Tagged: CCA

New Opportunities for Operators in the Blended Reality Era

– Ensuring Relevance in a Mobile, Quantified, and Augmented World

LONDON, Aug. 29, 2014 /PRNewswire/ — Frost & Sullivan will share insights on the most important trends in the European mobile industry and how they will affect existing value chains and business models. We highlight important developments and what they mean for your business.

The conference will be followed by a live question-and-answer session that will take place on Tuesday, 9 September 2014 at 3 p.m. BST

Frost & Sullivan’s Information and Communication Technologies experts Senior Analyst Sheridan Nye and Consultant Lawrence Lundy will highlight the critical developments, the changing value, and growth in the Europe’s mobile industry. This online conference will:

  • Explore advancements in mobile devices, including health monitoring and wireless transactions
  • Identify the disruptive threats and opportunities
  • Recommend strategies on how operators can adapt and remain relevant 

“Mobile operators face multiple challenges in an intensely competitive environment where once-reliable sources of profit are fast evaporating. One way to fend off the threats is to emulate their fiercest competitors. This means looking ‘inside-out’ to become more agile digital businesses,” explains Sheridan Nye

Mobile ecosystem participants need to prepare for the quantified and automated world. “When data is the currency of the future, the only sustainable competitive advantage is trust,” emphasizes Lawrence Lundy.

To participate in this complimentary web conference, please email Edyta Grabowska Corporate Communications, at edyta.grabowska@frost.com  with your full contact details. Upon receipt of the above information, a registration link will be e-mailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.

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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Contact:

Edyta Grabowska

Corporate Communications – Europe
P: +48 22 481 62 03
E: edyta.grabowska@frost.com

http://www.frost.com

China Cord Blood Corporation Reports First Quarter Fiscal 2015 Financial Results

1Q15 Added 15,548 New Subscribers

1Q15 Revenue Up 19.1% YOY to RMB153.3 Million ($24.7 Million)

1Q15 Operating Income Up 31.1%YOY to RMB60.2 Million ($9.7 Million)

Conference Call to be Held August 29, 2014 at 8:00 a.m. ET

HONG KONG, Aug. 29, 2014 /PRNewswire/ — China Cord Blood Corporation (NYSE: CO) (“CCBC” or the “Company”), China’s leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services, today announced its preliminary unaudited financial results for the first quarter of fiscal year 2015 ended June 30, 2014.

First Quarter of Fiscal 2015 Highlights

  • Revenues for the first quarter of fiscal 2015 increased to RMB153.3 million ($24.7 million) from RMB128.7 million in the prior year period.
  • 15,548 new subscribers were added, resulting in an accumulated subscriber base of 392,171.
  • Gross profit increased to RMB123.6 million ($19.9 million) from RMB104.2 million in the prior year period.
  • Gross margin was 80.6%, compared to 81.0% in the prior year period.
  • Operating income increased to RMB60.2 million ($9.7 million), from RMB45.9 million in the prior year period, despite an RMB2.8 million increase in depreciation expense.
  • Interest expense increased to RMB24.9 million ($4.0 million), compared to RMB14.8 million in the prior year period, due to less interest expense capitalization.
  • Net income attributable to the Company’s shareholders was RMB29.7 million ($4.8 million), compared to RMB32.9 million in the prior year period.
  • Operating cash flow for the quarter was RMB124.6 million ($20.1 million).

“We began fiscal 2015 with another solid quarter, adding 15,548 new subscribers which represented a modest year-over-year increase,” stated Ms. Ting Zheng, Chief Executive Officer of CCBC. “Through the implementation of sound marketing strategies that focus on service quality and premium branding, we continued to seize opportunities in the high-end segment of the market. As the majority of our new subscribers selected the one-time upfront payment option, our cash-flow generation remained robust and consistent.”

Ms. Zheng further commented, “With our new facilities in Guangdong and Zhejiang largely completed, we are working through the final stages of their development to ensure they are fully operational as soon as possible. The new processing and storage capacity will effectively resolve our processing bottleneck in Zhejiang and allow us to gradually scale up our operations in this under-penetrated region. The additional capacity will also allow us to further develop and penetrate the Guangdong market, the area in which the majority of our new subscribers in the first quarter are located.”

Summary – First Quarter Ended June 30, 2013 and 2014

Three Months Ended
June 30,

2013

2014

(in thousands)

RMB

RMB

US$

Revenues

128,721

153,331

24,716

Gross Profit

104,229

123,555

19,916

Operating Income

45,880

60,167

9,698

Net Income Attributable to the Company’s Shareholders

32,906

29,736

4,793

 

Earnings per Ordinary Shares

– Basic[1] and Diluted (RMB/US$)

0.40

0.37

0.06

Revenue Breakdown (%)

Processing Fees

69.5%

69.2%

Storage Fees

30.5%

30.8%

New Subscribers (persons)

15,260

15,548

Total Accumulated Subscribers (persons)

327,242

392,171

[1] The terms of the convertible notes issued to KKR China Healthcare Investment Limited (“KKR”) and Golden Meditech Holdings Limited (“Golden Meditech”) provide each party with the ability to participate in any excess cash dividend. Therefore, the calculation of basic EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the three months ended June 30, 2014.

Summary – Selected Cash Flow Statement Items

Three Months Ended

June 30, 2014

(in thousands)

RMB

US$

Net cash provided by operating activities

124,643

20,091

Net cash used in investing activities

(18,397)

(2,965)

Net cash used in financing activities

First Quarter of Fiscal 2015 Financial Results

REVENUES. Revenues increased by 19.1% to RMB153.3 million ($24.7 million) in the first quarter of fiscal 2015 from RMB128.7 million in the prior year period. The increase in revenues resulted from solid growth in both processing and storage revenue.

