Good morning, ladies and gentlemen, and welcome to the Henry Schein First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this call is being recorded. I would now like to introduce your host for today's call, Carolynne Borders, Henry Schein's Vice President of Investor Relations. Please go ahead, Carolynne.

Thank you, operator. And my thanks to each of you for joining us to discuss Henry Schein's results for the first quarter of 2015. With me on the call today is Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein; and Steven Paladino, Executive Vice President and Chief Financial Officer, who are in different locations. Before we begin, I would like to state that certain comments made during this call will include information that is forward-looking. As you know, risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements. As a result, the company's performance may differ from those expressed in or indicated by such forward-looking statements. These forward-looking statements are qualified in their entirety by the cautionary statements contained in Henry Schein's filings with the Securities and Exchange Commission. In addition, all comments about the markets we serve, including growth rates and market share, are based upon the company's internal analysis and estimates. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, May 4, 2015. Henry Schein undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. I ask that during the Q&A portion of today's call, you limit yourself to a single question and a follow-up before returning to the queue. This will provide the opportunity for as many listeners as possible to ask a question within the one hour we have allotted for this call. With that said, I would like to turn the call over to Stanley Bergman. Stanley M. Bergman - Chairman & Chief Executive Officer: Thank you, Carolynne. Good morning, everyone, and thank you for joining us. Our first quarter…

This question comes from the line of Jeff Johnson of Robert W. Baird. Jeffrey D. Johnson - Robert W. Baird & Co., Inc. (Broker): Thank you. Good morning, guys. Steve, I was wanting to start maybe with you on the International Dental business and the consumables softness there, just any more color you can provide as far as what may have caused that and how we should be thinking about those three markets you called out, specifically over the next several quarters. Steven Paladino - Chief Financial Officer, Executive Vice President & Director: Well, I'm not sure there's a lot of detail. The three markets that caused the decline were Germany, Australia and the UK markets. Germany was just a little bit of sluggishness during the quarter. There was some product movements in Australia, the UK that maybe also contributed. I think that what we believe is that there's no trend here, that we're looking for a bit of a pickup in International Dental merchandise for the balance of the year. And I'd just like to be cautious for a bit of a pickup, so it'll be a modest improvement I think. But I think what we're really also happy with is the equipment side. Equipment despite an IDS year was very strong at a little over 5%, 5.4% growth. And while the typical markets, including Germany, is definitely impacted by the IDS market, we did see strong equipment growth in France, in the UK, in the Netherlands as well as Spain and Portugal. And at least the pipeline shows that it was a good IDS year and we should expect good growth of equipment across the board in International for Q2 and beyond. So, I don't think, Jeff, there's something that's a trend here. I just think sometimes you…

Your next question comes from the line of Michael Cherny of Evercore ISI.

Good morning, guys, and nice job on the quarter given a lot of the headwinds you faced. So I just want to dive in a bit to the Medical business. If my model is correct, this looks like the best organic growth quarter you've put up in North American Medical in a long period of time. As you think about those underlying trends there, obviously partnering with Cardinal and their business can help. But can you just talk about maybe some other nuances that you may be seeing relative to both underlying market growth versus where you think are areas for potential share gain that may be showing up in numbers now? Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. I think we may have discussed this on previous calls, but to refresh those callers who have not really participated in our previous calls, about a half a dozen years ago or so, we commissioned two studies, two strategic reviews. One, to take a look at the specialties that would be important for our business, those specialties likely to grow and would fit in well with our model. And at the same time, also conducted a study on the organizational methodology that will be used for delivering healthcare. And so out of those studies, we decided to focus on certain sectors in the medical arena and also formed our healthcare services group, which was focused on IDNs, large group practices and these multiple locations under common management type entities. And I think our work has been recognized. I think it's clear in the marketplace that we are delivering well on our commitments with regard to these newer kinds of entities. And so we are picking up business and have been picking up business, but now actually fulfilling the orders. From the time we pick up a large account to the time we actually fulfill the orders, it could be as much as a year or so. So we have been speaking for a while about us doing well with these larger accounts, the IDNs, the – as I mentioned, these different kinds of practices, and I think this is where the underlying growth is coming from, as well as a focus on certain specialties.

