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Stocks D / Darling International Inc.

URL:  https://boards.fool.com/dar-8211-3q-2013-earnings-30963630.aspx

Subject:  DAR – 3Q 2013 Earnings Date:  11/8/2013  8:05 AM
Author:  portastatic Number:  44 of 71

DAR released earnings info yesterday after the market closed. The conference call to discuss same is this morning.

Here is a link to the press release at Seeking Alpha (I usually link directly to IR, but I’m having issues accessing their site this morning)

http://seekingalpha.com/news-article/8117232-darling-interna......

Highlights:

Darling International Inc. (DAR) today reported net income of $27.7 million, or $0.23 per share, for the third quarter ended September 28, 2013. Net sales and results of operations for the third quarter as compared to the same period of the prior year are as follows:

For the third quarter of 2013, the Company reported net sales of $425.8 million as compared to $452.7 million for the third quarter of 2012. The $26.9 million decrease in sales is primarily attributable to lower finished product selling prices in both the Rendering and Bakery segments due to the effects of declining prices from competing ingredients. The new industrial residuals business acquired during the quarter contributed to help partially offset lower finished product selling prices.

Net income for the third quarter of 2013 decreased from $37.2 million, or $0.31 per share to $27.7 million, or $0.23 per share, when compared to the 2012 comparable period. The $9.5 million decrease in net income for the third quarter resulted from lower finished product selling prices, primarily within the Bakery segment; costs of $8.3 million related to the August 2013 acquisition of Terra Renewal Services, Inc., the October 2013 acquisition of the Rothsay rendering division of Maple Leaf Foods and the proposed acquisition of the VION Ingredients division of VION N.V.; and a $2.4 million payment made pursuant to the purchase agreement relating to the acquisition of Griffin Industries, Inc. to reimburse Griffin's former shareholders for certain state income tax liabilities resulting from the Company's 338(h) (10) tax election made in connection with that acquisition.

On an adjusted basis, earnings were $.32 per share in third quarter 2013 after excluding nonrecurring items, including the $8.3 million acquisition related costs and the $2.4 million payment associated with the Griffin acquisition. Combined these nonrecurring costs decreased earnings per share by approximately $.06 per share. Additionally, for the quarter, Diamond Green Diesel operated at reduced rates due to metallurgical issues with multiple heat exchangers. The reduced run rate at Diamond Green Diesel, which is being addressed, had an impact of approximately $.03 per share during the third quarter of 2013. Diamond Green Diesel commenced a shutdown today to replace the heat exchangers. The Company anticipates the unit will be back on line and operating at or above nameplate capacity by mid-November.


Lots of moving parts this quarter at Darling – three acquisitions, Diamond Green Diesel start up and subsequent heat exchanger issues, secondary stock offering… the call should be interesting. I won’t be able to listen live, but should be able to review and post my comments in the next day or so.


Greg
MRH Ticker Guide
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