Revenues generated from storage fees increased by 20.1% to RMB47.2 million ($7.6 million), from RMB39.3 million in the prior year period. The increase was mainly due to the steady growth of the Company’s accumulated subscriber base, which has expanded to 392,171 as of the end of June 2014. Revenues generated from storage fees as a percentage of total revenues edged up to approximately 30.8%, from 30.5% in the prior year period.

The difference in processing fees between the first quarter of fiscal 2015 and 2014, combined with the year-over-year growth in subscriber number, contributed to the increase in revenues generated from processing fees to RMB106.1 million ($17.1 million) from RMB89.4 million in the prior year period. As a percentage of total revenues, revenues from processing fees accounted for 69.2%, compared to 69.5% in the prior year period.

GROSS PROFIT. Gross profit for the first quarter of fiscal 2015 increased by 18.5% to RMB123.6 million ($19.9 million). Gross margin decreased slightly to 80.6% from 81.0% in the prior year period primarily due to increased material costs.

OPERATING INCOME. Operating income for the first quarter of fiscal 2015 increased to RMB60.2 million ($9.7 million), resulting in an operating margin of 39.2%, which is a 3.6% improvement from 35.6% in the prior year period. Depreciation and amortization expenses for the first quarter were RMB11.4 million ($1.8 million), compared to RMB8.6 million in the prior year period.

Research and Development Expenses. Research and development expenses remained stable at RMB2.5 million ($0.4 million).

Sales and Marketing Expenses. During the quarter, the Company’s sales and marketing expenses increased to RMB31.7 million ($5.1 million) from RMB28.4 million in the prior year period. However, as a percentage of revenues, sales and marketing expenses decreased to 20.7% from 22.1%. The improvement is a result of the Company’s focus on resource allocation and sales efficiency while further penetrating markets across the Company’s operating regions. While the new facilities in Zhejiang are expected to be operational in the near future, management continues to carefully plan and execute its marketing strategy and ensure that expenses are kept in check in that region.

General and Administrative Expenses. General and administrative expenses increased to RMB29.1 million ($4.7 million) from RMB27.4 million in the prior year period. This increase was primarily due to increased depreciation expenses and administrative overhead stemming from preparation for the full commercial launch of the Company’s new facilities. However as a percentage of revenues, G&A expenses decreased to 19.0% from 21.3%, as the overall increase in revenues exceeded the rise in depreciation and administrative expenses.

OTHER INCOME AND EXPENSES

Interest Expense. Interest expense incurred in the three months ended June 30, 2014 amounted to RMB24.9 million ($4.0 million), which primarily relates to the Company’s outstanding convertible notes. For the prior year period, interest expense was RMB14.8 million due to the RMB8.5 million capitalization of interest expense for the construction of the Company’s new facilities in Zhejiang and Guangdong.

Other. For the first quarter of fiscal 2015, the Company recorded dividend income of RMB1.2 million ($0.2 million), which was derived from the Company’s equity investment in Cordlife Group Limited (“Cordlife”). During the first quarter of fiscal 2014, the Company received dividend income of RMB8.7 million from its equity investments in both the Shandong Cord Blood Bank and Cordlife.  

NET INCOME ATTRIBUTABLE TO THE COMPANY’S SHAREHOLDERS. Profit before tax for the first quarter of fiscal 2015 decreased by 6.5% to RMB41.5 million ($6.7 million). The Company’s improved operating income was offset by the increase in interest expense and decrease in dividend income. As a result, net income attributable to the Company’s shareholders for the first quarter of fiscal 2015 decreased by 9.6% to RMB29.7 million ($4.8 million).

EARNINGS PER SHARE. The terms of the convertible notes issued to KKR and Golden Meditech provide each party with the ability to participate in any Excess Cash Dividend[2]. Therefore, the calculation of basic and diluted EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the first quarter of fiscal 2015. Basic and diluted earnings per ordinary share for the first quarter of fiscal 2015 were RMB0.37 ($0.06).

[2] “Excess Cash Dividend” means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% in such financial year divided by the number of shares into which the note is convertible at the conversion price then in effect on the relevant record date.

LIQUIDITY. As of June 30, 2014, the Company had cash and cash equivalents of RMB1,989.5 million ($320.7 million) compared to RMB1,882.9 million as of March 31, 2014. The Company had total debt of RMB848.0 million ($136.7 million) as of June 30, 2014. Operating cash inflow for the first quarter of fiscal 2015 amounted to RMB124.6 million ($20.1 million).

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Friday, August 29, 2014 to discuss its financial performance and give a brief overview of recent developments, followed by a question and answer session. Interested parties may access the audio webcast through the Company’s IR website at http://ir.chinacordbloodcorp.com. A replay of the webcast will be accessible two hours after the presentation and available for three weeks at the same URL link above. Listeners may also access the call by dialing 1-631-514-2526 or 1-855-298-3404 for US callers or +852-5808-3202 for Hong Kong callers, access code: 1856118.

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit our website at http://www.chinacordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates”, “believes”, “expects”, “can”, “continue”, “could”, “estimates”, “intends”, “may”, “plans”, “potential”, “predict”, “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.

The forward-looking statements included in this press release are subject to risks, uncertainties and assumptions about the Company’s businesses and business environments. These statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance. Actual results of the Company’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations regarding cord blood banking in the People’s Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments (including revisions to China’s One Child Policy) in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company’s different pricing and payment options and reaction to the introduction of the Company’s premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company’s revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of industry developments affecting issuers that have pursued a “reverse merger” with an operating company based in China, as well as general economic conditions; compliance with restrictive debt covenants under our senior convertible notes; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the periods ending June 30, 2014 were made at the noon buying rate of RMB6.2036 to $1.00 on June 30, 2014 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.

