Good day, everyone, and welcome to the 2016 First Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jim King. Please go ahead, sir. Jim King - Senior Vice President, Investor Relations & Corporate Affairs & Chief Communications Officer: Thanks, Shannon. Good morning, everyone, and welcome to the Scotts Miracle-Gro first quarter conference call. With me this morning in Marysville, Ohio is our Chairman and CEO, Jim Hagedorn, and our CFO, Randy Coleman. Joining by phone from the West Coast is Mike Lukemire, our Chief Operating Officer. In a moment, Jim and Randy will share some prepared remarks. Afterward, we'll open the call for your questions. In the interest of time, we ask that you keep to one question and to one follow-up. I've already scheduled time with many of you later in the day to fill on any gaps that we have and anybody else who wants to set up some Q&A time can call me directly at 937-578-5622. One bit of housekeeping before we start. I want to let everybody know that Randy and I will be presenting at the Raymond James Conference in Orlando on March 9. We also have set aside a day and a half for one-on-one meetings at this event. The presentation itself will be webcast. And so, we'll provide more detail when we get closer to the date. With that, let's move on to today's call. As always, we expect to make forward-looking statements this morning. So I want to caution everyone that our actual results could differ materially from what we say. Investors should familiarize themselves to the full range of risk factors that could impact our results. Those are filed on our Form 10-K which is filed with…

Thank you. And our first question will come from Bill Chappell of SunTrust.

Good morning. Randy Coleman - Executive Vice President & Chief Financial Officer: Hi, Bill.

Hey, you forgot to mention, and the groundhog saw a shadow, so you got that going for you. Randy Coleman - Executive Vice President & Chief Financial Officer: Another tailwind.

I'll put in my numbers. Hey, Randy, first question. Actually, I didn't fully understand the guidance on the Bonnie business. It's $0.10 accretive or maybe it's not. Can you help me walk through that in assuming we're not including the transaction cost? Randy Coleman - Executive Vice President & Chief Financial Officer: Sure. So for a full year basis, if you look out 12 months, it's the benefit to our P&L, and then it will show up in different areas on the P&L, would approach $0.10, wouldn't quite get us there. But if you look at just the impact on 2016 because of, frankly, some deal costs and also the timing of the deal on that, it's only happening midway through the year, that impact for 2016 will only be a few pennies. So, it'll be slightly accretive this year, but when we get to next year, it should be approaching $0.10.

Okay. And that's – the few pennies is on top of your current guidance? Randy Coleman - Executive Vice President & Chief Financial Officer: Well, if you look at that deal individually, you could say yes, but I'm not sure we're that precise at this point on Groundhog Day.

Okay. Thank you. And as I do look out, I mean, Jim alluded to kind of some upside on your gross margin opportunity. At this point, aren't you largely kind of locked in on some of these – you had fuel, urea, other things and have a pretty good outlook? And have things meaningfully changed over the past three or four months now to give you some cushion? Can you give us some more color there? Randy Coleman - Executive Vice President & Chief Financial Officer: Sure. So, absolutely with the drop of oil over the last 45 days, it's helped a little bit, but we're 95% locked on urea at this point for 2016, and we're 70% or so locked on fuel. So, we're now buying some hedges going into 2017. So, obviously if the price of oil were to stick where it is and our fuel cost will continue to benefit, we'd see some more of that later in the year, but it's difficult to predict what's going to happen late in the spring and the summer at this point. James Hagedorn - Chairman, President & Chief Executive Officer: But it obviously is helpful. Randy Coleman - Executive Vice President & Chief Financial Officer: No question about that.

And I'm sorry, I didn't understand. On the gross margin this quarter, how helpful was commodities on a year-over-year basis? Randy Coleman - Executive Vice President & Chief Financial Officer: About $0.04 to $0.05 year-over-year.

Perfect. Thanks so much. Randy Coleman - Executive Vice President & Chief Financial Officer: Sure.

And our next question will come from Jon Andersen with William Blair. Jon R. Andersen - William Blair & Co. LLC: Good morning, everybody. Randy Coleman - Executive Vice President & Chief Financial Officer: Hi, Jon. Jon R. Andersen - William Blair & Co. LLC: Hey, I was just wondering if maybe you could talk a little bit more about the point of sale, the 14% point-of-sale growth in the current quarter? And what that kind of implies about consumer engagements, how you're thinking about that potentially carrying over into the kind of the heart of the season over the next couple of quarters? Thanks. Randy Coleman - Executive Vice President & Chief Financial Officer: Sure. So, obviously in the fall, we had terrific weather in the Midwest and Northeast, so that's where we saw the greatest strength when you look across the country. As far as what it means for the balance of the year, I'm not sure necessarily that the strength in the fall would lead to say you can expect the same in the spring. But when you look at the broader macroeconomic factors in play and you look backwards of the correlation between our results and our key factors, when you look at consumer confidence, you look at the price at the pump and you look at disposable income, those are all favorable items for us. I know – we just saw yesterday, government came out and said, it looks like a lot of consumers are putting the money in their pocket. But we haven't seen that in the past with our particular business. I think a lot of that is because the – the consumer is a little more discretionary in our category. When they do have some more dollars in their pockets, they do…

