Tagged: AGR

Asia Plantation Capital Poised to Develop the Agarwood Industry in Malaysia

SINGAPORE, Aug. 30, 2014 /PRNewswire/ — Asia Plantation Capital (a sustainable plantation company) seeks to develop more opportunities for Agarwood as a beneficial crop in Malaysia.

Asia Plantation Capital at Bio Johor 2014

Asia Plantation Capital at Bio Johor 2014

 

Aquilaria Saplings in Nursery

Aquilaria Saplings in Nursery

Speaking at the biotechnology conference ‘Bio Johor 2014’, Dr Panamas Chetpattananondh (an Associate Professor from the Prince Songkla University in Thailand, and Head of the Scientific Advisory Board at Asia Plantation Capital) presented a plenary paper on the potential for Agarwood in Malaysia. Particular significance was given to the possibilities of utilising the advanced technologies developed by Asia Plantation Capital, and the opportunities that could be created in so doing.

With the value of Oud oil (that which comes from the specially treated wood of the tree), being significantly higher than the value of gold (by a factor of 1.5), the sustainable Agarwood industry is well established in Asia, with Asia Plantation Capital leading the way. The sustainable plantation company is now actively looking to bring their advanced plantation systems to Malaysia.

“Gaharu (Agarwood) is not new to the region and we see many opportunities for its growth in Malaysia. As a leading company in plantation management, we ensure that our agarwood is harvested ethically and sustainably,” said Steve Watts – Chief Executive Officer of Asia Plantation Capital Berhad – speaking at the Johor Biotech Conference. “Not only that,” he continued, “but we are one of the very few plantation companies to have our products certified by CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) which permits us to trade legally in Agarwood.”

Asia Plantation Capital is the main sponsor of the Bio Johor 2014 Biotechnology Conference and Exhibition. APC enjoyed the same privilege last year at the first International Scientific Symposium on Agarwood (ISSA) held in Malaysia, which was organised by Universiti Putra Malaysia.

Agarwood (or Gaharu, as it is more commonly known in Malaysia and Indonesia), comes from the Aquilaria tree – a species native to Southeast Asian countries such as Malaysia, Thailand, Cambodia, Vietnam and Indonesia. What makes Agarwood so highly sought after is the rarity of the fragrant resin contained within. It is produced only when the tree is affected by a certain fungus (or, in the case of trees managed by Asia Plantation Capital, when treated in a specific way).

Oud oil and Oud wood chips have been an integral part of Middle Eastern cultures for centuries, where it is not only used in fragrances, but also in the wood chips burned in homes as incense. In China, Agarwood sculptures are common residential artefacts, and wearing bracelets made of Agarwood beads is fast becoming a popular trend, with recent record prices at auction having been achieved in China for Agarwood pieces.

Globally, Oud is now a major ingredient in the perfume and cosmetic industry, and is used by almost all of the world’s leading, luxury fragrance brands. Asia Plantation Capital’s partner company, Fragrance Du Bois, recently had one of its perfumes shortlisted as a top 10 finalist in the Art and Olfaction Awards (the fragrance industry ceremony held in Los Angeles, USA) matching up with and surpassing competitors from around the world.

The health benefits of Agarwood have been well documented, and have been a mainstay of Traditional Chinese Medicine (TCM) for hundreds of years. Agarwood is renowned to be beneficial in the treatment of digestive system disorders, the relief of spasms and pain, as well as tightness in the chest, abdominal pain, vomiting, diarrhoea and asthma.

Recent research has shown that, potentially, Agarwood has even more medicinal benefits, with the oil having been found to have sedative effects, while a component shows promise for use in the development of an anti-cancer drug. Antioxidant properties have also been found in the extract of Agarwood leaves, which may also be used for the treatment of stomach complaints and skin infections.

“I have spent nine years researching and developing the extraction methods of Agarwood oil to produce better quality oil, and it has made me realise that there is always more to be discovered with this amazing tree,” said Dr Chetpattananondh. She continued, “The sustainable plantation of Agarwood trees could be very valuable to the Malaysian agriculture industry. One significant advantage is that Agarwood grows very well when partnered with banana and other interpolated crops and trees.” The Asia Plantation Capital Scientific Advisory Board is now working with academics across Asia to develop and produce pharmaceuticals from Agarwood for wider use in traditional medicine.