For more information, please contact:

China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com

ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.Zima@icrinc.com

EXHIBIT 1

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2014

March 31,

June 30,

2014

2014

RMB

    RMB

  US$

(in thousands except share data)

ASSETS

Current assets

Cash and cash equivalents

1,882,901

1,989,506

320,702

Accounts receivable, less allowance for doubtful accounts

(March 31, 2014: RMB20,322; June 30, 2014: RMB22,145)

95,273

101,900

16,426

Inventories

31,583

29,008

4,677

Prepaid expenses and other receivables

37,010

27,339

4,407

Debt issuance costs

3,616

3,615

583

Deferred tax assets

7,664

7,948

1,281

Total current assets

2,058,047

2,159,316

348,076

Property, plant and equipment, net

626,632

618,553

99,709

Non-current prepayments

208,894

214,825

34,629

Non-current accounts receivable, less allowance for doubtful
accounts (March 31, 2014: RMB42,703; June 30, 2014:
RMB43,722)

225,496

220,924

35,612

Inventories

48,385

51,256

8,262

Intangible assets, net

120,549

119,394

19,246

Available-for-sale equity securities

144,247

148,711

23,972

Other investment

189,129

189,129

30,487

Debt issuance costs

7,854

6,951

1,120

Deferred tax assets

1,789

1,893

305

Total assets

3,631,022

3,730,952

601,418

LIABILITIES

Current liabilities

Bank loan

60,000

60,000

9,672

Accounts payable

10,422

14,957

2,411

Accrued expenses and other payables

102,559

68,567

11,053

Deferred revenue

196,432

198,717

32,033

Amounts due to related parties

21,453

16,820

2,711

Income tax payable

2,571

1,525

246

Deferred tax liabilities

3,900

5,200

838

Total current liabilities

397,337

365,786

58,964

Convertible notes

777,753

787,988

127,021

Non-current deferred revenue

823,921

897,363

144,652

Other non-current liabilities

164,077

177,551

28,621

Deferred tax liabilities

27,938

27,639

4,455

Total liabilities

2,191,026

2,256,327

363,713

EQUITY

Shareholders’ equity of China Cord Blood Corporation

Ordinary shares

– US$0.0001 par value, 250,000,000 shares authorized, 73,140,147
shares issued and 73,003,248 shares outstanding as of March 31 and
June 30, 2014, respectively

50

50

8

Additional paid-in capital

798,221

798,221

128,671

Treasury stock, at cost (March 31 and June 30, 2014: 136,899 shares,
respectively)

 

(2,815)

 

(2,815)

 

(454)

Accumulated other comprehensive income

84,263

89,298

14,395

Retained earnings

555,323

585,059

94,309

Total equity attributable to China Cord Blood Corporation

1,435,042

1,469,813

236,929

Noncontrolling interests

4,954

4,812

776

Total equity

1,439,996

1,474,625

237,705

Total liabilities and equity

3,631,022

3,730,952

601,418

EXHIBIT 2

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2013 and 2014

Three months ended June 30,

2013

2014

RMB

RMB

US$

(in thousands except share data)

Revenues

128,721

153,331

24,716

Direct costs

(24,492)

(29,776)

(4,800)

Gross profit

104,229

123,555

19,916

Operating expenses

Research and development

(2,523)

(2,499)

(403)

Sales and marketing

(28,424)

(31,743)

(5,117)

General and administrative

(27,402)

(29,146)

(4,698)

Total operating expenses

(58,349)

(63,388)

(10,218)

Operating income

45,880

60,167

9,698

Other expense, net

Interest income

4,182

4,266

688

Interest expense

(14,758)

(24,895)

(4,013)

Exchange (loss)/gain

(124)

180

29

Dividend income

8,722

1,196

193

Others

530

617

99

Total other expense, net

(1,448)

(18,636)

(3,004)

Income before income tax

44,432

41,531

6,694

Income tax expense

(11,373)

(11,937)

(1,924)

Net income

33,059

29,594

4,770

Net income attributable to non-controlling interests

(153)

142

23

Net income attributable to China Cord Blood
  
Corporation’s shareholders

32,906

29,736

4,793

Net income per share:

Attributable to ordinary shares

– Basic

0.40

0.37

0.06

– Diluted

0.40

0.37

0.06

Other comprehensive income

– Net effect of foreign currency translation, net of nil tax

6,805

529

85

– Net unrealized gain in available-for-sale equity
securities, net of nil tax

24,338

4,506

726

Comprehensive income

64,202

34,629

5,581

Comprehensive income attributable to non-controlling
interests

(153)

142

23

Comprehensive income attributable to China Cord
Blood Corporation’s shareholders

64,049

34,771

5,604

China Cord Blood Corporation to Report First Quarter of Fiscal 2015 Financial Results

Earnings Call Scheduled for 8:00 a.m. ET on August 29, 2014

HONG KONG, Aug. 21, 2014 /PRNewswire/ — China Cord Blood Corporation (NYSE: CO) (the “Company”) today announced its plan to release financial results for the first quarter of fiscal year 2015 on Thursday, August 28, 2014, after market close in the US. 

