8-K
DARLING INGREDIENTS INC. (DAR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
| Date of report (Date of earliest event reported) | February 28, 2022 | | --- | --- || DARLING INGREDIENTS INC. | | --- | | (Exact Name of Registrant as Specified in Charter) | | Delaware | 001-13323 | 36-2495346 | | --- | --- | --- | | (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
5601 N. MacArthur Blvd., Irving, Texas 75038
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (972) 717-0300
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
|---|---|---|---|
| Common stock $0.01 par value per share | DAR | New York Stock Exchange | (“NYSE”) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| ☐ | Emerging growth company |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 28, 2022, Darling Ingredients Inc. (the “Company”) issued a press release announcing financial results for the fourth quarter and fiscal year ended January 1, 2022. A copy of this press release is attached hereto as Exhibit 99.1.
The Company will hold a conference call and webcast on Tuesday, March 1, 2022 to discuss these financial results. The Company will have a slide presentation available to augment management's formal presentation, which will be accessible via the investor relations section of the Company's website. A copy of this slide presentation is attached hereto as Exhibit 99.2.
The Company is making reference to non-GAAP financial measures in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
The information in this Item 2.02, including the exhibits attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press Release dated February 28, 2022 (furnished pursuant to Item 2.02). |
|---|---|
| 99.2 | Slide Presentation for March 1, 2022 Earnings Call (furnished pursuant to Item 2.02). |
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DARLING INGREDIENTS INC. | ||
|---|---|---|
| Date: February 28, 2022 | By: | /s/ John F. Sterling |
| John F. Sterling | ||
| Executive Vice President,<br>General Counsel |
3
Document
Exhibit 99.1
Contact: Suann Guthrie
VP, Investor Relations, Sustainability & Communications
(469) 214-8202
FOR IMMEDIATE RELEASE
Feb. 28, 2022
Darling Ingredients Inc. Delivers Strong Fourth Quarter and Fiscal Year 2021 Financial Results;
Carries Momentum into 2022
Fourth Quarter 2021
•Net income of $155.8 million, or $0.94 per GAAP diluted share
•Net Sales of $1.3 billion
•Combined adjusted EBITDA of $306.8 million
•Global ingredients business EBITDA of $223.6 million
Fiscal Year 2021
•Net income of $650.9 million, or $3.90 per GAAP diluted share
•Net sales of $4.7 billion
•Combined adjusted EBITDA of $1.235 billion
•Global ingredients business record EBITDA of $851.4 million
•Diamond Green Diesel sold a record 370.2 million gallons of renewable diesel at an average of $2.07 EBITDA per gallon
•Valley Proteins acquisition will strengthen low carbon feedstock supply
IRVING, TEXAS - Darling Ingredients Inc. (NYSE: DAR) today reported net income of $155.8 million, or $0.94 per diluted share for fourth quarter 2021, compared to net income of $44.7 million, or $0.27 per diluted share, for fourth quarter 2020. The company also reported net sales of $1.3 billion for the fourth quarter of 2021, as compared with net sales of $1.0 billion for the same period a year ago.
“Q4 was an outstanding quarter, capping off another record year for Darling Ingredients, ” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “Robust demand in our feed segment aligned with increasing demand at Diamond Green Diesel (DGD) positions us well for strong performance in 2022.”
DGD sold a record 370 million gallons of renewable diesel in fiscal year 2021 at an average of $2.07 EBITDA per gallon. The DGD Norco, La. renewable diesel expansion project was commissioned in the fourth quarter and is operating above nameplate capacity.
“DGD is providing a solid return,” Stuewe added. “Our announced agreement to purchase Valley Proteins strategically positions us to provide low CI feedstocks to fuel growing demand for renewable diesel. It also opens the door to potential new export opportunities as our world drives toward decarbonization.”
The leverage ratio as measured by the company’s bank covenant was 1.57x at the end of the year. The company reduced its Term Loan B outstanding balance by $100 million during 2021. Capital expenditures totaled approximately $274 million in 2021. Repurchase of the company’s common stock totaled $167.7 million in 2021.
| News Release<br><br>February 28, 2022<br><br>Page 2 |
|---|
For the 2021 fiscal year, Darling reported net sales of $4.7 billion, as compared with net sales of $3.6 billion for 2020. Net income attributable to Darling for 2021 was $650.9 million, or $3.90 per diluted share, as compared to net income of $296.8 million, or $1.78 per diluted share, for 2020.
As of Jan. 1, 2022, Darling had $69.1 million in cash and cash equivalents, and $1.29 billion available under its committed revolving credit agreement. Total debt outstanding at the end of the fiscal year was $1.46 billion.
Combined adjusted EBITDA was $306.8 million for the fourth quarter of 2021, compared to $214.5 million for the same period in 2020. For the 2021 fiscal year, combined adjusted EBITDA totaled $1.235 billion, compared to $841.5 million for fiscal year 2020.
| News Release<br><br>February 28, 2022<br><br>Page 3 |
|---|
Segment Financial Tables (in thousands)
(unaudited)
| Three Months Ended January 1, 2022 | Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 846,498 | $ | 344,677 | $ | 118,893 | $ | — | $ | 1,310,068 |
| Cost of sales and operating expenses | 621,581 | 272,972 | 94,371 | — | 988,924 | |||||
| Gross margin | $ | 224,917 | $ | 71,705 | $ | 24,522 | $ | — | $ | 321,144 |
| Gain on sale of assets | (60) | (87) | (18) | — | (165) | |||||
| Selling, general and administrative expenses | 57,484 | 22,405 | 3,177 | 14,667 | 97,733 | |||||
| Depreciation and amortization | 56,538 | 15,263 | 6,222 | 2,782 | 80,805 | |||||
| Acquisition and integration costs | — | — | — | 1,396 | 1,396 | |||||
| Equity in net income of Diamond Green Diesel | — | — | 69,663 | — | 69,663 | |||||
| Segment operating income/(loss) | $ | 110,955 | $ | 34,124 | $ | 84,804 | $ | (18,845) | $ | 211,038 |
| Equity in net income of other unconsolidated subsidiaries | $ | 1,554 | $ | — | $ | — | $ | — | $ | 1,554 |
