EX-99.1 2 exh991-pressreleaseq22.htm EXHIBIT 99.1 PRESS RELEASE Document

EXHIBIT 99.1

        News Release
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DARLING INGREDIENTS INC. REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS


IRVING, TEXAS, August 5, 2020/PRNewswire/ Darling Ingredients Inc. (NYSE: DAR, “Darling”) --

Second Quarter 2020
•Net income of $65.4 million, or $0.39 per GAAP diluted share
•Net Sales of $848.7 million
•Combined adjusted EBITDA of $195.2 million
•Core business EBITDA of $126.1 million, $16 million better than Q1-2020; $24 million better than Q2-2019, excluding the $13.1 million gain on the sale of assets in Q2-2019
•Diamond Green Diesel (“DGD”) earned $1.91 EBITDA per gallon on approximately 72 million gallons sold
•In July, Darling received an $80 million distribution from DGD, total distributions received in 2020 is $205 million


Darling reported net sales of $848.7 million for the second quarter of 2020, as compared with net sales of $827.3 million for the same period a year ago. Net income attributable to Darling for the three months ended June 27, 2020 was $65.4 million, or $0.39 per diluted share, compared to a net income of $26.3 million, or $0.16 per diluted share, for the second quarter of 2019.

“We had another solid quarter of execution from our employees worldwide who delivered a strong second quarter financial performance, generating $195 million of combined adjusted EBITDA,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “Our core business navigated through a turbulent second quarter with our feed segment posting its best quarterly EBITDA of $85.2 million in over the last three years. We did benefit from over 40 million pounds of depopulated hog volumes through our processing locations during the quarter.”

“Darling’s diversification provides our global business platform earnings sustainability as demonstrated in the second quarter. Our DGD JV financial performance was impacted by the sharp decline in the energy sector as a result of the COVID pandemic, but still produced good results which were enhanced by a better performance in our feed segment. Excluding the gain on the sale of assets in the food segment from a year ago, this year’s food segment performance was on par to 2019,” added Stuewe.

“We did use the DGD distribution proceeds received in April to pay down our outstanding debt in the second quarter, lowering our leverage ratio to 2.39 as measured by our bank covenant. We remain diligent on our capital expenditures, investing approximately $123 million for the first six months of 2020. We continue to target a deferral of 15% to 20% in capital expenditures as the uncertainty surrounding COVID-19 persists,” commented Stuewe.

The Darling Ingredients Board has approved replenishing the Company’s previously announced share repurchase program back to $200 million of availability and have extended the term of the program for an additional two years to August 13, 2022, to be exercised depending on market conditions. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. Repurchases may occur over the authorized period unless extended or shortened by the Board of Directors.

In accordance with the distribution policy at Diamond Green Diesel, Darling received an $80 million distribution from DGD in July 2020. Total distributions received in the first six months of 2020 total $205 million.









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August 5, 2020
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For the six months ended June 27, 2020, Darling reported net sales of $1.7 billion, as compared with net sales of $1.7 billion for the same period of 2019. Net Income attributable to Darling for the first six months of 2020 was $150.9 million, or $0.90 per diluted share, as compared to a net income of $44.3 million, or $0.26 per diluted share, for the first six months of 2019.

As of June 27, 2020, Darling had $76.2 million in cash and cash equivalents, and $939.7 million available under committed revolving credit agreements. Total debt outstanding at the end of the second quarter of 2020 was $1.6 billion.

