Quick10K

Darling Ingredients

Market

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	169	$3,374

Financial Filings

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

Current Reports

8-K	2020-01-15	Regulation FD, Exhibits
8-K	2020-01-02	Other Events, Exhibits
8-K	2019-11-06	Earnings, Exhibits
8-K	2019-09-09	Other Events, Exhibits
8-K	2019-08-07	Earnings, Exhibits
8-K	2019-05-14	Regulation FD, Exhibits
8-K	2019-05-08	Earnings, Exhibits
8-K	2019-05-07	Shareholder Vote
8-K	2019-05-01	Enter Agreement, Exhibits
8-K	2019-04-02	Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K	2019-03-28	Other Events, Exhibits
8-K	2019-03-27	Other Events, Exhibits
8-K	2019-03-19	Regulation FD, Exhibits
8-K	2019-02-27	Earnings, Exhibits
8-K	2018-11-07	Other Events, Exhibits
8-K	2018-11-05	Officers, Exhibits
8-K	2018-11-05	Earnings, Other Events, Exhibits
8-K	2018-10-11	Regulation FD, Exhibits
8-K	2018-10-05	Other Events, Exhibits
8-K	2018-08-08	Earnings, Exhibits
8-K	2018-05-21	Other Events, Exhibits
8-K	2018-05-16	Regulation FD, Exhibits
8-K	2018-05-09	Earnings, Exhibits
8-K	2018-05-08	Shareholder Vote
8-K	2018-05-02	Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K	2018-04-25	Other Events, Exhibits
8-K	2018-04-23	Other Events, Exhibits
8-K	2018-02-27	Earnings, Exhibits
8-K	2018-01-15	Officers, Exhibits

Darling Ingredients Earnings 2019-09-28

DAR 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Comparables ($MM TTM)
Ticker	M Cap	Assets	Liab	Rev	G Profit	Net Inc	EBITDA	EV	G Margin	EV/EBITDA	ROA
FLO	4,879	3,220	1,926	4,044	0	179	414	5,768	0%	13.9	6%
LANC	4,047	905	179	1,308	326	151	235	3,850	25%	16.4	17%
DAR	3,374	5,037	2,630	3,328	721	88	440	4,927	22%	11.2	2%
THS	3,069	5,593	3,610	5,427	881	-206	136	5,317	16%	39.2	-4%
NOMD	2,910	5,341	3,282	0	0	0	0	2,910			0%
HAIN	2,213	2,583	1,063	2,302	445	-183	-129	2,812	19%	-21.8	-7%
FRPT	1,825	181	64	217	100	-7	8	1,849	46%	228.9	-4%
MED	1,574	213	87	638	482	72	96	1,477	76%	15.3	34%
TWNK	1,562	3,069	1,499	890	288	71	165	2,358	32%	14.3	2%
BGS	1,362	3,172	2,303	1,665	345	179	261	3,157	21%	12.1	6%

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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	September 28, 2019
	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 163,710,998 shares of common stock, $0.01 par value, outstanding at October 31, 2019.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 28, 2019

TABLE OF CONTENTS



		Page No.
	PART I: FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets	3
	September 28, 2019 (unaudited) and December 29, 2018

	Consolidated Statements of Operations (unaudited)	4
	Three and Nine Months Ended September 28, 2019 and September 29, 2018

	Consolidated Statements of Comprehensive Income/(loss) (unaudited)	5
	Three and Nine Months Ended September 28, 2019 and September 29, 2018

	Consolidated Statement of Stockholders' Equity (unaudited)	6
	Nine Months Ended September 28, 2019 and September 29, 2018

	Consolidated Statements of Cash Flows (unaudited)	8
	Nine Months Ended September 28, 2019 and September 29, 2018

	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	43


Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	64


Item 4.	CONTROLS AND PROCEDURES	66


	PART II: OTHER INFORMATION

Item 1.	LEGAL PROCEEDINGS	67

Item 1A.	RISK FACTORS	67

Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	67

Item 6.	EXHIBITS	68

	Signatures	69

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 28, 2019 and December 29, 2018

(in thousands, except share data)



