Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q1 2020 Earnings Presentation
17 slides from Darling Ingredients's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Conference Call
Exhibit 99.2 First Quarter 2020 Conference Call
Slide 2: Forward-looking statements
This presentation contains “forward-looking” statements that are subject to risks and uncertainties that could cause the actual results of Darling Ingredients Inc. (the “Company”) to differ materially from those expressed or implied in the statements. Statements that are not statements of historical
Slide 3: First Quarter 2020 Highlights
US$ (millions) except per share price Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net sales $ 835.1 $ 827.3 $ 842.0 $ 859.4 $ 3,363.9 $ 852.8 Gross margin 184.1 182.6 189.1 219.0 774.8 205.9 First Quarter 2020 Highlights Gross margin % 22.0% 22.1% 22.5% 25.5% 23.0% 24.1% • Strong Q1 performan
Slide 4: Feed Segment results and EBITDA bridge
US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $ 495.8 $ 487.4 $ 497.0 $ 490.4 $ 1,970.6 $ 512.6 Gross Margin 109.0 110.5 117.2 114.3 451.0 124.2 Gross Margin % 22.0% 22.7% 23.6% 23.3% 22.9% 24.2% Adj. EBITDA Bridge Q1-2019 to Q1-2020 Loss/(gain) on sale of assets (4.
Slide 5: Food Segment results and EBITDA bridge
US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $ 279.2 $ 274.8 $ 276.5 $ 288.6 $ 1,119.1 $ 270.3 Gross Margin 65.1 60.4 61.8 67.2 254.5 64.9 Gross Margin % 23.3% 22.0% 22.4% 23.3% 22.8% 24.0% Adj. EBITDA Bridge Q1-2019 to Q1-2020 Loss/(gain) on sale of assets 0.1 (13.
Slide 6: Fuel Segment results
(Includes Diamond Green Diesel JV consolidated EBITDA) US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $ 60.1 $ 65.0 $ 68.6 $ 80.6 $ 274.3 $ 69.9 Key Drivers: Gross Margin 10.0 11.7 10.1 37.6 69.4 16.9 Gross Margin % 16.7% 18.0% 14.7% 46.7% 25.3% 24.2% • Combined adjus
Slide 7: Diamond Green Diesel renewable diesel facility
Existing 275 million gallon renewable diesel facility 400 million gallon expansion project Page 7 | First Quarter 2020 Results | 05.07.2020
Slide 8: Balance Sheet Highlights and Debt Summary
(US$,Balance in thousands) Sheet HighlightsJune 30, 2018 Debt Summary S&P Ratings Cash(US$, in thousands) (includes restricted cashMarch of 28, $142) 2020 (US$, in thousands) March 28, 2020 Cash (includes restricted cash$104,262 of $106) $ 76,445 Amended Credit Agreement Term Loan B – BBB- Corporate
Slide 9: Appendix – Additional Information
Appendix – Additional Information Page 9 | First Quarter 2020 Results | 05.07.2020
Slide 10: Average LCFS Carbon Credit Price
Average LCFS Carbon Credit Price Weighted Ave Price (USD/MT) $250 $200 $150 $100 $50 $- Jun-16 Jun-18 Jun-19 Jun-17 Oct-16 Oct-17 Oct-19 Oct-18 Apr-16 Apr-18 Apr-19 Apr-17 Feb-18 Feb-17 Feb-19 Feb-20 Dec-16 Dec-17 Dec-19 Dec-18 Aug-16 Aug-19 Aug-17 Aug-18 Source: https://ww3.arb.ca.gov/fuels/lcfs/cr
Slide 11: Feed Segment historical quarterly results
US$ (in millions) Q1-2018 Q2-2018 Q3-2018 Q4-2018 Total 2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $ 485.8 (1) $ 498.8 (1) $ 482.7 (1) $ 485.3 $ 1,952.6 $ 495.8 $ 487.4 $ 497.0 $ 490.4 $ 1,970.6 $ 512.6 Gross Margin 116.3 128.8 99.0 110.4 454.6 109.0 110.5 117.2 114.3 451.0 12
Slide 12: 2020 Finished Product Pricing
Jacobsen, Wall Street Journal and Thomson Reuters 2020 Finished Product Pricing 2020 Average Jacobsen Prices (USD) Feed Segment Ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Bleachable Fancy Tallow - Chicago Renderer / cw
Slide 13: Food Segment historical quarterly results
US$ (in millions) Q1-2018 Q2-2018 Q3-2018 Q4-2018 Total 2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $305.5 (1) $ 276.7 (1) $ 265.2 (1) $ 291.7 (1) $ 1,139.1 $ 279.2 (1) $ 274.8 (1) $ 276.5 (1) $ 288.6 $ 1,119.1 $ 270.3 Gross Margin 56.1 51.8 54.5 58.6 221.0 65.1 60.4 61.8 67.2
Slide 14: Fuel Segment historical quarterly results
US$ (in millions) Q1-2018 Q2-2018 Q3-2018 Q4-2018 Total 2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Net Sales $ 84.1 $ 71.1 $ 64.6 $ 76.2 $ 296.0 $ 60.1 $ 65.0 $ 68.6 $ 80.6 $ 274.3 $ 69.9 Gross Margin 24.3 13.7 11.2 16.6 65.8 10.0 11.7 10.1 37.6 69.4 16.9 Gross Margin % 28.9% 19.3% 17.3
Slide 15: Adjusted EBITDA non-GAAP definition
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. Adjust
Slide 16: Adjusted EBITDA and Pro Forma Adjusted EBITDA
Adjusted EBITDA and Pro Forma Adjusted EBITDA Three Months Ended (US$ in thousands) March 28, March 30, 2020 2019 Net income attributable to Darling $ 85,510 $ 18,012 Depreciation and amortization 84,671 79,164 Interest expense 19,090 19,876 Income tax expense/(benefit) 18,300 5,274 Foreign currency
Slide 17: Thank you
DARLING INGREDIENTS INC. Thank you