Darling Ingredients Files Q2 2024 10-Q

TL;DR

Darling Ingredients filed its Q2 10-Q, showing financial performance for the period ending June 29, 2024.

AI Summary

Darling Ingredients Inc. filed its 10-Q for the period ending June 29, 2024. The filing details financial performance and operational updates for the company, which is involved in the fats and oils industry. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This 10-Q filing provides investors and stakeholders with a detailed look into Darling Ingredients' financial health and operational performance during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 20240629 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20240807 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• DARLING INGREDIENTS INC. (company) — Filer
• 20240629 (date) — Reporting Period End Date
• 20240807 (date) — Filing Date
• FATS & OILS [2070] (industry) — Standard Industrial Classification

FAQ

Key Financial Figures

• $0.01 — hange on which registered Common stock $0.01 par value per share DAR New York Stock

Filing Documents

• dar-20240629.htm (10-Q) — 2726KB
• ex31-darlingxamendedandres.htm (EX-3.1) — 25KB
• ex311-20240629.htm (EX-31.1) — 11KB
• ex312-20240629.htm (EX-31.2) — 10KB
• ex32-20240629.htm (EX-32) — 11KB
• 0000916540-24-000024.txt ( ) — 14017KB
• dar-20240629.xsd (EX-101.SCH) — 69KB
• dar-20240629_cal.xml (EX-101.CAL) — 124KB
• dar-20240629_def.xml (EX-101.DEF) — 444KB
• dar-20240629_lab.xml (EX-101.LAB) — 878KB
• dar-20240629_pre.xml (EX-101.PRE) — 654KB
• dar-20240629_htm.xml (XML) — 2785KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION Item 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Consolidated Balance Sheets 3 June 29, 2024 (unaudited) and December 30, 2023 Consolidated Statements of Operations (unaudited) 4 Three and Six Months Ended June 29, 2024 and July 1, 2023 Consolidated Statements of Comprehensive Income/(Loss) (unaudited) 5 Three and Six Months Ended June 29, 2024 and July 1, 2023 Consolidated Statements of Stockholders' Equity (unaudited) 6 Six Months Ended June 29, 2024 and July 1, 2023 Consolidated Statements of Cash Flows (unaudited) 8 Six Months Ended June 29, 2024 and July 1, 2023

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 57 Item 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 59

: OTHER INFORMATION

PART II: OTHER INFORMATION Item 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 61 Item 1A.

RISK FACTORS

RISK FACTORS 61 Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 61 Item 5. OTHER INFORMATION 61 Item 6. EXHIBITS 62

Signatures

Signatures 63 2 DARLING INGREDIENTS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 29, 2024 and December 30, 2023 (in thousands, except share data) June 29, 2024 December 30, 2023 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 121,587 $ 126,502 Restricted cash 26,290 292 Accounts receivable, less allowance for bad debts of $ 17,297 at June 29, 2024 and $ 15,208 at December 30, 2023 567,754 626,008 Accounts receivable due from related party - Diamond Green Diesel 9,331 172,283 Inventories 627,692 758,739 Prepaid expenses 88,702 105,657 Income taxes refundable 34,225 23,599 Other current assets 31,936 42,586 Total current assets 1,507,517 1,855,666 Property, plant and equipment, less accumulated depreciation of $ 2,467,853 at June 29, 2024 and $ 2,360,342 at December 30, 2023 2,840,682 2,935,185 Intangible assets, less accumulated amortization of $ 538,205 at June 29, 2024 and $ 748,646 at December 30, 2023 992,530 1,075,892 Goodwill 2,418,274 2,484,502 Investment in unconsolidated subsidiaries 2,415,502 2,251,629 Operating lease right-of-use assets 210,144 205,539 Other assets 218,810 234,960 Deferred income taxes 17,190 17,711 $ 10,620,649 $ 11,061,084 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 92,258 $ 60,703 Accounts payable, principally trade 349,522 425,588 Income taxes payable 13,298 15,522 Current operating lease liabilities 57,794 55,325 Accrued expenses 450,185 440,999 Total current liabilities 963,057 998,137 Long-term debt, net of current portion 4,317,129 4,366,370 Long-term operating lease liabilities 156,451 154,903 Other non-current liabilities 240,416 349,809 Deferred income taxes 400,983 498,174 Total liabilities 6,078,036 6,367,393 Commitments and contingencies Stockholders' equity: Common stock, $ 0.01 par value; 250,000,000 shares authorized; 174,871,971 and 174,427,981 shares issued at June 29, 2024 and December 30, 2023

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements June 29, 2024 (unaudited) (1) General The accompanying consolidated financial statements for the six month periods ended June 29, 2024 and July 1, 2023, have been prepared by Darling Ingredients Inc., a Delaware corporation ("Darling", and together with its subsidiaries, the "Company" or "we", "us" or "our") in accordance with generally accepted accounting principles in the United States ("GAAP") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The information furnished herein reflects all adjustments (consisting only of normal recurring accruals) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company's Form 10-K for the fiscal year ended December 30, 2023. (2) Summary of Significant Accounting Policies (a) Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an all

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