Good day ladies and gentlemen and welcome to the Fourth Quarter and Full-Year 2012 The Cooper Companies, Incorporated Earnings Conference Call. My name is Caris, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. Later, we will be conducting a question-and-answer session. (Operator Instructions) Today’s event is being recorded for replay purposes. I’d now like to turn the conference over to your host for today, Ms. Kim Duncan, Senior Director of Investor Relations. Please go ahead.

Good afternoon, and welcome to The Cooper Companies’ fourth quarter and full-year 2012 earnings conference call. I’m Kim Duncan, Senior Director of Investor Relations. And joining me on today’s call are Bob Weiss, President and Chief Executive Officer; Greg Matz, Vice President and Chief Financial Officer; and Al White, VP, Investor Relations, Treasurer and Chief Strategic Officer. Before we get started, I’d like to remind you that this conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including all revenue and earnings per share guidance, and other statements regarding anticipated results of operations, market conditions and integration of any acquisitions. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Events that could cause our actual results and future actions of the Company to differ materially from those described in the forward-looking statements are set forth under the caption, forward-looking statements in today’s earnings release, and are described in our SEC filings, including the business section of Cooper’s annual report on Form 10-K. These are publicly available and on request from the Company’s Investor Relations department. Now before I turn the call over to Bob, let me comment on the agenda for the call. Bob will begin by providing some highlights on the quarter followed by Greg, who will then discuss the quarter and full-year financial results. We will keep the formal presentation to roughly 30 minutes and then open-up the call for questions. We expect the call to last approximately one hour. We request that anyone asking questions please limit yourself to one question. Should you have any additional questions, please call our Investor line at 925-460-3663, or e-mail ir@cooperco.com. As a reminder, this call is being webcast and a copy of the earnings release is available through the Investor Relations section of the Cooper Companies’ website. And with that, I’ll turn the call over to Bob for his opening remarks.

Thank you, Kim, and good afternoon and evening to everyone. I’m very pleased to report a record – to report record results for fiscal 2012, including record revenues at CooperVision and CooperSurgical and record earnings per share for the Company. There were a number of positives this year, including operational successes such as Biofinity, the re-launch of Avaira Toric, the launch of single-use silicone and the success within CooperSurgical of its surgical business. In addition, there were the acquisition or there was the acquisition of Origio, our $1 billion credit facility and our purchase of 984,000 shares of our stock. These were great accomplishments and I couldn’t be more proud of the efforts of our people. Now on to fourth quarter and three items, I’d like to discuss before getting into the details. We experienced channel inventory contraction in the United States with our distributors. This is something we have carefully been managing in order to improve manufacturing distribution of efficiencies and we’re happy with the progress we’re making. Having said that, on a year-over-year basis, we would have generated roughly $7 million in additional sales or about $0.07 without this contraction. Our effective tax rate came in several points higher than we had anticipated, hurting us by roughly $0.05. This was nothing out of the ordinary, just increased income and higher tax jurisdictions primarily with the United States and Denmark tied in to Origio and a less than expected release of reserves. I should point out our guidance for 2013 continues to be in the 10% to 12% range and we remain confident with the regulations in place that are structured as sustainable. Hurricane Sandy unfortunately has impacted us and you can see a dip in the Americas for CooperVision and CooperSurgical revenue numbers. Although we were able to…

Thanks, Bob, and good afternoon, everyone. Bob has given you a pretty thorough review of the market and our revenue picture. Let me start with gross margins. Looking at gross margins, in Q4 the consolidated GAAP and non-GAAP gross margins were 63.8% compared with 62% for GAAP and 63.4% non-GAAP in Q4 last year. Remember last year’s fourth quarter non-GAAP gross margins were impacted by the Avaira recall for $6 million, which included $4.9 million in cost of goods sold, inventory reserves, and $1.1 million for return provisions. As you can see we had a solid gross margin quarter in line with our expectations due to the increased manufacturing efficiencies and favorable product mix. For the year, we had a GAAP and non-GAAP gross margin at 63.9% versus 60.5% for GAAP and 62.1% for non- GAAP in 2011. Origio had a 30 basis point negative impact on gross margins for the quarter and about a 10% basis point negative impact for the year. CooperVision on a GAAP and a non-GAAP basis reported a gross margin of 63.7% versus 61.3% for GAAP and 63.1% for non-GAAP in Q4 last year. As I just mentioned, the difference in 2011 between GAAP and non-GAAP was the impact of the Avaira recall. For the full year, CooperVision’s GAAP and non-GAAP gross margin was 63.4% versus 59.7% for GAAP and 61.5% for non-GAAP in 2011. As you can see, we continued the multi-year trend of improving margins, a special thanks to our manufacturing team for the great work that they have done. CooperSurgical had gross margin of 64.1%, which compares to Q4 ’11 of 65.3%. Excluding Origio, gross margin would have been 66.3%. The ongoing year-over-year improvements in the base business were mainly due to manufacturing efficiencies and favorable product mix especially in the surgical…

Operator, we are ready to take questions now.

