Good day, everyone, and welcome to the BJ's Restaurants Incorporated First Quarter 2018 Earnings Release Conference Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Greg Trojan, Chief Executive Officer. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone, and welcome to the BJ's Restaurants' fiscal 2018 first quarter investor conference call and webcast. I'm Greg Trojan, BJ's Chief Executive Officer, and joining me on the call today is Greg Levin, our President and Chief Financial Officer. We also have Greg Lynds, our Chief Development Officer on hand for Q&A. After the market close today, we released our financial results for the first quarter of fiscal 2018, which ended Tuesday, April 3, 2018. You can find the full text of our earnings release on our website at www.bjsrestaurants.com. Our agenda today will start with Rana Schirmer, our Director of SEC Reporting, providing our standard cautionary disclosure with respect to forward-looking statements. I will then provide an update on our business and current initiatives, and then Greg Levin will provide a recap of the quarter and some commentary regarding the balance of fiscal 2018. And after that, we'll open it up to questions. So, Rana, go ahead, please.

Thanks, Greg. Our comments on the conference call today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company to be materially different from any future result, performance, or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Our forward-looking statements speak only as of today's date, April 26, 2018. We undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements whether as a result of new information, future events, or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's filings with the Securities and Exchange Commission.

Thanks, Rana. As I mentioned on our Q4 call in February, we were encouraged by our positive sales and traffic trends, which we started to see in September of last year and continued to build through Q4 and into the early part of 2018. These positive trends actually accelerated as Q1 progressed and have extended into the first few weeks of April. For our fiscal 2018 first quarter, comparable restaurant sales and traffic increased 4.2% and 0.4% respectively, reflecting our progress in driving sales through a combination of positive traffic and healthy check growth. As expected, the shift in the timing of the Easter holiday impacted Q1 sales near the end of the quarter, but benefited April sales and the start to Q2. BJ's first quarter sales outpaced an average of Knapp-Track and Black Box by over 370 basis points, driven primarily by guest traffic where we saw an average differential versus the industry of 280 basis points. As a result, our solid Q1 sales marked another period of outperformance versus the industry and we generated some of our largest market share gains in several years. Our strong first quarter sales and traffic metrics drove solid improvements in overall profitability as we grew net income and earnings per share by approximately 52.1% and 59.5% respectively before the effect of the new accounting standard and tax benefit, which Greg will review in a moment. Overall, the first quarter results highlight how positive sales leverage together with our ongoing cost efficiency efforts enabled us to offset ongoing labor and other cost pressures. While we are pleased with BJ's strong start to fiscal 2018, to achieve our goals for the year, we're focused on continuing to drive guests into our restaurants at guest check levels, which enable us to grow profitably in the…

All right. Thanks, Greg. Before we get into all the details of the quarter, let me go through the effects of the accounting changes and the tax benefit which, when netted out, amounted to about a $0.03 benefit to our quarterly earnings per share. As we noted in today's press release, we adopted Accounting Standards Update 2016-10, which required us to change the way we account for our loyalty program, and required us to reclassify our gift card breakage income from other income on our consolidated financial statements up into revenue. As a result of ASU 2016-10, we deferred $1.1 million of revenues until those loyalty points are redeemed in the future. We also recorded approximately $600,000 of gift card breakage in revenue for Q1 2018, which historically is recorded in other income on our financial statement. As such, you'll see on our income statement that our other income line for the first quarter of 2018 shows an expense of $100,000 compared to income of $785,000 in last year's first quarter. That difference is a result of the gift card breakage income now being recorded up in revenues versus last year where it was recorded in net other income line. All-in, the effect of this Accounting Standard Update in the first quarter of 2018 is roughly a $0.02 negative impact to net income per diluted share. This new accounting standard did not change the way we calculate our comparable restaurant sales. So, our comparable restaurant sales at 4.2% is consistent with the way we have always calculated comparable restaurant sales. There is a full reconciliation in our press release of the impact of this new accounting standard on our quarter one 2018 results. Now, besides the new revenue recognition accounting standard as we noted in today's press release, our Q1…

Thank you. And we'll go to our first question from Will Slabaugh with Stephens, Inc.

Yeah. Thanks, guys, and congrats on the quarter. I wanted to ask in specific about the Brewhouse Specials and the slow roast menu on the performance there and if you talk about maybe how they're mixing in the first quarter and then so far this quarter versus what you've seen in the past.

