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Tag Archives: AGR

Government Ministers, Business Leaders and Economists Confirmed for Cambodian Investment Conference

PHNOM PENH, Cambodia, Aug. 27, 2014 /PRNewswire/ -- Agriculture, manufacturing, banking and real estate will be among the key business sectors to be discussed at the upcoming International Business Chamber of Cambodia (IBC) Investment Conference.

The conference will bring together senior government ministers, top economists and business leaders in Phnom Penh on October 6th and 7th.

Cambodia's Prime Minister H.E. Samdech Akka Moha Sena Padei Techo Hun Sen will deliver the conference's opening address on the morning of October 6th.

The keynote speech will be delivered by Donald Kanak, the chairman of Prudential Corporation Asia -- which is a leading sponsor of the conference.

Two major panels will follow the opening address and the keynote speech, both moderated by the renowned Wall Street Journal columnist Andrew Browne.

The first panel will look at Cambodia's Economic Outlook and will feature Eric Sidgwick, senior country officer at the Asian Development bank (ADB), the International Monetary Fund's (IMF) Cambodia representative Ahmed Faisal and Dr. In Channy, CEO of ACLEDA Bank who is also the Vice Chairman of the IBC and the chairman of the conference's organising committee.

Another panel at the conference will discuss Cambodia's Economic Advantage.

"The speakers and moderators list for the conference is looking very exciting and I am delighted to see the calibre of those who will be present for these important discussions," says Dr. Channy.

"There are a number of government ministers already in attendance and we are expecting more to confirm in the coming days and weeks," says Dr. Channy.

Government ministers attending the event will include Cambodia's Minister of Commerce H.E Sun Chanthol, Education Minister H.E. Hang Chuon Naron and Minister
 of Posts & Telecommunication (MPTC)  H.E. Prak Sokhonn.

IBC Chairman Bretton Sciaroni, senior partner at Sciaroni and Associates, will chair a break-out discussion on Cambodia's Legal Landscape for Investors which will feature Senior Minister H.E. Mr. Om Yentieng, Chairman of Cambodia's Anti-Corruption Unit.

"This will be one of the most important discussions at the conference -- with investors constantly monitoring the political and legal situation in Cambodia as they make their investment decisions. The recent political breakthrough will be a big boost for investors who want to see similar breakthroughs in the legal landscape," Mr. Sciaroni says.

Platinum sponsors for the IBC conference are Prudential Cambodia, Jardine Matheson Limited, Sciaroni and Associates, ACLEDA Bank and ANZ Royal. Gold sponsors include DFDL and Ezecom.

The South East Asia Globe and its sister publication Focus ASEAN are media partners of the event.

Those wishing to register for the IBC Investment conference should visit the IBC's website at www.ibccambodia.com.

Media Contact:

Julian Rake
+855-12324283
julian@quantumpublicity.com

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Aoxin Tianli Group, Inc. Completes $7.2 Million Private Placement

WUHAN CITY, China, August 21, 2014 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a diversified company with businesses in hog farming and electro-hydraulic servo-valves manufacturing and marketing...

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Vietstock and Vietmeat 2014 Expo & Forum Gains Strong Support from CP Vietnam and the Vietnam Chamber of Commerce & Industry (VCCI)

HO CHI MINH CITY, Vietnam, Aug. 19, 2014 /PRNewswire/ -- CP Vietnam Corporation, a major feed, livestock and meat producer in Vietnam, will participate in the Vietstock and Vietmeat 2014 Expo & Forum to share their experiences with other meat processors in the country and how the company maintains the high standards of quality and safety of its meat products from farm to table.

Mr. Sooksunt Jiumjaiswanglerg, President of CP Vietnam
Mr. Sooksunt Jiumjaiswanglerg, President of CP Vietnam
Dr Vu Tien Loc (second from left) posts with UBM Asia's team during a meeting at VCCI in Hanoi.
Dr Vu Tien Loc (second from left) posts with UBM Asia's team during a meeting at VCCI in Hanoi.
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)

Sooksunt Jiumjaiswanglerg, President of CP Vietnam, said he would appoint a senior executive of the company to speak on this topic at a meat conference to be held at the event. 

