Good day, ladies and gentlemen, and welcome to the Monster Beverage Corporation's Third Quarter 2013 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today's conference, Mr. Rodney Sacks, Chairman and CEO. Mr. Sacks, please begin.

Good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Rodney Sacks. Hilton Schlosberg, our Vice Chairman and President, is with me today; as is as Tom Kelly, our Senior Vice President of Finance. Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, and which are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside the control of the company, that may cause actual results to differ materially from the forward-looking statements made during this call. Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed March 1, 2013, as well as our most recent report on Form 10-Q filed August 9, 2013, including the sections contained therein entitled Risk Factors and Forward-Looking Statements, for a discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. An explanation of the non-GAAP measure of gross sales and certain expenditures, which may be mentioned during the course of this call, is provided in the notes designated with asterisks in the condensed consolidated statements of income and other information attached to the earnings release dated November 7, 2013. A copy of this information is also available on our website, www.monsterbevcorp.com in…

[Operator Instructions] Our first question comes from the line of Mark Astrachan with Stifel. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division: So international, just want to try to understand a little bit more sort of puts and takes there. Maybe you talked a bit about Japan could give us a sense of what the FX impact was there. Maybe talk about some of the sell-in in India how much potentially that impacted it in the October number? And just sort of, give some thoughts in general about sort of how you see it, especially as you look at the number in the quarter and you had a pretty material acceleration on a 2-year basis. So long question but should we think about this as a new run rate, is there a timing issue, I mean inventories, anything you can give that may give us a little bit more color on the international would be helpful.

With regard to India, let me just start there. When we started sales, we had originally shipped product to India well before I think it was either the end of last year or the first quarter of this year. And we had shipped that in anticipation of getting regulatory approval and then we ended up with some delays in getting that approval. So it wasn't a buildup of inventory in this quarter for India. With regard to Japan, what we have seen was some reduction in inventory levels being held by our distributor during the quarter. And I think as they are getting more comfortable with the brand and the sector, which is something they really didn't have any experience with, their stock holdings are going low and that is why we refer to the fact that while our sales were low, actually their sales out were higher in Japan. A similar situation has sort of arisen with respect to Brazil in the quarter. On a ForEx level, I will try and get you the impact later on in the call. I don't have it handy. Is there anything else you'd like to ask, Mark? Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division: Sure, how about that share repurchase, anything coming down the pike there with all the cash that is now building?

We look at market conditions as they develop and look to implementing the share repurchase as we go forward. We will raise it again with the board at a meeting tomorrow and then we'll see how we go through the end of the year. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division: Okay, and then just related to the first question. Can you quantify the amount of de-stocking in Japan and Brazil as you're looking for the FX piece?

I -- do you have the -- I really at this stage, at this time, I just don't have that figure -- those figures handy. Other than to say that, our sales into our distributors in both those areas were considerably lower than the sales out.

Our next question comes from the line of Amit Sharma with BMO Capital.

Can you just, Ron, you talked about the ABA guidelines and the senators letter. Is it fair to assume that if you do adhere for these guidelines and this overall energy drinks category, agree to these guidelines, some of the regulatory headwinds that you've seen as indicative [indiscernible] will ease up?

Well, we can't speculate as to whether what we have suggested would be completely satisfactory to senators or regulators. We've just, from our assessment of the questions that we've got and the request for commitment that we have from the senators, we believe this goes a pretty far way to dealing with them. There are some issues that we have still and don't believe we should agree to and won't voluntarily to agree to. And they may remain still contentious, outstanding contentious issues. But we do believe that pretty much by and large, we think that this will resolve, or certainly alleviate to a large measure, some of those headwinds.

The other question was around profitability. You talked about some onetime sort of losses in the warehouse. Are those -- should that be considered onetime that will alleviate in the next quarter? Or you continue to expect a negative margin piece in the warehouse division?

No, we think that, that won't repeat itself. We think that, that will right itself next quarter.

Okay. And my final question is, as we look at your market share position in [indiscernible] in Europe, especially Western Europe and countries, should we start to sort of assume that margin profile in these countries could start to get better and, perhaps, positive margins in these market?