All species of the Aquilaria tree are classified under CITES as endangered species – due to extensive and illegal logging and harvesting for Oud oil. Asia Plantation Capital’s Oud oil and woodchip products are all legally certified under the CITES agreement, ensuring that the strictest ethical and legal standards are upheld in the planting, growing and harvesting of Agarwood and Oud oil.

Moving forward, Asia Plantation Capital has plans to explore further opportunities by acquiring plantations (or partnering existing plantation owners) to develop Agarwood in Malaysia. Over the last 10 years, Asia Plantation Capital has developed advanced proprietary inoculation systems that have been implemented in Thailand, Cambodia and India (with proven results) as well as a new, patented system which, over a longer time frame, will stimulate resin production throughout the entire tree.

Notes to Editors:

About Asia Plantation Capital

Asia Plantation Capital is an owner and operator of a diverse range of commercial plantation and farming businesses across the Asia-Pacific region, and globally, is part of the Asia Plantation Capital Group of associated companies. Its focus is on multicultural and diverse plantation projects geared to the domestic and commercial demands of the countries in which they operate. Working closely with, and supporting local communities, is an underlying core principle of the APC business, providing social and cultural support, as well as investment, to move these communities away from deforestation and illegal logging activities, previously seen as a main source of income in some regions of Asia. Established officially in 2008 (although operating privately since 2002) the group now has plantation and agricultural projects on four continents with operational projects at various stages in Thailand, Malaysia, China, Laos, India, Cambodia, Sri Lanka, Mozambique, The Gambia, North America and Europe.

Promoting the use of certified wood is the best way of preventing deforestation, thereby protecting biodiversity and combatting poverty in the tropical rainforest regions. For the yachting sector, which strives for excellence and which is already involved in environmental efforts, this is also a way of ensuring that no wood from illegal logging is used.

About Fragrance Du Bois

Fragrance Du Bois is a niche luxury perfume house working closely with sustainable plantations inAsia, bringing exciting new 100% organic Oud oil based fragrances to exclusive markets worldwide. Sustainably sourcing the finest raw materials across the globe, working with French perfumers to create a full range of products, and also providing bespoke fragrance services, Fragrance Du Bois is personal luxury with a conscience. With exclusive fragrance lounges around the world, in Dubai, Hong Kong, Thailand, Malaysia and Singapore, Fragrance Du Bois creates only the finest experience in bespoke perfumery.

Fragrance Du Bois is known as Parfums Du Bois in France and in non-French speaking markets, as Fragrance Du Bois.

Asia Plantation Capital Pte. Ltd. 50 Collyer Quay, #06-05 OUE Bayfront, Singapore 049321
Tel: +65 6222 3386 | Fax: +65 6221 2197 | Email: pr@asiaplantationcapital.com

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

Public Aquaria Set to Make a Splash at Aquarama 2015

SINGAPORE, Aug. 26, 2014 /PRNewswire/ — Aquarama is the leading biennial international ornamental fish, aquatic plants, invertebrates and accessories trade exhibition in the world (www.aquarama.com.sg). Throughout its history stretching back to 1989, it has attracted exhibitors, trade and public visitors from all corners of the globe. The 14th edition — scheduled to run from 28-31 May 2015 in its traditional home of Singapore, will be no different — with one important exception.

In addition to its usual complement of visitors from the international ornamental aquatic industry and the general public (numbering in the many thousands), it has always attracted a small number of visitors from the public aquarium world, as well as some exhibitors who supply both the ornamental and public aquarium sectors.

This is now set to change dramatically with the organisers (UBM Media (Singapore) Pte Ltd) and a specially convened public aquarium committee launching a programme of sub-events aimed specifically at public aquarium personnel. This committee, consisting of Scott Dowd (Senior Aquarist at the New England Aquarium, Boston, USA), Ramon Barbosa (Senior Curator at the S.E.A. Aquarium in Sentosa, Singapore) and Rob Jones (‘The Aquarium Vet’ and veterinarian at the SEA LIFE Melbourne Aquarium, Australia) and co-ordinated by Aquarama Consultant, John Dawes, is devising a programme of activities tailored fairly and squarely to the needs of the public aquarium industry, as well as the fostering of closer links between the home aquarium industry and public aquaria.

