Welcome to the 2015 Second Quarter Investor Call. My name is Alex, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded. I will now turn the call over to Ms. Milton Draper. Ms. Draper, you may begin.

Thank you, Alex, and welcome, everyone. I would now like to read the statements about the use of forward-looking statements and non-GAAP financial measures during this call. Statements made in the course of this call that state the company's or management's hopes, beliefs, expectations or predictions of the future are forward-looking statements. Actual results may differ materially from those projects. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our SEC filings including our Form 10-K, our 10-Qs and our press releases. We undertake no obligation to update these forward-looking statements. We are holding this call to review our second quarter results and to answer any questions you might have. If you have additional follow-up questions after the call, please call me at 650-589-9445. Joining me today is the Chief Executive Officer of Core-Mark, Thomas Perkins; and the Chief Financial Officer, Stacy Loretz-Congdon. Also in the room is Chris Miller, our Chief Accounting Officer and Greg Antholzner, our Vice President of Finance and Treasurer. Our lineup for the call today is as follows. Tom will discuss the state of our business and our strategy going forward, followed by Stacy who will review the financial results for the second quarter. We will then open up the call for your questions. Now, I would like to turn the call over to our CEO, Tom Perkins.

Good morning, everyone. Thanks for joining us on our call. I hope you noticed we have raised all aspects of our guidance reflecting the good year we are having through the first six months of the year and the momentum we continue to see in the markets in which we compete. All of our hard work over the year seems to have reached an inflection point and I feel very optimistic about where we are going both in the near term and the long term. There are number of factors driving our confidence. First, this year, we have taken market share both in gaining new categories and existing stores and adding stores. Secondly, we have renewed a number of our significant large customer contracts securing a good foundation for the future and lastly, we have tremendous opportunity for meaningful market share wins in the near future. The size and the scope of the bids we are participating in represents very significant opportunities. I really have not seen anything like this in my career at Core-Mark. We do hope to have additional good news before the year is over so stay tuned. I would also like to update you on the Rite Aid business. We continue to partner with Rite Aid and expand the products that we are delivering to their stores. We recently began servicing an important traditional category. We expect this additional volume will take cost out of their supply chain and add greater efficiencies to our delivery of product to their stores. We are excited by this development with such an important retailer. We look forward to growing our partnership with Rite Aid and are exploring ways to expand their fresh and good for you product selection. For example, we are delivering dairy and organic dairy products in…

Thanks, Tom, and good morning everyone. I’d like to start my comments with an overview of our revised EPS and adjusted EBITDA guidance and then move into our second quarter results. We are raising EPS estimates by $0.16 on the low end and $0.19 on the high end or approximately 9%. For adjusted EBITDA, we are raising guidance by $6.5 million on the low end and $7 million on the high end and now expect to achieve between $133 million and $136 million for EBITDA. The primary driver to the increases in EPS and EBITDA guidance is a $9 million excise tax holding gain resulting from two taxing jurisdictions that raised excise tax rate from July 01 and allowed us an opportunity to recognize a holding gain for inventories on hand. Our division and purchasing team did an excellent job maximizing this opportunity and we expect to realize this holding gain as we sell through the related inventory. The majority of the tax holding gain will be recognized in the third quarter, but we may see some of the tax gain trickle into the fourth quarter. In addition, we expect to see an increase in our operating income associated with the recent market share sales gains predominantly in our cigarette and tobacco categories. Both of these income opportunities will be offset partially by pension settlement charges resulting from lump sum payments and other pension activities we have undertaken to reduce our pension liability. Current estimates forecast pension expense of $2.2 million to $2.5 million, which could ultimately be higher or lower depending on acceptance rates and discount rates. You should note that this is a non-cash charge and essentially recognizes deferred pension valuation losses sitting in our equity accounts. We have also contemplated in our revised guidance a $2.2 million…

Thank you and we will now begin the question and answer session. [Operator Instructions] Our first question comes from [indiscernible] from Stephens, please go ahead.

And our next question comes from Mark Wiltamuth from Jefferies, please go ahead.

[Operator Instructions] And we have a question from Chris McGinnis from Sidoti & Company. Please go ahead.

And we have no further questions at this time.

Thank you for your participating in our conference call and for your interest in Core-Mark. We are very pleased with the first half of the year and believe the momentum we have in our business will enable us to have an even better second half. If you have any follow-up questions, please give me a call at 650-589-9445. Thank you and thank you operator.