Combined adjusted EBITDA was $195.2 million for the second quarter of 2020, compared to $159.4 million for the same period in 2019. On a year-to-date basis, combined adjusted EBITDA totaled $408.5 million for 2020, compared to $292.7 million on a year-to-date basis for 2019.
Segment Financial Tables (in thousands)
Three Months Ended June 27, 2020Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$503,690  $278,934  $66,049  $—  $848,673  
Cost of sales and operating expenses367,902  220,159  44,286  —  632,347  
Gross margin$135,788  $58,775  $21,763  $—  $216,326  
Loss on sale of assets76  (48) (1) —  27  
Selling, general and administrative expenses50,484  22,564  3,953  13,192  90,193  
Depreciation and amortization52,683  19,972  7,980  2,675  83,310  
Equity in net income of Diamond Green Diesel—  —  63,492  —  63,492  
Segment operating income/(loss)$32,545  $16,287  $73,323  $(15,867) $106,288  
Equity in net income of unconsolidated subsidiaries$692  $—  $—  $—  $692  
Segment Income/(loss)$33,237  $16,287  $73,323  $(15,867) $106,980  
Segment EBITDA$85,228  $36,259  $17,811  $(13,192) $126,106  
DGD Adjusted EBITDA (Darling's Share)$—  $—  $69,108  $—  $69,108  
Combined adjusted EBITDA$85,228  $36,259  $86,919  $(13,192) $195,214  

Three Months Ended June 29, 2019Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$487,447  $274,835  $65,042  $—  $827,324  
Cost of sales and operating expenses376,955  214,444  53,317  —  644,716  
Gross margin$110,492  $60,391  $11,725  $—  $182,608  
Loss/(gain) on sale of assets(524) (13,379) (23) —  (13,926) 
Selling, general and administrative expenses46,465  23,431  425  10,696  81,017  
Depreciation and amortization48,720  19,861  8,362  2,543  79,486  
Equity in net income of Diamond Green Diesel—  —  38,093  —  38,093  
Segment operating income/(loss)$15,831  $30,478  $41,054  $(13,239) $74,124  
Equity in net loss of unconsolidated subsidiaries$82  $—  $—  $—  $82  
Segment Income/(loss)$15,913  $30,478  $41,054  $(13,239) $74,206  
Segment EBITDA$64,551  $50,339  $11,323  $(10,696) $115,517  
DGD Adjusted EBITDA (Darling's Share)$—  $—  $43,894  $—  $43,894  
Combined adjusted EBITDA$64,551  $50,339  $55,217  $(10,696) $159,411  




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Segment Financial Tables (in thousands) continued

Six Months Ended June 27, 2020Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$1,016,315  $549,228  $135,972  $—  $1,701,515  
Cost of sales and operating expenses756,355  425,589  97,311  —  1,279,255  
Gross margin$259,960  $123,639  $38,661  $—  $422,260  
Loss on sale of assets126  (46) 8  —  88  
Selling, general and administrative expenses104,431  48,040  5,607  28,308  186,386  
Depreciation and amortization106,204  40,277  16,072  5,428  167,981  
Equity in net income of Diamond Green Diesel—  —  161,312  —  161,312  
Segment operating income/(loss)$49,199  $35,368  $178,286  $(33,736) $229,117  
Equity in net income of unconsolidated subsidiaries$1,561  $—  $—  $—  $1,561  
Segment Income/(loss)$50,760  $35,368  $178,286  $(33,736) $230,678  
Segment EBITDA$155,403  $75,645  $33,046  $(28,308) $235,786  
DGD Adjusted EBITDA (Darling's Share)$—  $—  $172,742  $—  $172,742  
Combined adjusted EBITDA$155,403  $75,645  $205,788  $(28,308) $408,528  

Six Months Ended June 29, 2019Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$983,266  $553,999  $125,163  $—  $1,662,428  
Cost of sales and operating expenses763,814  428,448  103,367  —  1,295,629  
Gross margin$219,452  $125,551  $21,796  $—  $366,799  
Loss/(gain) on sale of assets(4,914) (13,265) 3  —  (18,176) 
Selling, general and administrative expenses95,296  45,318  (329) 25,735  166,020  
Depreciation and amortization98,089  39,372  16,160  5,029  158,650  
Equity in net income of Diamond Green Diesel—  —  62,370  —  62,370  
Segment operating income/(loss)$30,981  $54,126  $68,332  $(30,764) $122,675  
Equity in net loss of unconsolidated subsidiaries$(422) $—  $—  $—  $(422) 
Segment Income/(loss)$30,559  $54,126  $68,332  $(30,764) $122,253  
Segment EBITDA$129,070  $93,498  $22,122  $(25,735) $218,955  
DGD Adjusted EBITDA (Darling's Share)$—  $—  $73,721  $—  $73,721  
Combined adjusted EBITDA$129,070  $93,498  $95,843  $(25,735) $292,676  








