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Darling Ingredients released 4th quarter and full year 2015 results this afternoon. They will hold a conference call tomorrow morning to discuss same.

The Q4 EPS of $0.54 beat consensus estimates by $0.29 while revenue of $809.7M (-19.0% Y/Y) missed estimates by $33.91M.

Here is a link to the news release:

(this is a .pdf version if you prefer that):

4th Quarter 2015 Highlights
Net income of $84.4 million, or $0.52 per GAAP diluted share; $0.54 per (Non-GAAP) Adjusted diluted share
Revenue of $809.7 million
Food and Fuel Segments contribute solidly....Feed Segment navigated volatile Q4 pricing

Fiscal 2015 Highlights
Consolidated revenue of $3.4 billion
Adjusted EBITDA of $412.5 million
Full year debt reduction of $118 million
Change in working capital cash improvement fiscal 2014 to fiscal 2015 of $72.7 million

SG&A reduction of $52 million compared to 2014
Diamond Green Diesel EBITDA $177.0 million for 2015 at entity level; Darling's share $88.5 million for 2015
Completed construction on three plants and one expansion in 2015, two additional plants on schedule for completion during 2016

Stuewe Comments:
"2015 was a year characterized by continued global commodity deflation. Our team delivered solid execution led by international businesses with growth and cost saving efficiencies achieved around the globe. While challenging conditions persisted through the fourth quarter, we delivered respectable quarterly results and exit 2015 a stronger company, highlighted by lower debt, strong cash flows and strategic investments in new plants and operating efficiencies."

"During the fourth quarter, our Food and Fuel segments performed well, generating strong EBITDA margins driven primarily by improved pricing and higher volumes, but were partially offset by continued FX challenges. In our Feed segment, we successfully navigated some short-term challenges that negatively impacted results, but pricing of these products rebounded nicely in early Q1 2016."

"While still early in 2016, our current view is that we will see improved conditions for fats and oils demand globally as we proceed into spring. We continue to be focused on areas that we can control across all levels of the organization. We believe that the significant cost savings we achieved in 2015 position us for success in 2016. Our focus continues to be on de-levering the balance sheet, while at the same time preserving the flexibility to continue to identify and execute growth opportunities that will position the Company for future success," concluded Mr. Stuewe.

By Segment Update:

Feed Ingredients – Global rendering experienced a volatile commodity environment throughout 2015; presenting challenging deflationary pricing and continued strong slaughter volumes. The segment's performance proved resilient through third quarter with stable margins followed by a fourth quarter demonstrating short-term challenges. Fat prices felt heavy pressure in the USA, but are now recovering with pricing stabilizing in Europe. Protein felt some pressure worldwide as large grain supplies and strong slaughter resulted in market surpluses. Restaurant services continued to improve spreads, but pricing pressure remained through fourth quarter. Bakery Feeds and Specialty Proteins delivered consistent performances. Our new bakery feeds plant in Bryan, Texas is in operation. Two new wet pet food plants are now running after some unexpected start-up costs and are well positioned for 2016.

Food Ingredients – Strong performance by the gelatin business in 2015 with new USA capacity on line and a solid performance from China with increased demand. Edible fats performance improved as margins stabilized. CTH endured an Asian border closure during 2015 but now showing improved margins on hog casings and further development in the marketing of edible products.

Fuel Ingredients – Rendac, our disposal rendering operation in Europe, continued to deliver a solid performance in 2015 with strong volumes. The Ecoson, bio-phosphate operation in Europe, experienced a fire in fourth quarter but business interruption and casualty insurance will mitigate the impact. Canadian biofuels delivered improved performance with the reinstatement of the blenders tax credits in December of 2015. The prospective 2016 blenders tax credit is expected to improve quarterly results within the Canadian biofuels operation.

Diamond Green Diesel Joint Venture - Continued strong operational performance in the fourth quarter and full year 2015, producing 159 million gallons of renewable diesel for the year. The reinstatement of the U.S. Biofuels Tax Extenders package will provide approximately $157.0 million to Diamond Green Diesel's bottom line bringing the total EBITDA to $177.0 million from record earnings. Darling's share was $88.5 million for 2015.

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