Up to now, these links have only been modest. However, if developed to their full potential, this would undoubtedly benefit both industries. For instance, there are several livestock suppliers within the ornamental sector that already service public aquaria, but the room for expansion and improvement is considerable but, as yet, largely unexplored. The same applies to manufacturers and suppliers of equipment, foods, treatments, services, etc.

In order to address these issues, Aquarama is dedicating over 50% of its available seminar and meeting time slots to a number of activities aimed at bringing both industries closer together than ever before.

Round Table Discussion: Chaired by Aquarama Consultant, John Dawes, this will consist of a panel of invited experts, comprising the three above-mentioned committee members, government representatives, ornamental aquatic industry leaders, plus livestock suppliers. Under the theme: Engage, Influence and Collaborate: Maximising the Synergies of the Public and Home Aquarium Industries, attendance will be free and open to all Aquarama trade and public aquarium visitors and exhibitors, and will consist of a minimum of 1 1/2 hours of intense debate, action and Q&A’s.

Seminar: This half-day programme of presentations from leading figures from the public aquarium world will feature topics of exclusive relevance to the industry, such as: Artificial Reproduction Techniques in Sharks and Rays, Prolonged Transportation and Captive Husbandry of Manta Rays;The Initiative to Promote Conservation and Sustainable Management of Home Aquarium Fishes, led by the IUCN Species Survival Commission/Wetlands International Freshwater Fish Specialist Group (FFSG) and the Global Zoo and Aquarium Community; Initiative to Promote Socially and Environmentally Beneficial Home Fishkeeping, plus several other topics which are currently being finalised.

Strategic Development Meeting: This in-depth session will discuss the IUCN’s FFSG/public aquaria initiative set up to explore ways in which both industries can help drive environmental and socio-economic benefits, e.g. by identifying and promoting opportunities for sustainable management of wild populations of aquarium fishes that support livelihoods for communities living in regions of biological importance, thus fostering a powerful drive for conservation of these species as well as the habitats where they are found — achieved via well-informed consumer choices within the home aquarium industry. The team to explore this new, ambitious, and important initiative (under the chairmanship of committee member, Scott Dowd) will create a win-win-win scenario where the hobby gets an infusion of energy from zoos and public aquaria (which will showcase fish identified by IUCN’s FFSG as key species), thus promoting fishkeeping; zoos and aquaria will get a new instrument to achieve their goals of in-situ environmental protectionism; rural communities can receive sustainable economic returns for stewarding aquatic resources and watersheds, and the ornamental industry becomes a main actor in facilitating ethical supplies and helping alleviate poverty. This important meeting will last for a full afternoon (approximately four hours).

Too often, meetings of great importance such as this take place at international conferences. Important conclusions are reached by very well qualified specialists. Unfortunately though, those findings and discussed action plans fade away shortly after the meeting. In order to guarantee lasting outcomes from our Strategic Planning Meeting, we have retained the services of The Facilitators Network Singapore with trained experts to help us run the most efficient meeting, capture all information and produce a working document which will serve as a road map that will enable us to follow through and accomplish the goals we agree upon at Aquarama 2015.  

It is hoped that bringing public aquaria into Aquarama will benefit all parties, especially when added to the organiser’s efforts to attract exhibitors who supply public aquaria but are currently unaware of the trade benefits and possibilities that Aquarama undoubtedly offers.

It is also hoped that by attracting visitors and exhibitors from public aquaria, these will gain an invaluable insight into an industry which they may be aware of, but know little about. These visitors will, for example, be able to witness at first hand a staggering array of fish, aquatic plants, invertebrates and equipment which they may never have come across before. They will also, of course, be able to source supplies of equipment, services and livestock for their own establishments, be able to attend the free ornamental aquatic trade and public seminars which form a traditional part of Aquarama, join the highly popular fish farm tour and marvel at the more than 1,400 entries in the general fish competition, as well as the specialised crystal bee shrimp, betta, marine aquarium, marine nano cube, freshwater planted aquarium, freshwater nano, and dragon fish (Asian arowana/bonytongue) competitions, which have helped make Aquarama the ‘best ornamental aquatic exhibition’ on the planet.

