Revenue during the quarter grew 12.88 percent to $880.07 million from $779.64 million in the previous year period. Gross margin for the quarter contracted 154 basis points over the previous year period to 21.64 percent. Total expenses were 96.43 percent of quarterly revenues, down from 96.58 percent for the same period last year. This has led to an improvement of 15 basis points in operating margin to 3.57 percent.

Operating income for the quarter was $31.41 million, compared with $26.69 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $102.53 million compared with $98.95 million in the prior year period. At the same time, adjusted EBITDA margin contracted 104 basis points in the quarter to 11.65 percent from 12.69 percent in the last year period.

“We capitalized on an improved environment with our first quarter results reflecting solid execution across our global platform leveraged by sequentially consistent and improved performance in our Feed and Food segments. Sequentially, Fuel segment results reflect the lack of the blenders tax credit and one-time settlements received last quarter,” said Randall C. Stuewe, chairman and chief executive officer of Darling Ingredients Inc. “Diamond Green Diesel completed its second maintenance turnaround and issued a partner dividend of $25 million each. Our planned expansion of Diamond Green Diesel is progressing well and we continue to focus on growing our global platform while improving efficiencies and increasing capital returns. We’re off to a good start in 2017.”

The company has spent $59.90 million cash to meet investing activities during the quarter as against cash outgo of $59.28 million in the last year period. It has incurred capital expenditure of $60.95 million on net basis during the quarter, up 17.33 percent or $9 million from year ago period.

The company has spent $10.56 million cash to carry out financing activities during the quarter as against cash outgo of $2.64 million in the last year period.

Cash and cash equivalents stood at $138.88 million as on Apr. 01, 2017, down 5.73 percent or $8.45 million from $147.33 million on Apr. 02, 2016.

Working capital declines
Darling Ingredients Inc has witnessed a decline in the working capital over the last year. It stood at $475.51 million as at Apr. 01, 2017, down 6.47 percent or $32.92 million from $508.43 million on Apr. 02, 2016. Current ratio was at 2.05 as on Apr. 01, 2017, down from 2.13 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 75 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 45 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 54 days for the previous year period. At the same time, days payable outstanding went down to 22 days for the quarter from 24 for the same period last year.