Good morning, everyone, and welcome to the IDEXX Laboratories Third Quarter 2015 Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Jon Ayers, Chief Executive Officer; Brian McKeon, Chief Financial Officer; and Ed Garber, Director, Investor Relations. IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that statements that members of IDEXX management may make on this call regarding IDEXX's future expectations, plans, and prospects constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as expects, may, anticipates, intends, would, will, plans, believes, estimates, should, and similar words and expressions. Such statements include, but are not limited to, statements regarding management's expectations for financial results for future periods. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and, except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, further events, or otherwise. Also, during this call, we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in our earnings release, which can be found on our website, IDEXX.com. In reviewing our third quarter 2015 results, please note all references to growth and organic growth refer to growth compared to the equivalent period in 2014, unless otherwise noted. Also when we refer to normalized organic growth, in addition to adjusting for exchange and acquisitions, we have adjusted for changes in distributor inventory levels. In order to allow broad participation in the Q&A, we ask that each participant limit his or her questions to one with one follow-up if necessary. We do appreciate you may have additional questions, so please feel free to get back into the queue and if time permits, we'll be more than happy to take your additional questions. I would now like to turn the call over to Brian McKeon.

Good morning, and thanks to everyone for joining us in our call. Today, I'll take you through our Q3 results and outlook for the full year, and I'll also provide an overview of our preliminary guidance for 2016. Jon will follow with his comments. In terms of highlights, we delivered 12% normalized organic revenue growth in the third quarter, supported by very strong instrument placements and continued strong growth in CAG Diagnostic recurring revenues. Our profit results were solid in Q3, adjusted EPS was $0.54 per share, up 9% on a comparable constant currency basis. Please note that our adjusted EPS results exclude impacts from a capitalized software impairment charge. As part of our evolved information management strategy, we decided to refine our approach to developing our Practice Intelligence business, and our IDEXX Neo cloud-based information management software offering. Reprioritization of efforts in this area resulted in a non-cash charge of $8 million or about $0.06 per share in Q3. We'll talk more about the evolution of our information management approach, which is supporting strong revenue gains, later in the call. As we look forward, we're updating our full year 2015 revenue and adjusted EPS guidance today to reflect our growth current trends as well as some select impacts from foreign exchange changes and updated effective tax rate estimates. From an operating perspective, while our growth remains strong, we're tracking towards the lower-end of our earlier revenue guidance range for 2015, which had targeted a greater acceleration of growth in the second half. This outlook has been impacted recently by moderated market growth in Europe and effects from more challenging macroeconomic trends, including currency changes, constrained targeted emerging market gains. Consisting with this revenue outlook, we're refining our adjusted EPS guidance range for 2015 to $2.04 to $2.07 per share,…

Thank you. We'll go to the line of Ryan Daniels with William Blair. Please go ahead. Ryan S. Daniels - William Blair & Co. LLC: Yeah. Good morning, guys, and thanks for taking the question. Let me start with one on the 2016 growth outlook as it relates to your organic revenue growth. I guess I'm curious, number one: it looks like your competitive position is clearly improving, but maybe macro headwinds are increasing a bit more and offsetting some of that, so, anyway that you can talk about growth expectations in the U.S. and O-U.S. as we look at 2016? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. I'd say, Ryan, thank you for the question. Our outlook is probably similar to where we are right now. We saw a 2% clinic patient visit growth in the U.S. We saw moderating patient clinic growth in Europe in Q3, some of that was weather, some of that was economy. So, that's kind of nothing special, but steady as you go macro market trends.

I think, Ryan, a couple of factors heading into next year to keep in mind. I think we'll – the trends that we're seeing in areas like rapid assay and (30:39), we feel great about. We will still be working through some anniversarying of effects of earlier inroads that will carry a bit into next year. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: In the U.S.

In the U.S., and I think that combined with some of the moderated trends that we've seen in places – international, some of that's currency driven, oil-based economy driven, I think combined lead us to have an outlook that's more consistent with our current growth rate, knowing that we will be kind of working through that. But I think our underlying operational foundation, we feel very good about the trajectory and the progress that we're making and, particularly, some of the innovation that we'll be bringing to market next year. So, we'll be looking to build on those growth rates. Ryan S. Daniels - William Blair & Co. LLC: Okay. That's helpful. And then the follow-up would be, I guess, Brian, to your comment right there and you mentioned it in the prepared comments. I think you said your premium placements on a net basis are up 18%, but you're also indicating that the competitive displacements earlier are hitting you. So, can you go into a little bit more on that dynamic? Is it just a timing issue where the gains have been more recent? So, you've got to lap through that. I guess, still with the 18% improvement in the net base, it seems like a pretty strong growth outlook.

