Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q2 2020 Earnings Presentation
17 slides from Darling Ingredients's earnings presentation, Aug 5, 2020
Slide 1: Second Quarter 2020 Conference Call
Exhibit 99.2 Second 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: Second Quarter 2020 Highlights
US$ (millions) except per share price Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Net sales $ 827.3 $ 842.0 $ 859.4 $ 3,363.9 $ 852.8 $ 848.7 Second Quarter 2020 Highlights Gross margin 182.6 189.1 219.0 774.8 205.9 216.3 Gross margin % 22.1% 22.5% 25.5% 23.0% 24.1% 25.5% • Solid Q2 performan
Slide 4: Feed Segment results and Adj. EBITDA bridge
US$ (in millions) Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Net Sales $ 487.4 $ 497.0 $ 490.4 $ 1,970.6 $ 512.6 $ 503.7 Gross Margin 110.5 117.2 114.3 451.0 124.2 135.8 Gross Margin % 22.7% 23.6% 23.3% 22.9% 24.2% 27.0% Adj. EBITDA Bridge Q2-2019 to Q2-2020 Loss/(gain) on sale of assets (0.
Slide 5: Food Segment results and Adj. EBITDA bridge
US$ (in millions) Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Net Sales $ 274.8 $ 276.5 $ 288.6 $ 1,119.1 $ 270.3 $ 278.9 Gross Margin 60.4 61.8 67.2 254.5 64.9 58.8 Gross Margin % 22.0% 22.4% 23.3% 22.8% 24.0% 21.1% Adj. EBITDA Bridge Q2-2019 to Q2-2020 (millions) Loss/(gain) on sale of asse
Slide 6: Fuel Segment results including Diamond Green Diesel
(Includes Diamond Green Diesel JV consolidated EBITDA) US$ (in millions) Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Key Drivers: Net Sales $ 65.0 $ 68.6 $ 80.6 $ 274.3 $ 69.9 $ 66.0 • Combined adjusted EBITDA of $86.9 million, with DGD earning Gross Margin 11.7 10.1 37.6 69.4 16.9 21.8 $1.91
Slide 7: Diamond Green Diesel expansion projects
March 2020 400 million gallon expansion project July 2020 400 million gallon expansion project Page 7 | Second Quarter 2020 Results | 08.06.2020
Slide 8: Balance Sheet Highlights, Debt Summary and Ratings
Balance Sheet Highlights Debt Summary S&P Ratings (US$, in thousands) June 27, 2020 (US$, in thousands) June 27, 2020 Cash (includes restricted cash of $103) $ 76,288 Amended Credit Agreement Term Loan B – BBB- (US$, in thousands) June 30, 2018 Corporate Family – BB+ Accounts receivable 375,908 Revo
Slide 9: Appendix – Additional Information
Appendix – Additional Information Page 9 | Second Quarter 2020 Results | 08.06.2020
Slide 10: Average LCFS Carbon Credit Price
$250 $200 $150 $100 $50 $- https://ww3.arb.ca.gov/fuels/lcfs/credit/lrtweeklycreditreports.htm Source: Page Apr-16 Jun-16 10 Aug-16 | Second Second |Quarter 08.06.2020 Results | 2020 Oct-16 Dec-16 Feb-17 Apr-17 Average LCFS Carbon Credit Price Weighted Ave Price (USD/MT) Jun-17 Aug-17 Oct-17 Dec-17
Slide 11: Feed Segment quarterly historical results
US$ (in millions) Q1-2018 Q2-2018 Q3-2018 Q4-2018 Total 2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 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 $ 503.7 Gross Margin 116.3 128.8 99.0 110.4 454.6 109.0 110.5 117.
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 quarterly historical 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 Q2-2020 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 $ 278.9 Gross Margin 56.1 51.8 54.5 58.6 221.0 65.1
Slide 14: Fuel Segment quarterly historical 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 Q2-2020 Net Sales $ 84.1 $ 71.1 $ 64.6 $ 76.2 $ 296.0 $ 60.1 $ 65.0 $ 68.6 $ 80.6 $ 274.3 $ 69.9 $ 66.0 Gross Margin 24.3 13.7 11.2 16.6 65.8 10.0 11.7 10.1 37.6 69.4 16.9 21.8 Gross Margi
Slide 15: Adjusted EBITDA 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 Six Months Ended (US$ in thousands) June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Net income attributable to Darling $ 65,439 $ 26,258 $ 150,949 $ 44,270 Depreciation and amortization 83,310 79,486 167,981 158,650 Interest ex
Slide 17: Thank you
DARLING INGREDIENTS INC. Thank you