Good morning, everyone, and welcome to the IDEXX Laboratories second quarter 2016 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, plan, 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, future 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 second quarter…

Certainly. And our first question will come from the line of Ryan Daniels of William Blair. Your line is open. Nick M. Hiller - William Blair & Co. LLC: Hi, this is Nick Hiller in for Ryan Daniels. Thanks for taking my questions and congrats on the strong quarter. Could you speak a little more about the market reception to SediVue, obviously a very solid demand for the product, but how long do you believe the tail for this demand will be, meaning is it resonating only with the larger clinics or is it really more across the board? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah, thank you for that question, Nick. We're really extremely pleased by SediVue's performance. It was a contributor to the 50% year-over-year growth in premium instrument placements by the U.S. sales team in the second quarter. I think we're in only very early days, top of the first inning here, with SediVue. The number of orders we generated in the second quarter was pretty close to the number of deliveries, and as I said, there is a broad and deep market. Now, there are 25,000 veterinary practices, so it doesn't have to be a huge percentage to be a pretty big market opportunity for us in the U.S. and, of course, we believe there is opportunity around the world. Every practice does urinalysis. Every practice has the same problem and the analyzer is justified with really no more than one urinalysis a day, one to one-and-a-half. So it's a deep market and we have a great team to bring that technology – first and only; nothing like it in the market – to our customers. Nick M. Hiller - William Blair & Co. LLC: Okay. And then just a quick follow-up…

Thank you. Our next question will come from the line of Erin Wilson with Credit Suisse. Your line is open. Erin Wilson - Credit Suisse Securities (USA) LLC (Broker): Great, thanks for taking my questions. You mentioned SDMA launch on the Catalyst, which is an interesting development, but you also mentioned SDMA is contributing to reference laboratory growth pretty considerably. Presumably this would increase testing overall, but do you view this will cannibalize any other reference laboratory gains? I guess, how should I kind of weigh those on balance? And will you still be adding SDMA chemistry to the chemistry panels, I guess, for free? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: No. Well, so the bottom line is we think that SDMA expands the opportunity and the value of chemistry testing overall, okay? So it's a market expansion opportunity. Many of our customers are saying, "Oh, now I have a better reason, for example, to talk to my customers about preventive care testing, because there are things like chronic kidney disease that I can catch earlier when I have time to do something about it." So I think in general, SDMA is a market expansion. We always have an in-house offering and a reference lab offering. And many of our customers say, "I would use SDMA, but I'm committed to real-time care. And getting the SDMA the next day after I've done the whole real-time care protocol with the customers isn't quite working for me." So I think what we'll do is it'll bring SDMA as a routine part of the chemistry panel to the in-house modality. We don't anticipate changing our strategy with regard to reference lab pricing of chemistry panels from what we have today. We believe that SDMA will have an enduring impact…

Thank you. And we'll go to the line of Jonathan Block with Stifel. Your line is open. Jon Block - Stifel, Nicolaus & Co., Inc.: Great. Thank you and good morning. Jon, the first one just has to do with – the practice management figures that you provide are – they're robust; arguably, they reflect thousands of practices. And the industry sequential deceleration was maybe a bit greater than I would have thought from 1Q to 2Q. So can you just talk to what you're seeing with the industry so far in the third quarter? Clearly, a big part of everyone's bullishness has been on the favorable trends in the space, and are you picking anything up that gives us pause one month into 3Q? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Thank you, Jon, for the question. That's why I think Brian talked about the 7% growth. And, recognize, this is the reported revenues. The actual revenues from over 5,000 veterinary practices with, by the way, practice management systems of all types, so it's a pretty robust data set. It is the same-store sales data set, so it doesn't account for net practice formation. I think that the first quarter was exceptional at 9%. I believe the fourth quarter was more like 7%. We've seen 5.5% to 7% kind of growth in the revenue on the same-store basis in this metric over the last several years. April was a little weak, probably for whatever reason, picked back up in May and June, and so one month or even a quarter does not a trend make. But we see it's a pretty solid market. People love their pets. We've done some research that suggests that millennials love their pets even more than their parents, which is pretty…

Thank you. Our next question will come from the line of Mary Kate with Canaccord Genuity. Your line is open.

