Good morning, everyone, and welcome to the Darling Ingredients, Incorporated Conference Call to discuss the company's Fiscal Third Quarter 2015 Financial Results. With us today are Mr. Randall Stuewe, Chairman and Chief Executive Officer of Darling Ingredients; and Mr. John Muse, Executive Vice President and Chief Financial Officer. After the speakers' opening remarks, there will be a question-and-answer period and instructions to ask a question will be given at that time. This call is being recorded, and your participation implies consent to our recording this call. If you do not agree to these terms, simply drop off the line. I would now like to turn the call over to Melissa Gaither, Director of Investor Relations for Darling Ingredients. Please go ahead.

Thank you, Alison. Good morning. Thank you for joining us to review Darling's earnings results for the third quarter 2015, ended October 3, 2015. To augment management's formal presentation, please refer to the presentation section of our IR website for the third quarter earnings slide deck. Randall Stuewe, our Chairman and CEO, will begin today's call with an overview of our third quarter financial performance and discuss some of the trends that impacted the quarter. John Muse, Executive Vice President and Chief Financial Officer, will then provide you with additional details about our financial results. Please see the full disclosure of our non-U.S. GAAP measures in both our earnings release and at the end of the earnings slide presentation. Finally, Randy will conclude the prepared portion of the call with some general remarks about the business, after which time we will be happy to answer your questions. And now for the Safe Harbor statement. This conference call will contain forward-looking statements regarding Darling Ingredients' business opportunities and anticipated results of operations. Please bear in mind that forward-looking information is subject to many risks and uncertainties, and actual results may differ materially from what is projected. Many of these risks and uncertainties are described in Darling's annual report on Form 10-K for the year ending January 3, 2015; our recent press release announced yesterday; and our other filings with the SEC. Forward-looking statements in this conference call are based on our current expectations and beliefs and we do not undertake any duty to update any of the forward-looking statements made in this conference call or otherwise. With that, I would now like to turn the call over to Randy. Randall C. Stuewe - Chairman & Chief Executive Officer: Thanks, Melissa. Good morning, everyone. Thanks for joining us. Today, we review our…

Thank you. And our first question will come from Heather Jones of BB&T Capital Markets. Please go ahead. Heather Lynn Jones - BB&T Capital Markets: Good morning. Randall C. Stuewe - Chairman & Chief Executive Officer: Good morning, Heather. John O. Muse - Chief Financial Officer & Executive Vice President: Good morning. Heather Lynn Jones - BB&T Capital Markets: I have a few questions, but first a detail-ish one. SG&A came in lower than we were expecting for the quarter. And I understand there's been headcounts and all, but was there any non-recurring items in that quarter-over-quarter reduction? John O. Muse - Chief Financial Officer & Executive Vice President: There was some small non-recurring, but the biggest impact that we outlined in the Q, Heather, is on benefits or really incentive comp. We were then accruing about between $1.5 million and $1.750 million a quarter. That was reversed. That $3 million to $3.5 million was reversed from what we booked in the first and second quarter. We didn't book that in the third quarter. So that brings you up to about $4.5 million to $5 million. Then we will not be booking that into the fourth quarter. The others things were just some cost reduction and some true-ups. We do some actuarial reports that come in to true-up our healthcare and our workers' comp and auto and so forth. So that kind of flows through a little bit in the third quarter, but that is pretty standard comparison. We would expect fourth quarter SG&A to be back more in that – between that $82 million to $83.5 million to $84 million range in the fourth quarter. Heather Lynn Jones - BB&T Capital Markets: Okay. Because you won't have the reversals and all in that quarter? John O. Muse - Chief…

Our next question will come from Dan Mannes from Avondale Partners. Please go ahead with your question.

Thanks. Good morning, everyone, and nice quarter. Randall C. Stuewe - Chairman & Chief Executive Officer: Thanks, Dan.