Well, I'll try and take that. I don't have exactly where they are from an incident standpoint. But what I would tell you, and we talked about this before, is they have really helped drive mid-week traffic in our business. Things like the 50% off large pizza really drive people into BJ's on Monday. We also use that for off-premise as well. $3 Pizookies work really well. And since we've put that in place, I would tell you that all of those items have mixed up for our business. And really, I think the thing that we've seen in our business is because we don't have a lot of marketing dollars out there that these things tend to gain traction over time. I know you followed us for a while and we rolled these out really about a year ago going into really the end of the first quarter of 2017. And at that time, they started off probably a little slower and have continued to really gain traction. And while I don't have the actual incident rate there, they're doing well for us now. What I would say is our overall mix has been negative because they are lower-priced items. And that moves that mix down a little bit. But they're making up for it on an incident rate in the sense that we are selling more Pizookies today than we've ever sold from that standpoint. Things around our beer incidents are helping with the $4 beer. So, we're seeing higher incidents offsetting the mix in our business.

And Will, I think you're also asking about slow roast. I'd say same is true of slow roast in terms of continuing the strong momentum that we really saw early on. But we're seeing some of the better Sundays than we've ever seen. We had a really nice comparable Easter over Easter on a comparable day perspective, because we sold just so much prime rib and grossed some nice check and a lot of happy guests as a result. So as we're even lapping the intro of those products, they are more than holding their own. We're very pleased with that momentum.

Got you. And I want to follow up on off-premise, if I could. Could you give the growth rate you saw on off-premise this quarter and talk about sort of what you saw both from a to-go standpoint and then also any update on delivery would be great.

Yeah. I think we saw about a 30% increase in off-premise in aggregate for the quarter. And as I mentioned in my script, all of that, Will, is coming from delivery. We're actually seeing a little bit of cannibalization and check degradation in take-out as a result of delivery and the wider swathe of online orders coming in on take-out as well. I mean we still think there's a huge opportunity in large party take-out. We're still working against that, but really the growth is coming from delivery at this point

Got it. Thank you.

Welcome.

Our next question comes from Jeff Farmer with Wells Fargo.

Great, thanks. Good afternoon, guys. One of your peers, I think it was yesterday, was just saying that they're seeing casual dining sales stabilize with lower same-store sales volatility across not only parts of the country but also some day parts, week parts as well. Sounds like in terms of your commentary, you guys might be seeing something similar, but do you think that this stabilization can persist as we move forward across the segment?

Yeah. I think in terms of stabilization, we're seeing good growth. It's not coming disproportionately from one part of the week. I think the trend that we're seeing, dinner, even late-night, and mid being stronger than lunch is continuing in that sense, Jeff. But we're seeing strength geographically in that it's well-distributed around the country and throughout the week. We see probably a little bit more of the – I don't know whether I'd call them ups and downs, but the variability because of Brewhouse Specials versus the check ring of slow-roasts, which we see more on the weekends with prime rib. But we know what's driving that. So I wouldn't really call that variability, but we are seeing good consistency in terms of the strength of the business, if that's really your question. In terms of sustainability, look, I think it's anybody's guess to some point of view, but when you look at the fundamental economic indicators and, as I mentioned in my remarks, I actually think we were in the past, questioning of where the middle-income consumer was in this recovery. And if you look at some of the credit card data that we've seen which, actually, for the first time, I believe it was in Q1 of this year, but it was fairly recently, you saw that middle-income consumers actually start to outpace the other income segments in terms of spending growth. And that's obviously the first time we've seen that in a long, long time. So I think, as long as that continues, then I think that there's no reason to believe it's not in the short- to medium-term. I think that's going to help us all.

All right. That's helpful. And just two other quick questions, so a few years ago, competitive encroachment was a fairly frequent conversation. Seems like that's completely gone now in terms of talking about your business and then current menu pricing, if you can let us know what that is.

Yeah. I think completely gone are strong words. I mean, we still see...

A competition.

Yeah. Particularly on a regional basis, from either strong regional players or smaller folks here. I think, in aggregate, the good news is, and I think what you're referring to, Jeff, is we're seeing the numbers for the first time (29:22) is overall net contraction in the number of restaurants and particularly in casual dining. So when you add it all up – and interestingly, the data we've seen shows that most of that contraction is coming from mom-and-pop and non-chains. And we look at the contraction of some of the major players of shutting restaurants and some of these older concepts completely going away as being big news. But most of the contraction is coming from mom-and-pops, which I think is interesting. So I think that's going to continue to help. So in terms of the pressure on the business this year and what we're looking at today versus two years ago or three years ago, it's definitely subsided.