"Meat processors in Vietnam should collaborate with each other in order to set strong standards on quality and safety to ensure consumers are confident in our products. As we've been in the meat processing business for a long time, we'd like to share our experiences with our friends in the industry," he said.

Fully integrated, CP Vietnam operates from grain planting to feed milling, livestock farming, meat processing and retailing.

"A main goal of our business in Vietnam is to support livestock farmers. Therefore, we will continue to expand our farming business and produce safe and quality meat products for the nation," said Mr. Sooksunt.

He said CP Vietnam is also willing to be a business partner with fellow meat processors in Vietnam as a supplier of raw materials for them.

"Our farmers implement strict standards on food safety and we process their chickens with the state-of-the-art technology. So, we can ensure that you'll consistently get raw meat that is safe and of high quality for further processing," he said.

Mr. Sooksunt said meat processors in Vietnam should have a forum to discuss and tackle issues that could pose threats to the country's meat processing industry.

He said the opening of markets among ASEAN nations under the ASEAN Economic Community (AEC) in 2015 could result in massive imports of meat products into Vietnam and seriously affect the local meat processing industry.

"It's a good idea that meat processors in Vietnam set up an association of their own. The Vietmeat forum would be a good place to discuss on this issue and I'm glad to host the discussion by myself," said Mr. Sooksunt. 

The Vietnam Chamber of Commerce and Industry (VCCI) also agreed to support the Vietnam meat processing industry forum that will be held during Vietstock 2014 in Ho Chi Minh City, Vietnam.

Dr. Vu Tien Loc, VCCI's Chairman and President, said Vietnam is a huge market for processed meat products. The forum, which will bring together CEOs of key meat processors in the country, will be a starting point for the industry to collaborate in developing their products and markets in the future.

Vietmeat is a one-stop forum focusing on the needs of the meat industry - from production, processing and packaging, right to the plate.

Organised by UBM Asia, the Vietmeat forum makes its debut in 2014 and will be co-located with Vietstock 2014 - Vietnam's Premier International Feed, Livestock and Meat Industry Show. The events will be held from 15-17 October, 2014 at the Saigon Exhibition & Conference Centre (SECC) in Ho Chi Minh City, Vietnam.

Don't miss the Vietstock & Vietmeat 2014 Expo & Forum. REGISTER TO VISIT TODAY at www.vietstock.org.

Notes to the Editor

About UBM Asia in ASEAN (www.ubmasean.com)

In ASEAN, we serve 13 market sectors with wholly-owned subsidiary companies and JV companies in seven offices in the major cities in ASEAN, including Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila and Singapore. We provide over 60 products in various categories: trade fairs, conferences and publications. As the leading B2B event organiser in the region, we are the largest exhibition organiser in Malaysia.

Our products serve tens of thousands of exhibitors, visitors, conference delegates, advertisers, subscribers and corporations in the region and from all over the world with high value face-to-face business-matching events and quality conference programmes presented by top-notch industry leaders. We have over 130 staff in six countries.

CONTACTS:
Sufian Zahari, +60-3-2176-8788, sufian.zahari@ubm.com

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China Fruits Corporation Reports Unaudited FY2014 Second Quarter Results

BEIJING, August 16, 2014 /PRNewswire-FirstCall/ -- China Fruits Corporation (OTC: CHFR) ("China Fruits" or "the Company"), a distributor and producer of fresh tangerine and other fresh fruits in the People's Republic of China, today announce...

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CHS Announces Senior Leadership Team Changes

ST. PAUL, Minnesota, Aug. 12, 2014 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP) -- the nation's leading cooperative and a global energy, grains and foods company -- today announced that Mark Palmquist, executive vice president and chief operating officer, Ag Business, will leave the organization effective Aug. 31, 2014, to assume the top leadership role with an Australian grain company. Current CHS strategic leadership team member Shirley Cunningham will assume a new role as executive vice president and chief operating officer, Ag Business and Enterprise Strategy.

Photo - http://photos.prnewswire.com/prnh/20140811/135261
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Palmquist will become managing director and chief executive officer of GrainCorp, Sydney, Australia, on Oct. 1, 2014.