The Company will host a conference call at 8:00 a.m. ET on Friday, August 29, 2014 to discuss its financial performance and give a brief overview of the Company’s recent developments, followed by a question and answer session.  Interested parties may access the audio webcast through the Company’s IR website at http://ir.chinacordbloodcorp.com.  A replay of the webcast will be accessible two hours after the conference call and available for three weeks at the same URL link above.  Listeners may also access the call by dialing 1-631-514-2526 or 1-855-298-3404 for US callers or +852-5808-3202 for Hong Kong callers, access code: 1856118. 

Please dial in ten minutes prior to the conference call to ensure proper connection, and be prepared to provide your name and company name to the operator.

Supplemental financial information referenced in the conference call and the first quarter of fiscal 2015 earnings press release will be available at http://www.chinacordbloodcorp.com, in the section titled Investor Center/Press Release, after 4:00 p.m. ET on Thursday, August 28, 2014 and in the Company’s Report on Form 6-K for the month of August 2014 available on the Securities and Exchange Commission’s website at www.sec.gov.  

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses.  Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized as of today.  China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services.  For more information, please visit the Company’s website at http://www.chinacordbloodcorp.com.  

For more information, please contact:

China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com   

ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: william.zima@icrinc.com

DKSH Holding Ltd. Announces Half-Year Report 2014

Weakness in Asian Currencies Overshadows Solid Growth in Local Markets

ZURICH, Aug. 11, 2014 /PRNewswire/ —

  • Net sales growth of 6.7% at constant exchange rates
  • Depreciation of Asian currencies impact results negatively by 9.6%
  • Operating profit in a challenging market environment, at constant exchange rates, slightly above last year’s level
  • Impact from political unrest in Thailand more profound than expected at the beginning of the year
  • DKSH confirms outlook

Key figures of DKSH (in CHF millions)

At constant

exchange rates[1]

In CHF

In CHF

H1 2014

       Change in %

H1 2014

Change in %

H1 2013

Net sales

5,071.8

6.7%

4,618.4

(2.9%)

4,754.5

Operating profit (EBIT)

144.8

1.4%

131.4

(8.0%)

142.8

Profit after tax

99.8

(4.9%)

91.7

(12.6%)

104.9

Free cash flow

166.7

(2.4%)

136.7

(20.0%)

170.8

Earnings per share (in CHF)

1.41

(11.9%)

1.60

Number of employees[2]

27,159

1.7%

26,693

[1] Against the backdrop of substantial foreign exchange rate depreciations and to make operating performance comparable, DKSH has since the full-year 2013 results communicated figures as well at constant exchange rates. For constant exchange rates, the 2014 figures have been converted at 2013 exchange rates

[2] As of December 31, 2013

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, continued to grow in the first half-year of 2014 at constant exchange rates in a challenging market environment. All Business Units and major countries positively contributed to net sales growth.

Net sales grew by 6.7% at constant exchange rates to CHF 5,071.8 million. Organic growth was 6.0%, while just 0.7 percentage points of net sales growth resulted from M&A activities. The depreciation of Asian currencies impacted net sales in total by 9.6%. Reported in Swiss francs, net sales accordingly reached CHF 4,618.4 million.

Despite the challenging political situation in our main market, Thailand, operating profit before interest and taxes (EBIT) at constant exchange rates increased by 1.4% and reached CHF 144.8 million. Reported in Swiss francs, EBIT accordingly reached CHF 131.4 million. Political unrest in Thailand was more profound and enduring than expected at the beginning of the year, resulting in negative economic growth. Over the past months, this caused a temporary lower demand for consumer goods, higher-margin luxury and lifestyle products as well as reduced industrial investments. The military takeover at the end of May, however, helped to stabilize the situation.

Profit after tax (PAT) has been impacted by profit hedging costs and accordingly reached CHF 99.8 million at constant exchange rates. Reported in Swiss francs, PAT accordingly reached CHF 91.7 million.

Although net sales grew in the first six months of 2014, free cash flow achieved, at constant exchange rates, CHF 166.7 million thanks to sound working capital management and thereby almost reached the high level of last year.

Dr. Joerg Wolle, President & CEO of DKSH, commented: “Despite the challenging market environment, DKSH again reported solid growth in numerous markets. This was achieved on the back of our robust business model and the rigorous implementation of our strategy.”

DKSH’s strategy for sustainable, profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country and new business development, complemented by strategic bolt-on acquisitions.

DKSH continued to invest in the skills and training of its employees, its most important asset. At the end of June 2014, DKSH employed 27,159 specialists worldwide, representing an increase of 466 people or 1.7% compared to the year-end of 2013.

Confirmation of outlook

Commenting on the outlook Dr. Joerg Wolle said: “From today’s perspective, we expect to achieve a 2014 result which is above the record year 2013. This assuming constant exchange rates. The increasingly difficult political situation in our main market Thailand has temporarily resulted in lower demand for consumer goods and in reduced investment activities. While the current situation does not allow for providing an accurate forecast for the year, we are cautiously optimistic. This based on the recently improved consumer confidence index and increased growth forecasts for the Thai economy. The recent weeks can be considered as a potential trend reversal after thirteen months of continuously declining consumer confidence.

The growth outlook for our markets and the attractiveness of our business model remain very good. Because of increased uncertainty and complexity in some Asian markets, clients are increasingly outsourcing sales and distribution of their products in Asia to transparent and reliable partners like DKSH. Demand for our services therefore continues to rise. With our strongly diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle class, rising inner-Asian trade and increased outsourcing to specialist services providers like DKSH.”

Building on these firm foundations and based on current market views, as well as constant exchange rates, DKSH is confident of achieving over a three-year time frame up to 2016 net sales of around CHF 12 billion at a compound annual growth rate (CAGR) of 8%. Within the same time frame EBIT is expected to grow at a CAGR of 10% to a level of around CHF 380 million, which should translate into profit after tax of some CHF 270 million.