| Segment income/(loss) | $ | 112,509 | $ | 34,124 | $ | 84,804 | $ | (18,845) | $ | 212,592 |
| Segment EBITDA | $ | 167,493 | $ | 49,387 | $ | 21,363 | $ | (14,667) | $ | 223,576 |
| DGD adjusted EBITDA (Darling's Share) | $ | — | $ | — | $ | 83,192 | $ | — | $ | 83,192 |
| Combined adjusted EBITDA | $ | 167,493 | $ | 49,387 | $ | 104,555 | $ | (14,667) | $ | 306,768 |
| Three Months Ended January 2, 2021 | Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales | $ | 572,764 | $ | 344,631 | $ | 102,444 | $ | — | $ | 1,019,839 |
| Cost of sales and operating expenses | 426,593 | 268,348 | 76,251 | — | 771,192 | |||||
| Gross margin | $ | 146,171 | $ | 76,283 | $ | 26,193 | $ | — | $ | 248,647 |
| Loss/(gain) on sale of assets | (274) | 512 | (22) | — | 216 | |||||
| Selling, general and administrative expenses | 56,289 | 26,000 | 5,369 | 14,459 | 102,117 | |||||
| Restructuring and asset impairment charges | — | — | 38,167 | — | 38,167 | |||||
| Depreciation and amortization | 61,219 | 22,827 | 9,513 | 2,908 | 96,467 | |||||
| Equity in net income of Diamond Green Diesel | — | — | 62,684 | — | 62,684 | |||||
| Segment operating income/(loss) | $ | 28,937 | $ | 26,944 | $ | 35,850 | $ | (17,367) | $ | 74,364 |
| Equity in net income of other unconsolidated subsidiaries | $ | 726 | $ | — | $ | — | $ | — | $ | 726 |
| Segment income/(loss) | $ | 29,663 | $ | 26,944 | $ | 35,850 | $ | (17,367) | $ | 75,090 |
| Segment EBITDA | $ | 90,156 | $ | 49,771 | $ | 20,846 | $ | (14,459) | $ | 146,314 |
| DGD adjusted EBITDA (Darling's Share) | $ | — | $ | — | $ | 68,171 | $ | — | $ | 68,171 |
| Combined adjusted EBITDA | $ | 90,156 | $ | 49,771 | $ | 89,017 | $ | (14,459) | $ | 214,485 |
| News Release<br><br>February 28, 2022<br><br>Page 4 | ||||||||||
| --- |
Segment Financial Tables (in thousands) continued
(unaudited)
| Twelve Months Ended January 1, 2022 | Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 3,039,500 | $ | 1,271,629 | $ | 430,240 | $ | — | $ | 4,741,369 |
| Cost of sales and operating expenses | 2,206,248 | 979,232 | 313,905 | — | 3,499,385 | |||||
| Gross margin | $ | 833,252 | $ | 292,397 | $ | 116,335 | $ | — | $ | 1,241,984 |
| Gain on sale of assets | (550) | (88) | (320) | — | (958) | |||||
| Selling, general and administrative expenses | 220,078 | 97,555 | 16,999 | 56,906 | 391,538 | |||||
| Restructuring and asset impairment charges | — | — | 778 | — | 778 | |||||
| Depreciation and amortization | 218,942 | 60,929 | 25,436 | 11,080 | 316,387 | |||||
| Acquisition and integration costs | — | — | — | 1,396 | 1,396 | |||||
| Equity in net income of Diamond Green Diesel | — | — | 351,627 | — | 351,627 | |||||
| Segment operating income/(loss) | $ | 394,782 | $ | 134,001 | $ | 425,069 | $ | (69,382) | $ | 884,470 |
| Equity in net income of other unconsolidated subsidiaries | $ | 5,753 | $ | — | $ | — | $ | — | $ | 5,753 |
| Segment income/(loss) | $ | 400,535 | $ | 134,001 | $ | 425,069 | $ | (69,382) | $ | 890,223 |
| Segment EBITDA | $ | 613,724 | $ | 194,930 | $ | 99,656 | $ | (56,906) | $ | 851,404 |
| DGD adjusted EBITDA (Darling's Share) | $ | — | $ | — | $ | 383,419 | $ | — | $ | 383,419 |
| Combined adjusted EBITDA | $ | 613,724 | $ | 194,930 | $ | 483,075 | $ | (56,906) | $ | 1,234,823 |
| Twelve Months Ended January 2, 2021 | Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales | $ | 2,072,104 | $ | 1,185,701 | $ | 314,118 | $ | — | $ | 3,571,923 |
| Cost of sales and operating expenses | 1,544,524 | 920,682 | 223,609 | — | 2,688,815 | |||||
| Gross margin | $ | 527,580 | $ | 265,019 | $ | 90,509 | $ | — | $ | 883,108 |
| Loss/(gain) on sale of assets | 19 | 482 | (75) | — | 426 | |||||
| Selling, general and administrative expenses | 209,748 | 97,406 | 16,014 | 55,328 | 378,496 | |||||
| Restructuring and asset impairment charges | — | — | 38,167 | — | 38,167 | |||||
| Depreciation and amortization | 221,187 | 83,752 | 34,218 | 11,021 | 350,178 | |||||
| Equity in net income of Diamond Green Diesel | — | — | 315,095 | — | 315,095 | |||||
| Segment operating income/(loss) | $ | 96,626 | $ | 83,379 | $ | 317,280 | $ | (66,349) | $ | 430,936 |
| Equity in net income of other unconsolidated subsidiaries | $ | 3,193 | $ | — | $ | — | $ | — | $ | 3,193 |
| Segment income/(loss) | $ | 99,819 | $ | 83,379 | $ | 317,280 | $ | (66,349) | $ | 434,129 |
| Segment EBITDA | $ | 317,813 | $ | 167,131 | $ | 74,570 | $ | (55,328) | $ | 504,186 |
| DGD adjusted EBITDA (Darling's Share) | $ | — | $ | — | $ | 337,348 | $ | — | $ | 337,348 |
| Combined adjusted EBITDA | $ | 317,813 | $ | 167,131 | $ | 411,918 | $ | (55,328) | $ | 841,534 |
| News Release<br><br>February 28, 2022<br><br>Page 5 | ||||||||||
| --- |
Darling Ingredients Inc. and Subsidiaries
Consolidated Balance Sheets
January 1, 2022 and January 2, 2021
(in thousands)
| January 1, | January 2, | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| ASSETS | (unaudited) | ||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 68,906 | $ | 81,617 | |
| Restricted cash | 166 | 103 | |||
| Accounts receivable, net | 469,092 | 405,387 | |||
| Inventories | 457,465 | 405,922 | |||
| Prepaid expenses | 53,711 | 47,793 | |||
| Income taxes refundable | 1,075 | 3,883 | |||
| Other current assets | 38,599 | 42,289 | |||
| Total current assets | 1,089,014 | 986,994 | |||
| Property, plant and equipment, net | 1,840,080 | 1,863,814 | |||
| Intangible assets, net | 397,801 | 473,680 | |||
| Goodwill | 1,219,116 | 1,260,240 | |||
| Investment in unconsolidated subsidiaries | 1,349,247 | 804,682 | |||
| Operating lease right-of-use assets | 155,464 | 146,563 | |||
| Other assets | 66,795 | 60,682 | |||
| Deferred income taxes | 16,211 | 16,676 | |||
| $ | 6,133,728 | $ | 5,613,331 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Current portion of long-term debt | $ | 24,407 | $ | 27,538 | |
| Accounts payable, principally trade | 307,118 | 255,340 | |||
| Income taxes payable | 32,310 | 17,497 | |||
| Current operating lease liabilities | 38,168 | 39,459 | |||
| Accrued expenses | 350,681 | 335,471 | |||
| Total current liabilities | 752,684 | 675,305 | |||
| Long-term debt, net of current portion | 1,438,974 | 1,480,531 | |||
| Long-term operating lease liabilities | 120,314 | 109,707 | |||