Yeah. And in regards to kind of pricing and how we started to look at it with Brewhouse Specials and other things. I think the best way to think about it, Jeff, is our average price is up about 3.2% or so in this first quarter, which is a combination of pricing mixing down on Brewhouse Specials, mixing up on slow-roasts. Our incident rate, so our attachment rate, if you want to think about it that way, was up about 0.5%. So that drove kind of the 3.8% increase there in kind of our business, and then the 0.4% of traffic. And, frankly, the 3.2% was a little bit higher than what we were expecting. I think we had talked about it at the end of the fourth quarter that we were expecting an average check of around 2.5% and a little bit higher. I think some of the slow-roasts and other things have really helped drive that average check up. And I think that's probably something that we're thinking is probably consistent going into Q2.

All right. Thank you.

And, Jeff, the incident rate, the nice thing just on the incident rate elements of this and some of the things we're working on, and we don't talk about quite as much, but we're seeing add-on sales. Certainly handhelds are helping us do that, but our appetizer attachment rates and our dessert sales are some of the best that we've seen in a long time, if ever, and so between desserts and the snacks and small bites innovations we've done around appetizers as well and then the benefit of the (31:48) incident rates increasing with handhelds. All of that's helping add to those incident and attachment rates.

Our next question comes from Matthew DiFrisco with Guggenheim Securities.

Hi. This is actually Matt Kirschner on for Matt. Thanks for the questions today. I just have kind of a modeling question and then I was hoping to discuss the digital and delivery metrics a little bit further. But, obviously, you were able to kind of hold the labor line pretty flat year-over-year. Was there anything in particular that happened or some practices that you're putting in place? How should we think about that through the year? I think you said 36% for the full year. But is there anything that you're putting in place that you have confidence 4% wage inflation couldn't disrupt that?

Matt, it's a great question. I think what we've got is really, without getting into all the specifics, some of it really just comes down to the efficiencies that we're gaining over the prior year. So when we think about this year versus last year, last year, as Greg Trojan mentioned kind of at the end of the last commentary, we rolled out handhelds. And that's driving attachment rates or incident rates for us. But handhelds are challenging. We rolled out the slow roast ovens. All of that resulted in a lot of training hours and additional learning hours. As we've been able to work through that, we've been able to stabilize our hours a little bit and gain some of the efficiencies from that perspective. And I think that's where we've been able to hold the line on hourly labor, despite some of the increases that we're seeing. And then kind of to your second point, comp sales are going to play into that number, obviously, from a percent of sales perspective. We're always going to do anything we can to be as efficient as we can. But, ultimately, we've got to take care of our guests. So if we can take care of our guests and drive the comp sales, I think we have the ability to hold the line on labor, which will be challenging. But that being said, I think we've got some ability to go over some of the inefficiencies from last year that will give us a little bit of a tailwind for 2018.

Okay. And then just on the loyalty. Do you have a count on the number of members in the program now?

We may have...

I don't...

I don't know if we have that in front of us from that standpoint. We didn't bring that in there. We're seeing some nice increases there. I just don't have that in front of us in regards to what that total number is.

Understood. I think in the past you've mentioned it was maybe roughly 3% of sales. Is that still fair?

What we said is mid-to-high teens.

Yeah.

Oh, I'm sorry about that.

As far as a percent of sales or percent of check, it's somewhere in kind of mid-to-high teens.

Understood. Maybe I was thinking of the off-premise for that line.

That's fine.

Okay. Thanks for the questions, guys.

Just the general commentary on loyalty I'd make is we referenced that we know that it's one of the things helping the momentum. But we are clearly seeing a higher rate of sales growth among loyalty members than we are non-loyalty, given this new program which is something that we think is a good thing.

And you said delivery was a driver kind of to the comp and off-premise business. Any demographic changes in the customer? Obviously most people will report higher average check, but any kind of things worth notable even in the day parts?