Analyst and investor conference/webcast

The live webcast of today’s media conference will be held at 9:30 a.m. CET (in German) and the live webcast of today’s analyst and investor conference will be held at 11 a.m. CET (in English). A recording of the webcast will be available on DKSH’s website.

Half-Year Report

The Half-Year Report 2014 is available for download at: Half-Year Report 2014

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140811/8521404509-b

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term “Market Expansion Services” suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 735 business locations in 35 countries — 710 of them in Asia — and 27,200 specialized staff, DKSH generated net sales of CHF 9.6 billion in 2013.

The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.

With strong Swiss heritage, the company has nearly a 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.

NSA Uses Private Sector Data Collection for Public Sector Purposes: Impacts on Big Data and Commerce

— Frost & Sullivan finds “Trolling” communication highways in the interest of information threatens personal privacy

MOUNTAIN VIEW, Calif., Aug. 8, 2014 /PRNewswire/ — The National Security Agency (NSA) now has access to virtually all online and mobile communications, as well as most credit card transactions, conducted in or through the U.S. The NSA is also tapping into the most popular smartphone applications, including Angry Birds, Google Maps, and Twitter. However, the NSA is far from the only entity treading on personal privacy to achieve its objectives; the private sector is teeming with examples of companies obtaining personal user data through questionable means and deploying it in even more questionable ways.

Frost & Sullivan’s new analysis, Stratecast Confidential: The Impact of the NSA on the Big Data Market – and Global Communications, finds that the NSA obtains information related to 99 percent of the calls placed within or outside the U.S. This is because even when calls originate with another operator, they are carried, at least in part, over equipment owned by the U.S.-based carriers whose data the NSA obtains. The research goes on to analyze the issues and impacts resulting from the actions of the NSA, as well as commercial and research entities, both on the populace at large and particularly on the Big Data market.

For complimentary access to more information on this research, please visit: http://bit.ly/V4qSQK

“Since electronic communications are the lifeblood of commercial activities, the fact that the NSA is collecting data from companies in the private sector may begin to have a chilling effect on the U.S. economy,” said the report’s author, Jeff Cotrupe, Industry Director, Big Data & Analytics, Stratecast | Frost & Sullivan. “Also, by figuratively placing all relevant communications in the U.S. on a dashboard for at-a-glance monitoring, the NSA is creating a scenario where an outside entity that gained control of NSA systems could conceivably and swiftly do a great deal of damage.”

Stratecast’s research, however, finds that all is not lost, as pending legislation and research advancements from several places, including Harvard’s Center for Research on Computation & Society, provide definitional, political, and ethical answers for a growing controversy that is no longer just technological.

“Initiatives in the private sector and academia may preserve personal privacy,” noted Cotrupe. “If successful, this could persuade data hunter-gatherers across law enforcement, public policy, and private commerce to use applied technology to support things like a healthier population–while ensuring things like the U.S. Constitution are still breathing, too.”

Stratecast Confidential: The Impact of the NSA on the Big Data Market – and Global Communications is available as part of Stratecast’s (http://stratecast.frost.com) Big Data and Analytics Growth Partnership Service program. All research included in subscriptions evaluates market opportunities and industry trends following extensive interviews with market participants.

* Want to Learn More? – Sign-up for the Live Webinar*

On Tuesday, August 12, 2014 at 1:00 p.m. ET, Stratecast | Frost & Sullivan will host a complimentary live webinar discussing the impact and issues arising from NSA involvement on the Big Data market.

The brief presentation will be followed by a live audience Q&A.

Click the following link for complimentary registration: http://bit.ly/1p5fnoh

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?

Contact Us:     Start the discussion

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Contact:
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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

 

E-House to Report Second Quarter 2014 Financial Results on August 20, 2014

SHANGHAI, Aug. 6, 2014 /PRNewswire/ — E-House (China) Holdings Limited (“E-House”) (NYSE: EJ), a leading real estate services company in China, today announced that it will report its unaudited financial results for the second quarter ended June 30, 2014 before the U.S. markets open on August 20, 2014.

E-House’s management will host an earnings conference call on August 20, 2014 at 8:15 a.m. U.S. Eastern Time (8:15 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S./International:

+1-845-675-0437

Hong Kong:

+852-2475-0994

Mainland China:

+86-10-800-819-0121

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “E-House earnings call.”

A replay of the conference call may be accessed by phone at the following number until August 28, 2014:

International:

+1-646-254-3697

Passcode:

84809773

Additionally, a live and archived webcast will be available at http://ir.ehousechina.com.

About E-House

E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is China’s leading real estate services company with a nationwide network covering more than 250 cities. E-House offers a wide range of services to the real estate industry, including online advertising, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. E-House has received numerous awards for its innovative and high-quality services, including “China’s Best Company” from the National Association of Real Estate Brokerage and Appraisal Companies and “China Enterprises with the Best Potential” from Forbes. For more information about E-House, please visit http://www.ehousechina.com.

For investor and media inquiries, please contact:

In China:

Michelle Yuan
E-House (China) Holdings Limited
Phone: +86 (21) 6133-0754
E-mail: michelleyuan@ehousechina.com 

Mr. Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com

In the U.S.:

Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com

AMRI Announces Second Quarter 2014 Results

— Adjusted Diluted EPS of $0.22, up 100%

— Total Revenue of $68.2 million, including Contract Revenue of $61.5 Million, up 15%

— Company Increases 2014 Adjusted EPS Guidance to $0.87 – $0.92 to Reflect Addition of OsoBio and Strengthening Contract Business

ALBANY, New York, Aug. 5, 2014 /PRNewswire/ — AMRI (NASDAQ: AMRI) today reported financial and operating results for the second quarter ended June 30, 2014.