"We congratulate Mark on this new opportunity and thank him for his significant contributions to CHS and its predecessor organizations," said CHS President and Chief Executive Officer Carl Casale. "During his 35-year career with our organization, he was instrumental in launching and building the CHS global platform and identifying numerous growth opportunities in our grains and foods businesses that add value for the owners of this cooperative."

Cunningham, who joined CHS in 2013 as executive vice president, Enterprise Strategy, will continue to lead the company's Enterprise Strategy functions as well as the newly aligned Ag Business platform which includes International, North America and Agronomy. "Shirley brings significant global strategic and enterprise experience to her expanded role," said Casale. "Aligning our Ag Business and Enterprise Strategy platforms under Shirley's leadership will position us well for continued growth on behalf of our owners."

Newly named leaders for CHS Ag Business platform include:

  • Stefano Rettore, senior vice president, International, responsible for CHS South America, CHS Asia-Pacific and CHS Europe.
  • Gary Anderson, senior vice president, North America Grain Marketing and Processing and Food Ingredients, responsible for North America Grain Marketing, Terminals and Transportation, Business Development, Processing and Food Ingredients, and Ethanol manufacturing.
  • Rick Dusek, vice president, Agronomy, leading Crop Nutrients Supply and Trading, North America Crop Nutrients and Agronomy, which will include additional product and technology offerings.

Cunningham retains responsibility for CHS Information Technology, Human Resources, Enterprise Strategy and Marketing and Communications functions. She assumes her new role on Sept. 1, 2014.

CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2013, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.

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Darling Ingredients Inc. Reports Second Quarter 2014 Financial Results

- Net income of $32.8 million or $0.20 per diluted share; Pro Forma Adjusted EBITDA of $158.0 million

- Solid performance of the new global business with sharp improvement in USA on a sequential basis

- Results include $9.2 million of Non-Cash Adjustments and Acquisition-Related Costs

IRVING, Texas, Aug. 8, 2014 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries, today announced financial results for the second quarter ended June 28, 2014.

Net sales for the second quarter of 2014 increased to $1.0 billion, compared with $423.6 million in the same period of 2013, attributable to newly acquired operations. Operating income in the second quarter of 2014 was $75.5 million reflecting an increase of $24.7 million or 49% as compared to income for the same period of 2013. Results include a $5.0 million increase to cost of sales related to the inventory step-up associated with required purchase accounting for the VION Acquisition and $4.2 million associated with continued acquisition and integration costs of Rothsay and the VION Acquisition.

Comments on the Second Quarter

"We posted a respectable second quarter performance, which now reflects full contributions from our newly acquired operations around the world," said Randall Stuewe, Darling Ingredients Inc. Chairman and Chief Executive Officer.

"During the second quarter, the Feed Ingredients Segment delivered a solid performance lead by North American operations. Protein and fat values remained strong around the globe. Our Bakery Feeds unit delivered a nice performance sequentially but continues to feel the pressure of eroding corn prices. Canada delivered notable earnings and Europe remained a steady contributor to operating income," continued Mr. Stuewe. "In general, our raw material volumes were steady around the globe and margins remained healthy."

"The Food Ingredients Segment continued to perform as anticipated. Rousselot, a global leader in gelatin, turned in a solid performance. Demand remains steady however prices were marginally lower in some geographies due to competition and tight raw material supplies. Our European edible fat business delivered lower earnings driven by compressed margins as a result of the increased supplies of raw materials primarily in Germany due to ongoing trade restrictions with Russia. CTH, our casings business, improved marginally over the first quarter of 2014."

"Our Fuel Ingredients Segment, anchored by Diamond Green Diesel, reported a weaker performance compared to first quarter 2014 on low RIN (Renewable Identification Number) values due to the continued uncertainty of the U.S. mandated renewable fuel volume obligation (RVO) and whether there would be an extension of the existing federal alternative fuel blenders tax credit. The DGD Joint Venture operated at name plate capacity during the second quarter of 2014 and continues to be one of the lowest cost producers of biomass based renewable diesel in the world." Mr. Stuewe added, "Our European operations within the Fuel Ingredients Segment proved to be steady contributors with Rendac and Ecoson delivering solid returns. This quarter marked the starting of operations at our new biogas facility in Son, Netherlands; built to generate green electricity and bio-phosphate fertilizer."