In the words of Jennifer Lee, event manager for Aquarama: “The ornamental aquatic sector has always supplied fish, plants and invertebrates to the home aquarium hobbyist, on the one hand, and public aquaria on the other. It could be said to lie in the middle, with the two sectors at either end of the spectrum. It is our aim to bring both ends much closer together than they’ve ever been before and establish our event as a ‘must attend’ fixture in the calendar of all stakeholders.”

For further information on Aquarama, please visit www.aquarama.com.sg.

Notes to Editors

About UBM Media (Singapore) Pte Ltd (www.ubmasia.com.sg)

A member of the UBM Asia Group of Companies, we organise events and conferences in a variety of industries, including aquatic and pet, cruise tourism, information technology, jewellery, paper and nonwovens, etc. The company stages leading events in its targeted industries across the world, attracting quality exhibitors, trade visitors, conference attendees and speakers from all over the world. These events are important business platforms where our customers can meet and network with their existing and new business partners face-to-face.

About UBM Asia (www.ubmasia.com)

Owned by UBM plc listed on the London Stock Exchange, UBM Asia is Asia’s leading exhibition organiser and the biggest commercial organiser in mainland China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a strong global network of 30 offices and 1,300 staff in 24 major cities. We operate in 20 market sectors with 230 exhibitions and conferences, 23 trade publications, 20 online products for over 1,000,000 quality exhibitors, visitors, conference delegates, advertisers and subscribers from all over the world.

About UBM plc (www.ubm.com)

UBM plc is a leading global company. We inform markets and bring the world’s buyers and sellers together at events, online and in print and provide them with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, and from farmers to pharmacists around the world. Our 6,600 staff members in 31 countries are organised into specialist teams that serve these communities, helping them to do business and to work effectively and efficiently in their respective markets.

About the Freshwater Fish Specialist Group (FFSG) (http://www.iucnffsg.org/)

The FFSG group was established in 2004 and is a joint partnership between the IUCN Species Survival Commission and Wetlands International. It is a diverse group of experts, spread across the world, working on the biology and conservation of freshwater fishes. The mission of the FFSG is to achieve conservation and sustainable use of freshwater fishes and their habitats through: generating and disseminating sound scientific knowledge; creating widespread awareness of their values; and influencing decision-making processes at all levels. The FFSG includes the newly forming Home Aquarium Fish Specialist Sub-Group, chaired by Scott Dowd.

Piaba Logo (Credit: Project Piaba)
illustrated cardinal tetra (Credit: Sally Landry)
illustrated cardinal tetra (Credit: Sally Landry)

Photo – http://photos.prnewswire.com/prnh/20140825/139104
Photo – http://photos.prnewswire.com/prnh/20140825/139105
Photo – http://photos.prnewswire.com/prnh/20140825/139106

China New Borun Announces Second Quarter 2014 Unaudited Financial Results

BEIJING, August 22, 2014 /PRNewswire/ — China New Borun Corporation (NYSE: BORN; “Borun” or the “Company”), a leading producer and distributor of corn-based edible alcohol in China, today announced its unaudited financial results for the second quarter of 2014.

Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results, “Although demand and average selling price for edible alcohol were solid in the first half of the second quarter, the market encountered an unexpected sharp drop nation-wide in demand and average selling price this June. As a result, even though we recorded revenue growth at the high end of our second quarter guidance on better-than-expected volume shipment, our gross profits contracted year-over-year.”

“Despite the challenging month of June, we continued to make progress in ramping up our chlorinated polyethylene (“CPE”) and foam insulation businesses. During the quarter, we successfully scaled our CPE plant to full production capacity and grew total revenue from CPE and foam insulation by 47% sequentially to RMB23.4 million. It is worth noting that the new business has surpassed its gross breakeven point during the second quarter, and therefore we anticipate incremental positive contributions to profitability from the new business in the months ahead,” Mr. Wang concluded.