	September 28, 2019			December 29, 2018
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	69,122		$	107,262
Restricted cash	159			107
Accounts receivable, net	355,006			385,737
Inventories	353,003			341,028
Prepaid expenses	46,378			35,247
Income taxes refundable	4,952			6,462
Other current assets	25,061			22,099
Total current assets	853,681			897,942
Property, plant and equipment, less accumulated depreciation of $1,370,145 at September 28, 2019 and $1,246,095 at December 29, 2018	1,714,768			1,687,858
Intangible assets, less accumulated amortization of $459,996 at September 28, 2019 and $423,575 at December 29, 2018	537,360			595,862
Goodwill	1,212,313			1,229,159
Investment in unconsolidated subsidiaries	447,689			410,177
Operating lease right-of-use assets	119,063			—
Other assets	46,179			53,375
Deferred income taxes	13,846			14,981
	$	4,944,899		$	4,889,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	61,092		$	7,492
Accounts payable, principally trade	192,010			219,479
Income taxes payable	10,404			4,043
Current operating lease liabilities	35,223			—
Accrued expenses	297,164			309,484
Total current liabilities	595,893			540,498
Long-term debt, net of current portion	1,559,809			1,666,940
Long-term operating lease liabilities	83,754			—
Other non-current liabilities	113,222			115,032
Deferred income taxes	219,329			231,063
Total liabilities	2,572,007			2,553,533
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 168,433,009 and 168,098,177 shares issued at September 28, 2019 and at December 29, 2018, respectively	1,684			1,681
Additional paid-in capital	1,556,792			1,536,157
Treasury stock, at cost; 4,314,935 and 3,437,579 shares at September 28, 2019 and at December 29, 2018, respectively	(64,633		)	(47,756		)
Accumulated other comprehensive loss	(342,846		)	(304,539		)
Retained earnings	1,157,496			1,087,505
Total Darling's stockholders’ equity	2,308,493			2,273,048
Noncontrolling interests	64,399			62,773
Total stockholders' equity	$	2,372,892		$	2,335,821
	$	4,944,899		$	4,889,354

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

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Three and nine months ended September 28, 2019 and September 29, 2018

(in thousands, except per share data)

(unaudited)



	Three Months Ended						Nine Months Ended
	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Net sales	$	842,049		$	812,576		$	2,504,477		$	2,534,596
Costs and expenses:
Cost of sales and operating expenses	652,923			647,929			1,948,552			1,978,729
Loss (gain) on sale of assets	(2,669		)	172			(20,845		)	472
Selling, general and administrative expenses	83,549			67,447			249,569			232,907
Restructuring and impairment charges	—			—			—			14,965
Depreciation and amortization	80,407			78,842			239,057			235,915
Total costs and expenses	814,210			794,390			2,416,333			2,462,988
Equity in net income/(loss) of Diamond Green Diesel	32,020			(2,630		)	94,390			109,655
Operating income	59,859			15,556			182,534			181,263

Other expense:
Interest expense	(19,359		)	(20,080		)	(60,088		)	(66,220		)
Debt extinguishment costs	—			—			(12,126		)	(23,509		)
Foreign currency gain/(loss)	466			(2,106		)	(654		)	(7,082		)
Gain/(loss) on disposal of subsidiaries	—			3,038			—			(12,500		)
Other expense, net	(2,614		)	(2,786		)	(7,158		)	(4,103		)
Total other expense	(21,507		)	(21,934		)	(80,026		)	(113,414		)

Equity in net loss of other unconsolidated subsidiaries	(665		)	(162		)	(1,087		)	(57		)
Income/(loss) before income taxes	37,687			(6,540		)	101,421			67,792

Income tax expense/(benefit)	10,850			(1,403		)	23,900			3,992

Net income/(loss)	26,837			(5,137		)	77,521			63,800

Net income attributable to noncontrolling interests	(1,116		)	(900		)	(7,530		)	(2,952		)

Net income/(loss) attributable to Darling	$	25,721		$	(6,037	)	$	69,991		$	60,848

