Darling Ingredients Inc. (NYSE:DAR) Q3 2021 Earnings Conference Call November 10, 2021 9:00 AM ET Company Participants Jim Stark - Vice President, Investor Relations Randall Stuewe - Chairman and Chief Executive Officer Brad Phillips - Chief Financial Officer John Bullock - Chief Strategy Officer Sandra Dudley - EVP, Renewables and U.S. Specialty Operations Conference Call Participants Adam Samuelson - Goldman Sachs Prashant Rao - Citigroup Tom Palmer - J.P. Morgan Manav Gupta - Credit Suisse Ben Bienvenue ...

Darling Ingredients Inc. (NYSE:DAR) Q2 2021 Earnings Conference Call August 11, 2021 9:00 AM ET Company Participants Jim Stark - VP, IR Randall Stuewe - Chairman and CEO Brad Phillips - CFO Sandra Dudley - SVP, Renewables and Strategy Conference Call Participants Ben Bienvenue - Stephens Adam Samuelson - Goldman Sachs Manav Gupta - Credit Suisse Tom Palmer - JPMorgan Craig Irwin - ROTH Capital Partners Matthew Blair - Tudor, Pickering, Holt & Co. Ken Zaslow - Bank of Montreal Sam Margolin - Wolfe Research B ...

Darling Ingredients Inc. (NYSE:DAR) Q1 2021 Results Conference Call May 12, 2021 9:00 AM ET Â Company Participants | --- | |----------------------------------------------| | | | Jim Stark - VP, IR | | Randall C. Stuewe - Chairman and CEO | | Brad Phillips - CFO | | Sandra Dudley - SVP, Renewables and Strategy | | Conference Call Participants | | Ben Bienvenue - Stephens Incorporated | | Manav Gupta - Credit Suisse | | Tom Palmer - JP Morgan | | Sam Margolin - Wolfe Research | | Ryan Todd - Simmons Energy | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------|--------------------------------------------------------| | For the transition | from _______ ...