Second Quarter 2014 Quick View

  • Total revenue increased 6.4% to RMB668.9 million ($108.7 million[1]) from RMB628.5 million in the second quarter of 2013.
  • Gross profit decreased 5.4% to RMB67.5 million ($11.0 million) from RMB71.4 million in the second quarter of 2013.
  • Net income decreased 17.8% to RMB21.0 million ($3.4 million) from RMB25.5 million in the second quarter of 2013.
  • Basic and diluted earnings per American Depositary Share (“ADS”) were RMB0.82 ($0.13) for the quarter ended June 30, 2014. Each ADS represents one of the Company’s ordinary shares.

Second Quarter 2014 Financial Performance

For the second quarter of 2014, revenue increased by 6.4% year-over-year to RMB668.9 million ($108.7 million) from RMB628.5 million in the same period of 2013. The increase in revenue was mainly attributable to higher sales volume of edible alcohol, partially offset by lower average selling prices, as well as incremental revenue contribution from the Company’s CPE and foam insulation businesses that were introduced in the fourth quarter of 2013.

Revenue breakdown by product lines is as follows:

  • Revenue from edible alcohol increased by 4.1% to RMB425.9 million ($69.2 million) in the second quarter of 2014, compared to RMB409.0 million in the second quarter of 2013. Driven by higher production, the sales volume of edible alcohol in the second quarter of 2014 increased by 6.1% year-over-year to 83,505 tons, while the average selling price of edible alcohol decreased by 1.9% year-over-year to RMB5,100 per ton.
  • Revenue from DDGS Feed increased by 2.1% to RMB159.8 million ($26.0 million) in the second quarter of 2014, compared to RMB156.5 million in the second quarter of 2013. The sales volume of DDGS Feed in the second quarter of 2014 decreased by 1.2% year-over-year to 74,155 tons, while the average selling price increased by 3.3% year-over-year to RMB2,155 per ton.
  • Revenue from liquid carbon dioxide decreased by 17.0% to RMB11.4 million ($1.8 million) in the second quarter of 2014 compared to RMB13.7 million in the second quarter of 2013. The sales volume of liquid carbon dioxide in the second quarter of 2014 decreased by 2.6% year-over-year to 32,751 tons, and the average selling price decreased by 14.8% year-over-year to RMB347 per ton.
  • Revenue from crude corn oil decreased by 1.4% to RMB48.5 million ($7.9 million) in the second quarter of 2014 compared to RMB49.2 million in the second quarter of 2013. The sales volume of crude corn oil in the second quarter of 2014 increased by 4.0% year-over-year to 6,746 tons, while the average selling price decreased by 5.3% year-over-year to RMB7,185 per ton.
  • Revenue from CPE was RMB21.3 million ($3.5 million) in the second quarter of 2014, and the sales volume was 2,448 tons at an average selling price of RMB8,718 per ton. Revenue from foam insulation was RMB2.0 million ($0.3 million) in the second quarter of 2014, and the sales volume was 1,868 cubic meters at an average selling price of RMB1,094 per cubic meter.

During the second quarter of 2014, gross profit decreased by 5.4% to RMB67.5 million ($11.0 million) from RMB71.4 million in the same period of 2013. Gross margin for the second quarter of 2014 decreased to 10.1%, from 11.4% in the same period of 2013, which was primarily attributable to a decrease in average selling price of edible alcohol, as well as lower gross margin from the new CPE and foam insulation businesses during its initial production ramp up.

Operating income decreased by 7.8% to RMB55.3 million ($9.0 million) in the second quarter of 2014, from RMB60.0 million in the same period of 2013, primarily due to lower gross profit earned.

Selling expenses were RMB1.5 million ($0.2 million) in the second quarter of 2014, which remained stable with that in the same period of 2013.

General and administrative expenses increased by RMB0.8 million, or 8.0% to RMB 10.7 million ($1.7 million) in the second quarter of 2014, from RMB9.9 million in the same period of 2013, mainly due to the increasing management cost for our new CPE and foam insulation businesses.

Income tax expenses in the second quarter of 2014 were RMB7.0 million ($1.1 million), representing an effective tax rate of 25.0%.

Net income decreased by 17.8% to RMB21.0 million ($3.4 million) in the second quarter of 2014, compared to RMB25.5 million in the same quarter of 2013. In the second quarter of 2014, basic and diluted earnings per share and per ADS were RMB0.82 ($0.13), and the Company had 25.7 million weighted average basic and diluted shares outstanding.