Oh, sorry. Well, thank you. Mary Kate Gorman on for Mark Massaro. Congrats on the great quarter. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Thank you.

So my first question has to do with rapid and the 7% organic growth you posted in this quarter. Is there a certain seasonality baked into that number given, say, higher flea or tick revenue in the summer seasons? And to that extent, can you comment a bit on the promotional programs? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Thank you again for the question. We've seen very solid performance in our overall rapid assay business, really for the last four quarters. There can be compares from – and it's a seasonal business, but, of course, if you're comparing to second quarter last year, you're comparing to the same season. So there can be variations based on the timing of our promotional programs from quarter to quarter, but overall, we're very pleased with the effectiveness of our sales and marketing programs to communicate the clear clinical exceptional differentiation in our rapid assay technology and the accuracy that customers expect versus newer competitive offerings using lateral flow technology, and I think customers recognize that; they recognize the value of multi-analyte testing in one test as we have with 4Dx Plus, which has been very solid. So we're going to be, of course, adding more value to the rapid assay business with the upgrade of SNAP Pro and SNAP interpretation, which has been a requested feature of our customers. Again, it's like the SDMA for the Catalyst. Our analyzers grow in value over time, and they grow through software upgrades. And those software upgrades can be delivered through the Internet of Everything, because almost all of our analyzers and the majority of our SNAP Pros are connected to the Internet, so we just in the background download these software upgrades. This is totally unique to the IDEXX platform, the information management platform. And so, all of our offerings grow in value over time, and so we're very pleased with where we are with the rapid assay business. I'd say 7% was a kind of above average response, and if you average the first and second quarter, you probably get closer to what we think is – that where we are with that business.

Great. Thank you. That's very helpful. And if I could ask a second question, I'm not sure if you provided backlog numbers for SediVue as they currently stand, but you mentioned that SediVue contributed 2% in overall revenue in the quarter? And I was wondering if you could comment a little bit more, how we should think about those contributions in Q3 and Q4 given targeting still 1,000 SediVue placements for 2016? Thank you. Brian P. McKeon - Chief Financial Officer, Treasurer & Executive VP: Yeah. We originally had estimates – goals this year for 1,000 placements. And I think Jon mentioned that we have a nice order pool in the second quarter that's sort of in line with your placement levels. And I think it's – our outlook incorporates that we think we can do 1,500 or more this year, so we built in some upside from that, and the timing is we'll see how it plays out over Q3 and Q4, but we think we are ahead of track of where we thought we might be and feel very good about the customer reception and this is a long-term build for us. We think there is a significant opportunity with SediVue in the North American market and globally and we'll be looking forward to sharing more of that. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. And SediVue, of course, is a razor/razor-blade business model, so when we talk about the placement of analyzers, well, of course, we get the revenue associated with the instrument sale. But we also start to build the recurring revenue of the pay-per-run and that happens year after year. So as we grow the install base over year after year, this will be a contributor to the instrument consumable growth for IDEXX, and it adds value to the rest of the suite so it improves the retention and helps us acquire customers for the entire in-house suite, which also supports the recurring revenue component of the business model.

Great. Thank you so much, and congrats again on the quarter. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Thank you. Brian P. McKeon - Chief Financial Officer, Treasurer & Executive VP: Thanks.