We don't track demo differences from a guest demographic perspective, from a check. What we've said is it's about equal to the check of our on-premise check size. So we give up a larger liquor mix than many in our competitive group there and largely so we think a flat guest check we have an opportunity to grow, but it's not hurting check from that perspective. And the other comment I'd make is, couple is, it is as strong across our geographies in a more uniform way than I would have expected. And it's not as concentrated in high urban, more dense markets than lack thereof. I think we're seeing it in all the markets do really quite well. Of course, there's some more than others, but it's less disparity there than I would have anticipated, which again, I think is a good thing. It shows the efficacy of delivery and off-premise across all of our markets. So I think we remain there's a lot of room to grow still in that area. The other thing I would add that I think is a fundamental question is, is it going to cannibalize dine-in? And I continue to saying the data bears this out that we see very, very little cannibalization. I mean I don't think it's possible or very, very difficult, let's say, without fundamental research. We can't tell by transaction data if we're seeing any, but I think the closest we could come is we've run a regression around the correlation between off-premise comp sales behavior and on-premise comp sales behavior. And we actually see almost literally a zero correlation between the two. In fact, it's slightly positive, meaning where we have higher off-premise sales, we actually see higher on-premise growth. So, again, just to reiterate, it's not meaningful from a statistical perspective. But all that says is we continue through our data that we have is don't think that there's meaningful cannibalization of dine-in, which doesn't surprise me.

Thanks for the color, Greg, and congrats on the great performance.

Thank you.

Our next question comes from Nick Setyan with Wedbush Securities.

Hi. Thank you and congrats on the incredible numbers. Greg, I know that you've been talking about price a little differently over the last couple of quarters. But if we do something like a mid-2s menu price increase, your mix, or maybe a combination of mix and incidence, is something like the best since 2011. Is that kind of the right way to think about it? I guess, sequentially even, what's driving that? And to what extent can we actually see that continue that type of – that's nice you don't want to break it out. At least talk about maybe the average check and what we should think about and maybe sustain that into sort of three plus range going forward.

Yeah, Nick. First of all, to your point in general. We were, frankly, a little bit surprised on the increase in average check as well. And that's why the comment in the first quarter was around 2.5% versus saying our average price net in the mix and so forth and they're being at the 3.2% range. In regards to continuing going forward, we don't know. I would tell you that the way that things rolled out last year, I think we've got some benefit over the next couple quarters. We really started to see I think momentum on everything we've done, really, towards the fourth quarter of last year or fourth quarter of 2017. So we'll have to see as we go into that how that plays out. That being said, we will continue to work on other items in slow roast and other things to give us some ability to maybe get average check up there. We've also got a couple of things that we're testing in regards to lunch specials and other things for different areas of our business to work on where I think we've got opportunity. That's probably the best I can give you. I think as we start thinking about how our business has played out, well here, let me take that back a little bit. The other thing that can probably give us some benefit, and Greg Trojan mentioned this, is we're finding better efficacy in different ways to promote our business that haven't been as discount-sensitive in the past. In the past we might have tried some things like BOGOs and other things that have actually lowered our average check. And as our new Daily Brewhouse Specials have worked for us and as well as the changes in the Happy Hour, we haven't had to be as discount-centric in there and that's probably helped elevated that check as well. So I think we still have that momentum going for us coming through 2018.

And, Nick, just the other thing I would add is, we have a bit of a counter-balance in terms of what we're rolling over from a check perspective, and by that I mean, Brewhouse Specials and slow roast rolled out essentially in very similar time frames, so we get the benefit of beginning to lap the negative check impact of Brewhouse Specials, but we get the positive – or the flip – we get the positive of lapping the negative impact of Brewhouse Specials. But we've begun lapping over the benefit of slow roast, right. So those two should counteract each other reasonably well and given the momentum of slow roast and the discounting, we think we're still in that same ballpark of our target even though we exceeded it of 2.5% to 3%, I think is a reasonable expectation. So within that range, we'll see.

Got it. And in terms of delivery, it sounds like it's something like 1.7% or so and it's based on the past that you guys gave us. And in terms of the sales contribution, why can't we see things like the free pizza delivery and some of these other things that are driving the 6% comp, with the exception of obviously the Easter shift, why can't we see those types of promotions on an ongoing basis?

That's a good question, yeah.

I'll give you a quick answer on some of those things. The first is we're working on those things. The most difficult is we have third-party delivery partners and they've got to be able to have the flexibility in their systems to be able to do it as well. So we obviously have the flexibility to reduce our menu price to X or do this type of offer within our restaurants. We don't necessarily have that flexibility with some of our partners to be able to actually say, "Oh, we can do that on our website." So when you order through a Grubhub or a DoorDash or some of these waiter app, Waiter.com companies, they don't have that same flexibility. So that's something that we continue to work with them on and frankly, with such a great IT department that we have here, we can work on some of those APIs and other things, especially the fact that we can use our app for delivery. So that's probably the more technical challenge in regards to having them be able to do some of the same things we do within the dine-in part of our business.