Financial Data and Key Metrics Changes - For Q3 2020, the company reported a combined adjusted EBITDA of $218.5 million, indicating resilience in its Global Ingredients platform [7] - Net income for Q3 2020 totaled $101.1 million or $0.61 per diluted share, compared to $25.7 million or $0.15 per diluted share in Q3 2019 [18] - Year-to-date net income reached $252.1 million or $1.51 per diluted share, up from $70 million or $0.42 per diluted share for the same period in 2019 [19] - Gross margin improved to 24.9% in Q3 2020 from 22.5% in Q3 2019, with net sales increasing by $8.5 million and cost of sales decreasing by $14.6 million [19] - Operating income for Q3 2020 was $127.5 million, up from $59.8 million in the prior year [20] Business Line Data and Key Metrics Changes - The Fuel segment showed significant improvement year-over-year, with Diamond Green Diesel achieving a $2.41 per gallon EBITDA margin on record sales of 80 million gallons for the quarter [12] - The Food segment experienced a recovery in hydrolyzed collagen sales, with the commissioning of a new collagen peptide production facility in Brazil [11] - The Feed segment declined from strong Q2 performance due to lower protein prices in Q3 compared to both Q2 and Q3 2019 [9] Market Data and Key Metrics Changes - The Energy market showed improvements in demand, although oil and diesel prices remained lower than the previous year, with diesel trading $0.80 a gallon under Q4 2019 [13] - The company anticipates a better pricing environment for protein and fats products in Q4 due to upward movement in the grain and oilseed complex [10] Company Strategy and Development Direction - The company aims to be the largest low-cost producer of renewable diesel in North America, focusing on building new facilities with the latest technologies [31][32] - The company is progressing with the development of Diamond Green Diesel 3 in Port Arthur, Texas, with construction expected to begin in early 2021 [30] - The acquisition of a three-plant Belgium poultry rendering processor is expected to strengthen the company's Belgian system and be immediately accretive [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finishing 2020 with combined adjusted EBITDA between $800 million and $810 million, despite the challenges posed by COVID-19 [15] - The company believes it is well-positioned for a transformative year in 2021 with the expansion of Diamond Green Diesel [16] - Management highlighted the importance of the green premium for renewable diesel, which has offset downward price pressures in the current environment [13] Other Important Information - The company successfully amended and extended its $1 billion revolving credit facility, improving its financial flexibility [26] - Capital expenditures for the first nine months of 2020 totaled $184.9 million, reflecting a disciplined approach during the pandemic [25] Q&A Session Summary Question: Insights on Diamond Green Diesel Phase 3 financing - Management indicated that structured finance is a possibility for Diamond Green Diesel Phase 3 to expedite cash flow from the joint venture [35] Question: Low carbon feedstock sourcing for Phase 3 - Management emphasized their unique position in controlling a significant supply of low carbon feedstocks, ensuring adequate supply for Diamond Green Diesel [36][38] Question: Acquisition strategy and capabilities unlocked - The acquisition of rendering plants fits into the company's strategy of controlling fat and protein production, enhancing their Belgian system [40][42] Question: Dynamics supporting fuel segment growth - The fuel segment's strength was attributed to the performance of the mortality processing business in Europe and strong demand for Cat 1 fats [44] Question: Long-term fit of biodiesel within the company - Management acknowledged the superior logistics and earnings potential of renewable diesel compared to biodiesel, indicating a strategic shift towards renewable diesel [47] Question: Challenges faced by retrofitting old refineries for renewable diesel - Management expressed confidence in their competitive position, citing the difficulties faced by others attempting to retrofit older facilities [52][54] Question: Current pricing trends for fats and proteins - Management noted that prices for fats and proteins are showing positive momentum, driven by demand from China and recovery in the grain and oilseed complex [62][68] Question: Critical milestones for Diamond Green Diesel 3 - Management confirmed that they are on track for a final investment decision on Diamond Green Diesel 3 in early 2021, with all analyses proceeding positively [72] Question: Cash deployment priorities - The company remains focused on achieving an investment-grade rating while managing debt and considering future capital expenditures [76][78] Question: Demand for renewable diesel and LCFS - Management highlighted the growing demand for renewable diesel driven by carbon reduction initiatives, with confidence in the market's ability to absorb new supply [100][104]

Darling Ingredients Inc (NYSE:DAR) Q2 2020 Earnings Call August 6, 2020 9:00 AM ET Company Participants Jim Stark - Vice President of Investor Relations Randall Stuewe - Chairman and Chief Executive Officer Brad Phillips - Chief Financial Officer John Bullock - Chief Strategy Officer Conference Call Participants Heather Jones - Heather Jones Research Craig Irwin - Roth Capital Partners Adam Samuelson - Goldman Sachs Donald McLee - Berenberg Capital Markets Tom Palmer - JPMorgan Ben Kallo - Robert W. Baird & ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 28, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 001-13323 DARLING INGREDIENTS INC. (Exact name of registrant as specified in its charter) | --- | --- | |------------------ ...