(Operator Instructions) And your first question comes from the line of Kim Gailun with JP Morgan. Please proceed.

Hi, guys. Good afternoon. So first question, I guess, is on the inventory. You called out $7 million and $0.07 in the quarter. And just to be clear, are you saying that this – some of this inventory has bounced back here in the first quarter? And how can you be sure that this is actually inventory and not end customer demand?

I think you’re talking about the shrinkage in the authorized distributors, which was $7 million and that shrinkage is a function of us working with our distributor and – back up to a year-ago, you may recall in 2011 we – on the quarterly calls, focused in on reducing the levels of inventory on hand at authorized distributors, which we successfully did the first three quarters which was caused by a shift in the way we approached them in 2011, but we still had an annual commitment. So what happened in the fourth quarter a year-ago was that the distributors recognizing they had annual commitments and annual incentives still took their inventories up by and large, and I’m blending it across all authorized distributors higher than we would have preferred a year-ago. This year, we worked not only the quarters, but we preempted that phenomena and that’s what caused the year-over-year reduction in inventory on-hand at distributors as of the end of our fiscal year. So, that is something that from an efficiency point of view, going forward, we do not anticipate building backup to the levels anything like existed as of October 31, 2011, following all that management we went through of inventory, the first three quarters. So, it's an efficiency factor that comes into play. Year-over-year had – we had the same level of inventory at the distributors, it would have been another $7 million higher, if you will, that we would had on our balance sheet. Next question?

And your next question comes from the line of Larry Biegelsen with Wells Fargo. Please proceed.

Good afternoon. Thanks for taking the question. Just a follow-up on some clarification questions on the quarter. The $5 million insurance gain, why did you book that as non-GAAP EPS this quarter and the $6 million in additional OpEx for legal and the Avaira Toric re-launch, how much is for legal and should we expect any additional legal expenses related to this matter in 2013? And lastly, Bob, you talked about a good start to fiscal 2013. Can you elaborate on that a little more please? Thanks.

Okay. As far as the $5 million, which was business interruption, it reflects some of the activity that happened or didn’t happen throughout the P&L in 2012 and then into 2013, so it’s operational in that sense. And quite frankly, the story would have gotten complicated if we were to excluded from the non-GAAP together with some of those other factors that had to do with higher than, let’s say, a number of legal things coming together all at once. The answer to your question is the $6 million, about half of that is legal matters and that’s plural, there are several events, all of which were concentrated in the quarter and I’m really not going to get into any one of those events for obvious reasons. And then the other half of that was the – if you will, the acceleration and the push of the re-launch of Avaira Toric. And there is kind of an anomalous result of those – the re-launch because it is a re-launch being a much more expensive event from an accounting point of view than were it just new sets going out the door that get spread over three years. In the case of a re-launch, a good chunk of those fitting sets get charged to the P&L. So in the fourth quarter and again in the first quarter of 2013 there will be a unusually high charge to operating costs for the re-launch of let’s say old fitting sets from the initial Avaira Toric launch and that is somewhat anomalous. But I respect the fact that you can debate all over what those three events, the legal matters, the re-launch, and the $5 million below the line and its impact on above the line or not above the line from an operating income point of view.

Larry, just to throw in too, the legal expenses going forward we don’t expect to see them forward, it was a one-time thing here for this quarter.

As far as the start of 2013, I think the plus is there is some ripple effect of the – what didn’t all go out the door because of Hurricane Sandy. I’d balance that or temperate it, if you will, by the fact that quite frankly some – if you think about the phenomena of not getting Rx primarily Rx Torics out the door in October because there the doctors aren’t open. They’re canceling their patients and the patients are being put back in the queue. Whether or not all those patients get back in the queue, on the East Coast in the first quarter or later, because there is a bottleneck remains to be seen. But the risk – some of that will all come back in the subsequent periods. As far as the tempering, I emphasize that we will continue the rollout of Avira Toric fitting sets and I’d say about half of them, meaning the initial fitting sets that went out the door and are being re-launched, went out prior to the end of the fiscal year and the other half will go out the door essentially all in the first quarter. So there is that week in the first quarter, that will not repeat itself post the first quarter, I want to emphasize that point. Next question?