| Other noncurrent liabilities | 111,029 | 117,371 | |||
| Deferred income taxes | 362,942 | 276,208 | |||
| Total liabilities | 2,785,943 | 2,659,122 | |||
| Commitments and contingencies | |||||
| Total Darling's stockholders' equity | 3,280,960 | 2,891,909 | |||
| Noncontrolling interests | 66,825 | 62,300 | |||
| Total stockholders' equity | 3,347,785 | 2,954,209 | |||
| $ | 6,133,728 | $ | 5,613,331 | ||
| News Release<br><br>February 28, 2022<br><br>Page 6 | |||||
| --- |
Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021
(in thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | Change | (unaudited) | Change | |||||||
| January 1, | January 2, | Favorable | January 1, | January 2, | Favorable | |||||
| 2022 | 2021 | (Unfavorable) | 2022 | 2021 | (Unfavorable) | |||||
| Net sales | $ | 1,310,068 | $ | 1,019,839 | $ | 4,741,369 | $ | 3,571,923 | ||
| Costs and expenses: | ||||||||||
| Cost of sales and operating expenses | 988,924 | 771,192 | (217,732) | 3,499,385 | 2,688,815 | (810,570) | ||||
| Loss (gain) on sale of assets | (165) | 216 | 381 | (958) | 426 | 1,384 | ||||
| Selling, general and administrative expenses | 97,733 | 102,117 | 4,384 | 391,538 | 378,496 | (13,042) | ||||
| Restructuring and asset impairment charges | — | 38,167 | 38,167 | 778 | 38,167 | 37,389 | ||||
| Depreciation and amortization | 80,805 | 96,467 | 15,662 | 316,387 | 350,178 | 33,791 | ||||
| Acquisition and integration costs | 1,396 | — | (1,396) | 1,396 | — | (1,396) | ||||
| Total costs and expenses | 1,168,693 | 1,008,159 | (160,534) | 4,208,526 | 3,456,082 | (752,444) | ||||
| Equity in net income of Diamond Green Diesel | 69,663 | 62,684 | 6,979 | 351,627 | 315,095 | 36,532 | ||||
| Operating income | 211,038 | 74,364 | 136,674 | 884,470 | 430,936 | 453,534 | ||||
| Other expense: | ||||||||||
| Interest expense | (14,972) | (16,883) | 1,911 | (62,077) | (72,686) | 10,609 | ||||
| Foreign currency losses | (900) | (1,581) | 681 | (2,199) | (2,290) | 91 | ||||
| Other expense, net | (1,341) | (256) | (1,085) | (4,551) | (5,534) | 983 | ||||
| Total other expense | (17,213) | (18,720) | 1,507 | (68,827) | (80,510) | 11,683 | ||||
| Equity in net income of other unconsolidated subsidiaries | 1,554 | 726 | 828 | 5,753 | 3,193 | 2,560 | ||||
| Income before income taxes | 195,379 | 56,370 | 139,009 | 821,396 | 353,619 | 467,777 | ||||
| Income tax expense | 37,782 | 10,231 | (27,551) | 164,106 | 53,289 | (110,817) | ||||
| Net income | 157,597 | 46,139 | 111,458 | 657,290 | 300,330 | 356,960 | ||||
| Net income attributable to noncontrolling interests | (1,843) | (1,394) | (449) | (6,376) | (3,511) | (2,865) | ||||
| Net income attributable to Darling | $ | 155,754 | $ | 44,745 | $ | 650,914 | $ | 296,819 | ||
| Basic income per share: | $ | 0.96 | $ | 0.28 | $ | 4.01 | $ | 1.83 | ||
| Diluted income per share: | $ | 0.94 | $ | 0.27 | $ | 3.90 | $ | 1.78 | ||
| Number of diluted common shares: | 166,267 | 167,920 | 167,096 | 167,208 |
All values are in US Dollars.
| News Release<br><br>February 28, 2022<br><br>Page 7 |
|---|
Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended January 1, 2022 and January 2, 2021
(in thousands)
| Twelve Months Ended | ||||
|---|---|---|---|---|
| (unaudited) | ||||
| January 1, | January 2, | |||
| Cash flows from operating activities: | 2022 | 2021 | ||
| Net income | $ | 657,290 | $ | 300,330 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 316,387 | 350,178 | ||
| Deferred income taxes | 96,812 | 15,814 | ||
| Loss/(gain) on sale of assets | (958) | 426 | ||
| Asset impairment | 138 | 37,802 | ||
| Decrease in long-term pension liability | (4,742) | (6,555) | ||
| Stock-based compensation expense | 21,837 | 23,222 | ||
| Write-off deferred loan costs | 1,130 | 3,052 | ||
| Deferred loan cost amortization | 4,038 | 5,357 | ||
| Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries | (357,380) | (318,288) | ||
| Distribution of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 4,611 | 207,328 | ||
| Changes in operating assets and liabilities, net of effects from acquisitions: | ||||
| Accounts receivable | (79,954) | 22,362 | ||
| Income taxes refundable/payable | 18,826 | 4,200 | ||
| Inventories and prepaid expenses | (72,919) | (18,666) | ||
| Accounts payable and accrued expenses | 84,580 | 11,200 | ||
| Other | 14,724 | (13,111) | ||
| Net cash provided by operating activities | 704,420 | 624,651 | ||
| Cash flows from investing activities: | ||||
| Capital expenditures | (274,126) | (280,115) | ||
| Acquisition, net of cash acquired | (2,059) | (29,793) | ||
| Investment in Diamond Green Diesel | (189,000) | — | ||
| Investment in other unconsolidated subsidiaries | (4,449) | — | ||
| Loan to Diamond Green Diesel | (25,000) | — | ||
| Gross proceeds from disposal of property, plant and equipment and other assets | 4,645 | 2,797 | ||
| Proceeds from insurance settlement | — | 293 | ||
| Payments related to routes and other intangibles | (274) | (3,810) | ||
| Net cash used by investing activities | (490,263) | (310,628) | ||
| Cash flows from financing activities: | ||||
| Proceeds from long-term debt | 43,824 | 34,569 | ||
| Payments on long-term debt | (142,133) | (232,726) | ||
| Borrowings from revolving credit facility | 620,601 | 495,691 | ||
| Payments on revolving credit facility | (515,424) | (480,604) | ||
| Net cash overdraft financing | (3,845) | (37,692) | ||
| Deferred loan costs | (3,809) | (4,292) | ||
| Issuance of common stock | 50 | 67 | ||
| Repurchase of common stock | (167,708) | (55,044) | ||
| Minimum withholding taxes paid on stock awards | (46,894) | (11,918) | ||
| Acquisition of noncontrolling interest | — | (8,784) | ||
| Distributions to noncontrolling interests | (6,022) | (6,253) | ||
| Net cash used by financing activities | (221,360) | (306,986) | ||
| Effect of exchange rate changes on cash flows | (5,445) | 1,638 | ||
| Net (decrease)/increase in cash, cash equivalents and restricted cash | (12,648) | 8,675 | ||
| Cash, cash equivalents and restricted cash at beginning of year | 81,720 | 73,045 | ||
| Cash, cash equivalents and restricted cash at end of period | $ | 69,072 | $ | 81,720 |
| Supplemental disclosure of cash flow information: | ||||
| Accrued capital expenditures | $ | 6,585 | $ | (4,967) |
| Cash paid during the period for: | ||||