As of June 30, 2014, cash and bank deposits of RMB361.8 million ($58.8 million) decreased by RMB159.5 million, compared with RMB521.3 million as of December 31, 2013. Cash flows provided by operating activities for the second quarter of 2014 were RMB77.3 million ($12.6 million), compared with operating cash outflow of $148.1 million in the second quarter of 2013.

Financial Outlook

During the third quarters, the Company historically conducts an annual maintenance of its production facilities, which requires a temporary shut down of all production lines for edible alcohol for approximately one month.

Reflecting the annual maintenance period this summer, and lower average selling prices, the Company estimates that its revenue for the third quarter of 2014 will be in the range of RMB520 million ($84.5 million) to RMB540 million ($87.8 million), an increase of approximately 0.4% to 4.2% over the same quarter of 2013.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

Borun’s management will hold a corresponding earnings conference call and live webcast at 8:00 a.m. EDT on Friday, August 22, 2014 (8:00 p.m. Beijing time on Friday, August 22, 2014) to discuss the results and highlights from the second quarter and answer questions from investors. A webcast of the call will be available at http://ir.chinanewborun.com. Listeners may access the call by dialing:

United States Toll Free:

1-866-519-4004

US Toll/International:

1-845-675-0437

Hong Kong Toll Free:

800-930-346

Hong Kong Toll:

852-2475-0994

China Toll Free:

800-819-0121

China Toll Free (Mobile):

400-620-8038

Conference ID:

85386554

A replay of the webcast will be accessible through August 30, 2014 on http://ir.chinanewborun.com or by dialing:

United States toll free:

1-855-452-5696

International:

61-2-8199-0299

Passcode

85386554

About China New Borun Corporation

China New Borun Corporation (NYSE: BORN) is a leading producer and distributor of corn-based edible alcohol sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage in China. The Company also produces DDGS Feed, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production, and CPE and foam insulation that are widely used in chemical industries. China New Borun is based in Shouguang, Shandong Province. Additional information about the company can be found at http://www.chinanewborun.com and in documents filed with the U.S. Securities and Exchange Commission, which are available on the SEC’s website at http://www.sec.gov.

Forward-looking Statements

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

[1]

This press release contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars for the period ended June 30, 2014 were made at a rate of RMB6.1528 to USD1.00, the rate published by the People’s Bank of China on June 30, 2014. China New Borun Corporation makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any particular rate or at all.

Contact Information

Asia Bridge Capital Limited
Wendy Sun
Phone: +86-10-8556-9033 (China)
+1-888-870-0798 (U.S.)
Email: wendy.sun@asiabridgegroup.com


CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

December 31, 2013

June 30, 2014

RMB

RMB

US$

Assets

Cash

521,270,799

361,770,279

58,797,666

Restricted cash

42,040,667

32,000,000

5,200,884

Trade accounts receivable, net of allowance for doubtful accounts of nil and nil, respectively

358,463,468

353,450,451

57,445,464

Available-for-sale securities

16,783,869

————

————

Inventories

353,206,120

915,014,772

148,715,182

Advance to suppliers

276,245,034

191,099

31,059

Other receivables

58,510,165

114,562,500

18,619,572

Prepaid expenses

3,773,980

2,299,637

373,755

Deferred income tax assets

248,712

————

————

Total current assets

1,630,542,814

1,779,288,738

289,183,582

Property, plant and equipment, net

1,143,722,628

1,106,121,274

179,775,269

Land use right, net

138,944,251

137,541,648

22,354,318

Intangible assets, net

9,648,771

7,735,649

1,257,257

Other non-current assets

10,697,712

8,130,261

1,321,392

Total assets

2,933,556,176

3,038,817,570

493,891,818

Liabilities and shareholders’ equity

Trade accounts payable

29,272,232

15,877,284

2,580,497

Accrued expenses and other payables

106,574,084

66,479,333

10,804,728

Income taxes payable

9,119,258

7,038,216

1,143,905

Short-term borrowings

620,200,000

732,000,000

118,970,225

Current portion of long-term borrowings

24,000,000

24,000,000

3,900,663

Total current liabilities

789,165,574

845,394,833

137,400,018

Long-term borrowings

48,000,000

36,000,000

5,850,995

Bonds Payable

500,000,000

500,000,000

81,263,815

Total liabilities

1,337,165,574

1,381,394,833

224,514,828

Shareholders’ equity

Ordinary share – (December 31, 2013 and June 30, 2014: par value of RMB0.0068259, 25,725,000 shares issued and outstanding)