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Darling Ingredients Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
June 27, 2020 and December 28, 2019
(in thousands)
June 27,December 28,
20202019
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$76,185  $72,935  
Restricted cash103  110  
Accounts receivable, net375,908  406,338  
Inventories394,708  362,957  
Prepaid expenses46,003  46,599  
Income taxes refundable3,752  3,317  
Other current assets34,392  25,032  
Total current assets931,051  917,288  
Property, plant and equipment, net1,773,329  1,802,411  
Intangible assets, net485,148  526,394  
Goodwill1,217,177  1,223,291  
Investment in unconsolidated subsidiaries729,094  689,354  
Operating lease right-of-use assets134,901  124,726  
Other assets41,651  47,400  
Deferred income taxes14,803  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 trade197,528  239,252  
Income taxes payable16,474  8,895  
Current operating lease liabilities39,532  37,805  
Accrued expenses310,004  311,391  
Total current liabilities606,296  688,339  
Long-term debt, net of current portion1,553,118  1,558,429  
Long-term operating lease liabilities99,482  91,424  
Other noncurrent liabilities109,046  115,785  
Deferred income taxes260,858  247,931  
Total liabilities2,628,800  2,701,908  
Commitments and contingencies
Total Darling's stockholders' equity2,633,360  2,565,819  
Noncontrolling interests64,994  77,531  
Total stockholders' equity$2,698,354  $2,643,350  
$5,327,154  $5,345,258  





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August 5, 2020
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Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Six-Month Periods Ended June 27, 2020 and June 29, 2019
(in thousands, except per share data)
(unaudited)
Three Months EndedSix Months Ended
$ Change$ Change
June 27,June 29,FavorableJune 27,June 29,Favorable
20202019(Unfavorable)20202019(Unfavorable)
Net sales$848,673  $827,324  $21,349  $1,701,515  $1,662,428  $39,087  
Costs and expenses:
Cost of sales and operating expenses632,347  644,716  12,369  1,279,255  1,295,629  16,374  
Loss (gain) on sale of assets
27  (13,926) (13,953) 88  (18,176) (18,264) 
Selling, general and administrative expenses
90,193  81,017  (9,176) 186,386  166,020  (20,366) 
Depreciation and amortization83,310  79,486  (3,824) 167,981  158,650  (9,331) 
Total costs and expenses805,877  791,293  (14,584) 1,633,710  1,602,123  (31,587) 
Equity in net income of Diamond Green Diesel63,492  38,093  25,399  161,312  62,370  98,942  
Operating income106,288  74,124  32,164  229,117  122,675  106,442  
Other expense:
Interest expense(17,920) (20,853) 2,933  (37,010) (40,729) 3,719  
Debt extinguishment costs—  (12,126) 12,126  —  (12,126) 12,126  
Foreign currency gain/(loss)(1,134) (388) (746) 530  (1,120) 1,650  
Other income (expense), net(1,485) (2,019) 534  (3,366) (4,544) 1,178  
Total other expense(20,539) (35,386) 14,847  (39,846) (58,519) 18,673  
Equity in net income/(loss) of unconsolidated subsidiaries
692  82  610  1,561  (422) 1,983  
Income before income taxes86,441  38,820  47,621  190,832  63,734  127,098  
Income tax expense19,946  7,776  (12,170) 38,246  13,050  (25,196) 
Net income66,495  31,044  35,451  152,586  50,684  101,902  
Net income attributable to noncontrolling interests
(1,056) (4,786) 3,730  (1,637) (6,414) 4,777  
Net income attributable to Darling$65,439  $26,258  $39,181  $150,949  $44,270  $106,679  
Basic income per share:$0.40  $0.16  $0.24  $0.93  $0.27  $0.66  
Diluted income per share:$0.39  $0.16  $0.23  $0.90  $0.26  $0.64  
Number of diluted common shares:165,999  168,432  166,963  168,546  