| Interest, net of capitalized interest | $ | 58,449 | $ | 66,216 |
| Income taxes, net of refunds | $ | 46,399 | $ | 36,779 |
| Non-cash operating activities: | ||||
| Operating lease right of use asset obtained in exchange for new lease liabilities | $ | 56,642 | $ | 58,052 |
| Non-cash financing activities: | ||||
| Debt issued for service contract assets | $ | 126 | $ | 8,123 |
| News Release<br><br>February 28, 2022<br><br>Page 8 | ||||
| --- |
Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
December 31, 2021 and December 31, 2020
(in thousands)
| December 31, | December 31, | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Assets: | ||||
| Total current assets | $ | 686,294 | $ | 383,557 |
| Property, plant and equipment, net | 2,710,747 | 1,238,726 | ||
| Other assets | 51,514 | 36,082 | ||
| Total assets | $ | 3,448,555 | $ | 1,658,365 |
| Liabilities and members' equity: | ||||
| Total current portion of long term debt | $ | 165,092 | $ | 517 |
| Total other current liabilities | 295,860 | 99,787 | ||
| Total long term debt | 344,309 | 8,705 | ||
| Total other long term liabilities | 17,531 | 3,758 | ||
| Total members' equity | 2,625,763 | 1,545,598 | ||
| Total liabilities and members' equity | $ | 3,448,555 | $ | 1,658,365 |
Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Twelve-Month Periods Ended December 31, 2021 and December 31, 2020
(in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited) | Change | Change | ||||||||
| December 31, | December 31, | Favorable | December 31, | December 31, | Favorable | |||||
| 2021 | 2020 | (Unfavorable) | 2021 | 2020 | (Unfavorable) | |||||
| Revenues: | ||||||||||
| Operating revenues | $ | 936,940 | $ | 266,760 | $ | 2,342,332 | $ | 1,267,477 | ||
| Expenses: | ||||||||||
| Total costs and expenses less depreciation, amortization and accretion expense | 770,555 | 130,417 | (640,138) | 1,575,494 | 592,781 | (982,713) | ||||
| Depreciation, amortization and accretion expense | 23,653 | 11,222 | (12,431) | 58,326 | 44,882 | (13,444) | ||||
| Total costs and expenses | 794,208 | 141,639 | (652,569) | 1,633,820 | 637,663 | (996,157) | ||||
| Operating income | 142,732 | 125,121 | 17,611 | 708,512 | 629,814 | 78,698 | ||||
| Other income | 154 | 560 | (406) | 678 | 1,636 | (958) | ||||
| Interest and debt expense, net | (3,560) | (313) | (3,247) | (5,936) | (1,260) | (4,676) | ||||
| Net income | $ | 139,326 | $ | 125,368 | $ | 703,254 | $ | 630,190 |
All values are in US Dollars.
| News Release<br><br>February 28, 2022<br><br>Page 9 |
|---|
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) (for additional information, see “Use of Non-GAAP Financial Measures” included later in this media release). The Company believes that Adjusted EBITDA provides additional useful information to investors. Adjusted EBITDA, as the Company uses the term, is calculated below:
Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign Currency
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021
(unaudited)
| Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA | January 2, | January 1, | January 2, | ||||||
| (U.S. dollars in thousands) | 2021 | 2022 | 2021 | ||||||
| Net income attributable to Darling | 155,754 | $ | 44,745 | $ | 650,914 | $ | 296,819 | ||
| Depreciation and amortization | 96,467 | 316,387 | 350,178 | ||||||
| Interest expense | 16,883 | 62,077 | 72,686 | ||||||
| Income tax expense | 10,231 | 164,106 | 53,289 | ||||||
| Restructuring and asset impairment charges | 38,167 | 778 | 38,167 | ||||||
| Acquisition and integration costs | — | 1,396 | — | ||||||
| Foreign currency loss | 1,581 | 2,199 | 2,290 | ||||||
| Other expense, net | 256 | 4,551 | 5,534 | ||||||
| Equity in net income of Diamond Green Diesel | (62,684) | (351,627) | (315,095) | ||||||
| Equity in net income of other unconsolidated subsidiaries | (726) | (5,753) | (3,193) | ||||||
| Net income attributable to other noncontrolling interests | 1,394 | 6,376 | 3,511 | ||||||
| Adjusted EBITDA (Non-GAAP) | 223,576 | $ | 146,314 | $ | 851,404 | $ | 504,186 | ||
| Foreign currency exchange impact | (1) | — | (18,888) | (2) | — | ||||
| Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) | 226,479 | $ | 146,314 | $ | 832,516 | $ | 504,186 | ||
| DGD Joint Venture Adjusted EBITDA (Darling's share) | 83,192 | $ | 68,171 | $ | 383,419 | $ | 337,348 | ||
| Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA | 306,768 | $ | 214,485 | $ | 1,234,823 | $ | 841,534 | ||
| (1) The average rate assumption used in the calculation was the actual fiscal average rate for the three months ended January 1, 2022 of 1.00:1.14 and CAD1.00:0.79 as compared to the average rate for the three months ended January 2, 2021 of 1.00:1.19 and CAD1.00: 0.77, respectively. (2) The average rate assumption used in this calculation was the actual fiscal average rate for the twelve months ended January 1, 2022 of 1.00:1.18 and CAD1.00:0.80 as compared to the average rate for the twelve months ended January 2, 2021 of 1.00:1.14 and CAD1.00: 0.75, respectively. |
All values are in US Dollars.
About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates 250 plants in 17 countries and repurposes nearly 10% of the world's meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertilizer, animal proteins and meals and pet food ingredients. To learn more, visit darlingii.com. Follow us on LinkedIn.
Darling Ingredients Inc. will host a conference call to discuss the Company’s fourth quarter and fiscal year 2021 financial results at 9 a.m. Eastern Time (8 a.m. Central Time) on Tuesday, March 1, 2022. To listen to the conference call, participants calling from within North America should dial 1-844-868-8847; international participants should dial 1-412-317-6593. Please refer to access code 10163722. Please call approximately ten minutes before the start of the call to ensure that you are connected.
| News Release<br><br>February 28, 2022<br><br>Page 10 |
|---|
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 one hour after its completion, a replay of the call can be accessed through March 8, 2022, by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada) and 1-412-317-0088 (international callers). The access code for the replay is 82060219. The conference call will also be archived on the Company’s website.