Highlights:

  • Second quarter contract revenue of $61.5 million, up 21% from 2013
  • Second quarter adjusted diluted EPS of $0.22 vs. $0.11 in 2013
  • Expanded second quarter contract margins to 27% from 16% in 2013
  • Acquired Oso Biopharmaceuticals Manufacturing in July 2014, expanding contract manufacturing capabilities to include commercial scale, complex injectable drug product

Updated Financial Guidance 2014:

  • Full year contract revenue guidance increased to between $275 and $283 million, an increase of 33% at the midpoint
  • Royalty revenue guidance of $25 million
  • Adjusted EBITDA between $59 and $63 million, up 24% at the midpoint
  • Adjusted diluted EPS range between $0.87 and $0.92, compared to $0.70 in 2013, an increase of 28% at the midpoint, despite a $10 to $12 million decrease in estimated royalties from Allegra
  • Operating cash flow of $27 to $30 million

Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures, which exclude certain items detailed later in this press release under the heading “Non-GAAP Adjustment Items.”  Reconciliations of these non-GAAP measures to GAAP measures are included in Tables 1 and 2 at the end of this press release.

“We are very pleased with our results this quarter, highlighted by a 34% growth in our large scale manufacturing business and the addition of Cedarburg Pharmaceuticals,” said William S. Marth, AMRI’s president and chief executive officer. “Importantly, contract margins improved across our entire operations as a result of increased capacity utilization and the addition of the higher margin Cedarburg Pharmaceuticals business.”

“We continue to see growth in our pipeline of discovery and development programs, notably the expansion of our innovative Insourcing chemistry program, together with the addition of new development and supply programs in our API and Drug Product divisions,” continued Mr. Marth. “Based on anticipated continued growth of our business and the recent addition of OsoBio, we are raising our outlook for 2014 with contract revenue growth of 33% and adjusted diluted EPS growth of 29% at the midpoint.”

Second Quarter 2014 Results

Total revenue for the second quarter of 2014 was $68.2 million, an increase of 15% compared to total revenue of $59.3 million reported in the second quarter of 2013.

Total contract revenue for the second quarter of 2014 was $61.5 million, an increase of 21% compared to contract revenue of $50.8 million reported in the second quarter of 2013. Contract margins were 26.7% for the second quarter of 2014, compared with 16.4% for the second quarter of 2013, driven by increased capacity utilization and the addition of Cedarburg Pharmaceuticals.

Royalty revenue in the second quarter of 2014 was $6.7 million, a decrease of 21% from $8.5 million in the second quarter of 2013. Royalty revenue for the second quarter of 2014 includes royalties from the Allegra® products as well as $2.5 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP was $3.7 million, or $0.11 per diluted share, in the second quarter of 2014, compared to a U.S. GAAP net loss of $(2.5) million, or $(0.08) per basic and diluted share for the second quarter of 2013. Net income on an adjusted basis in the second quarter of 2014 was $7.1 million or $0.22 per diluted share, compared to adjusted net income of $3.6 million or $0.11 per diluted share.  Net income on an adjusted basis excludes the following items that are included under U.S. GAAP:  the impact of restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains.

Year to Date

Total revenue for the six-month period ended June 30, 2014 was $127.5 million, an increase of 7% compared to total revenue of $118.7 million for the same period in 2013.

Total contract revenue for the first six months of 2014 was $112.5 million, an increase of 16% compared to contract revenue of $97.3 million for the same period in 2013.

Royalty revenue for the first six months of 2014 was $15.0 million, a decrease of 30% from $21.4 million in 2013. Royalty revenue for the six-month period ended June 30, 2014 includes royalties from the Allegra® products as well as $4.8 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP for the first half of 2014 was $7.2 million, or $0.22 per diluted share, compared to U.S. GAAP net income of $3.8 million, or $0.12 per diluted share for the first half of 2013. Net income on an adjusted basis in the first half of 2014 was $12.2 million or $0.37 per diluted share, compared to adjusted net income of $10.6 million or $0.34 per share in 2013. For a reconciliation of U.S. GAAP net income (loss) and earnings (loss) per diluted share as reported to adjusted net income (loss) and earnings (loss) per diluted share for the 2014 and 2013 reporting periods, please see Table 1 at the end of this press release. During the second quarter of 2014 we identified certain tax liabilities that should have been recorded as tax expense in various immaterial amounts during the periods from 2007 through 2013. Financial results for the three and six months ended June 30, 2013 have been updated from previously reported amounts to reflect the immaterial prior period income tax adjustments.

Segment Results

Discovery Services and Development/Small Scale Manufacturing

Discovery Services and Development/Small Scale Manufacturing (DDS) contract revenue for the second quarter of 2014 was $19.5 million, consistent with the second quarter of 2013 as decreases in Discovery Services were offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 19.1% for the second quarter of 2014, compared with 13.1% for the second quarter of 2013, driven by a stronger mix of business and the benefit of cost reduction initiatives in both Discovery Services and Development/ Small Scale Manufacturing.

DDS contract revenue for the first half of 2014 was $39.0 million, a decrease of 2% from the first half of 2013 as decreases in Discovery Services were largely offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 17.8% for the first half of 2014, compared with 14.9% for the first half of 2013.

