONTROLS AND PROCEDURES	65


	PART II: OTHER INFORMATION

Item 1.	LEGAL PROCEEDINGS	66

Item 1A.	RISK FACTORS	66

Item 6.	EXHIBITS	67

	Signatures	68

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 27, 2020 and December 28, 2019

(in thousands, except share data)


	June 27, 2020		December 28, 2019
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	76,185	$	72,935
Restricted cash	103		110
Accounts receivable, less allowance for bad debts of $10,866 at June 27, 2020 and $8,802 at December 28, 2019	375,908		406,338
Inventories	394,708		362,957
Prepaid expenses	46,003		46,599
Income taxes refundable	3,752		3,317
Other current assets	34,392		25,032
Total current assets	931,051		917,288
Property, plant and equipment, less accumulated depreciation of $1,524,837 at June 27, 2020 and $1,438,388 at December 28, 2019	1,773,329		1,802,411
Intangible assets, less accumulated amortization of $507,275 at June 27, 2020 and $482,442 at December 28, 2019	485,148		526,394
Goodwill	1,217,177		1,223,291
Investment in unconsolidated subsidiaries	729,094		689,354
Operating lease right-of-use assets	134,901		124,726
Other assets	41,651		47,400
Deferred income taxes	14,803		14,394
	$	5,327,154	$	5,345,258
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	42,758	$	90,996
Accounts payable, principally trade	197,528		239,252
Income taxes payable	16,474		8,895
Current operating lease liabilities	39,532		37,805
Accrued expenses	310,004		311,391
Total current liabilities	606,296		688,339
Long-term debt, net of current portion	1,553,118		1,558,429
Long-term operating lease liabilities	99,482		91,424
Other non-current liabilities	109,046		115,785
Deferred income taxes	260,858		247,931
Total liabilities	2,628,800		2,701,908
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 169,248,895 and 168,620,314 shares issued at June 27, 2020 and at December 28, 2019, respectively	1,692		1,686
Additional paid-in capital	1,581,812		1,560,897
Treasury stock, at cost; 7,290,619 and 4,845,203 shares at June 27, 2020 and at December 28, 2019, respectively	(136,676)		(75,022)
Accumulated other comprehensive loss	(364,522)		(321,847)
Retained earnings	1,551,054		1,400,105
Total Darling's stockholders’ equity	2,633,360		2,565,819
Noncontrolling interests	64,994		77,531
Total stockholders' equity	$	2,698,354	$	2,643,350
	$	5,327,154	$	5,345,258

The accompanying notes are an integral part of these consolidated financial statements.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Three and six months ended June 27, 2020 and June 29, 2019

(in thousands, except per share data)

(unaudited)


	Three Months Ended						Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Net sales	$	848,673	$	827,324	$	1,701,515	$	1,662,428
Costs and expenses:
Cost of sales and operating expenses	632,347		644,716		1,279,255		1,295,629
Loss/(gain) on sale of assets	27		(13,926)		88		(18,176)
Selling, general and administrative expenses	90,193		81,017		186,386		166,020


Depreciation and amortization	83,310		79,486		167,981		158,650
Total costs and expenses	805,877		791,293		1,633,710		1,602,123
Equity in net income of Diamond Green Diesel	63,492		38,093		161,312		62,370
Operating income	106,288		74,124		229,117		122,675

Other expense:
Interest expense	(17,920)		(20,853)		(37,010)		(40,729)
Debt extinguishment costs	—		(12,126)		—		(12,126)
Foreign currency gain/(loss)	(1,134)		(388)		530		(1,120)

Other expense, net	(1,485)		(2,019)		(3,366)		(4,544)
Total other expense	(20,539)		(35,386)		(39,846)		(58,519)

Equity in net income/(loss) of other unconsolidated subsidiaries	692		82		1,561		(422)
Income before income taxes	86,441		38,820		190,832		63,734

Income tax expense	19,946		7,776		38,246		13,050

Net income	66,495		31,044		152,586		50,684

Net income attributable to noncontrolling interests	(1,056)		(4,786)		(1,637)		(6,414)

Net income attributable to Darling	$	65,439	$	26,258	$	150,949	$	44,270

Basic income per share	$	0.40	$	0.16	$	0.93	$	0.27
Diluted income per share	$	0.39	$	0.16	$	0.90	$	0.26

The accompanying notes are an integral part of these consolidated financial statements.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

Three and six months ended June 27, 2020 and June 29, 2019

(in thousands)

(unaudited)


	Three Months Ended						Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Net income	$	66,495	$	31,044	$	152,586	$	50,684
Other comprehensive income/(loss), net of tax:
Foreign currency translation	20,139		16,326		(45,097)		11,440
Pension adjustments	647		859		1,295		1,717


Corn option derivative adjustments	1,804		22		1,940		22
Heating oil derivative adjustments	(8,940)		2,133		1,930		2,133
Foreign exchange derivative adjustments	5,679		1,451		(3,472)		(486)
Total other comprehensive income/(loss), net of tax	19,329		20,791		(43,404)		14,826
Total comprehensive income	$	85,824	$	51,835	$	109,182	$	65,510
Comprehensive income attributable to noncontrolling interests	416		3,315		908		6,702
Comprehensive income attributable to Darling	$	85,408	$	48,520	$	108,274	$	58,808

The accompanying notes are an integral part of these consolidated financial statements.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Six months ended June 27, 2020 and June 29, 2019

(in thousands, except share data)

(unaudited)


	Common Stock
	Number of Outstanding Shares	$0.01 par Value		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Stockholders' equity attributable to Darling		Non-controlling Interest		Total Stockholders' Equity
Balances at December 28, 2019	163,775,111	$	1,686	$	1,560,897	$	(75,022)	$	(321,847)	$	1,400,105	$	2,565,819	$	77,531	$	2,643,350
Net income	—	—		—		—		—		85,510		85,510		581		86,091

Deductions to noncontrolling interests	—	—		3,271		—		—		—		3,271		(13,146)		(9,875)
Pension liability adjustments, net of tax	—	—		—		—		648		—		648		—		648

Heating oil derivative adjustment, net of tax	—	—		—		—		10,870		—		10,870		—		10,870
Corn option derivative adjustment, net of tax	—	—		—		—		136		—		136		—		136
Foreign exchange derivative adjustment, net of tax	—	—		—

EX-31.1	ex311-20200627.htm
EX-31.2	ex312-20200627.htm
EX-32	ex32-20200627.htm

DAR 10Q Quarterly Report

Darling Ingredients Earnings 2020-06-27