"With respect to the incident at our DGD facility in Norco, LA on August 3rd, no one was injured and the firefighting teams and Valero emergency response teams responded rapidly. The fire was isolated and extinguished. Preliminary damage assessment is underway and we hope to have the facility operational within 60 days. Most notably, the downtime will allow us to perform additional maintenance and debottlenecking to increase name plate capacity by 10% when we start back up."

"Overall to date, we are pleased with the integration success of our new global ingredients company and look forward to bringing greater value to our customers and shareholders," concluded Mr. Stuewe.

Continued Quarter Results

Second quarter 2014 net income was $32.8 million, or $0.20 per diluted share, compared with net income of $26.4 million, or $0.22 per diluted share, in the second quarter of 2013. The Company's second quarter 2014 results include the following after tax costs:

  • $3.5 million ($0.02 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period; and
  • $2.6 million ($0.01 per diluted share) associated with the acquisition and integration of Rothsay and VION during the quarter.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $38.9 million and $0.24 per diluted share, respectively.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA

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). The Company believes that Adjusted EBITDA provides additional useful information to investors since certain financial covenants under the Company's Senior Secured Credit Facilities and Senior Unsecured Notes that were outstanding at June 28, 2014, are also measured based on an altered version of the Company's Adjusted EBITDA metric. As the Company uses the term, Adjusted EBITDA means:




Three Months Ended

Adjusted EBITDA


June 28,


June 29,

(U.S. dollars in thousands)

2014


2013






Net income


$ 32,757


$26,418

Depreciation and amortization

67,498


22,076

Interest expense


26,571


5,669

Income tax expense


15,503


16,335

Foreign currency gain


(11)


Other expense / (income), net

887


418

Equity in net (income)/ loss of unconsolidated subsidiaries

(2,040)


1,962

Net income attributable to noncontrolling interests

1,818



Adjusted EBITDA

$142,983


$72,878






Non-cash inventory step-up associated with VION Acquisition

4,971


Acquisition and integration-related expenses

4,165


DGD Joint Venture Adjusted EBITDA (Darling's share) (1)

5,902


(1,962)







Pro Forma Adjusted EBITDA

$158,021


$70,916


(1) Derived from the unaudited financial statements of the DGD Joint Venture.

For the second quarter of 2014, the Company generated Adjusted EBITDA of $143.0 million, as compared to $72.9 million in the same period a year ago. The increase was primarily attributable to the inclusion of the newly acquired businesses. On a Pro Forma Adjusted EBITDA basis, the Company would have generated $158.0 million in the second quarter 2014, as compared to a Pro Forma Adjusted EBITDA of $70.9 million in the year ago period. The increase in Pro Forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

Second Quarter Segment Performance

Feed Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013




Net Sales

$ 599,884

$ 421,366

Operating Income

$ 74,506

$ 58,397

  • Feed Ingredients operating income increased by $16.1 million to $74.5 million compared to the second quarter of 2013. Results reflect $1.5 million related to the non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition. Adjusted operating income for the Feed Ingredient Segment without the inventory step-up costs would have been $76.0 million or $17.6 million higher than the second quarter 2013.
  • Higher earnings were predominantly related to earnings attributable to newly acquired operations. The U.S. operations contributed $2.7 million less in Feed Ingredients operating income relative to the second quarter of 2013. This reduction was principally related to lower earnings in the bakery feeds division and higher selling, general and administrative costs, depreciation and amortization expenses. Canada operations performed better than expected, while operations in Europe and China generally performed as expected.