You are very unclear. But if -- what you're talking about is our margins in Europe, we are taking steps to improve our margin through production in a number of additional countries in Europe. For technical reasons some of the production that we had planned to implement during the year, we weren't comfortable with the quality of the products running off -- coming off the lines and so we weren't able to implement some of those, those plans. But we are planning to produce at additional production plants in Southern Europe, which will alleviate a lot of the freight and damages cost and other cost in health margins. We are also planning -- we are quite advanced in production and planning production in South Africa, which will remove the freight from Europe to South Africa and also, reduce damages in transit and also improve our margins there as well. This also will apply in Japan where we are progressing as quickly as we can to implement production. And we also are [indiscernible] finally, we are also at an advanced stage of discussions and moving forward with production plans for additional production plants in Brazil, which we believe will also, because of they are complicated tax laws, will also help us achieve improved margins in Brazil. So we are hoping that in 2014, we will actually start to see some improved margins coming.

Our next question comes from the line of Bill Chappell from SunTrust.

Just on the Monster Muscle, can you maybe quantify I think you'd said ACB is pretty low. Where we stand there? And where next few months or few quarters?

The ACB level that Nielsen has indicated for Muscle Monster is about 38% ACB.

And can that get to 50%, 60%, 70%?

Well, it should get to 80%, 80-plus like most of our other energy drink brands. And then obviously, what you might get in -- within the range, you might get a variation of ACB levels from the bestsellers to the least. We have 3, we're introducing strawberry Muscle Monster and we are planning to introduce another variant at the beginning of 2014. So we believe that we will be able to certainly get our better selling products in that -- in the range up to that 80-plus level. But it's a question of time and when we get listings and get into the new sets in spring.

Okay, and then is this something that's planned to take international?

Sorry at this point, we're just looking at the U.S. market. We're also evaluating the Canadian market. But due to cost of goods at this time, we aren't looking at any of the other markets yet.

Got it. Sorry, last -- only one question. In Europe, just trying to make sure I understood like CCE on a call a few weeks ago said Monster sales were up around 25%, and then I think you said Europe for you was up 8% to 9%. Is that just weakness in non-CCE channels or is there some disconnect I'm missing?

We take it across all countries. And as we indicated, I gave you some of our bigger countries. Basically, we have increased rates, but a lot of the central and eastern countries have been -- their actual category is down and we haven't seen those sort of increases. And so when you balance it across the whole of Europe, it's come down more but also I think there is some issue in CCE. They did, we think, reduce inventories. But I don't have a figure for that. There was some reduction in their inventory holdings, which again also translate into a difference between our sell in and their sell out. And I think there was a production, they delayed production at the end of the quarter. Just because in some of -- in many of their markets, they run production and then charge out the products and then record a sell, once they run the product produced, and then it gets delivered and they moved their production that was scheduled at the end of September, they moved that into the beginning of October. So that, I think it may have had some impact as well.

And our last question will come from the line of Alton Stump with Northcoast Research.

Just wanted to ask -- just to clarify from a question about India. In the October sales number of up, what was it, 9.1, was there any impact in that just a current month or the October month from India?

No. Once again, because we really just started getting regulatory approval, they were using some of their current inventory they had on hand and we're now starting to produce new fresh inventory for them. So India really had no effect. Just want to go back -- in Japan the foreign exchange difference is about $2 million. Also just wanted to mention that, just in case you guys have looked at the some of the inventory buildup, that's possibly due to the fact that we started delivering some of the Ultra Red during the quarter. Although we launched it in the October, there was some sales in the quarter of Ultra Red, we were building up inventory. Also, we had Ultra Blue inventory, which is from the launch in March, which we didn't have last year. And we also have a Call of Duty promotion, both in the U.S. and in many of our international markets, and so there was some buildup of inventory in anticipation of deliveries for that promotion, which will take place later in the quarter, it will take place starting now, I think and going through to the end of the year.

Okay, if I could, one quick follow-up, Rodney or no?

Want to have a follow-up?

Yes. I'd like to ask a follow-up if I could. Just, as you look at the category, it'll only be up low-single digits in the third quarter I guess the comps were easier, is there still any impact, do you think, just from the perception of all the headline news risks? I think you've mentioned that on the last couple of conference calls, is that still out there, is it still and impact in the category do you think?

We think that there's still some impact, but we think that it is being -- it is lessening as time goes on because things are -- this started over year ago. The amount of articles and comments and has become sort of lessened. So we do believe there has been lesser of an impact and eventually, we believe it will get -- it eventually will be eliminated and go away. But at the moment, we think there is still some there on the category, generally. All right. Ladies and gentlemen, on behalf of Monster, I'd like to thank everyone for their continued support for the company. We remain confident in the safety of our products and our growth strategy, both domestically and internationally. Thank you very much for your attendance.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone, have a great day.