Use of Non-GAAP Financial Measures:
Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company’s operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.
As a result, the Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes that were outstanding at January 1, 2022. However, the amounts shown in this presentation for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange impact on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.
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 make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; 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, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas(“GHG”) emissions that adversely affect programs like the U.S. government’s renewable fuel standard, low carbon fuel standards (“LCFS”) and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the
| News Release<br><br>February 28, 2022<br><br>Page 11 |
|---|
occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), Highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of African Swine Fever (“ASF”) in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; 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 (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE, ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion project; failure to close on strategic acquisitions, such as Valley Proteins; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully, 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; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and 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, among others, could cause actual results to vary materially from the forward looking statements included in this release or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. 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.}
darlingingredientsq42021
Fourth Quarter & FY 2021 Conference Call Exhibit 99.2
Safe Harbor Statement This presentation contains “forward-looking” statements that are subject to risks and uncertainties that could cause the actual results of Darling Ingredients Inc. (the “Company”) to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “planned,” “contemplate,” “potential,” “possible,” “proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,” “will,” “would,” “should,” “could” “combined adjusted EBITDA guidance” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company’s control. These factors include, among others, existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; 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, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas(“GHG”) emissions that adversely affect programs like the U.S. government’s renewable fuel standard, low carbon fuel standards (“LCFS”) and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), Highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of African Swine Fever (“ASF”) in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; 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 (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE, ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion projects; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully, 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; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and 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, among others, could cause actual results to vary materially from the forward looking statements included in this release or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. 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. Page 2 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022
Summary Highlights Darling Ingredients Fourth Quarter & FY 2021 Financial Update • Fourth quarter combined adjusted EBITDA of $306.8 million led by a strong performance in our feed segment • 2021 combined adjusted EBITDA totaled a record $1.235 billion • Q4 2021 net income of $155.8 million, EPS of $0.94 per diluted share; FY-2021 net income of $650.9 million, EPS of $3.90 per diluted share • Opportunistically repurchased approximately $168 million of common stock, approximately 2.5 million shares in 2021 • Refreshed and extended the share repurchase program up to $500 million of the Company’s Common stock through August 2024 • Increased and extended revolver to $1.5 billion maturing December 2026 and entered into a delay-draw $400 million Term Loan A Diamond Green Diesel (DGD) Fourth Quarter & FY 2021 Update • DGD sold a record 370 million gallons for 2021, average $2.07 EBITDA/gallon, generating $766.8 million total EBITDA • DGD Norco, LA renewable diesel expansion project commissioned in fourth quarter and operating above name plate capacity • DGD Port Arthur, TX construction ahead of schedule and now expecting commissioning in first quarter 2023 • Implemented a $400 million revolving credit facility non-recourse to partners ESG and Growth Initiatives • Published 2021 ESG report, launched strategy to address climate change and water stewardship, plan to commit to the Science Based Targets initiative (SBTi) by year end 2022 • Announced signing of agreement to purchase Valley Proteins, Inc. for approximately $1.1 billion, subject to closing conditions • Opened our Sonac Product Application and Research Center (SPARC) next to our food grade production facility in Vuren, Netherlands to help customers with innovative development for meat & savory food ingredients • Opened new Biomedical Pilot Plant and expanded Expertise Center in Ghent, Belgium dedicated to manufacturing of X-Pure gelatins and exploring the potential of the collagen molecule in the nutritional and biomedical fields Page 3 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022
Financial Highlights (1) Leverage ratio calculated per bank covenant Page 4 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 Financials % % (in mill ions, except per share) Variance Variance Net sales $1,310.1 $1,019.8 28.5% $4,741.4 $3,571.9 32.7% Gross margin 321.1 248.6 29.2% 1,242.0 883.1 40.6% Gross margin % 24.5% 24.4% 0.5% 26.2% 24.7% 6.1% Net income $155.8 $44.7 248.5% $650.9 $296.8 119.3% EPS diluted $0.94 $0.27 248.1% $3.90 $1.78 119.1% FY-2020Q4-2021 Q4-2020 FY-2021 Fiscal 2020 includes an additional week of operations which occurs every five to six years. In Fiscal 2020 the additional week occurred in the fourth quarter and increased net sales and operating income by approximately $73 million and $8 million, respectively. Balance Sheet (in millions, except ratio data) Cash (including restricted) $69.1 $81.7 Revolver availability $1,285.9 $893.9 Net working capital $291.7 $257.5 Total debt $1,463.4 $1,508.1 Leverage ratio (1) 1.57x 1.90x As of 01/01/2022 As of 01/02/2021 Financials % % (in mill ions) Variance Variance Segment EBITDA Feed $167.5 90.2 85.7% $613.7 $317.8 93.1% Food $49.4 49.8 (0.8)% 194.9 $167.1 16.6% Fuel (1) $104.6 89.0 17.5% 483.1 $411.9 17.3% Corporate (14.7) (14.5) (1.4)% (56.9) (55.3) (2.9)% Total Combined adjusted EBITDA $306.8 $214.5 43.0% $1,234.8 $841.5 46.7% FY-2021 FY-2020Q4-2021 Q4-2020 22.00% 23.00% 24.00% 25.00% 26.00% 27.00% FY 2018 FY 2019 FY 2020 FY 2021 Darling Gross Margin Trends GM%
