Darling Ingredients Inc Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : So you've seen a big step-up in Feed segment EBITDA over the past couple of quarters. I know this has been covered various times over the years. I just had a couple of questions to clarify your pricing model. You've given us some helpful detail in the past on how $0.01 of higher fat prices translates to $8 million to $10 million EBITDA in the Feed segment. Has there been thought about providing similar figures for the other products in the segment like protein used cooking oil? And then I just wanted to clarify the timing of your revenue recognition in that segment. If we see spot prices at a certain level today, should we be thinking about that as the price you're recognizing immediately? Or do you presell and thus higher prices today flow through on a slight lag?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : And I just had a follow-up on the fat side. You talked last quarter, once Port Arthur is up and running about the possibility of sourcing from other parts of the world. In your view, is the animal rendering industry in areas like South America built out to the extent to ensure the supply you would like? Or is that a strategic opportunity for Darling to explore establishing rendering operations?