Category: CHM

Atonarp Inc. Raises $8M Series A Round Led by Walden Riverwood Ventures

Atonarp announces $8 million in funding led by Walden Riverwood Ventures to accelerate the development of its Smart Spectrometer platform, which will enable next-generation oil & gas and healthcare measurement instruments

TOKYO, August 20, 2014 /PRNewswire/ — Tokyo-based Atonarp Inc. announced today $8 million in a Series A funding round led by Walden Riverwood Ventures with participation from other co-investors. The funding accelerates the development of Atonarp’s Smart Spectrometer technology platform, which will enable a broad range of applications. The company has targeted the oil & gas and healthcare industries for its initial products.

“We are excited to partner with Atonarp in pursuing the commercialization of its Smart Spectrometer platform. Atonarp has a unique combination of engineering, semiconductor and data analysis talent and fundamental technologies. These are being used by Atonarp to create disruptive, next generation measurement instruments,” said Nicholas Brathwaite, co-founder of Walden Riverwood Ventures and Chairman of Atonarp, Inc.

Atonarp is pioneering the field of chemical composition analysis by combining state-of-the-art electronics and data processing algorithms. Atonarp’s Smart Spectrometer will enable manufacturers of gas-composition analysis instruments, such as field-based gas chromatography equipment, to achieve breakthrough improvements in cost, size, accuracy and maintenance-free operation. The Smart Spectrometer platform is also enabling novel use cases and applications for manufacturers of medical equipment and patient devices, including non-invasive personal healthcare monitoring.

Atonarp is currently sampling its Smart Spectrometer platform to leading manufacturers of oil & gas and healthcare instruments, and will enter volume production early next year.

About Walden Riverwood Ventures

Walden Riverwood Ventures is a venture capital firm focused on investing in core technology companies globally. It was formed as a collaboration between Walden International, a leading international venture capital firm, and Riverwood Capital, a global, technology-focused private equity firm. The firm’s founding partners provide its portfolio companies with unique access to deep industry knowledge, relationships and management experience. The two firms have an established history of investing together in several successful companies such as GoPro, Ambarella, Inc., and Aptina Imaging, Inc. Walden Riverwood Ventures leads early stage investments in companies developing fundamental technologies that have the potential to benefit multiple industry verticals. For further information, please visit www.waldenintl.com and www.riverwoodcapital.com.

For more information, please contact:
Cesar Lee
cesar@rwcm.com
70 Willow Road, Suite 100
Menlo Park, CA 94025
(650) 618-7313

Biocompatible Protective Coatings Widen Application Scope in Medical Devices, Finds Frost & Sullivan

— Blended products that include therapeutic coatings of different materials are making waves in the industry

MOUNTAIN VIEW, Calif., Aug. 12, 2014 /PRNewswire/ — Innovations will surge in the protective coatings industry by 2020, giving rise to a range of improved biocompatible and durable coatings that enable implant devices for use in orthopedic, orthodontic and cardiac applications. The International Organization for Standardization (ISO) and American Society for Testing and Materials (ASTM) are creating new standards for upcoming industry trends in protective coatings, further encouraging patent developments.

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New analysis from Frost & Sullivan, Innovations in Protective Coatings for Medical Devices, finds that increasing biocompatibility is a major driver for implant coatings. Successful implant coatings enhance biocompatibility and promote healing processes by minimizing tissue rejection and better anchoring implants to the targeted area.

For complimentary access to more information on this research, please visit: http://bit.ly/1sl6idw.

Passivation – accomplished by coating implant material with polymer layers – is an upcoming area of research in coatings for biomedical applications. Passivation techniques have been successfully used in development of coatings and biomaterials to manufacture the most biocompatible implants.

“This is particularly important in cases of load-bearing implants with need for mechanical strength,” said Technical Insights Research Analyst Sanchari Chatterjee. “Developing specialized coatings and techniques that prevent aggressive cell growth and aid the production of desirable endothelial cells rather than smooth muscle cells will also be crucial.”

However, protective coatings require sophisticated raw materials that incur high costs. For instance, low availability of titanium, coupled with demand from industries such as aerospace, industrial and recreation make it an expensive resource.

Developing novel coating materials has been a trend in the industry for the last two years.  For example, use of spider silk, which is hypoallergenic, biodegradable and usable as coating for implants or as a drug carrier in pharmaceutics, is being researched as a coating for silicone implants.

In the meantime, combination products such as therapeutic coatings of different materials are creating a stir in the industry. Coatings that use solutions as surface treatments too are gaining momentum. For instance, bone implant surfaces enriched with biomolecules can accelerate the bone healing process.

“Research institutes have joined forces with industry players to evaluate a wide variety of biomolecules such as growth factors, bioactive proteins, enzymes and non-viral genes,” added Technical Insights Research Analyst Vivek Ninkileri. “As is evident, stakeholder initiatives, especially collaboration among research institutes, academia and medical device manufacturers will play a major role in the advancement of protective coating technologies.”