Yeah, just to clarify that. That is the estimated installed base for Catalyst in the U.S. net of changes. And so, we've actually – I know there has been a lot of questions around this, but we have year-over-year expanded the Catalyst base by 18% and, in fact, quarter-to-quarter we had a solid growth rate consistent with that trend. So, that's been an upward trajectory. I think the net effect, and Jon can enhance on this, is if you think about the growth rate in the business, things like consumables, we still have great new placements and we're growing the base and we have good same-store sales, but, obviously, there were earlier impacts for some competitor inroads that are slowing. And the net impact of that is in an annuity business that kind of plays in and kind of constrains your growth rate for a period of time, until you kind of work through the anniversarying effect. So net-net, we're expanding, we're growing at very good rates. Some of those impacts constrained our growth. We'll work through that and anniversary that, and we'll be positioned for improving growth as we move forward. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Ryan, as you know, the consumable growth in any quarter is the cumulative impact of your acquisitions, net of any customer losses for the prior four quarters. And we've had obviously very strong and, in fact, improving customer acquisitions as we laid out in the U.S. in this call. And we believe we've seen a moderating rate of defections, but that's on a kind of quarterly sequential basis. I think what's really happened here from IDEXX's perspective is that our new U.S. commercial organization, when you – which is about 300 professionals when you include the different types of field-based reps that are responsible for supporting the customer with diagnostics. That has really been seed – in seed now, in territory, they've gained those relationships, they've gained the experience. We expected that productivity of that group to improve over time. And I think you're seeing it with a growing number of instrument placements, really an extraordinary third quarter, and in improving customer retention levels as those relationships deepen in territory. Ryan S. Daniels - William Blair & Co. LLC: Sure. Okay. That's very helpful. Thank you, guys.

Thank you. And we'll go to the line of Jon Block with Stifel. Please go ahead. Jon Block - Stifel, Nicolaus & Co., Inc.: Great. Thanks, guys. And I want this question to be sort of polite, but maybe I just feel like I'm listening to little bit of a different call than when we were a couple of months ago. And I understand at the Analyst Day, there was a bigger emphasis on long-term and near-term. But still, you look at where we are today, you're bringing down numbers, you're bringing down numbers for maybe the second time in six or nine months. So, can you just take a step back and maybe walk us through, Jon, how 2015 has progressed and maybe what has changed versus internal expectations, where we were a couple of quarters ago and then, even more specifically to August, what's changed over those past eight weeks where there was a lot of go, go, go, we're on offensive not defensive and that seems to have taken a step back as of this morning. Thank you. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah, thank you. I think, operationally, operational performance is consistent with where we believe we were. I don't think there's really any change. I think what's happened in the last couple of months has been further deterioration of currencies, particularly in emerging markets and those are markets where we don't hedge. It's not practical to hedge. And there has been a little bit of a macroeconomic slowdown, as we mentioned, with visits in Europe. But it's really the currency and the tax impact of the currency, which are the adjustments that we're talking about in 2015. And Jon, as you know, but I would remind everybody else, this call,…

Thank you. We will go to the line of Kevin Ellich with Piper Jaffray. Please go ahead. Kevin K. Ellich - Piper Jaffray & Co (Broker): Good morning. Thanks for taking the questions. Jon, I guess, just going back to SDMA, you cited in your prepared remarks, I think, 15,000 customers in September that don't use IDEXX, wondering if you actually... Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Just 1,600. Kevin K. Ellich - Piper Jaffray & Co (Broker): 1,600, sorry. Thanks for the clarification. Are you seeing any of these guys switching over and are you seeing – you do believe you're gaining some market share in the reference lab market? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Well, I believe the 13% organic growth in the third quarter is indicative of the cumulative success that we're having in the reference lab modality. I think that's higher than the market growth. And if your growth is higher than the market growth for lab modality, then by definition you're gaining share. Kevin K. Ellich - Piper Jaffray & Co (Broker): Well, can you break that 13% out between volume or – volume and price?