Food Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013




Net Sales

$ 329,541

-

Operating Income

$ 11,313

-

  • Food Ingredients operating income was $11.3 million for the second quarter of 2014 compared to no prior reporting segment or activity in the Food Ingredients business lines in the second quarter of 2013. Results reflect $3.4 million related to the non-cash inventory step-up associated with the purchase accounting for the VION Acquisition. Adjusted operating income for the Food Ingredients Segment without the inventory step-up costs would have been $14.7 million. On an adjusted sequential quarter basis, the Food Ingredients operating income decreased by $5.1 million from $19.8 million in the first quarter of 2014. This reduction from first quarter was principally related to the European edible fats business which was adversely impacted by the closure of the Russian trade border resulting in higher raw material supply and increased production that put pressure on selling prices and resulted in lower margins for the Company's finished products.
  • Global demand for gelatin was generally steady with the exception of China, which saw a slight reduction in demand. The Company's casing business improved marginally over the first quarter 2014 as a result of increased sales volume of sheep casings.

Fuel Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013




Net Sales

$ 77,534

$ 2,227

Operating Income

$ 5,439

$ 422

  • Fuel Ingredients operating income increased by $5.0 million to $5.4 million, exclusive of the DGD Joint Venture, compared to second quarter 2013. Including the DGD Joint Venture, the Fuel Ingredients Segment income was $6.9 million in second quarter 2014. On an adjusted sequential quarter basis, the Fuel Ingredients operating income inclusive of the DGD Joint Venture decreased by $0.3 million, which was principally related to a reduction in the equity in net income inclusion from the DGD Joint Venture, which was substantially off-set by improved earnings in the European green energy and bio-phosphate operations.
  • Results for North America continue to be negatively impacted by lower RIN values, resulting from an uncertain regulatory environment with respect to the U.S. mandated RVO requirements for 2014 and uncertainty related to the possible extension of the blenders tax credit. For the quarter, the DGD Joint Venture operated at name plate capacity.

Subsequent Event

On August 3, 2014, a fire occurred at the Diamond Green Diesel facility in Norco, LA. The fire was isolated and extinguished and no one was injured. The preliminary assessment of the incident appears to indicate that no major damage occurred to any of the vessels. Damage appears to be relatively isolated and will require some piping, mechanical and electrical replacements. The cause of the fire remains unknown at this time. The facility is currently shut down and while it is early in the preliminary assessment phase, we believe that the facility may be operational within 60 days. The DGD Joint Venture is in the process of reviewing its insurance policies, including property damage and business interruption, for available coverage under such policies. Any claims made under such policies will be subject to the terms and conditions of the underlying policy, including applicable deductibles and waiting periods.

Additionally, a decision has been made to move forward with a limited turnaround during this downtime to replace some catalyst in the Eco-finer unit along with several debottlenecking and metallurgical upgrades that should result in approximately a 10% name plate capacity increase for winter production.

Six Months Ended June 28, 2014 Performance

For the six months ended June 28, 2014, the Company reported net sales of $1.9 billion, as compared to $869.0 million for the 2013 comparable period. The $1.1 billion increase in sales resulted primarily to the inclusion of the newly acquired businesses.

For the six months ended June 28, 2014, the Company reported a net loss of ($20.0) million, or ($0.12) per diluted share, as compared to net income of $58.8 million, or $0.50 per diluted share, for the 2013 comparable period. The results for the six months period include the following after-tax costs:

  • $34.8 million ($0.21 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period;
  • $20.2 million ($0.12 per diluted share) related to the redemption premium and write-off of deferred loan cost associated with the retirement of the Company's 8.5% Senior Notes on January 7, 2014;
  • $14.6 million ($0.09 per diluted share) associated with the acquisition and integration of Rothsay and VION Ingredients during the period;
  • $8.0 million ($0.05 per diluted share) related to certain euro forward contracts entered into to hedge against foreign exchange risks related to the closing of the VION Acquisition: and
  • $5.2 million ($0.03 per diluted share) associated with discrete tax items principally associated with the VION Acquisition.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $63.4 million and $0.38 per diluted share, respectively. As compared to the six months ended June 29, 2013, this would have resulted in a $4.6 million increase in net income and a 24% decline in diluted earnings per common share.