Indebtedness and Financial Condition - The company may incur substantial additional indebtedness in the future, including secured indebtedness under senior secured credit facilities, despite existing restrictions[185]. - The risks associated with the company's indebtedness could intensify if additional debt is incurred, potentially impacting the ability to service existing debt[187]. - The company's ability to make scheduled payments on debt obligations is dependent on financial condition and operating performance, which are influenced by various external factors[188]. - Insufficient cash flows may force the company to reduce or delay investments, seek additional capital, or restructure debt obligations[189]. - The company's subsidiaries, particularly those operating outside the United States, significantly impact the ability to generate cash flow for debt repayment[192]. - Regulatory restrictions in countries like China may limit the ability of subsidiaries to provide cash to the company, affecting overall financial health[192]. Regulatory and Compliance Risks - The company is subject to stringent regulations under the Food Safety Modernization Act, which may impose additional operational requirements and affect the import of raw materials[207]. - The FDA's mandatory recall authority could impact the company's operations if any products are deemed adulterated or misbranded, potentially leading to financial repercussions[198]. - Any contamination issues related to pathogens like Salmonella could adversely affect demand for the company's products and harm its reputation and financial condition[209]. - The company operates under various international regulations regarding food safety, including the EU's TSE Regulation and Animal By-Products Regulation, which impose strict import requirements and feed bans[211]. - Currently, certain EU Member States are classified as having a controlled BSE risk, which could negatively impact the company's operations if classifications change[211]. - The company is subject to stringent environmental, health, and safety regulations, which may require significant capital expenditures to ensure compliance[217]. - The company must comply with complex data protection laws, such as the GDPR, which could result in regulatory and operational risks if mishandled[230]. Market and Operational Risks - The emergence of animal-related diseases, such as African Swine Fever, has negatively impacted production and demand for the company's products in affected regions[195]. - Changes in consumer preferences in the food and pet food industries could lead to reduced demand and price reductions for the company's products[215]. - The company may incur significant costs related to product liability claims, recalls, and adverse public relations, which could affect its financial condition and reputation[212]. - The company may experience interruptions in manufacturing or distribution due to work stoppages at its operating facilities[239]. - The company faces risks related to reputational damage from social media campaigns concerning the feed and food ingredient production industries[253]. Financial Performance and Stock - The market price of the company's common stock has been volatile, influenced by factors such as ingredient price fluctuations and operating results[272][274]. - The company has not paid any dividends on its common stock since January 3, 1989, and has no current plans to do so, with future dividend payments subject to financial conditions and board discretion[280]. - Future sales of common stock or issuance of equity could dilute existing shareholders' interests and negatively impact the market price of the common stock[275][276]. - The company's common stock is subordinate to existing and future indebtedness, which may limit the ability to pay dividends and affect investment returns[277][279]. Strategic and Operational Initiatives - The company is in the process of implementing a new ERP system, which involves substantial expenditures and carries risks that could disrupt business operations[225]. - The company regularly reviews potential acquisitions but may face challenges in identifying suitable candidates or completing acquisitions on favorable terms[250]. - The company has engaged in multiple acquisitions, including Rothsay and VION Ingredients, which are expected to significantly increase depreciation and amortization, impacting operating and net income[264][266]. - The company may divest certain brands or businesses that do not meet strategic objectives, which could adversely affect results of operations[252]. - The company may incur substantial costs related to potential closures or divestitures of manufacturing facilities, which could adversely affect business operations and financial condition[267]. Pension and Insurance Liabilities - The company may incur increased contributions to underfunded U.S. multiemployer pension plans due to a decline in asset values and reduced active participation[244]. - The company maintains property, business interruption, and casualty insurance, but such coverage may not fully cover all operational risks[247]. Legal and Intellectual Property Risks - The company is subject to various lawsuits and regulatory proceedings that may materially adversely affect its business and financial condition[241]. - The company faces risks related to the protection of its intellectual property, which could impair competitiveness and limit growth if not adequately protected[256][258]. - The company may face legal proceedings related to alleged infringement of intellectual property rights, which could result in costly litigation and divert management resources[259]. Currency and Commodity Risks - The company is exposed to foreign currency exchange risks due to acquisitions of foreign entities and transactions in currencies other than the functional currency[469]. - The company has limited use of derivative instruments, primarily for managing cash flow risks related to natural gas and diesel fuel usage[470]. - The company entered into foreign exchange forward contracts to hedge a portion of its forecasted sales, with an aggregate fair value of approximately $1.6 million[471]. - The company had corn options and forward contracts with an aggregate fair value of approximately $1.1 million as of December 29, 2018[474]. - The company’s finished products are predominantly commodities sold at prevailing market prices, affected by seasonal factors[469]. - As of December 29, 2018, the company had forward purchase agreements for approximately $25.2 million of natural gas and diesel fuel[475]. - The company’s fixed rate debt obligations include 5.375% Notes and 3.625% Notes, with a weighted average fixed rate of approximately 4.43%[476]. - A 1% increase in interest rates is estimated to increase the company's annual interest expense by approximately $6.0 million[476]. - The aggregate fair value of foreign exchange forward contracts as of December 29, 2018, was approximately $2.1 million[473].