So, first question, I want to follow up, actually, on your last comment about fat prices and even to a lesser extent, meat and bone meal. Based on our math, both fats and meat and bone meal are trading at pretty significant discount to their competing products, particularly into animal feed. And I'm wondering if you can just give us a little color. I mean, we've seen this happen before, but usually for short periods of time. Can you maybe walk us through some of the current supply-demand dynamics that are driving that and maybe walk us through how that fixes itself, obviously, including your commentary on the potential demand from biofuels, because it just seems a little incongruous given some of your commentary? Randall C. Stuewe - Chairman & Chief Executive Officer: Yeah. No, and let me – I'll take a stab at it here. I mean, what we're seeing, and I'm going to speak both domestically and then even over to the continent, I mean, what you're seeing the pressure on fats, typically in the U.S.A., you do see some seasonality that happens as the biodiesel industry ramps down and they don't have the inclusion. You had fats being pressured by the biodiesel industry's lack of profitability because of the imports. But more importantly, the fats have been pressured because of just the strong slaughter that we've seen predominantly in the poultry side. Every one of our poultry-related facilities is at or near capacity or was running at and above capacity during the third quarter here. We're continuing to see big animals come to market, especially in the poultry side, and there's ample amounts of poultry fat on the market. You just haven't seen the winter seasonal feeding patterns kick in. We're below the, caloric value of corn…

Got it. And then just moving on real quick and just closing the loop on your LC – on low carbon fuel standard. Is it fair to say that the prices in California are now high enough that the window is open? Meaning, if you could get the infrastructure in place, is there a substantial margin? Our guess is yes, but I'd like to hear you say it. John Bullock - Chief Strategy Officer & Executive Vice President: Hey. Dan, this is John Bullock. Yes, it is open. And a point of fact, we are shipping to California now.

Well, I'm sorry, I guess in your prior question I thought you said, you didn't really have real access or ship access or access to.... John Bullock - Chief Strategy Officer & Executive Vice President: No, we have vessel access. We always have.

Okay. Randall C. Stuewe - Chairman & Chief Executive Officer: (38:14) there is limited amounts of vessels. I mean I think Dan you've been in the business long enough to know who owns those vessels because they have to be Jones Act. And so at the end of the day, yes, we're moving product there. I think I saw the carbon numbers up to about $1 a gallon. It is – number one, I'll stop here and give you a little more color on it. Diamond Green Diesel was built on the pipeline to domestically supply the pipeline and it's been doing that. So, the majority, a super high percentage of our sales are committed out there, our pipeline or barge sales within the region and infrastructure. As the expansion is contemplated here, it's not only to meet the demands of our growing customer base on the pipeline, but to be able to service California. We have been able to move in our product as John was trying to allude to. We are moving product to California. It is a premium to these sales, but it's not a significant portion of our mix today until we expand.

Got it. And then my last question, this is more of a broader question. One of the benefits of the VION transaction is it kind of gives you a world view, particularly into China and Brazil. And I'm just wondering if you can talk more broadly about maybe what you're seeing on the ground level since you're able to get some visibility on things like consumer demand and things like that in some of those countries? What does your intel tell you about how the rest of the world is acting? Randall C. Stuewe - Chairman & Chief Executive Officer: We've had a pretty good year in China and it's driven by Rousselot's performance there. They're running at capacity and sales were up year-over-year and prices have improved over in China. Our blood business, we expanded our Zhejiang plant to be probably the largest in China and one of the larger ones in the world today. It's doing quite well as the aquaculture sees and picks up over there. So, from our perspective, on both consumer and feed demand in China, pretty solid at the food level or food and feed. Now, the offset for that is, is we run a very large rendering hides business, which means the hides that are pulled from fallen stock or dead stock both here in the U.S. and in Europe. And we've seen a pretty significant slowdown in the low-end upholstery and gloves and boot liner business. And let me put it in contrast. In 2008, during the CDO crisis, we had numerous containers of hides inbound to China that were simply cancelled and defaulted on millions of dollars. Right now, what we've seen is we've seen a Chinese renegotiation of price. So, prices at rendering hides have moved down tremendously in China…

Sounds great. Thanks, Randy.

Our next question will come from Adam Samuelson from Goldman Sachs. Please go ahead. Adam Samuelson - Goldman Sachs & Co.: Yes. Thanks. Good morning, everyone. Maybe first going back to this question on fat prices, Randy, and the large discount that you're seeing on used cooking oil and tallow relative to bean oil and other vegetable oil prices. Thinking about the Blenders Credit coming up, the RVO coming up, I mean, how much do you think that can narrow if the credit and the RVO go the way you think it does and over what timeframe? Obviously, seasonally, it's a tougher period for biodiesel, so just trying to think about a magnitude of kind of reversion on fat pricing. Randall C. Stuewe - Chairman & Chief Executive Officer: Well, I mean, we're – I'll try to answer with a couple different directions here. One, fat prices, remember that a lot – a significant amount of our used cooking oil ends up down in Diamond Green Diesel, so we're going to get the benefit on the other side of the margin structure there. The portion that is located on the coastal plants, primarily on the East Coast; there is a very strong biofuel business in Europe that we're certified to service out of the newer plant. Those are some pretty nice premiums to the domestic market right now and the future values there. We're seeing prices up against the Jacobsen of anywhere from $0.03 to $0.07 a pound. So, you're at a bottom here from the standpoint of fat prices. So, I mean, if you get an RVO that's even what we think it's going to be or what was submitted, it's friendly to fat prices. It has to be. You're going to see – remember, you can't use a…

Our next question will come from Ken Zaslow from BMO Capital Markets. Please go ahead.