Thanks, Stanley. That's helpful. And then just on the private label approach, can you talk about maybe across the three major segments where you're seeing the greatest areas of traction on private label? What type of customers really prefer that product versus more of the traditional branded, and what are the kind of qualitative growth areas you're seeing and opportunities in that front? Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. First of all, Henry Schein's philosophy has been one of being committed to national branded manufacturers. So essentially – I don't know the number today, Steven may have it – but well over 90% of our business is in branded products. Generally, we will come out with a private brand when the product is commoditized. Rarely are we the first to come out with a private brand; we'd rather work with the branded manufacturer. But I would say some of these group practices on the commodity-type sales, the less technique-sensitive type products in Dental are looking at the private brand. But I think our percentage of private brand sales in Dental has been quite static for a long time. The Medical side – there was a greater movement specifically on the commodity, the infection control type products, to the private brand. In this case, I think we're also a bit of a follower in the marketplace. We generally work with the branded manufacturers until there is no option. And on the Animal Health side, there's some advancement in the area of generic drugs. But again, we tend to have very close relationships with the branded pharmaceutical companies, and the areas we're making progress are on surgical-type products, instruments, et cetera. At the same time, I think you know that we do have a number of exclusive products, whether it's the Colgate relationship in the U.S. and a few other countries, and these products are driving our – these relationships are driving our sales quite nicely, although we work with all the branded manufacturers generally in every market.

Those details are very helpful. Thanks.

Your next question comes from the line of Glen Santangelo of Credit Suisse. Glen J. Santangelo - Credit Suisse Securities (USA) LLC (Broker): Yeah, thanks and good morning. Stan, I just wanted to follow up on the Animal Health question for a second. I mean, I understand your business is largely much more companion based versus large production animal. But I'm just kind of curious, do you have a preference for companion versus large production? I think you do, and maybe if that's the case, could you maybe discuss some of the differences between those two customer classes as you see it and why one may be more attractive versus the other? Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. First of all, Glen, the makeup of the businesses we've owned to-date have been largely companion animal, except, as I mentioned, the countries – Australia and a couple of other countries, New Zealand, Ireland, a few others. So that's where we've been. That book of business is generally very similar to our existing customers. These are practices, generally SME, small, medium-sized enterprises, namely our customers. But there are a growing group of consolidators. But the consolidators generally are multiple locations, multiple smallish practices under common management. So that group of customers has all of that in common. Generally, on the agricultural side, it's not the small practitioner or the midsize practitioners buying the products. To a large extent it is businesses that are buying the products, of course pursuant very often to a prescription issued by a veterinarian. It's a different business. I'm not saying it's a bad business, it's a good business. I could tell you the business we're in, we're very happy with and we see lots of runway. I think there are opportunities in the…

Your next question comes from the line of Robert Jones of Goldman Sachs. Nathan A. Rich - Goldman Sachs & Co.: Hi. This is Nathan Rich on for Bob today. Steve, I think you said in your prepared remarks that organic or the same-store operating margin metric that you give was up 33 basis points in the quarter. I think that's one of your better performances in quite some time. I was just wondering if you could give a little bit more color on what drove the operating expense performance in the quarter and how much of it might have been the result of some of the earlier restructuring actions that you've taken? Steven Paladino - Chief Financial Officer, Executive Vice President & Director: Well, as everyone knows, it's a key metric for us that we look at internally, as well as report on externally to shareholders. We do believe that there's more opportunity for margin expansion. Certainly, the restructuring activities will help that and did help that a bit in Q1. And this was – if you look at operating expenses, operating expenses, when you back out again the acquisitions and the restructuring costs, drove most of it, operating expenses as a percentage of sales. So it's something we want to keep pushing on because it's very important to us. It's very important to our model. And we think there's lots of opportunity to continue to improve that. So, we're going to keep pushing for the balance of the year and thereafter to continue to get that margin expansion. Nathan A. Rich - Goldman Sachs & Co.: Great. Thanks. And then I just wanted to go back to the Medical segment performance for a second. I understand you're obviously still working on completing the integration with Cardinal, but have you had time to get a sense of where you could potentially leverage Cardinal's scale and maybe purchase products more efficiently? And any kind of update on what the synergies from this partnership might ultimately be? Steven Paladino - Chief Financial Officer, Executive Vice President & Director: Well, maybe I'll start. So, we're still in the early stages of the procurement agreement with Cardinal Health. I think both organizations feel very good that there's a lot of opportunity. We do believe that there's a win-win, that we'll be able to buy product at lower cost than we could buy from third parties because of Cardinal's scale on certain products. But to quantify right now, we're still trading. We could not trade some detailed information before the deal close because of legal restrictions. So we're just starting that. We've bought a little bit of product so far from them. But best I could say is we're very optimistic that there are benefits there. And as the year progresses, hopefully we can give you a little bit more detail on that. Nathan A. Rich - Goldman Sachs & Co.: Great. Appreciate the update. Thanks so much.