Large Scale Manufacturing
Large Scale Manufacturing (LSM) contract revenue for the second quarter of 2014 was $42.0 million, an increase of 34% from $31.3 million in 2013.  LSM contract revenue for the second quarter of 2014 includes $5.5 million of revenues from the Cedarburg Pharmaceuticals business that was acquired in April 2014. LSM adjusted contract margins were 30.5% in the second quarter of 2014, compared with 18.4% for the second quarter of 2013, driven by increased capacity utilization and improved mix including the Cedarburg business.

LSM contract revenue for the first half of 2014 was $73.5 million, an increase of 27% from $57.7 million in 2013.  LSM adjusted contract margins were 25.9% in the first half of 2014, compared with 19.2% for the first half of 2013.

Liquidity and Capital Resources

At June 30, 2014, AMRI had cash, cash equivalents and restricted cash of $136.9 million, compared to $171.0 million at March 31, 2014. The decrease in cash and cash equivalents for the quarter ended June 30, 2014 was primarily due to the use of $38.7 million to acquire Cedarburg Pharmaceuticals, $4.8 million in debt payments, and $3.5 million of capital expenditures, offset by cash flow from operations of $12.4 million. Total common shares outstanding, net of treasury shares, were 32,419,424 at June 30, 2014.  Since the close of the second quarter we subsequently used $109.3 million of cash to acquire the Oso Biopharmaceuticals Manufacturing business.

Second Quarter Results Conference Call

The conference call can be accessed by dialing 888-438-5525 (domestic calls) or 719-325-2354 (international calls) at 9:50 a.m. ET and entering passcode 9752010. The audio webcast will be available live via the Internet and can be accessed on the company’s website at www.amriglobal.com.

Replay of the conference call can be accessed by dialing 888-203-1112 (domestic calls) or 719-457-0820 (international calls) and entering passcode 9752010 from Tuesday, August 5, 2014 at 2:00 p.m. ET to Wednesday, August 6, 2014 at 2:00 p.m. ET.  Replay of the audio webcast can also be accessed for up to 90 days after the call via the investor area of the company’s website at www.amriglobal.com/investor_relations/.

About AMRI

Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization that has been working with the Life Sciences industry to improve patient outcomes and the quality of life for more than two decades. With locations in North America, Europe and Asia, our key business segments include Large Scale Manufacturing (LSM) and Discovery and Development Solutions (DDS). The LSM segment includes Active Pharmaceutical Ingredients (API) and Drug Product Manufacturing, which supports the commercial cGMP manufacturing of complex APIs, starting materials, clinical formulation development and aseptic fill and finish. Our DDS segment provides comprehensive services from hit identification to IND, including expertise with diverse chemistry, library design and synthesis, in vitro biology and pharmacology, drug metabolism and pharmacokinetics, as well as natural products. For more information about AMRI, please visit our website at www.amriglobal.com or follow us on Twitter (@amriglobal).

Forward-looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include, but are not limited to, statements regarding the company’s estimates of revenue, contract revenue, adjusted EBITDA adjusted diluted earnings per share for the full year 2014, statements made by the company’s Chief Executive Officer, including statements under the caption “Updated Financial Guidance,” statements regarding the strength of the company’s business and prospects, statements regarding the impact of recent acquisition activity, and statements concerning the company’s momentum and long-term growth, including expected results for 2014. Readers should not place undue reliance on our forward-looking statements. The company’s actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company’s control. Factors that could cause such differences include, but are not limited to, trends in pharmaceutical and biotechnology companies’ outsourcing of chemical research and development, including softness in these markets; sales of Allegra® and the impact of the “at-risk” launch of generic Allegra®, the OTC conversion of Allegra® and the generic and OTC sales of Allegra in Japan on the company’s receipt of significant royalties under the Allegra® license agreement; the success of the sales of other products for which the company receives royalties; the risk that the company will not be able to replicate either in the short or long term the revenue stream that has been derived from the royalties payable under the Allegra® license agreements; the risk that clients may terminate or reduce demand under any strategic or multi-year deal; the company’s ability to enforce its intellectual property and technology rights; the company’s ability to obtain financing sufficient to meet its business needs; the company’s ability to successfully comply with heightened FDA scrutiny on aseptic fill/finish operations; the results of further FDA inspections; the company’s ability to effectively maintain compliance with applicable FDA and DEA regulations; the company’s ability to integrate past or future acquisitions, including Cedarburg Pharmaceuticals and Oso Biopharmaceuticals Manufacturing , and make such acquisitions accretive to the company’s business model, the company’s ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of the company’s strategic investments and acquisitions to perform as expected, as well as those risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on March 17, 2014, and the company’s other SEC filings. Revenue, contract revenue, adjusted diluted EPS, adjusted EBITDA and other financial guidance offered by senior management today represent a point-in-time estimate and are based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. Numerous factors, including those noted above, may cause actual results to differ materially from the guidance provided. The company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

Non-GAAP Adjustment Items

To supplement our financial results prepared in accordance with U.S. GAAP, we have presented non-GAAP measures of income (loss) from operations, net income (loss) and income (loss) per diluted share, as adjusted to exclude certain restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains in the 2014 and 2013 periods.  We have also presented non-GAAP measures of adjusted EBITDA, which in addition to the items excluded above, further excluded the impact of interest income and expense, depreciation and amortization expense, and income tax expense or benefit.  Exclusion of these non-recurring items allow comparisons of operating results that are consistent over time.  We believe presentation of these non-GAAP measures enhances an overall understanding of our historical financial performance because we believe they are an indication of the performance of our base business. Management uses these non-GAAP measures as a basis for evaluating our financial performance as well as for budgeting and forecasting of future periods. For these reasons, we believe they can be useful to investors. The presentation of this additional information should not be considered in isolation or as a substitute for income (loss) from operations, net income (loss) or income (loss) per diluted share prepared in accordance with U.S. GAAP.  Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are set forth in Tables 1 and 2.  Our projected 2014 adjusted EPS and EBITDA, however, are only provided on an adjusted basis.  It is not feasible to provide GAAP EPS guidance because the items excluded are difficult to predict and estimate and are primarily dependent on future events.