Hey. Good morning, everyone. Randall C. Stuewe - Chairman & Chief Executive Officer: Good morning, Ken.

So, a couple of questions to follow-up. One is on the Restaurant side. You said that you were able to expand margins despite lower yellow grease prices. Can you talk about that? Randall C. Stuewe - Chairman & Chief Executive Officer: Yeah. Remember, the market and I'm going to try to rewind the movie a little bit, because it's one of those things. That business model changed radically in 2012, 2013 as the people as you had all of the biofuel theft and RIN fraud and everything. You can remember, if you go back, there were new stories on the web calling it liquid gold. And we got into a position, Ken, where we were chasing customers to preserve both our volume and our relationship and our legacy and all that stuff that goes on that says, I got to pay more to keep the volume. And so, we went out there, built an organization and to do that what we've done internally is, as I said, we reduced the head count substantially. We returned to the head count that we pretty much had when we doubled the size of that business in 2008, 2009. And then secondly, we've been able to return our volumes now to greater than they were in 2010. So, we recovered all the theft and then the third piece that happened is it when we talk about margins, remember there is a selling price and there is the purchase price and then there is a small piece of charging that happens for the service where we can. So, really at the end of the day, as prices have come down, we've stopped paying in all markets for used cooking oil. We're kind of at that threshold where we may have to reinstitute charges in our larger metropolitan high cost areas and frankly, we're in process of doing that.

Okay. Great. Thank you. And then in terms of your return, getting 40% of your CapEx spending, that's only on the $60 million. Is that fair? And then how quickly will you get that 40% return? Randall C. Stuewe - Chairman & Chief Executive Officer: Yeah. Now, as we come in, let's talk about all the facilities that make up that number. You've got the two wet pet food plants that are essentially completed. They're in wrap-up stage. As I said in my comments, that it was critical for us to have them done by the 1 of October, so the large pet food companies could come in and do their audits, give us the certifications. We're in that process right now. I think those plants are ready to run. They are producing product in Ravenna. We're getting ready to ramp-up in Paducah here. We have made product in both. Paducah and Ravenna will be online full speed on Jan 1. Ravenna, remember, is both a replacement of our Platte River plant, so we have a base load of sales in there with an opportunity to grow or double its size. Paducah, Kentucky is a brand new plant that is geared at taking predominantly chicken products and putting them into the pet food market. We've got a very nice sales ledger there going into 2016. So, both of those should be at those run rates. Bryan, Texas was just commissioned here a couple weeks ago. It is making product. It is ready to run. The beauty of Bryan, Texas is that it was built to shut down Caldwell, Texas which we leased from Custom Blenders' when we did that acquisition last year. As we've noted before, we were leaving a lot of money on the table logistically there when that…

Great. And then just to make sure, the update of your cost savings program, where are we and how much have you actually realized, and what is the expectation for 2016? Randall C. Stuewe - Chairman & Chief Executive Officer: Well, number one, cost savings for us was driven off. As John noted in his comments, a 10% reduction of corporate head count. We've got some more people that will come out of the system as we finish up our integrations of the business, and ultimately as everyone knows, we've got an ERP system installed. It's still going on. We're still getting lots of help there. And ultimately, as part of the Rothsay acquisition, we set up a transition services agreement. We're on SAP. In Canada, we're due to install Oracle up there in first quarter of next year. We can't make changes and implementations in fourth quarter for SOX control reason. So, that will roll off and that's a couple million dollars ultimately that comes out of the system there. So, additional head count, little bit there. We set a goal internally of taking $10 million out. We've accomplished that, a little more to go next year. At the plants, U.S.A plants, believe it or not, those plants are down 50 to 60 people this year out of – that's a 2% or 3% reduction. We've seen similar reductions out of Europe. And then ultimately, it's just really when I said all controllable expenses. We're taking expenses a little bit out of everywhere and it's really hard to quantify because, remember in the business, your volumes go up and down and otherwise. So, when you'd say a real number, but those costs are coming out and then ultimately as John said, the big opportunity has been really reducing inventories, extending payables and getting receivables, getting the working capital down. We set a goal to have $20 million positive there. At the end of last year, we were minus $55 million. So, we've really – that's the big one. Restaurant Services, John Bullock has stepped forward and taken out head count, has also taken out a lot of the raw material costs. We set a $10 million margin improvement goal. We will hit that. So, overall, we're right on target.