Your next question comes from the line of John Kreger of William Blair. Roberto V. Fatta - William Blair & Co. LLC: Hi. Good morning, guys. This is actually Robbie Fatta in for John today. Just a question on the dental equipment growth. I may have missed it, but could you breakout for us what the high-tech growth was versus basic equipment in the U.S., and internationally if possible, and maybe within high-tech, how the CAD/CAM strategy is working so far? Steven Paladino - Chief Financial Officer, Executive Vice President & Director: Sure. This quarter, if we look at dental equipment growth, it really was pretty much across the board our growth. We did not see a particular bump from any particular product category. I think part of that is, when we look at CAD/CAM, we had such a strong Q4. We're also up against, this quarter, a very difficult comp on CAD/CAM because of upgrades that happened last year. So really, it was across-the-board growth. It really wasn't any particular category that stood out. And we still feel very good about PlanScan E4D. And when you look at internationally, I would say the same is true. I think it was weighted a little bit more towards traditional equipment in the international markets rather than high-tech, which is a good sign for the overall market too, because if people are buying traditional equipment, they generally are feeling good about how their practice is doing going forward. Roberto V. Fatta - William Blair & Co. LLC: Great. That's helpful. And just a follow-up on the specialty categories. Could you give you us an update on some of the ortho and implant categories? Steven Paladino - Chief Financial Officer, Executive Vice President & Director: Sure. From a financial perspective, our dental specialty…

Your next question comes from the line of Jon Block of Stifel. Jon D. Block - Stifel, Nicolaus & Co., Inc.: Great. Thanks. And good morning, guys. I'll stick to two questions as well. Maybe for Stanley, the North American consumable, it was a third straight quarter of over 4% growth there. But the year-ago comp was a little bit easier due to weather. So, if you looked at it on that stacked basis, it stepped down quite a bit. I'm just trying to get your opinion of what we're seeing in the North American market. Is it strengthening even further or do you think the market's taking a little bit of a pause up here after some of the reacceleration we saw in 2H 2014? Just would love to get your thoughts and commentary there. Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. We did have a tough winter the previous year and this year wasn't perfect. But I think the comps were a little bit weaker. And so I think there is some of that that can be brought to bear when you look at our growth for the quarter. Having said that, we do believe that in each one of our businesses we have great momentum on so many fronts and remain quite confident. Of course, there's no guarantees that we'll be able to continue with this momentum, not only in North America, by the way, but around the world. So, yeah, I think there's something in the fact that the comps were a little bit easier, but overall, I think in North America the markets are getting stronger and we are in a position to pick up a little bit of market share as well. So you add those two things together and we…

Your next question comes from the line of Lisa Gill of JPMorgan.