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Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended June 27, 2020 and June 29, 2019
(in thousands)
(unaudited)
Six Months Ended
June 27,June 29,
Cash flows from operating activities:20202019
Net income$152,586  $50,684  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization167,981  158,650  
Loss/(gain) on disposal of property, plant, equipment and other assets88  (18,176) 
Gain on insurance proceeds from insurance settlements—  (845) 
Deferred taxes13,998  (3,137) 
Increase (decrease) in long-term pension liability(890) 1,010  
Stock-based compensation expense15,566  14,182  
Write-off deferred loan costs—  4,547  
Deferred loan cost amortization2,835  3,010  
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries(162,873) (61,948) 
Distribution of earnings from unconsolidated subsidiaries125,891  17,755  
Changes in operating assets and liabilities, net of effects from acquisitions:
  Accounts receivable26,077  27,218  
  Income taxes refundable/payable6,119  7,140  
  Inventories and prepaid expenses(35,413) (17,374) 
  Accounts payable and accrued expenses(33,375) (29,849) 
  Other(14,941) 1,437  
Net cash provided by operating activities263,649  154,304  
Cash flows from investing activities:
Capital expenditures(123,204) (167,871) 
Acquisition, net of cash acquired—  (1,431) 
Investment of unconsolidated subsidiaries—  (1,000) 
Gross proceeds from disposal of property, plant and equipment and other assets1,053  9,814  
Proceeds from insurance settlement—  845  
Payments related to routes and other intangibles(3,712) (3,150) 
Net cash used by investing activities(125,863) (162,793) 
Cash flows from financing activities:
Proceeds from long-term debt16,164  507,722  
Payments on long-term debt(18,239) (526,230) 
Borrowings from revolving credit facility375,971  273,485  
Payments on revolving credit facility(405,800) (266,884) 
Net cash overdraft financing(26,461) 11,178  
Deferred loan costs—  (7,003) 
Issuance of common stock67  12  
Repurchase of common stock(55,044) —  
Minimum withholding taxes paid on stock awards(4,863) (3,193) 
Acquisition of noncontrolling interest(8,784) —  
Distributions to noncontrolling interests(987) —  
Net cash provided by financing activities(127,976) (10,913) 
Effect of exchange rate changes on cash flows(6,567) (853) 
Net increase/(decrease) in cash, cash equivalents and restricted cash3,243  (20,255) 
Cash, cash equivalents and restricted cash at beginning of year73,045  107,369  
Cash, cash equivalents and restricted cash at end of period$76,288  $87,114  
Supplemental disclosure of cash flow information:
Accrued capital expenditures$23  $(7,542) 
Cash paid during the period for:
Interest, net of capitalized interest$35,070  $45,196  
Income taxes, net of refunds$18,030  $12,607  
Non-cash operating activities:
Operating lease right of use asset obtained in exchange for new lease liabilities$28,801  $7,492  
Non-cash financing activities:
Debt issued for service contract assets$21  $—  


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Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
June 30, 2020 and December 31, 2019
(in thousands)
June 30,December 31,
20202019
(unaudited)
Assets:
Total current assets$581,334  $668,026  
Property, plant and equipment, net894,415  713,489  
Other assets27,959  30,710  
Total assets$1,503,708  $1,412,225  
Liabilities and members' equity:
Total current portion of long term debt$495  $341  
Total other current liabilities89,533  75,802  
Total long term debt8,969  8,742  
Total other long term liabilities4,023  4,422  
Total members' equity1,400,688  1,322,918  
Total liabilities and members' equity$1,503,708  $1,412,225  

Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Six-Month Periods Ended June 30, 2020 and June 30, 2019
(in thousands)
(unaudited)

Three Months EndedSix Months Ended
$ Change$ Change
June 30,June 30,FavorableJune 30,June 30,Favorable
20202019(Unfavorable)20202019(Unfavorable)
Revenues:
Operating revenues$295,826  $294,811  $1,015  $654,441  $597,529  $56,912  
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense
157,611  207,024  49,413  308,958  450,087  141,129  
Depreciation, amortization and accretion expense
11,114  11,914  800  22,888  23,332  444  
Total costs and expenses168,725  218,938  50,213  331,846  473,419  141,573  
Operating income127,101  75,873  51,228  322,595  124,110  198,485  
Other income200  634  (434) 661  1,275  (614) 
Interest and debt expense, net(317) (321) 4  (632) (645) 13  
Net income$126,984  $76,186  $50,798  $322,624  $124,740  $197,884  



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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 For the Three-Month and Six-Month Periods ended June 27, 2020 and June 29, 2019
Three Months EndedSix Months Ended
Adjusted EBITDAJune 27,June 29,June 27,June 29,
(U.S. dollars in thousands)2020201920202019
Net income attributable to Darling$65,439  $26,258  $150,949  $44,270  
Depreciation and amortization83,310  79,486  167,981  158,650  
Interest expense17,920  20,853  37,010  40,729  
Income tax expense19,946  7,776  38,246  13,050  
Foreign currency loss/(gain)1,134  388  (530) 1,120  
Other expense, net1,485  2,019  3,366  4,544  
Debt extinguishment costs—  12,126  —  12,126  
Equity in net (income) of Diamond Green Diesel(63,492) (38,093) (161,312) (62,370) 
Equity in net (income)/loss of unconsolidated subsidiaries(692) (82) (1,561) 422  
Net income attributable to noncontrolling interests1,056  4,786  1,637  6,414  
Adjusted EBITDA (Non-GAAP)$126,106  $115,517  $235,786  $218,955  
Foreign currency exchange impact1,951  (1)—  4,109  (2)—  
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)$128,057  $115,517  $239,895  $218,955  
DGD Joint Venture Adjusted EBITDA (Darling's share)$69,108  $43,894  $172,742  $73,721  
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA$195,214  $159,411  $408,528  $292,676  
(1) The average rates assumption used in the calculation was the actual fiscal average rate for the three months ended June 27, 2020 of €1.00:USD$1.10 and CAD$1.00:USD$0.72 as compared to the average rate for the three months ended June 29, 2019 of €1.00:USD$1.12 and CAD$1.00:USD $0.75, respectively. (2) The average rates assumption used in the calculation was the actual fiscal average rate for the six months ended June 27, 2020 of €1.00:USD$1.10 and CAD$1.00:USD$0.73 as compared to the average rate for the six months ended June 29, 2019 of €1.00:USD$1.13 and CAD$1.00:USD$0.75, respectively.

For the three and six months ended June 29, 2019, Adjusted EBITDA included a gain on the sale of assets of approximately $13.1 million.

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.






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Darling Ingredients Inc. will host a conference call to discuss the Company’s second quarter 2020 financial results at 9:00 am Eastern Time (8:00 am Central Time) on Thursday, August 6, 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 10146331. 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 August 13, 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 10146331. 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 June 27, 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










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News Release
August 5, 2020
Page 10
    
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, contact:
Jim Stark, Vice President, Investor Relations Email : james.stark@darlingii.com
5601 MacArthur Blvd., Irving, Texas 75038 Phone : 972-281-4823