Basic income/(loss) per share	$	0.16		$	(0.04	)	$	0.42		$	0.37
Diluted income/(loss) per share	$	0.15		$	(0.04	)	$	0.42		$	0.37

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 nine months ended September 28, 2019 and September 29, 2018

(in thousands)

(unaudited)



	Three Months Ended						Nine Months Ended
	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Net income/(loss)	$	26,837		$	(5,137	)	$	77,521		$	63,800
Other comprehensive income/(loss), net of tax:
Foreign currency translation	(47,626		)	(5,584		)	(36,186		)	(65,126		)
Pension adjustments	859			668			2,576			2,001
Natural gas swap derivative adjustments	—			—			—			22
Soybean meal derivative adjustments	—			3			—			3
Corn option derivative adjustments	553			(40		)	575			(1,198		)
Heating oil derivative adjustments	(1,683		)	—			450			—
Foreign exchange derivative adjustments	(4,944		)	309			(5,430		)	309
Total other comprehensive income/(loss), net of tax	(52,841		)	(4,644		)	(38,015		)	(63,989		)
Total comprehensive income/(loss)	$	(26,004	)	$	(9,781	)	$	39,506		$	(189	)
Comprehensive income attributable to noncontrolling interests	1,120			(538		)	7,822			1,981
Comprehensive income/(loss) attributable to Darling	$	(27,124	)	$	(9,243	)	$	31,684		$	(2,170	)

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

DARLING INGREDIENTS INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity (Unaudited)

Nine months ended September 28, 2019

(in thousands, except share data)



	Common Stock
	Number of Outstanding Shares		$.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 29, 2018	164,660,598		$	1,681	$	1,536,157	$	(47,756	)	$	(304,539	)	$	1,087,505	$	2,273,048		$	62,773		$	2,335,821
Net income	—		—		—		—			—			18,012		18,012			1,628			19,640
Pension liability adjustments, net of tax	—		—		—		—			858			—		858			—			858
Foreign exchange derivative adjustment, net of tax	—		—		—		—			(1,937		)	—		(1,937		)	—			(1,937		)
Foreign currency translation adjustments	—		—		—		—			(6,645		)	—		(6,645		)	1,759			(4,886		)
Stock-based compensation	—		—		10,403		—			—			—		10,403			—			10,403
Treasury stock	(223,294	)	—		—		(5,089		)	—			—		(5,089		)	—			(5,089		)
Issuance of common stock	311,502		3		1,886		—			—			—		1,889			—			1,889
Balances at March 30, 2019	164,748,806		$	1,684	$	1,548,446	$	(52,845	)	$	(312,263	)	$	1,105,517	$	2,290,539		$	66,160		$	2,356,699
Net income	—		—		—		—			—			26,258		26,258			4,786			31,044
Deductions to noncontrolling interest	—		—		—		—			—			—		—			(5,751		)	(5,751		)
Pension liability adjustments, net of tax	—		—		—		—			859			—		859			—			859
Heating oil derivative adjustment, net of tax	—		—		—		—			2,133			—		2,133			—			2,133
Corn option derivative adjustment, net of tax	—		—		—		—			22			—		22			—			22
Foreign exchange derivative adjustment, net of tax	—		—		—		—			1,451			—		1,451			—			1,451
Foreign currency translation adjustments	—		—		—		—			17,797			—		17,797			(1,471		)	16,326
Stock-based compensation	—		—		3,849		—			—			—		3,849			—			3,849
Treasury stock	(131	)	—		—		(3		)	—			—		(3		)	—			(3		)
Issuance of common stock	375		—		6		—			—			—		6			—			6
Balances at June 29, 2019	164,749,050		$	1,684	$	1,552,301	$	(52,848	)	$	(290,001	)	$	1,131,775	$	2,342,911		$	63,724		$	2,406,635
Net income	—		—		—		—			—			25,721		25,721			1,116			26,837
Deductions to noncontrolling interest	—		—		—		—			—			—		—			(445		)	(445		)
Pension liability adjustments, net of tax	—		—		—		—			859			—		859			—

EX-31.1	ex311-20190928.htm
EX-31.2	ex312-20190928.htm
EX-32	ex32-20190928.htm