Financial Highlights $177 $222 $230 $224 $851 $108 $132 $60 $83 $383 $0 $150 $300 $450 $600 $750 $900 $1,050 $1,200 Global Ingredients DGD $284.8 $353.7 $289.6 (In millions) Combined adjusted EBITDA $306.8 $1,234.8 Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Page 5 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 (1) Includes Fuel Segment EBITDA and Darling's share of DGD EBITDA Feed 48% Fuel (1) 37% Food 15% FY 2021 % of Total EBITDA by Segment Feed Fuel Food
Feed Segment Key Drivers: • Robust global markets for fats and proteins drove growth • Global volumes remained strong, new capacity added over last 5 years showing strong returns • Climate change initiatives transforming value of waste fats with carbon intensity defining final sales price • Pet food demand continues to grow globally providing improved incremental returns • U.S. meat and bone meal (MBM) prices improved, but remained at a discount to soybean meal (SBM) due to container logistical problems throughout the supply chain Page 6 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 (1) Includes pet food, hides and service charges (2) Includes trap services Change in Net Sales - 2020 to 2021 Twelve Months Ended Fats Proteins Other (1) Total Rendering Used Cooking Oil Bakery Other (2) Total Net sales year ended January 2, 2021 661.7$ 830.2$ 178.6$ 1,670.5$ 176.7$ 183.8$ 41.1$ 2,072.1$ Changes: Increase/(Decrease) in sales volumes 6.4 (9.7) - (3.3) 8.5 (2.8) - 2.4 Increase in finished product prices 517.7 186.0 - 703.7 132.0 106.4 - 942.1 Increase due to currency exchange rates 12.3 16.2 1.1 29.6 1.9 - - 31.5 Other change - - (6.3) (6.3) - - (2.3) (8.6) Total Change: 536.4 192.5 (5.2) 723.7 142.4 103.6 (2.3) 967.4 Net sales year ended January 1, 2022 1,198.1$ 1,022.7$ 173.4$ 2,394.2$ 319.1$ 287.4$ 38.8$ 3,039.5$ Rendering Sales * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively. US$ (in millions) 4Q 2021 4Q 2020 FY 2021 FY 2020 Net Sales 846,498$ 572,764$ 3,039,500$ 2,072,104$ Cost of sales and operating expenses 621,581 426,593 2,206,248 1,544,524 Gross Margin 224,917$ 146,171$ 833,252$ 527,580$ Loss/(gain) on sale of assets (60) (274) (550) 19 Selling, general and administrative expenses 57,484 56,289 220,078 209,748 Depreciation and amortization 56,538 61,219 218,942 221,187 Segment operating income 110,955$ 28,937$ 394,782$ 96,626$ Equity in net income of other unconsolidated subsidiaries 1,554$ 726$ 5,753$ 3,193$ Segment Income 112,509$ 29,663$ 400,535$ 99,819$ Segment EBITDA 167,493$ 90,156$ 613,724$ 317,813$ Raw material processed (mmts)* 2.27 2.37 8.92 8.95
Food Segment • Collagen business drove earnings growth with hydrolyzed collagen applications and demand accelerating into 2022. • Raw material availability in South America improving • Health and Nutrition segment seeing new demand and expected to fuel growth in 2022 • Edible fats demand remained strong and increasing values aided earnings • Casings business returned to profitability as global demand returned to post-pandemic levels Key Drivers: $100 $120 $140 $160 $180 $200 Food Segment Trailing 4Q adjusted EBITDA Trailing 4 Q's Page 7 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 76% 14% 10% FY 2021 % of Sales Breakdown Collagen Edible fats Other products US$ (in millions) 4Q 2021 4Q 2020 FY 2021 FY 2020 Net Sales 344,677$ 344,631$ 1,271,629$ 1,185,701$ Cost of sales and operating expenses 272,972 268,348 979,232 920,682 Gross Margin 71,705$ 76,283$ 292,397$ 265,019$ (Gain)/Loss on sale of assets (87) 512 (88) 482 Selling, general and administrative expenses 22,405 26,000 97,555 97,406 Depreciation and amortization 15,263 22,827 60,929 83,752 Segment Income 34,124$ 26,944$ 134,001$ 83,379$ Segment EBITDA 49,387$ 49,771$ 194,930$ 167,131$ Raw material processed (mmts)* 0.29 0.29 1.11 1.08 * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively.
Fuel Segment (Includes Diamond Green Diesel JV consolidated EBITDA) Key Drivers: • FY 2021 combined adjusted EBITDA of $483.1 million, with DGD earning $2.07 per gallon on 370.2 million gallons sold • DGD – Norco, LA expansion fully operational in Q4, potential to produce over 750 million gallons of renewable diesel and approximately 30 million gallons of renewable naphtha annually • DGD Port Arthur, TX construction on budget and ahead of schedule; new 470-million-gallon facility now expected to be operational in 1Q2023 • European green energy businesses providing earnings support with higher global energy prices (1) Includes Fuel Segment EBITDA and Darling's share of DGD EBITDA. (2) Excludes feed stock (raw material) processed at the DGD joint venture. (3) Quarterly average prices source is The Jacobsen $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 $0.30 $0.80 $1.30 $1.80 Quarterly Avg. Prices D4 RINS & Yellow Grease(3) D4 RIN Qtrly Avg YG Avg Qtrly Price Page 8 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively. US$ (in millions) 4Q 2021 4Q 2020 FY 2021 FY 2020 Net Sales 118,893$ 102,444$ 430,240$ 314,118$ Cost of sales and operating expenses 94,371 76,251 313,905 223,609 Gross Margin 24,522$ 26,193$ 116,335$ 90,509$ Loss on sale of assets (18) (22) (320) (75) Selling, general and administrative expenses 3,177 5,369 16,999 16,014 Restructuring and asset impairment charges - 38,167 778 38,167 Depreciation and amortization 6,222 9,513 25,436 34,218 Equity in net income of Diamond Green Diesel 69,663 62,684 351,627 315,095 Segment Income 84,804$ 35,850$ 425,069$ 317,280$ Base EBITDA 21,363$ 20,846$ 99,656$ 74,570$ DGD adjusted EBITDA (Darling's Share) 83,192$ 68,171$ 383,419$ 337,348$ Segment EBITDA (1) 104,555$ 89,017$ 483,075$ 411,918$ Raw material processed (mmts) * (2) 0.33 0.36 1.28 1.31 US$ and gallons (in millions) 4Q 2021 4Q 2020 FY 2021 FY 2020 EBITDA (Entity) - recorded w/no BTC 19.8$ 79.8$ 395.7$ 386.8$ EBITDA (Entity) - recorded including BTC 166.4$ 136.6$ 766.8$ 674.7$ Pro forma Adjusted EBITDA (Darling's share) 83.2$ 68.2$ 383.4$ 337.4$ Total gallons produced 148.1 60.5 371.6 289.3 Total gallons sold/shipped 146.5 56.8 370.2 288.0 EBITDA per gallon sold 1.14$ 2.40$ 2.07$ $2.34 Diamond Green Diesel