 

Albany Molecular Research, Inc.
Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands, except for per share data)

June 30, 2014

June 30, 2013

June 30, 2014

June 30, 2013

Contract revenue

$ 61,474

$ 50,764

$ 112,512

$ 97,257

Recurring royalties

6,705

8,528

14,988

21,441

          Total revenue

68,179

59,292

127,500

118,698

Cost of contract revenue

45,038

42,450

86,648

80,272

Technology incentive award

424

569

1,017

1,683

Research and development

128

171

207

276

Selling, general and administrative

12,747

12,454

23,376

22,003

Postretirement benefit plan settlement gain

(1,285)

Restructuring charges

1,042

4,953

1,272

5,832

Property and equipment impairment charges

3,718

906

3,718

1,440

          Total operating expenses

63,097

61,503

114,953

111,506

Income (loss) from operations

5,082

(2,211)

12,547

7,192

Interest expense, net

(3,065)

(137)

(5,681)

(274)

Other (expense) income, net

(192)

377

(232)

884

Income (loss) before income taxes

1,825

(1,971)

6,634

7,802

Income tax (benefit) expense

(1,899)

504

(590)

4,000

Net income (loss)

$ 3,724

$ ( 2,475)

$ 7,224

$ 3,802

Basic income (loss) per share

$ 0.12

$ (0.08)

$ 0.23

$ 0.12

Diluted income (loss) per share

$ 0.11

$ (0.08)

$ 0.22

$ 0.12

 

Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(unaudited)

(Dollars in thousands)

June 30,
2014

December 31,
2013

Cash and cash equivalents……………………..

$        130,417

$            175,928

Restricted cash……………………………..

6,467

714

Accounts receivable, net. …………………….

58,480

52,216

Royalty income receivable…………………….

6,541

7,523

Inventory………………………………….

44,277

31,991

Total current assets………………………….

260,818

279,019

Restricted cash…………………………………………

3,810

Property and equipment, net…………………..

131,619

127,775

Total assets………………………………..

520,150

445,268

Total current liabilities……………………….

50,168

48,849

Long‑term debt, excluding current installments, net of unamortized
   discount…….

122,154

123,135

Total liabilities……………………………..

266,877

204,511

Total stockholders’ equity…………………….

253,273

240,757

Total liabilities and stockholders’ equity………….

520,150

445,268

 

Table 1:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations, net income (loss) and earnings (loss) per diluted share to adjusted income from operations, adjusted net income and adjusted earnings per share:

(Dollars in thousands, except for per share data)
Non-GAAP Measures

Second Quarter

Second Quarter

YTD

YTD

2014

2013

June 30, 2014

June 30, 2013

Income (loss) from operations, as reported

$              5,082

$              (2,211)

$           12,547

$           7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Purchase accounting depreciation and amortization

275

275

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

$               11,449

$                 5,954

$         18,821

$         16,770

Net income (loss), as reported

$              3,724

$              (2,475)

$         7,224

$         3,802

Adjustments, net of tax:

Impairment charges

2,417

906

2,417

1,253

Restructuring charges

653

3,553

850

4,182

Executive transition costs

(9)

251

407

251

Business acquisition costs

875

1,084

Purchase accounting depreciation and amortization

179

179

Postretirement benefit plan settlement gain

(835)

Convertible debt interest and amortization charges

1,641

3,257

Write-off of deferred financing costs

286

286

Non-recurring income tax adjustments

(2,715)

46

(2,715)

92

Litigation settlement

1,248

1,248

Insurance demutualization gain

(252)

Loss on disposal of assets

63

63

Net income (loss), as adjusted

$                 7,051

$                 3,592

$         12,154

$         10,639

Income (loss) per diluted share, as reported

$                0.11

$                (0.08)

$            0.22

$            0.12

Adjustments, net of tax:

Impairment charges

0.07

0.03

0.07

0.04

Restructuring charges

0.02

0.11

0.03

0.14

Executive transition costs

0.01

0.01

0.01

Business acquisition costs

0.03

0.03

Purchase accounting depreciation and amortization

0.01

0.01

Postretirement benefit plan settlement gain

(0.03)

Convertible debt interest and amortization charges

0.05

0.10

Write-off of deferred financing costs

0.01

0.01

Non-recurring income tax adjustments

(0.08)

(0.08)

Litigation settlement

0.04

0.04

Insurance demutualization gain

(0.01)

Loss on disposal of assets

Earnings per diluted share, as adjusted

$                0.22

$                0.11

$             0.37

$             0.34

 

Table 2:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations to adjusted EBITDA:

QTD

QTD

YTD

YTD

June 30,
2014

June 30,
2013

June 30,
2014

June 30,
2013

Income (loss) from operations, as reported

$ 5,082

$ (2,211)

$ 12,547

$ 7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

11,174

5,954

18,546

16,770

Add: Non-operating (expense) income net, as reported

(192)

377

(232)

844

Deduct: insurance demutualization gain

(388)

Add: Loss on disposal of assets

97

97

Add: Depreciation and amortization

4,263

3,949

8,024

8,012

Adjusted EBITDA

15,245

10,377

26,338

25,335

 

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