It's primarily volume. Kevin K. Ellich - Piper Jaffray & Co (Broker): Volume? Thanks, Brian. And then... Jonathan W. Ayers - Chairman, President & Chief Executive Officer: As it has been, it's – a vast majority of it is volume and that's been consistent with the trends throughout the year. Kevin K. Ellich - Piper Jaffray & Co (Broker): Sure. And then just going to your competitive placements for Catalyst, I think you said it was 268 new competitive account, just wondering how that's tracking relative to your internal expectations. And can you talk a little bit and give us color on the overall competitive environment? Are vet practices more willing to swap out to Catalyst One and, of your placements, I guess, how many were Cat One versus other instruments? And I guess, what's your general outlook and feel for the market at this point? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Well, it's always been and I think it will always be a very competitive market. I think our Catalyst One as demonstrated by a success around the world is a – it's a blockbuster product. It's a very cost-effective way to gain chemistry and it has really – it has capability that no competitive analyzer has in terms of menu, speed, and, of course, supported by information management integration uniquely two-way into the Practice Management software and VetConnect PLUS. And so, really, what we're seeing, I think, is our sales organization is improving in their ability to tell that story to competitive accounts. And that's why we've seen a tick-up every quarter over the course of these three quarters of 2015 with the new sales organization placed in competitive placement and an extraordinary number of total placements in the North American market. In addition, I think that the retention rates that we're seeing in our Catalyst installed base are improving. I also know, Kevin. that we really – that we entered Q4 with a very good backlog, larger than average, and an excellent order momentum early in the quarter, which are all generally – I think it's generally continuing to show signs that our sales organization and our innovation together will – is coming together nicely as per plan. I will also mention that as we launch SediVue, the level of excitement in the customer base on SediVue is off the charts, because it really addresses a need that customers have. And we believe that SediVue will help us continue with – not only provide a nice revenue stream in and of itself, but can help us continue to inspire customers to upgrade to more advanced technology that we offer with the Catalyst One and the in-house lab. And that would, of course, happen in 2016 – early – starting in early-2016 with the launch of SediVue. Kevin K. Ellich - Piper Jaffray & Co (Broker): Great. Thanks.

Thank you. And our next question comes from Nicholas Jansen with Raymond James. Please go ahead. Nicholas M. Jansen - Raymond James & Associates, Inc.: Hey, guys. Thanks for the questions. First on organic growth guidance for 2016, the 8% to 9%, I just want to kind of get what you view normalized 2015 levels. I know there's a lot of puts and takes in 2015 with the margin recapture and the IDEXX deferral, IDEXX – excuse me – Catalyst One deferral adding about 50 bps. So, if you look at your 11% normalized organic growth in 2015, is that a – when you adjust for all those moving parts, is the 8% to 9% for 2016 an acceleration, in line, a deceleration? Just want to get better views of how you're looking at the end market for next year. Thanks.

Yeah, that's a great question. We stopped – the margin capture effects got so integrated with our business, Nick, we stopped breaking that out. But, roughly, it's probably about a 3% benefit this year, a bit below. I think we originally had about 3.5%, and I think that reflects the rapid assay grew a little slower than this year than we originally planned. So, I think, 3%, if you reduce the 11% that gets you to 8%. And then, if you're – we've got a 0.5-point benefit from the referral this year, so that would equate to roughly 7.5%. And so this would be an acceleration – a moderate acceleration, and I think that's reflective of some of the improving trends that we're seeing as well as the benefits from the innovation that we outlined at Analyst Day. And I just want to reinforce that we are going to be working through some of the anniversarying of some earlier impacts. And I think as we get through that, we will see the benefit of that in terms of the improved retention and how that helps our overall growth rate. So, we remain confident on our ability to drive towards higher growth and feel like we'll be on that trajectory as we work through next year. Nicholas M. Jansen - Raymond James & Associates, Inc.: Very helpful, Brian. And then, secondly, on emerging markets, I know you guys have some exposure in Brazil, and I think you got some stuff in Asia-Pacific, but maybe just if you wanted to call out one or two or three markets where you're seeing maybe more volatility than what you had anticipated? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Well, you've mentioned Brazil. Actually, our Brazilian team is doing a great job, but the real has just fallen out of bed and we don't hedge that. So, that's a case in point. We're also strong in certain Asian markets that had some currency, Russia is an example. And on the margin, these are just areas that are – that had some changes over the last three months that constrain our outlook for the year, although, we actually did pretty well in Q3 top line and bottom line considering. Nicholas M. Jansen - Raymond James & Associates, Inc.: Okay. That's it for me. Thanks, guys.