Innovations in Protective Coatings for Medical Devices, a part of the Technical Insights (http://www.technicalinsights.frost.com) subscription, analyses key innovations in protective coatings for medical devices to distinguish the chief developments and challenges in the market. Opportunity strategy evaluation, technology roadmap, impact analysis, and R&D development strategies are also discussed. Further, this study includes detailed technology analysis and industry trends evaluated following extensive interviews with market participants.

Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and research services.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Innovations in Protective Coatings for Medical Devices
D556-TI

Contact:
Ariel Brown
Corporate Communications – North America
P: (210) 247.2481
F: (210) 348.1003
E: ariel.brown@frost.com

http://www.frost.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

 

Darling Ingredients Inc. Announces Second Quarter 2014 Earnings Conference Call And Webcast

IRVING, Texas, Aug. 5, 2014 /PRNewswire/ — Darling Ingredients Inc. (NYSE: DAR) will hold a conference call and webcast on Friday, August 8, 2014, to discuss the Company’s second quarter 2014 financial results. The teleconference will begin at 8:30 a.m. Eastern Time and will be hosted by Mr. Randall C. Stuewe, CEO and Chairman of the Board, and Mr. Colin Stevenson, CFO. The related press release will be issued after the market closes on August 7, 2014.

Due to historically high call volume, the company is offering participants the opportunity to register in advance for the conference through the following link: http://dpregister.com/10050348

Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them immediate access to the call on August 8, 2014.

Participants who do not wish to pre-register for the call may dial in using 877-270-2148 (U.S. callers) or 412-902-6510 (international callers), and ask for the “Darling Ingredients” call. A replay will be available two hours after completion of the call through August 14, 2014. To access the replay, please dial 877-344-7529 (U.S. callers) and 412-317-0088 (international callers) and reference passcode 10050348. The live webcast and archived replay also can be accessed on the Company’s web site at http://ir.darlingii.com.

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 specialty products for customers in the food, pet food, pharmaceutical, 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 broadly used 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.

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.}

For More Information, contact: 

251 O’Connor Ridge Blvd.
Suite 300
Melissa A. Gaither, Director
Investor Relations
Irving, Texas 75038
Phone: +1-972-717-0300

Frost & Sullivan: Increased Conventional and Unconventional O&G Explorations Drive New Investments in Latin American Positive Displacement Pump Market

– Brand awareness campaigns and training programs on the applications of positive displacement pumps are vital for market success

BUENOS AIRES, Argentina, July 30, 2014 /PRNewswire/ — Strong investment in the oil and gas (O&G) and petrochemical industries in Latin America is fueling the demand for positive displacement pumps in the region. The development of the infrastructure and food and beverage manufacturing industries to meet the accommodation and consumption needs of the expanding population, is also adding momentum to the market.

Oil Platform

Oil Platform

Photo – http://photos.prnewswire.com/prnh/20140729/130811

New analysis from Frost & Sullivan, Analysis of the Latin American Positive Displacement Pump Market, finds that the market earned revenues of $464.5 million in 2013 and estimates this to reach $626.7 million in 2020. Although Latin America’s gross domestic product is expected to decelerate to an average of three to four percent, the demand for positive displacement pumps will grow at a compound annual growth rate of 4.4 percent mainly due to new applications in the O&G and petrochemical industries. The study covers rotary, reciprocating and peristaltic pumps.

“With the mining industry in Latin America garnering major interest from state governments and international companies, opportunities for positive displacement pump manufacturers are also emerging in this space,” said Frost & Sullivan Industrial Automation & Process Control Research Analyst Aida Paola Conti.

However, the price sensitivity of end users and their limited awareness on the advantages of positive displacement pumps and alternative technologies have been major obstacles to market development. In addition, the unstable economic condition in some leading Latin American countries has dampened consumer confidence and led to project delays. Along with the expected decrease in foreign direct investment, these factors are challenging positive displacement pump manufacturers.

“In this scenario, successful brand awareness campaigns are critical to gain market acceptance and differentiate products from the competition,” stated Conti. “Training programs on the current and new applications of positive displacement pumps are also important to attract end users across Latin America.”

For more information on this study, please email Francesca Valente, Corporate Communications, at francesca.valente@frost.com.

Analysis of the Latin American Positive Displacement Pump Market is part of the Industrial Automation & Process Control (http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Sanitary Pump Market in the Food and Beverage Industry, Global Pumps Market in the Chemicals Industry, Pumps and Valves in the North American Shale Industry, and Global Metering Pump Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Latin American Positive Displacement Pump Market
ND7F-10

Contact:
Francesca Valente
Corporate Communications — Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com

http://www.frost.com

Photo – http://photos.prnasia.com/prnh/20140730/8521404291 

Frost & Sullivan: Plant Health Improvement Agents Enable Growers to Do More with Less

— Smart fertilizers, PGRs, and bundled micronutrients are fast growing niche segments that will challenge bulk fertilizers in the market

MOUNTAIN VIEW, Calif., July 29, 2014 /PRNewswire/ — The plant health improvement agents (PHIA) market, which consists of micronutrients, synthetic fertilizers and plant growth regulators (PGRs), is growing steadily in North America mainly due to demand from the food, biofuel and plant-based chemicals industries. Rising healthcare costs combined with healthier eating trends have resulted in increased demand for high-value niche foods such as proteins, nuts, vitamins and minerals allowing for increased PHIA use in horticulture. The Renewable Fuel Standard and other regulations aimed at reducing carbon footprint through use of biofuels and natural products further support market demand.

