Darling International Inc. Announces Second Quarter 2008 Results
Thu Aug 7, 4:30 PMIRVING, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Darling International Inc. (NYSE: DAR) today reported record second quarter net income of $24.1 million, or $0.29 per share and net income of $45.5 million, or $0.55 per share, for the six months ended June 28, 2008. Sales and results of operations for the second quarter and six months ended as compared to the same periods of the prior year are as follows:
For the second quarter of 2008, the Company reported net sales of $220.9 million as compared to $159.4 million for the second quarter of 2007. Higher finished product prices accounted for the majority of the $61.5 million increase.
Net income for the second quarter of 2008 increased to $24.1 million, or $0.29 per share, as compared to $9.5 million, or $0.12 per share, for the 2007 comparable period, for which the 2007 period included a $1.2 million charge related to a mass termination withdrawal liability arising from a multi-employer pension plan termination. The remaining $13.4 million increase in net income for the second quarter resulted primarily from higher finished product prices; which were partially offset by higher energy costs for natural gas and diesel fuel.
Darling International Inc. Chairman and Chief Executive Officer Randall Stuewe said, "We are very pleased with our second quarter results. Our team continues to execute and capitalize on volatile commodity input and finished product markets."
For the six months ended June 28, 2008, the Company reported net sales of $422.8 million as compared to $298.0 million for the 2007 comparable period. The $124.8 million increase in sales is primarily attributable to higher finished product prices.
For the six months ended June 28, 2008, the Company reported net income of $45.5 million, or $0.55 per share, as compared to $19.0 million, or $0.23 per share, for the 2007 comparable period. The $26.5 million increase in net income for the six months ended June 28, 2008 resulted primarily from higher finished product prices, which was partially impacted by: (i) an $8.4 million increase in energy costs related to natural gas and diesel fuel; (ii) a $1.2 million charge in the 2007 period related to a mass termination withdrawal liability arising from a multi-employer pension plan termination; and (iii) a $2.2 million gain included in the 2007 period on the closing of a transaction for the sale of a judgment against a service provider.
Darling International will host a conference call to discuss the Company's second quarter 2008 financial results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Friday, August 8, 2008. To listen to the conference call, participants calling from within North America should dial 888-211-4495; international participants should dial 913-312-0374. Please refer to access code 4464504. 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 web cast that can be accessed on the company website at http://www.darlingii.com/investors.aspx. Following its completion, a replay of the call can be accessed until August 14, 2008 by dialing 888-203-1112, or 719-457-0820 outside of North America. The access code for the replay is 4464504. The conference call will also be archived on the company's website.
Darling International Inc. is the largest publicly traded, food processing by-products recycling company in the United States. The Company recycles used restaurant cooking oil and by-products from the beef, pork and poultry processing industries into useable products such as tallow, feed-grade fats, meat and bone meal, and hides. These products are primarily sold to agricultural, leather, oleo-chemical and bio-diesel manufacturers around the world. In addition, the Company provides grease trap collection services and sells equipment to restaurants.
For more information, please visit http://www.darlingii.com.
{This media release contains forward-looking statements regarding the business operations and prospects of Darling and industry factors affecting it. These statements are identified by words such as "may," "will," "begin," "look forward," "expect," "believe," "intend," "anticipate," "should," "estimate," "continue," "momentum" and other words referring to events to occur in the future. These statements reflect Darling'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, including business and economic conditions in its existing markets, a decline in consumer confidence, the general performance of the U.S. economy and global demands for grain and oilseed commodities and biofuels that could cause actual results to differ materially from those projected in the forward-looking statements. Other risks and uncertainties regarding Darling, its business and the industry in which it operates are referenced from time to time in the Company's filings with the Securities and Exchange Commission. Darling 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.}
Darling International Inc.
Consolidated Operating Results
For the Periods Ended June 28, 2008 and June 30, 2007
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
$ $
Change Change
Favor- Favor-
June June able/ June June able/
28, 30, (Unfavor- 28, 30, (Unfavor-
2008 2007 able) 2008 2007 able)
Net sales $220,858 $159,425 $61,433 $422,814 $298,037 $124,777
Costs and
expenses:
Cost of sales
and
operating
expenses 161,298 121,925 (39,373) 307,594 225,169 (82,425)
Selling,
general and
administrative
expenses 13,980 14,295 315 28,681 26,876 (1,805)
Depreciation
and
amortization 5,845 5,795 (50) 11,637 11,539 (98)
Total costs and
expenses 181,123 142,015 (39,108) 347,912 263,584 (84,328)
Operating income 39,735 17,410 22,325 74,902 34,453 40,449
Other
income/(expense):
Interest
expense (775) (1,326) 551 (1,620) (2,959) 1,339
Other, net 133 (102) 235 300 (531) 831
Total other
income/(expense) (642) (1,428) 786 (1,320) (3,490) 2,170
Income from
operations
before income
taxes 39,093 15,982 23,111 73,582 30,963 42,619
Income taxes (15,014) (6,500) (8,514) (28,042) (11,901) (16,141)
Net income $24,079 $9,482 $14,597 $45,540 $19,062 $26,478
Basic income per $0.30 $0.12 $0.18 $0.56 $0.24 $0.32
share
Diluted income per
share $0.29 $0.12 $0.17 $0.55 $0.23 $0.32
FOR MORE INFORMATION CONTACT:
John O. Muse, Executive Vice President of
Finance and Administration, or
Brad Phillips, Treasurer
Phone: 972-717-0300
SOURCE Darling International Inc.
572.92 (5.30%)