But, Nick, just in general, that is at least hopefully a short-term limitation in terms of delivery. But, look, we love what, in general, this category I refer to as promotions with a purpose is doing for our business and being able to concentrate our efforts. And like the Pi Day promotion, et cetera. Free Pizookie Day has really been even a long-term help to our business and drive Pizookie incidence. So the intention is for you to indeed see more of that from us because the value of the earned media that we derive from that and the goodwill is part of unlocking this awareness potential we have or opportunity we have, as a concept. And so we're really liking the impact that those kind of promotions are having for us. And our goal is to do more.

Then, just lastly, what is the composition of delivery in terms of mix? Is it across the board in terms of what you offer on the menu? Is it primarily pizza? I'm even seeing offers around alcohol and wine. Is there some data you could give us around that? It just feels like, given what you sell, you might have an opportunity that's a little bit bigger than some other casual diners with respect to delivery.

Yeah. No. We deliver just about the entire menu, with very few exceptions. And you have hit the nail on the head. We do think it gives us a real advantage in that when you're delivering for a larger group, even if it's a family size or an office, there's something for everybody on our menu. And you can cover all those bases in one order. So, yeah. We love the flexibility that our menu gives us for the delivery occasion.

Thank you.

And next, we'll go to Chris O'Cull with Stifel. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Thanks. Good afternoon, guys.

Hi, Chris. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Greg, I apologize if I missed this, but can you guys quantify the cost impact those sales initiatives had on margin last year, and kind of remind us when they really started hitting the P&L?

We haven't talked about that specifically. I would, frankly, have to get back to you a little bit on that. In general, most of them rolled out and hit the impact a lot in Q2. I would say in Q3, we were really trying to get the efficiencies around the handheld. So you saw it more in labor. You did see a little bit of the higher cost of sales go through there as well. I just don't have it in front of me, and I don't recall exactly how many basis points there were in labor or in cost of sales for those things. In Q1, there wasn't as many. Really it was coming through in Q2 and Q3 of last year. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: And one last modeling one, would you quantify the impact of the higher workers' comp cost for this quarter and then the incentive comp as well? And then I had a follow-up.

Well, I think the best way to think about it was, we're up 30 basis points. And we said hourly labor, we were able to leverage. I think we really leveraged it like about 10 basis points. So you've got the incentive comp and the workers' comp kind of making up that difference, fairly even, but probably I'm going to say 40 basis points, I guess, 20 basis points of each. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Okay. That's helpful. And then, Greg, is the company advertising yet on the delivery, the third-party delivery sites or are you just relying on the aggregator search algorithm? I'm trying to get a sense for your visibility on those websites.

We...

A combination.

Yeah.

It's a combination. You do have to pay to play in certain aspects of things with certain of the delivery companies, but when we did a promotion, as Greg said, around, let's call it, the free delivery or the free mini pizza, that we did. We're doing both our own internal pay, or our pay to get that message out there on a lot of different sites, using a lot of PR. We're also using, obviously, that third-party delivery company is kicking in and putting it at the top there. So it's a combination of things that we do. We also have in our restaurants just the traditional point-of-purchase type stuff, whether it's on the table, or when you walk in, you might see an A-frame, that talks about the delivery side of things. So it's a combination of things that we are using in regards to the delivery. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Do you pay the same commission? I assume you pay a different commission rate if the orders come to your all's website and are filled through the third-party delivery provider than if a consumer went to their marketplace.

That's correct. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Is that true? Okay. And...

That's true. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Is there opportunities for conversion there?

Converting the third-party more to our site? Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Right.

We're not saying anything that we don't tell our third-party partners is we prefer them go through our site and our app because we have control over that relationship with that guest and their e-mail address and we convert them into loyalty guests, et cetera, so the answer to that question is yes. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Okay. Are you able to, as a consumer, sign up or use loyalty points if you just use their marketplace?

No. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Okay.

Because it goes through our point-of-sale system. Chris O'Cull - Stifel, Nicolaus & Co., Inc.: Okay. Great. Thanks, guys.