Great. I appreciate it. Thank you.

Our next question will come from Chip Moore from Canaccord Genuity. Please go ahead.

Yeah. Thanks, Randy and John. Maybe we can talk a little bit more about leverage. You laid out plans to pay down $150 million or so by the end of next year. And obviously, you got more than a full turn now versus the covenant. I guess, where do you see that ratio going next year and when might you start to think about accelerating some of these growth plans that have been dialed back? Randall C. Stuewe - Chairman & Chief Executive Officer: Well, I'll let John answer the leverage. I want to comment a little bit about our credit approach. And really, you've seen us move our credit agreement around. I know the markets at times have said that's a bad signal that's saying that you have a negative view on an outlook, we absolutely don't. The time to manage your credit agreement is when you understand your business and understand what it can do before anything happens out there. So at the end of the day, you saw us move to a 5.0 and then we went out and issued the euro bonds and that became fairly obvious to move the secured to unsecured. And then we were able – once we move to that and got it to once again then move it on up to 5.5. So we gave ourselves the headroom. As John says, it gives our operations team the necessary ability to run the business without us telling them what they can spend or not spend to keep all of these assets running. So, at the end of the day, John said we would – as we did early on when we gave our kind of our forecast for third quarter. And John, do you want to comment a little bit? John O.…

That makes perfect sense. I appreciate the color. And then I think you mentioned mid-December, it look like you're pretty confident that Blenders gets retroactively passed. Do you have a ballpark for the cash you'd get from that? Thanks. Randall C. Stuewe - Chairman & Chief Executive Officer: We'll comment quickly. I did spend yesterday with John Bullock on Capitol Hill once again making my rounds, making sure as I talk to you today that I could confidently say what I heard or report what I heard and I felt a high level of confidence that we would have a retroactive tax credit that would be passed here mid-December most likely. There is a potential, I would say, a 50% chance it will go for multiple years, for two years. The Producers Tax Credit was on everybody's agenda and everybody openly talked about it. There are still some basic issues that are hidden in it that are trying to be reconciled right now. We'd throw that out there as potentially 50%, 52% right now. But the question is it's DC, what can they truly get done? But I think you can sleep at night knowing you'll have a blenders tax credit coming forth here in December as part of the Tax Extenders package. As John talked about, and ultimately when you saw our profit before tax and then you see our tax expense, that Tax Extenders package is very critical not only for the blenders tax credit but for the Look-Through Tax Extenders piece that's in there for reconciling and our tax is back to a normal rate. So we're not the only company out there that is part of that Tax Extenders package; it needs a lot of different pieces to go. As we've talked about in the past, there's 50 or 60 items in there. It will get done. They'd love to make a lot of them permanent, but as we heard yesterday, but I don't know that they have the time or the ability to make that happen. As far as coming back, we expect Diamond Green to produce this year somewhere around 155 million gallons for the year. So that $1 a gallon will come back to the entity there. We'll pull a dividend as necessary and available when we can. Ultimately, up in Canada, we did have the fire shutdown and explosion at the plant that kept us running at about 50% capacity for the most part of the first half of the year. But we expect about C$8 million to come back into there on that. And then we've got the Butler, Kentucky, the 2 million gallon plant there. So that's pretty much the math underneath us going into fourth quarter.

Very helpful. Thanks, guys. Randall C. Stuewe - Chairman & Chief Executive Officer: All right. Thanks, everybody. I want to just close and say we finished the first three quarters on a strong operational footing. The third quarter had its normal seasonal challenges along with continued pricing pressures from the increasing global supplies of grains and oilseeds. Our management team continues to be focused and has endured commodity cycles many, many times in the past. We talked about the FX headwinds, and they'll continue. But we remain optimistic in the long-term viability of our model. Globally, we're positioned. We're one-of-a kind and we're very proud of it. The efficiencies, both operating and financial, are beginning to come home. Working capital has been improved. The cost reductions are solid and the CapEx spending is being managed on the outflow basis. We'll continue to focus on our strategy of delevering and growing. And we'll talk to you here when the end of the fourth quarter comes. Thanks, again. Be safe. Have a great holiday season.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.