Thank you. We'll go to the line of Mark Massaro with Canaccord Genuity. Please go ahead.

Hey, guys. Thank you for taking the question. So, the first one is on the Catalyst placement to new accounts. I think the number in Q1 was 59% of Catalyst went to new accounts, I think in Q2 it was 61% – excuse me – Q1 59%, Q2 61%, and if I'm doing the simple math correctly, I think the number is 47% to new accounts for Catalyst in Q3. At face value, if you could just confirm those numbers are right, it would suggest to me that something might have changed competitively in North America this quarter. And can you just kind of walk me through if my math is right and what might've changed? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Thank you. I believe the 47% is right, but I will also note that the number of competitive placements in Q3 over Q2 grew 15%, the absolute number. And so, you ask, well, how can the absolute number grow and the percentage went down, well, that's because we did a great job placing Catalyst. In addition to the 15% growth in new and competitive accounts, we placed Catalyst with our – the remaining VetTest installed base, well, that's certainly getting smaller and smaller. And we also had customers desire a second Catalyst; many of our larger customers who are growing their in-clinic volumes. And the nice thing about when we place a second Catalyst, we re-up that customer for a new five-year lease, which supports our retention. So, I think it's a good news story all the way around on an absolute basis, growth in competitive placements and on an absolute basis, an extraordinary growth in total placements. Meanwhile, the hematology platform continues to tick along with really good growth too. As I said, it was an extraordinary instrument placement quarter. And those are just the U.S. numbers. The international numbers with that 168% growth in Catalyst placements is really quite a strong number in terms of placement growth.

Great. And your competitor, last night, talked about two contracts in particular being up for contracts, one in the U.S., one outside the U.S., consisting of multiple hundreds of units of analyzers. I assume that those are your accounts today. Can you just comment perhaps on some of the moving parts that would go into a deal like this, and could you help us frame what type of impact we might see in out quarters? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: We're very close to our major accounts. We're not aware of any accounts being in jeopardy of where we have the accounts and where we have the business. So, I think that's what important from investors' point of view. We have solid relationships with the corporate accounts that are embedded in our installed base.

Okay, great. And then, last question for me. On the new products, clearly, some of my checks came back positive on the contribution from new products with veterinarians in 2015, but – and I appreciate some of the color you provided on SediVue. Is there any way you could help us frame maybe a dollar impact? Some of my initial thoughts were maybe up to $40 million for SDMA and $20 million for SediVue. But can you maybe help us think about how the dollar amounts might trickle in and what you've embedded internally in your guidance for 2016? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah, a couple of things on the instrument side. Obviously, we're going to be anniversarying very, very strong placements with Catalyst in 2016. So, Catalyst growth won't be contributing to instrument revenue growth in the same way in 2016 as it has in particular this quarter. But on the other hand, we'll be selling a new instrument SediVue and just to give you a little color of that flavor, we expect to place, certainly, over a thousand analyzers in the North American market in 2016 and the average unit price we expect to be in the high-teens of thousands of dollars. And then, as those instruments are placed, each instrument over time – once they're placed, we expect to generate $3,000 to $5,000 a year in consumable revenue, so you can run the numbers on. That's North America. Internationally, the launch will be a little later in the year and we'll update you in January when we got better feel for it. But, obviously, the material number is the North America launch. And as your research, I think, validated similar to ours the response to SediVue is really quite strong and…

Thank you.

We have now further questions in queue. I'll turn the conference back to Mr. Ayers for closing remarks. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: All right. Well, I want to thank everybody for joining the call and I know we have a number of employees on the call too. I just want to congratulate everybody on the advancements in our business that the team has delivered, the extraordinary rate of innovation that we're bringing, plus what is also in the pipeline. And big kudos, I don't know who to congratulate more, our U.S. commercial organization or our international commercial teams. They both had really, really strong performance. I think we're really seeing these teams seeded in territory now and really strengthening the relationship. And when you are direct – and we are direct in not only in North America, but in most developed international countries. There are things that you can do. You've got more control over your destiny and more opportunity to drive growth then when you don't have that advantage and we're really seeing that mature now in the performance in Q3 and we look forward to continuing have a dialog with investors about how that would translate into financials, which will translate into continuous growth in the shareholder value creation.

Thank you. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: With that, we're concluding the call. Thank you.