Operating income for the six months ended June 28, 2014 was $74.9 million, which reflects a decline of $34.5 million or 32% as compared to the six months ended June 29, 2013. The results for the six months include an increase to cost of sales of $49.8 million related to the inventory step-up associated with the required purchase accounting for the VION Acquisition. Without these costs, operating income would have been $124.7 million or 14% higher than 2013. Including the Company's share of net income of unconsolidated subsidiaries, primarily the DGD Joint Venture, operating income for the six months ended June 28, 2014, would have been $131.8 million or $22.4 million (20.5%) higher than 2013. The DGD Joint Venture has not yet distributed any earnings to its venture partners.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA – Six Months Ended



Six Months Ended

Adjusted EBITDA


June 28,


June 29,

(U.S. dollars in thousands)

2014


2013






Net income/ (loss) allocable to Darling

$ (20,046)


$ 58,823

Depreciation and amortization

133,167


43,943

Interest expense


85,428


11,294

Income tax expense/ (benefit)

(2,787)


36,753

Foreign currency loss


13,803


Other expense/ (income), net

2,025


(649)

Equity in net (income)/ loss of unconsolidated subsidiaries

(7,117)


3,157

Net loss/ (income) attributable to noncontrolling interests

3,615



Adjusted EBITDA

$208,088


$153,321






Non-cash inventory step-up associated with VION Acquisition

49,803


Acquisition and integration-related expenses

20,113


DGD Joint Venture Adjusted EBITDA (Darling's share) (1)

14,975


(3,157)

Darling Ingredients International - 13th week (2)

4,100








Pro Forma Adjusted EBITDA

$297,079


$150,164


(1)

Derived from the unaudited financial statements of the DGD Joint Venture.

(2)

January 7, 2014 closed on VION Ingredients, thus the 13th week would be revenue adjusted for January 1, 2014 through January 7, 2014.

For the six months ended June 28, 2014, the Company generated Adjusted EBITDA of $208.1 million, as compared to $153.3 million in the same period a year ago. The increase was primarily attributable to the newly acquired businesses. On a Pro forma Adjusted EBITDA basis, the Company would have generated $297.1 million in the second quarter 2014, as compared to a Pro forma Adjusted EBITDA of $150.2 million in the year ago period. The increase in Pro forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

About Darling

Darling Ingredients Inc. is the world's largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized 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 gelatin, 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 used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment. For additional information, visit the Company's website at http://ir.darlingii.com.

Darling Ingredients Inc. will host a conference call to discuss the Company's second quarter 2014 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Friday, August 8, 2014. To listen to the conference call, participants calling from within North America should dial 877-270-2148; international participants should dial 412-902-6510. Please refer to access code 10050348. 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 two hours after its completion, a replay of the call can be accessed through August 14, 2014, by dialing 877-344-7529 domestically, or +1-412-317-0088 if outside North America. The access code for the replay is 10050348. The conference call will also be archived on the Company's website.

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 upstream their profits to the Company for payments on the Company's indebtedness or other purposes; general performance of the U.S. and global economies; disturbances in world financial, credit, commodities and stock markets; 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; volatile prices for natural gas and diesel fuel; climate conditions; unanticipated costs or operating problems related to the acquisition and integration of Rothsay and Darling Ingredients International (including transactional costs and integration of the new enterprise resource planning (ERP) system); 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, reduced demand for animal feed, or otherwise; reduced finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the National Renewable Fuel Standard Program (RFS2) and tax credits for biofuels both in the U.S. and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of Bird Flu including, but not limited to H1N1 flu, bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the U.S. or elsewhere; 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 regulations (including, without limitation, China) affecting the industries in which the Company operates or its value added products (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations); risks associated with the renewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling Ingredients and Valero Energy Corporation, including possible unanticipated operating disruptions; 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; and/or unfavorable export or import markets. 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.}

 

Darling Ingredients Inc.