And your next question comes from the line of Larry Keusch with Raymond James. Please proceed.

Yeah. Hi, good afternoon. Just wanted to understand the outlook for free cash flow, which was it looks like it’s sort of flattish in guidance for 2013 versus 2012. It sounds like you’re increasing CapEx, so I want to understand what that’s all about. And on the share repurchase, you obviously had not completed your authorization, so I want to understand why the increase in the authorization at this time? Thanks.

I will take the first half and then let Greg add anything I miss, but from a free cash flow perspective, you’re right, the culprit so to speak, is increase in CapEx. And as you know, we’re moving more aggressively down the path of investing in silicone hydrogel 1 Day in that market even though it’s a niche today. I’d say, three to five years down the road or some point in time it will become more than that and we want to be there and participate in that arena. And we think we’ve a pretty good product in our test market or rollout market, if you will, in Europe right now. So, that’s the catalyst for increasing capital requirements. As far as the authorization of the buyback of our stock had a termination date at the end of the calendar year and we had to renew it, and in so renewing, since we already had put a dent into half of it, we expanded it and took away the time deadline, if you will, for that. Next question?

And your next question comes from the line of Jeff Johnson with Robert Baird. Please proceed. Jason Bednar - Robert W. Baird & Co.: Good afternoon, guys. This is actually Jason in for Jeff. I just wanted to ask on the single-use silicone. You’ve mentioned before that some of the cost reductions in manufacturing this product will be volume related, while many others will just take time. Wondered if you can focus on the latter here, just – as it sounds like volume of this product are still pretty well, have you overcome any hurdles in the last few months with this product. Can you remind us how you see gross margin on it playing out over the next 6 to 12 months and the next one to two years?

I’d say we’re more than happy where we’re already. Its – I’d view it as a several year program. In fact we’re still getting cost out of our first one days in our Proclear 1 Days. So in some cases we’ve been added for five, six, seven years and are still improving the process. As far as silicone hydrogel 1 Day, a lot of costs have come out, I’d say quite frankly and I won’t get into much more close in this, it is the cost that’s well less than half of what it used to cost us to make a little over four, five months ago, which might be a relative term, but we’re clearly in the mode where it is unlike when we first launched it – it has a positive gross margin and it’s pointing in the right direction. That will continue for the indefinite future and we already know things we want to do to improve the whole manufacturing process going forward as we talk about spending more capital in that area. Next question?

And your next question comes from the line of Matthew O'Brien with William Blair. Please proceed. Matthew O'Brien - William Blair & Company, L.L.C: Good afternoon. Thanks for taking the question and I apologize for any background noise that you’re picking up there. Just to follow-up a little bit on Kim’s question Bob, I just want to make sure we’re clear on this that, with this distributor adjustment there is nothing that you’re seeing as far as any customer demand changes that’s precipitating this adjustment to the distributor network. And then on top of that, just with the CVI guidance for 2013, it seems you’re calling for at the high-end of the range, couple of hundred basis points to share taking with 8% growth if the market is even up 6%, what products specifically or regions tend to get us there? And then lastly, Greg, just to finish up my three-part question here, just to be sure, there is nothing assumed in guidance for any kind of share repurchases for 2013, is that correct?

Yeah, Matt, to your last question right. There is nothing planned for share repurchases.

As far as is there any implications of the reduction of inventory on-hand at the distributor tied in with pull through, the answer is, no there is not. You can see that both in our quarterly CLI data that wouldn’t have the skewing of the distributors, particularly in the last quarter. And importantly, relative to what’s going to continue to see that we will gain share or why we expect to gain share, clearly the driving factors will continue to be the Biofinity family, which is doing very well and you can see how well silicone hydrogels have done driven by Biofinity. The fact that Proclear 1 Day continues to be double-digit, solid double-digit growth around the world with lot of opportunities still to go. The fact that we have the three new launches of products that occurred late in 2012, which would be the single-use product in Europe, the Proclear 1 Day Multifocal, which is getting good market reception as well as our rollout of Biofinity Toric into Japan, which also has a halo effect on the sphere, so that you have a family of products developing in Japan. So, we are pretty optimistic, we will grow faster than the market and that the market will remain in that 4% to 6% range going forward and we’ll gain share. Next question?