Thank you. And our next question will come from Jim Barrett of CL King & Associates. Jim R. Barrett - C.L. King & Associates, Inc.: Good morning, everyone. Randy Coleman - Executive Vice President & Chief Financial Officer: Hi, Jim. Jim R. Barrett - C.L. King & Associates, Inc.: Randy, on Bonnie, how quickly would you expect Scotts R&D efforts to be manifested in Bonnie's product launch? Randy Coleman - Executive Vice President & Chief Financial Officer: ASAP. But, I think initially we're really focused on the marketing side more than anything and how to bring consumers together. And I think the only thing I'd add that to what Jim outlined earlier related to the whole deal is the battle or the war in the store, I think we have a much more prevalent position now. And instead of us working against Bonnie, not that that would always happen, but there is now a reason for us to collaborate together and also work with the retail store operations and I think just make it a better deal within the store not just for the consumer but for the people who work there, whether they're from Scotts or Bonnie or one of our major retailers. James Hagedorn - Chairman, President & Chief Executive Officer: But, Barrett, I think it's pretty much happening already. The teams had been working together for months. Jim R. Barrett - C.L. King & Associates, Inc.: Okay. James Hagedorn - Chairman, President & Chief Executive Officer: The Alabama Farmers Coop is a great company. The Bonnie business is something everybody should be really proud of. But our ability to sort of get ahead of them with their board meeting and their meeting of membership, which is a little bit why we're still being a little bit tight…

Our next question will come from Eric Bosshard of Cleveland Research Company.

You commented earlier that you felt like the season was set up very positively. Curious what specifically you would say is different this year? The last couple of years' growth in the category, I know, has been influenced by weather. But what's different this season that makes you more optimistic than prior seasons? Randy Coleman - Executive Vice President & Chief Financial Officer: Hey, Luke, do you want to address that particular question, then Jim and I can fill in the blanks if we need to? Michael C. Lukemire - Chief Operating Officer & Executive Vice President: I think the retailer engagement, I think the new products, I think the economy, those are all factors and certainly the good start to the weather, but every retailer we've talked to is engaged in the category and wanting to do more. So there's more promotional activity. And then we're also comping off of the Midwest and Northeast kind of being down, the Southwest kind of being down, and I think the opportunity and ready for a good season and the El Niño effect. James Hagedorn - Chairman, President & Chief Executive Officer: Listen, I think that – so I've thrown like $20 on the table, so I've like more than accepted my loss here. I think it's also a little bit our attitude. We are acting extremely competitive right now. I think if you look at the Tomcat business, I think we're the number one – at least in our class of trade, I think we're the number one rodenticide by market share now. And that was not the case, and we're dealing with serious people in that space with d-CON and Victor, et cetera So these are people who are not hobos in the space. But Mike and the team and…

One follow-up, as you look at SG&A spending relative to what you just ran through – bunch of incremental investments and efforts to be more aggressive, be on the offense, to grow the business, what does that do within SG&A growth this year? How much of that do you fund on your own? And if we remove sort of all the moving parts within SG&A, is what I'm really trying to figure out, the underlying SG&A investment, and what the growth of that looks like? Randy Coleman - Executive Vice President & Chief Financial Officer: Sure. Eric, if you just look at our quarter, our SG&A was higher than last year, even a little bit higher than sales growth. I think a big part of that was really related to our Scotts LawnService business where last year we had an okay year, but incentive payouts for that team were really kind of abysmal this year. That business actually outperformed everything else and that team received the best payout. So the year-over-year impact on incentives for LawnService was a fairly sizable number, as well as the selling campaign that we did in the fall to drive up our customer count for next spring. That cost was front-loaded, so we saw the expense in this quarter. We won't see the benefit of that until next year. So that's why there's a little bit of disconnect between the sales growth in SLS and the bottom line growth. But it really makes you feel good going into the spring, and our customer count is up 4% to 5%, which is a really nice place to be. And aside from that, a lot of it's timing, some of it's compensation-related, et cetera, the impact from general hydroponics year-over-year played into that. But at this point, we would expect SG&A to again be in line with sales growth for the full year. And then thinking about promotions that Jim had referenced, a lot of that we just factor into pricing, so trade programs and pricing. So you don't see those fall into our SG&A spend. It really falls through on our top line. It's netted into sales.

Okay Thank you. Randy Coleman - Executive Vice President & Chief Financial Officer: You're welcome.

And our next question will come from Joe Altobello of Raymond James. Krisztina Katai - Raymond James & Associates, Inc.: Hi. Good morning. This is Krisztina on for Joe. I was just wondering if you could talk about the impact of weather on the West Coast this year? I know they've had a lot higher rainfall versus last year's drought conditions. And then also just the $15 million in extra sales, was that all in Global Consumer, or did any of that benefit SLS? Randy Coleman - Executive Vice President & Chief Financial Officer: Sure. The $15 million we referenced was – it's really Global Consumer. So LawnService, when you get towards the end of the quarter, there's not a lot going on. So it's a Global Consumer issue. And then as far as weather in California, again, Q1 is pretty small, we do have a pretty favorable outlook going into the spring. So we haven't seen those results in California to-date. But looking forward, we're feeling pretty good about it. And if you recall, last year, there were floods in Texas in May. So once we hit the late spring, we feel like we should have a pretty favorable comp there. And again, when it comes to weather, like Jim said, we've had four difficult springs in a row. We feel like if we just get a fairly decent weather it should set-up pretty nice for us. Krisztina Katai - Raymond James & Associates, Inc.: Great. Thank you so much. Randy Coleman - Executive Vice President & Chief Financial Officer: Thank you.

And it does appear we have no further questions at this time. I'll turn the conference back over to Mr. King for any additional or closing comments. Jim King - Senior Vice President, Investor Relations & Corporate Affairs & Chief Communications Officer: Okay. Thanks, Shannon. For the record, my $1 bet has yielded a $20 return, so it makes me a pretty good investor. Other than that, we're done this morning. If you've got any other follow-up that you need from me, I'm at 937-578-5622. Otherwise, we will either see you on the road or talk to you in early May. Thanks. Have great day.