Okay.

And next, we'll go to Mary McNellis with Baird. Mary L. McNellis - Robert W. Baird & Co., Inc.: Good afternoon. Thanks for taking the question. On the Q2 comp, can you just talk a little bit about how you're thinking about the comparison in the balance of the quarter, given, I believe, your year-ago comps decelerated to slightly negative in June last year after tracking positive through April and May? So would it be right to think that the underlying trend can improve a little bit in the balance of the quarter as you lap those easier comparisons? Or just any perspective on how you're thinking about the balance of the quarter would be helpful.

Yeah. I think the best way that we're thinking about it, Mary, is that the trends that we're seeing is taking out Easter and some of the large promotional days that we've done or marketing days, that the trends in the mid 3s or kind of 3% to 4% as we said is more than likely the trend going forward. That's kind of the best way we think about it. In fact, even if you look at the first quarter here, we were surprised that our trends actual improved as we went over harder comparisons because a year ago in the first quarter we were going over some of our easier comparisons because of the rain in California. And then frankly, we flattened out in March. And March was a stronger comp over stronger comps from a year ago. So while it tends to feel like we're going over easier comparisons, as we get into the May and June timeframe, we're not necessarily thinking that's going to be the case when we finish the quarter. Mary L. McNellis - Robert W. Baird & Co., Inc.: That's helpful. Thank you.

Yeah, real quick, I think the other reason for that, Mary, as well is at that time we'll be lapping some of our slow roast, and Brewhouse Specials. So that's why I think it's a little bit more consistent. Mary L. McNellis - Robert W. Baird & Co., Inc.: That's fair. Thank you. And then I was just wondering if you could talk at a very high level about how you're thinking about the longer term unit growth algorithms for BJ's from here, now that you kind of have your arms wrapped around the existing base, and maybe just any perspective you'd be willing to provide on what you need to see to reaccelerate that growth. And maybe how long it would take you to reaccelerate the growth now that you've kind of slowed it down here the last few years.

Yeah. What I'd say in general is we continue to see kind of traffic momentum, most importantly, from our own concept at BJ's level, but also the industry remaining at a healthier place. We're anxious to ramp up our pace of development, and if you use 4 to 6, use 5 as the midpoint for this year. And the thing I have stressed is we've always focused on opening in a quality way and not taxing our operations capability unduly. So we wouldn't go from 5 back up to 15 or 17. I think the next step function increase would probably be in the 9 to 10 range, and from there, whatever. But we won't be making that decision until the latter part of this year. But just to give you a sense of relative scale, we could go from 5 to 7 to 8 to 10, but we wouldn't be going from 5 to 15 in one year. Mary L. McNellis - Robert W. Baird & Co., Inc.: That's very helpful. Thank you very much for taking the questions.

Okay.

And our last question for today comes from Sharon Zackfia with William Blair. Sam Hirsch - William Blair & Co. LLC: This is actually Sam Hirsch on for Sharon. And can you hear me now? I'm sorry. Hello?

Hi, Sam. Sam Hirsch - William Blair & Co. LLC: Hi. Sorry about this. So my question actually is back to the tax rate. So when I see the full year guidance is roughly 15%, so I see about a $0.10 benefit calculating like that, and I know you called out $0.05 from the equity stock option exercises. So I'm just sort of wondering where the difference is that you're down to 9%.

Yeah. So when we talk about 15%, that was what we thought our estimated tax rate was going to be this year with everything that came around the Tax Act. And I just said in the formal remarks today that we think our rate on a normalized basis is somewhere closer to 11% to 13%, not 15% anymore. So we've brought that down. And the reason it's lower than where we were thinking the 15% was is we still have other discrete items and we've seen with the higher sales, we've technically been able to see a higher WOTC credit than other credit that we'll get each quarter which generally bring down our rate. Does that answer your question? Sam Hirsch - William Blair & Co. LLC: Yeah. So just to clarify, so for the second quarter and for the full year, you're expecting it to be closer to 11% to 13% now?

Exactly. Sam Hirsch - William Blair & Co. LLC: Got it.

So this first quarter, just the way it played out at the 9%, and then the 11% to 13% will probably put us closer to 11% overall for the full year. Sam Hirsch - William Blair & Co. LLC: Perfect. All right. Thanks.

You're welcome.

And, everyone, this does conclude today's call. Thank you all for your participation. You may now disconnect your lines.

Thank you, everyone.