Page 9 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022 January 2022 Port Arthur, TX 470-million-gallon facility
Appendix Additional Information
California LCFS & RIN value history Source: The Jacobsen and StoneX Page 11 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022
Feed Segment - Historical (1) Does not include Unconsolidated Subsidiaries EBITDAPage 12 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively. US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Net Sales 512.6$ 503.7$ 483.0$ 572.8$ 2,072.1$ 651.4$ 771.9$ 769.6$ 846.5$ 3,039.5$ Gross Margin 124.2 135.8 121.4 146.2 527.6 176.9 215.5 216.0 224.9 833.3 Gross Margin % 24.2% 27.0% 25.1% 25.5% 25.5% 27.1% 27.9% 28.1% 26.6% 27.4% Loss/(gain) on sale of assets 0.1 0.1 0.2 (0.3) - (0.1) (0.1) (0.2) (0.1) (0.6) SG&A 53.9 50.5 49.0 56.3 209.7 52.6 55.0 55.0 57.5 220.1 SG&A Margin % 10.5% 10.0% 10.2% 9.8% 10.1% 8.1% 7.1% 7.1% 6.8% 7.2% Operating Income 16.7 32.5 18.5 28.9 96.6 69.8 106.7 107.4 111.0 394.8 Adj. EBITDA (1) 70.2$ 85.2$ 72.3$ 90.2$ 317.8$ 124.4$ 160.7$ 161.2$ 167.5$ 613.7$ Adj. EBITDA Margin % 13.7% 16.9% 15.0% 15.7% 15.3% 19.1% 20.8% 20.9% 19.8% 20.2% Raw Material Processed (mmts)* 2.24 2.15 2.18 2.37 8.95 2.23 2.19 2.22 2.27 8.92
Historical Pricing The Jacobsen, Wall Street Journal and Thomson Reuters Page 13 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022 2021 Finished Product Pricing Feed Segment finished ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Bleachable Fancy Tallow - Chicago Renderer / cwt $41.42 $44.68 $51.98 $46.42 $54.10 $55.30 $59.73 $56.60 $68.00 $69.50 $69.50 $66.75 $69.93 $69.23 $59.71 $66.15 $58.98 Yellow Grease - Illinois / cwt $29.01 $34.40 $39.02 $34.45 $39.80 $43.03 $44.20 $42.47 $47.00 $41.75 $46.50 $44.70 $46.40 $46.41 $40.57 $44.30 $41.48 Used Cooking Oil (UCO) - Illinois / cwt $34.68 $39.11 $42.41 $38.73 $43.60 $46.35 $51.59 $47.18 $52.50 $55.82 $51.60 $53.31 $54.17 $55.98 $55.79 $55.31 $48.63 Meat and Bone Meal - Ruminant - Illinois / ton $355.53 $380.53 $418.26 $386.97 $425.90 $400.00 $421.00 $408.63 $411.70 $360.00 $270.00 $385.53 $280.71 $251.00 $250.00 $261.79 $360.73 Poultry By-Product Meal - Feed Grade - Mid South/ton $326.58 $386.60 $359.78 $357.79 $342.40 $339.00 $337.50 $339.31 $337.50 $337.50 $330.00 $337.15 $335.00 $335.00 $335.00 $335.07 $342.33 Poultry By-Product Meal - Pet Food - Mid South/ton $876.97 $845.40 $818.48 $845.08 $809.52 $867.50 $796.93 $823.18 $745.40 $650.00 $600.00 $680.77 $622.62 $616.25 $707.14 $650.25 $749.82 2021 Vegetable Oils Pricing Competing ingredients for Feed Segment fats & biofuel feedstock January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Soybean Oil (crude/de-gummed) - Central Illinois / cwt $46.42 $50.47 $60.13 $52.34 $65.34 $77.16 $76.83 $73.11 $72.72 $68.71 $64.16 $68.53 $66.22 $63.88 $60.35 $63.48 $64.37 Soybean Oil (RBD) - Central Illinois / cwt $49.42 $52.60 $62.61 $54.88 $71.77 $92.79 $97.36 $87.31 $92.79 $82.83 $75.16 $83.59 $79.65 $77.38 $73.04 $76.69 $75.62 Distiller's Corn Oil - IL/WI cwt $39.92 $43.50 $51.25 $44.89 $49.13 $51.49 $55.42 $52.01 $59.85 $64.10 $53.87 $59.27 $60.90 $58.68 $53.74 $57.77 $53.49 2021 Cash Corn Pricing Competing Ingredient for Bakery Feeds and Fats in Feed Segment January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Corn - Track Central IL #2 Yellow / bushel $5.04 $5.35 $5.42 $5.27 $6.24 $6.84 $6.67 $6.58 $6.23 $6.04 $5.13 $5.80 $5.10 $5.57 $5.77 $5.48 $5.78 2021 European Benchmark Pricing Palm Oil - Competing ingredient for edible fats in Food Segment Soy meal - Competing ingredient for protein meals in Feed Segment January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Palm oil - CIF Rotterdam / metric ton $1,032 $1,090 $1,131 $1,084 $1,171 $1,258 $1,075 $1,168 $1,169 $1,226 $1,243 $1,213 $1,368 $1,366 $1,314 $1,349 $1,204 Soy meal - CIF Rotterdam / metric ton $561 $544 $499 $535 $470 $481 $467 $473 $470 $469 $467 $469 $448 $451 $498 $466 $485 2021 Average Jacobsen Prices (USD) Average Wall Street Journal Prices (USD) Average Thomson Reuters Prices (USD) 2021 Average Jacobsen Prices (USD) QTR. over QTR. (Sequential) Year over Year (Q4) Year over Year (FY) Comparison Q3-2021 Q4-2021 % Q4-2020 Q4-2021 % 2020 2021 % Average Jacobsen Prices (USD) Avg. Avg. Change Avg. Avg. Change Avg. Avg. Change Bleachable Fancy Tallow - Chicago Renderer / cwt $66.75 $66.15 -0.9% $34.24 $66.15 93.2% $31.48 $58.98 87.4% Yellow Grease - Illinois / cwt $44.70 $44.30 -0.9% $25.22 $44.30 75.7% $21.95 $41.48 89.0% Used Cooking Oil (UCO) - Illinois / cwt $53.30 $55.31 3.8% $29.44 $55.31 87.9% $26.54 $48.63 83.2% Meat and Bone Meal - Ruminant - Illinois / ton $385.53 $261.79 -32.1% $305.29 $261.79 -14.2% $261.43 $360.73 38.0% Poultry By-Product Meal - Feed Grade - Mid South / ton $337.15 $335.07 -0.6% $283.65 $335.07 18.1% $251.13 $342.33 36.3% Poultry By-Product Meal - Pet Food - Mid South / ton $680.77 $650.25 -4.5% $733.12 $650.25 -11.3% $633.61 $749.82 18.3% Soybean Oil (crude/de-gummed) - Central Illinois / cwt $68.53 $63.48 -7.4% $38.01 $63.48 67.0% $31.38 $64.37 105.1% Soybean Oil (RBD) - Central Illinois / cwt $83.59 $76.69 -8.3% $41.28 $76.69 85.8% $34.56 $75.62 118.8% Distiller's Corn Oil - IL/WI per cwt $59.27 $57.77 -2.5% $33.09 $57.77 74.6% $27.80 $53.49 92.4% Average Wall Street Journal Prices (USD) Corn - Track Central IL #2 Yellow / bushel $5.80 $5.48 -5.5% $3.98 $5.48 37.7% $3.60 $5.78 60.6% Average Thomson Reuters Prices (USD) Palm oil - CIF Rotterdam / metric ton $1,213 $1,349 11.2% $850 $1,349 58.7% $707 $1,204 70.3% Soy meal - CIF Rotterdam / metric ton $469 $466 -0.6% $485 $466 -3.9% $394 $485 23.1%
Food Segment - Historical Page 14 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Net Sales 270.3$ 278.9$ 291.8$ 344.6$ 1,185.7$ 298.1$ 317.0$ 311.9$ 344.7$ 1,271.6$ Gross Margin 64.9 58.8 65.1 76.3 265.0 71.7 78.5 70.5 71.7 292.4 Gross Margin % 24.0% 21.1% 22.3% 22.1% 22.4% 24.0% 24.8% 22.6% 20.8% 23.0% Loss/(gain) on sale of assets 0.0 - 0.0 0.5 0.5 0.1 (0.0) (0.0) (0.1) (0.1) SG&A 25.5 22.6 23.4 26.0 97.4 25.2 25.5 24.4 22.4 97.6 SG&A Margin % 9.4% 8.1% 8.0% 7.5% 8.2% 8.5% 8.1% 7.8% 6.5% 7.7% Operating Income 19.1 16.3 21.1 26.9 83.4 31.5 37.1 31.2 34.1 134.0 Adj. EBITDA 39.4$ 36.3$ 41.7$ 49.8$ 167.1$ 46.4$ 53.0$ 46.1$ 49.4$ 194.9$ Adj. EBITDA Margin % 14.6% 13.0% 14.3% 14.4% 14.1% 15.6% 16.7% 14.8% 14.3% 15.3% Raw Material Processed (mmts)* 0.26 0.27 0.26 0.29 1.08 0.26 0.27 0.28 0.29 1.11 * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively.