175,596

175,596

25,725

Additional paid-in capital

468,132,187

468,132,187

76,084,415

Retained earnings – appropriated

126,356,029

126,356,029

20,536,346

Retained earnings – unappropriated

1,002,921,340

1,063,215,301

172,801,863

Accumulated other comprehensive loss

(1,194,550)

(456,376)

(71,359)

Total shareholders’ equity

1,596,390,602

1,657,422,737

269,376,990

Total liabilities and shareholders’ equity

2,933,556,176

3,038,817,570

493,891,818

CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

For the three-month period ended,

June 30,

March 31,

June 30, 2014

2013

2014

(RMB)

(RMB)

(RMB)

(US$)

Revenues

628,493,979

625,731,081

668,887,775

108,712,745

Cost of goods sold

557,088,612

535,247,941

601,348,437

97,735,736

Gross profit

71,405,367

90,483,140

67,539,338

10,977,009

Operating expenses:

Selling

1,509,414

1,214,951

1,534,527

249,403

General and administrative

9,912,973

10,490,866

10,703,722

1,739,651

Total operating expenses

11,422,387

11,705,817

12,238,249

1,989,054

Operating income

59,982,980

78,777,323

55,301,089

8,987,955

Other (income) expenses:

Interest income

(990,007)

(525,335)

(637,612)

(103,630)

Interest expense

26,418,467

26,024,958

26,695,034

4,338,681

Others, net

(105,210)

855,570

1,273,848

207,035

Total other expense, net

25,323,250

26,355,193

27,331,270

4,442,086

Income before income taxes

34,659,730

52,422,130

27,969,819

4,545,869

Income tax expense

9,142,375

13,105,533

6,992,455

1,136,467

Net income

25,517,355

39,316,597

20,977,364

3,409,402

Earnings per share:

Basic and diluted

0.99

1.53

0.82

0.13

Weighted average ordinary shares outstanding:

Basic and diluted

25,725,000

25,725,000

25,725,000

25,725,000

CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

For the six-month period ended,

June 30, 2013

June 30, 2014

(RMB)

(RMB)

(US$)

Revenues

1,079,186,038

1,294,618,856

210,411,334

Cost of goods sold

960,690,062

1,136,596,378

184,728,315

Gross profit

118,495,976

158,022,478

25,683,019

Operating expenses:

Selling

2,558,750

2,749,478

446,866

General and administrative

19,721,770

21,194,588

3,444,706

Total operating expenses

22,280,520

23,944,066

3,891,572

Operating income

96,215,456

134,078,412

21,791,447

Other (income) expenses:

Interest income

(1,616,097)

(1,162,947)

(189,011)

Interest expense

46,298,133

52,719,992

8,568,455

Others, net

(131,154)

2,129,418

346,089

Total other expense, net

44,550,882

53,686,463

8,725,533

Income before income taxes

51,664,574

80,391,949

13,065,914

Income tax expense

13,393,586

20,097,988

3,266,478

Net income

38,270,988

60,293,961

9,799,436

Earnings per share:

Basic and diluted

1.49

2.34

0.38

Weighted average ordinary shares outstanding:

Basic and diluted

25,725,000

25,725,000

25,725,000

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

Photo –  http://photos.prnasia.com/prnh/20140818/8521404624-b
Photo –  http://photos.prnasia.com/prnh/20140818/8521404624-c
Photo –  http://photos.prnasia.com/prnh/20140818/8521404624-d
Photo –  http://photos.prnasia.com/prnh/20140818/8521404624-e
Logo – http://photos.prnasia.com/prnh/20140818/8521404624-a

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
Photo – http://photos.prnewswire.com/prnh/20140811/135262
Photo – http://photos.prnewswire.com/prnh/20140811/135263
Photo – http://photos.prnewswire.com/prnh/20140811/135264
Photo – http://photos.prnewswire.com/prnh/20140811/135265

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.

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