Your next question comes from the line of Joanne Wuensch with BMO. Please proceed.

Can you hear me?

We can.

Wonderful. Thank you. Let’s just talk about your Toric sales in the quarter. Forgive me if I missed this, but that growth rate seemed a little bit lower than what I was expecting. Is there a particular reason behind that?

Yeah, there really are two reasons. One is if you think about the fact that a lot of Torics are Rx and they go straight to the doctor’s office for the patient. So when we talk about Hurricane Sandy and what didn’t get out the door, what did get out the door is what went to the distributors. We did not have a problem getting product to them, which we worked around the storm. What did not get out the door is really, primarily, that one – that Toric business that is Rx. So, the bulk of Sandy, I’d say would be Toric related. The second thing is the year-over-year contraction at the distributors, since Biofinity is such a huge product worldwide. It is – suffice it to say, our distributors carry a fair amount of Biofinity for the easier to fit SKUs or the more popular, if you will. And as a result of that, that contraction of the 7 million, some of that rippled into that arena also. If you were to look at, for example, the calendar quarter ended September on a year-over-year basis, our Torics grew 11% against the market of 7% and if you look on a trailing 12-month ended September 30th, it’s likewise 11% versus the market 8%. So overall our Torics are doing well and what you’re seeing is somewhat the implications of those two events. Next question?

And your next question comes from the line of Amit Bhalla with Citi. Please proceed.

Hi. Bob a question for you, this is not the first time that you've gone into a year ahead where there is uncertainty and issues around investment and new product launches. And at this time last year, the earnings range you gave was $0.20. This year going into 2013, the EPS range is $0.30. Is there that much variability and visibility or are there competition issues, like why such a broad range going into 2013 when you've had similar types of issues to deal with in the past? And second, for Greg, can you just confirm on the P&L where the device tax is going to be booked? Thanks.

The answer to the first question on the range, quite frankly we’ve been pleased to beat our range frequently in the past and now we’ve kind of in this fourth quarter certainly not beat the range we put out there of the $1.50 to $1.55. There is variability caused by a lot of things, including the whole debate on what’s going on in Europe, the whole debate on the fiscal cliff in the United States, while we’re recession resistant. That’s not to say on a given quarter there aren’t events that really cause a contraction or some anomalous event. So is $0.30 spread against something in the neighborhood of $5.70 large? I know we can debate that probably forever. I think it’s prudent to give a broader range than to try to micro a narrow thing, which is unrealistic in my opinion, at least as we’re sitting here nine months ahead of or 10 months ahead of time. Medical device, I'm going to take a shot at it and I will let Greg refine anything I say wrong. That is still to be determined. There are different ways to operate, as I understand in the domain, some companies are going cost of goods and some companies are going operating cost. And quite frankly those that are going cost of goods are actually managing the process better than those that are going operating cost, but it’s to be determined whether or not we will end up with a model that is one or the other.

Yeah so, Bob, I think you hit it. There has been a lot of focus groups and industry groups over the last couple months trying to understand the guidance and more and more white papers from various companies coming out about how to treat this. And again, still undetermined, we’re still looking at that. In guidance, we had stuck it in cost of goods sold.

Next question?

And your next question comes from the line of Anthony Petrone with Jefferies Group. Please proceed. Anthony Petrone - Jefferies & Company, Inc.: Thanks. Just one industry question and I maybe wrong here, so just to confirm, but we did see a report in late October early November that the 1-800 CONTACTS and Wal-Mart would be dissolving their relationship come December 31st of this year. So a couple of questions there. One, is that true? A follow-up would be is that due to the WellPoint acquisition of 1-800 CONTACTS and if indeed it is true, how does that affect your business? Thanks.

It’s my understanding that it’s true that they’re parting their ways or their current structure. I don’t know if it’s WellPoint related or not and it didn’t matter to us when they put it together and it doesn’t matter when they take it apart. So we don’t – we really don’t care. Next question?

And at this time there are no further questions in queue. And I’d now like to hand the call back over to Mr. Bob Weiss for closing remarks.

Well, I want to thank everyone for joining us today on this call. Look forward to launching into 2013. We think we’ve a lot of exciting things in the pipeline that are going very well. And we look forward to talking to everyone and updating you on our progress in March. Thank you very much.

Ladies and gentlemen that does conclude today’s conference. Thank you for your participation. You may now disconnect. Have a wonderful day.