Darling International Inc. (DAR), a provider of rendering and bakery waste recycling to food industry, announced earnings and revenue guidance for the fourth quarter and fiscal 2010, above analysts expectations.
The Irving, Texas-based Darling said it expects fourth quarter adjusted earnings of 19 cents to 22 cents a share and revenue of $222 million to $232 million. Analysts polled by Thomson Reuters expect Darling to earn 17 cents a share on revenue of $179.30 million for the fourth quarter.
For the fiscal 2010, Darling anticipates adjusted profit of 60 cents to 63 cents a share and revenue of $719.7 million to $729.7 million, while Street analysts expects profit of 58 cents a share on revenue of $673.09 million.
Adjusted earnings is expected to be in the range of $16.0 million to $19.0 million for the fourth quarter and in the range of $50.2 million to $53.2 million for fiscal year.
Meanwhile, the company projects GAAP earnings of $9.5 million to $12.5 million or 12 cents to 15 cents a share for the fourth quarter. The company anticipates fiscal 2010 GAAP profit of $43.7 million to $46.7 million or 53 cents to 56 cents a share.
The company said GAAP earnings included one-time transaction costs of $10 million related to Darling's acquisition of Griffin Industries, Inc., which closed on December 17.
Separately, Darling said it plans to offer 24.19 million common shares in an underwritten public offering.
In addition, Darling and certain former stockholders of Griffin Industries, Inc. (pursuant to such stockholders' contractual registration rights) may grant the underwriters a 30-day option to buy up to 3.629 million additional shares of Darling common stock to cover over-allotments, if any.
Darling said it plans to use the net proceeds from the offering to repay a portion of the outstanding balance under its credit facility and for general corporate purposes. The repayment of such indebtedness will provide Darling with additional debt capacity and cash from operations to use in its previously announced renewable green diesel joint venture with Valero Energy Corp. (VLO).
Goldman, Sachs & Co. and BMO Capital Markets are serving as joint book-running managers for the offering.
Darling shares closed Friday's regular trading up 5.26 percent at $13.61 on the NYSE.