Consolidated Operating Results

For the Periods Ended June 28, 2014 and June 29, 2013

(Dollars in thousands, except per share amounts)

(unaudited)








Three Months Ended


Six Months Ended







$ Change






$ Change



June 28,


June 29,


Favorable


June 28,


June 29,


Favorable



2014


2013


(Unfavorable)


2014


2013


(Unfavorable)

Net sales

$1,006,959


$423,593


$ 583,366


$1,938,394


$869,015


$ 1,069,379

Costs and expenses:













Cost of sales and

operating expenses

$ 747,966


$309,922


(438,044)


$1,492,945


$632,608


(860,337)


Selling, general and

administrative expenses

111,845


40,793


(71,052)


217,248


83,086


(134,162)


Depreciation and amortization

67,498


22,076


(45,422)


133,167


43,943


(89,224)


Acquisition and Integration costs

4,165


-


(4,165)


20,113


-


(20,113)

Total costs and expenses

931,474


372,791


(558,683)


1,863,473


759,637


(1,103,836)

Operating income

75,485


50,802


24,683


74,921


109,378


(34,457)

Other expense:













Interest expense

(26,571)


(5,669)


(20,902)


(85,428)


(11,294)


(74,134)


Foreign currency gain/(loss)

11


-


11


(13,803)


-


(13,803)


Other income/(expense), net

(887)


(418)


(469)


(2,025)


649


(2,674)

Total other expense

(27,447)


(6,087)


(21,360)


(101,256)


(10,645)


(90,611)














Equity in net income/(loss) of unconsolidated subsidiaries

2,040


(1,962)


4,002


7,117


(3,157)


10,274

Income/(loss) before income taxes

50,078


42,753


7,325


(19,218)


95,576


(114,794)

Income taxes expense/(benefit)

15,503


16,335


832


(2,787)


36,753


39,540

Net income/(loss)

$ 34,575


$ 26,418


$ 8,157


$ (16,431)


$ 58,823


$ (75,254)

Net (income)/loss attributable to noncontrolling interests

$ (1,818)


-


$ (1,818)


$ (3,615)


-


$ (3,615)

Net income/(loss) attributable to Darling

$ 32,757


$ 26,418


$ 6,339


$ (20,046)


$ 58,823


$ (78,869)














Basic income/(loss) per share:

$ 0.20


$ 0.22


$ (0.02)


$ (0.12)


$ 0.50


$ (0.62)

Diluted income/(loss) per share:

$ 0.20


$ 0.22


$ (0.02)


$ (0.12)


$ 0.50


$ (0.62)

 



Darling Ingredients Inc.

Condensed Consolidated Balance Sheets - Assets

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)








June 28,


December 28,



2014


2013

Current assets:

(unaudited)




Cash and cash equivalents

$ 143,785


$ 870,857


Restricted cash

350


354


Accounts Receivable, net

467,392


112,844


Inventories

431,529


65,133


Prepaid expenses

26,296


14,223


Income taxes refundable

26,448


14,512


Other current assets

33,022


32,290


Deferred income taxes

18,955


17,289


Total current assets

1,147,777


1,127,502






Property, plant and equipment





less accumulated depreciation, net

1,697,058


666,573






Intangible assets





less accumulated amortization, net

1,037,479


588,664






Other assets:





Goodwill

1,442,299


701,637


Investment in unconsolidated subsidiaries

147,662


115,114


Other

76,077


44,643


Deferred income taxes

6,443



Total assets

$5,554,795


$3,244,133

 

Darling Ingredients Inc.

Condensed Consolidated Balance Sheets

Liabilities and Stockholders' Equity

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)




June 28,


December 28,



2014


2013

Current liabilities:

(unaudited)




Current portion of long-term debt

$ 68,616


$ 19,888


Accounts payable, principally trade

313,171


43,742


Income taxes payable

7,830



Accrued expenses

167,552


113,174


Total current liabilities

557,169


176,804






Long-term debt, net of current portion

2,302,655


866,947

Other non-current liabilities

98,241


40,671

Deferred income taxes

472,863


138,759


Total liabilities

3,430,928


1,223,181






Commitments and contingencies




Total Darling's Stockholders' equity:

2,025,380


2,020,952


Noncontrolling interests

98,487



Total stockholders' equity

$2,123,867


$2,020,952



$5,554,795


$3,244,133

 







For More Information, contact:




Melissa A. Gaither, Director of Investor Relations

Email: mgaither@darlingii.com

251 O'Connor Ridge Blvd., Suite 300

Phone: +1-972-717-0300

Irving, Texas 75038


 

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