Thank you. We will go the line of Nicholas Jansen with Raymond James. Your line is open. Nicholas M. Jansen - Raymond James & Associates, Inc.: Hey, guys, congrats, gee, perfect quarter across the board. A couple of questions. Just first, I know some competitors are talking about bringing their own connectivity solution to the market later this year. And I just wanted to kind of bring that into context of how strong your instrument growth has been as of late. How do you feel – as competition starts to maybe get a little bit more apples-to-apples relative to your platform – how do you think about kind of instrument growth sustaining the 35% plus organic trend that you saw in the second quarter? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Thank you, Nick, for those comments. Of course, it's all about the recurring revenue growth, because that's the enduring profitable sustainable part of what instruments bring. We've been working on our information technologies strategy for in-house instruments for a decade. Today, we have an installed base of 27,000 IDEXX VetLab Stations globally, about 90% of them are connected via SmartService. We have 9,000 customers in the U.S. that are connected two-way; they're in-house and in practice management of all types. We have 23,000 VetConnect Plus activations. Interesting, utilization has grown year-over-year in the second quarter of VetConnect Plus by over 70%. And we're adding additional functionality. Of course, SediVue brings images. We have images from the reference lab. We've added reference lab ordering in the fourth quarter. All of this has helped and achieve an essential – an essential element of our integration strategy is the activities of our 80-plus field service reps. It doesn't happen unless they're in the field helping customers actually go…

Thank you. Next we will go to the line of Ben Haynor with Feltl & Company. Your line is open. Ben C. Haynor - Feltl & Co.: Good morning, gentlemen. Thanks for taking the questions. First for me, you mentioned modest price realization in the prepared remarks. Any chance you could quantify the impact that the price realization might have had to the overall organic growth number? Brian P. McKeon - Chief Financial Officer, Treasurer & Executive VP: For the U.S. market, we were – for recurring CAG, which is obviously the critical driver. We saw about 2% net price benefit in the quarter which is – where we think we can – we were hoping to get back to. We had moved a bit below that with some of the changes that had gone on and some of the impacts, and we think that's a good range to target and sustain going forward, and we're getting to that point now again, supported by the great innovation we're bringing to the market and also by the capability with the U.S. commercial organization to be with customers and communicate the value that we're delivering. So we think we're in a good place. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Ben, yeah. Thanks for the question. Good answer, Brian. I also want to comment that we're pleased with the progression of the customer acquisition costs. Not only do we see a continuing pretty significant moderation, it's moving more towards customer acquisition, which is not something you see inside of it. These are true – a greater percentage were actually customer acquisitions. So I think all the pricing dynamics are favorable; 2% is kind of what we expect to be the run rate here, as we continue to drive…

Thank you. Next, we will go to line of Erin Wilson with Credit Suisse. Your line is open. Erin Wilson - Credit Suisse Securities (USA) LLC (Broker): Hey. Thanks. Just a couple of follow-ups here. Can you speak to the consumable utilization trends for SediVue? Is it tracking higher than your initial expectations? Basically, I just wanted to know if the accounts where you have placed the product, are they testing more than what you initially anticipated from a volume perspective? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Good. That's a great question. We know it's an important question. I think we're still very, very early days in the SediVue launch. And I really don't have any comments other than the earliest returns validate what we said in terms of consumable utilization, but it's just so early, given that we just started installing the instrument in April that we just would like to have a little bit more experience under our belt to be able to report that back to you. Thank you. Erin Wilson - Credit Suisse Securities (USA) LLC (Broker): Okay. And then you mentioned strong growth in the Water business, and you've highlighted it more frequently, more recently with also the product launch in the segment just this past week. Is this an area of increased investment and innovative offerings for you? How would you characterize your commitment to that business? Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Erin, thank you for that question. It's a great question, because our Water business is really one of the most extraordinary business models with 95% recurring revenue; 99.9% customer retention; mid-40s operating margin; organic growth, we believe – I think Brian said in the high single-digit category. Our global Water team has…

Thank you. And with that Mr. Ayers, I'd like to turn it back over to you for any closing comments. Jonathan W. Ayers - Chairman, President & Chief Executive Officer: Yeah. Thank you, everybody. A couple of comments in closing. First, I want to thank everybody on the call, but I want to also thank our employees who are on the call who make IDEXX such a great company. And also I'd like to remind investors that our annual investor meeting will be broadcast live on the afternoon of August 17 and the morning of August 18, and I invite all investors to join this meeting via our live webcast. And, of course, it will also be available for replay after the event on our website. And so with that, we will conclude the call. Thank you all very much.

Thank you. And ladies and gentlemen, that does conclude your conference call for today. Thank you for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.