Frost & Sullivan: Plant Health Improvement Agents Enable Growers to Do More with Less

Frost & Sullivan: Plant Health Improvement Agents Enable Growers to Do More with Less

New analysis from Frost & Sullivan, Analysis of the North American Plant Health Improvement Agents (PHIA) Market, finds that the market earned revenues of $15.45 billion in 2013 and estimates this to reach $19.66 billion by 2020. While synthetic fertilizers dominate the North American market with a 91.4 percent share, educated farmers are influencing the development and marketing of high-value products such as micronutrients and PGRs.

For complimentary access to more information on this research, please visit: http://bit.ly/1rwnrgr.

“Rapid advances in plant genetics and seed technology can outpace nutrient innovation and reduce dependence on standard bulk fertilizers,” said Frost & Sullivan Chemicals, Materials and Food Research Analyst Reuben Sequeira. “To sidestep this threat, PHIA market participants are developing new plant nutrient technologies, such as chelated and complexed micronutrients to complement the modern plant.”

However, fluctuating weather, planting and demand patterns in the region alter the balance of nutrient supply and demand creating price volatility in the PHIA market. While nutrient companies are adapting, this issue still affects upstream capacity utilization, especially as excess supply lowers nutrient prices for prolonged periods of time.

Companies that have sustained above-market growth in the midst of demand and price instability are those that maintain strong relationships with customers through well-developed distribution pipelines. These companies anticipate concerns and reduce risk through long-term contracts that ensure steady return on investment for growers.

“Such distribution partnerships will help suppliers meet growers’ needs with highly effective and advanced products,” noted Sequeira. “Innovative products, such as controlled-release fertilizers, micronutrient-bulk fertilizer blends, and targeted micronutrients will also morph into substitutes for bulk nutrients.”

Analysis of the North American Plant Health Improvement Agents (PHIA) Market is part of the Chemicals & Materials (http://www.chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Analysis of the Western European Plant Health Improvement Agents Market, among others. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Photo – http://photos.prnasia.com/prnh/20140729/8521404273

FMC Corporation Opens New Asia Innovation Center in Shanghai

SHANGHAI, July 24, 2014 /PRNewswire/ — FMC Corporation (NYSE: FMC), a leading diversified chemical company, today officially opened its Asia Innovation Center in the Zhangjiang Hi-Tech Park in the Pudong area of Shanghai, China. The new state-of-the-art facility serves as the company’s hub for research and development, technical innovation, operational support and executive management in the Asia Pacific region.

Photo – http://photos.prnewswire.com/prnh/20140724/130058
Logo – http://photos.prnewswire.com/prnh/20111101/NE97440LOGO

“FMC has grown dramatically in recent years. An important element of our strategy has been a greater focus and investment in Asia where our products and technologies have tremendous opportunities,” said Pierre Brondeau, FMC president, CEO and chairman. “The FMC Asia Innovation Center represents our commitment to this important region and underscores our resolve to meet the growing — and often unique — technology needs of the diverse customers and markets we serve throughout the Asia Pacific region.”

The nine-story FMC Asia Innovation Center is home to more than 180 FMC scientists, technicians, sales and marketing personnel, support staff, and executive leaders. It features world-class laboratories for crop protection research and unique facilities designed exclusively to develop new functional ingredients used in the health and nutrition markets.

“Our customers throughout the region are looking for the right technologies that will help make their businesses more effective and sustainable,” said Bob Trogele, president, FMC Asia. “Whether it’s new agricultural products to safely improve crop yield, naturally-derived functional ingredients to enhance food texture and stability, or the latest lithium products to improve battery performance, FMC has always answered the call for smart innovation that solves complex challenges. The FMC Asia Innovation Center elevates our research capabilities to a new level, and serves as a catalyst to strengthen customer intimacy and collaboration that FMC does so well.”

According to Gordon Xu, president, FMC China, the new Asia Innovation Center will help the company attract and retain the best and brightest employees.

“Our success is built on an incredibly talented workforce. As we grow and expand our business in China and throughout the region, we need to demonstrate to our current and future employees that FMC is committed to investing in world-class facilities, the best research tools, and a first-class work environment that supports creativity and collaboration,” Xu said. “We’re proud that our new center has exceeded expectations for our company and our employees.”

The FMC Asia Innovation Center is a state-of-the-art facility with 22,000 sq. meters of laboratories and office space with approximately 60 percent dedicated to R&D labs. FMC consolidated four sites in the Shanghai region to the new Center.