Fuel Segment - Historical Page 15 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 Diamond Green Diesel (50% Joint Venture) US$ and gallons (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 EBITDA (Entity) - recorded w/no BTC 127.3$ 66.0$ 112.9$ 80.6$ 386.8$ 137.4$ 180.0$ 58.4$ 19.8$ 395.7$ EBITDA (Entity) - recorded including BTC 207.3$ 138.2$ 192.9$ 136.3$ 674.7$ 216.4$ 264.0$ 120.1$ 166.4$ 766.8$ Pro forma Adjusted EBITDA (Darling's share) 103.6$ 69.2$ 96.4$ 68.2$ 337.4$ 108.2$ 132.0$ 60.0$ 83.2$ 383.4$ Total gallons produced 77.0 74.5 77.3 60.5 289.3 78.6 79.2 65.6 148.1 371.6 Total gallons sold/shipped 78.9 72.3 80.0 56.8 288.0 78.0 84.0 61.7 146.5 370.2 EBITDA per gallon sold/shipped 2.63$ 1.91$ 2.41$ 2.40$ 2.34$ 2.77$ 3.14$ 1.95$ 1.14$ 2.07$ US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Net Sales 69.9$ 66.0$ 75.7$ 102.4$ 314.1$ 97.2$ 109.7$ 104.4$ 118.9$ 430.2$ Gross Margin 16.9 21.8 25.7 26.2 90.5 25.4 26.6 39.8 24.5 116.3 Gross Margin % 24.2% 32.9% 33.9% 25.6% 28.8% 26.1% 24.2% 38.1% 20.6% 27.0% Loss/(gain) on sale of assets 0.0 (0.0) 0.0 (0.0) (0.0) 0.0 (0.1) (0.3) (0.0) (0.3) SG&A 1.6 4.0 5.0 5.4 16.0 4.9 4.5 4.5 3.2 17.0 Restructuring and asset impairment charges - - - 38.2 38.2 0.8 - - - 0.8 Depreciation and amortization 8.1 8.0 8.6 9.5 34.2 6.2 6.7 6.4 6.2 25.4 Equity in net income of DGD 97.8 63.5 91.1 62.7 315.1 102.2 125.8 54.0 69.7 351.7 Operating Income 105.0 73.3 103.1 35.9 317.3 115.8 141.3 83.2 84.8 425.1 Base adjusted EBITDA 15.3 17.8 20.7 20.8 74.6 20.5 22.2 35.6 21.4 99.7 DGD adjusted EBITDA (Darling's Share) 103.6 69.1 96.4 68.2 337.3 108.2 132.0 60.0 83.2 383.4 Combined adjusted EBITDA (1) 118.9$ 86.9$ 117.1$ 89.0$ 411.9$ 128.7$ 154.2$ 95.6$ 104.6$ 483.1$ Raw Material Processed (mmts) (2) * 0.33 0.30 0.32 0.36 1.31 0.33 0.31 0.30 0.33 1.28 (1) Includes Fuel Segment base EBITDA and Darling's share of DGD EBITDA. (2) Excludes feed stock (raw material) processed at the DGD joint venture. * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively.
Non-U.S. GAAP Measures Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Since EBITDA (generally, net income plus interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company’s operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance. As a result, the Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities and 5.25% Notes and 3.625% Notes that were outstanding on January 1, 2022. However, the amounts shown in this presentation for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities and 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange impact on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization. Page 16 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022
Adjusted EBITDA Page 17 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 (1) The average rate assumption used in this calculation was the actual fiscal average rate for the three months ended January 1, 2022 of €1.00:USD$1.14 and CAD$1.00:USD$0.79, as compared to the average rate for the three months ended January 2, 2021 of €1.00:USD$1.19 and CAD$1.00:USD$0.77, respectively. (2) The average rate assumption used in this calculation was the actual fiscal average rate for the twelve months ended January 1, 2022 of €1.00:USD$1.18 and CAD$1.00:USD$0.80, as compared to the average rate for the twelve months ended January 2, 2021 of €1.00:USD$1.14 and CAD$1.00:USD$0.75, respectively. Adjusted EBITDA January 1, January 2, January 1, January 2, (U.S. dollars in thousands) 2022 2021 2022 2021 Net income attributable to Darling 155,754$ 44,745$ 650,914$ 296,819$ Depreciation and amortization 80,805 96,467 316,387 350,178 Interest expense 14,972 16,883 62,077 72,686 Income tax expense 37,782 10,231 164,106 53,289 Restructuring and asset impairment charges - 38,167 778 38,167 Acquisition and integration costs 1,396 - 1,396 - Foreign currency losses 900 1,581 2,199 2,290 Other expense, net 1,341 256 4,551 5,534 Equity in net income of Diamond Green Diesel (69,663) (62,684) (351,627) (315,095) Equity in net income of other unconsolidated subsidiaries (1,554) (726) (5,753) (3,193) Net income attributable to noncontrolling interests 1,843 1,394 6,376 3,511 Adjusted EBITDA (Non-GAAP) 223,576$ 146,314$ 851,404$ 504,186$ Foreign currency exchange impact 2,903 (1) - (18,888) (2) - Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) 226,479$ 146,314$ 832,516$ 504,186$ DGD Joint Venture Adjusted EBITDA (Darling's Share) 83,192$ 68,171$ 383,419$ 337,348$ Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA 306,768$ 214,485$ 1,234,823$ 841,534$ Three Months Ended Twelve Months Ended
Upcoming IR Conference Events • Raymond James Conference (Orlando, FL) - March 7, 2022 • Bank of America Downstream Conference (Virtual) – March 10, 2022 • Roth 34th Annual Conference (Dana Point, CA) – March 13-15, 2022 • BNP Paribas Consumer Ingredients Conference (Virtual) – March 17, 2022 • Piper Sandler 22nd Annual Energy Conference (Las Vegas, NV) – March 22-23, 2022 • Gabelli 8th Annual Environmental Services & Sustainability Symposium (Virtual) – March 31, 2022 Page 18 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022
Thank you