Thanks very much. I just wanted to follow back up on a question around Cardinal Health and the relationship. Stanley, I just want to understand this a little bit better. When you talked about marketing together with Cardinal, now that you finally have the relationship. Can you talk about which of their products, if any, you're helping to promote with the new relationship? Are you pushing some of their private-label products? And as it's still early days, it sounds to me like if we look at the hospital market versus what you're saying in the physician and outpatient market, that your side of the market is growing much faster. Can you just give us any color as to what you're seeing for the underlying trends maybe on the utilization side? Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. So, Lisa, first of all, we would not view their products, at least in the Schein context, as a private brand. It is a brand, and we're bringing in an extensive offering, thousands of products. I'd be happy to give you the exact number; I don't have it in front of me. But I know it's thousands – or Steven can give you the exact number. So we will be promoting their brand, of course, not only in the medical arena, but also in the dental and the vet space. And we will be doing some purchasing from them on the generic drug side, on the generic pharma side. So I think there's going to be quite a bit of opportunity for them to grow in sales to us and us to gain synergies on the purchasing side. The physician space, it's hard to get specific utilization data, because it's not really broken out and where does the hospital begin…

And then just as a follow-up, how do you view that market from an acquisition standpoint at this point, Stanley? Is there still acquisition opportunities there? Stanley M. Bergman - Chairman & Chief Executive Officer: There are opportunities for us in that space. The specialty products to be purchased, we were at one time looking at the software side. Prices went so high in the electronic medical record arena that we decided not to continue. We do own a company in that space. We have relationship with Athena that is working actually very well. But there of course are opportunities on the specialty side. I'm not saying specialty pharma, because we exited that space. But in product categories that focus on specialists, lots of opportunities, actually some very high margin opportunities. And, yes, there's some space – opportunities with some small distributors, but the opportunity rests largely I think in higher-margin type products.

Okay. Great. Thanks for the comments.

At this time, we have time for one more question. And that is from the line of Steven Valiquette of UBS.

Thanks. Good morning, Stan and Steve. Yeah, for me I guess my question was – you sort of half answered it there, but just a follow-up on the North American Medical, how much health reform and incremental ACA enrollment in early 2015 might be helping to drive the acceleration in sales growth? And I think, also, we didn't really see that really help that much in early 2014 – maybe it took a while for the enrollment to get going. But I think in the back half of 2014, that probably helped. Does that create maybe a little bit tougher comps, thinking about Medical over the next few quarters? Thanks. Stanley M. Bergman - Chairman & Chief Executive Officer: Yeah. I can't give you direct information on the correlation between enrollment and our sales, but it is clear that what healthcare reform is all about is prevention and wellness. Middle class and above have access to primary care physicians, very poor had it through the – primary care physicians through general insurance and through Medicare, and the elderly of course, and then the very poor had access to primary care physicians through Medicaid. But there's a whole group of people in the middle that didn't have access to a primary care physician. If these people were sick, they would go to the emergency room, but there was no real preventative programs for these people. Healthcare reform is about providing primary care. Of course, the debate is who's going to pay for it. Is it the taxpayer, is it the government, is it reducing costs at certain areas, et cetera? But that's not as important to us as more primary care will be practiced in this country, in the United States, and so that is good for our business and we can see that the primary care side is gearing up. Obviously, the cost per procedure, reimbursement per procedure, will go down because it's more about the outcomes as we move from sick-care to healthcare. And we believe that this presents a huge opportunity for our Medical business; this is why we're focused in this space. And we believe that some of those opportunities are already being harvested and we expect that to continue in the future as wellness, prevention becomes a bigger part of the whole healthcare focus. So I can't give you specifics, but I can tell you why we are so enthusiastic about our Medical group.

And by the way, was there any change at all in medical pricing trends or is it still overwhelmingly driven by volume demand, just to confirm that as well? Stanley M. Bergman - Chairman & Chief Executive Officer: I would have to say that there's probably deflation a little bit. Firstly, I think you've got bigger customers, so the pricing is going down. Remember, it's also easier for us to service these bigger customers. They are less expensive to service than the smaller ones. So I would think because the growing pie of these larger practices and these larger entities, there's price pressure – they can make a decision on moving to generic and then the branded manufacturers have to often meet the generic price. So to some extent, there is deflation, but I think our business growth is really a market share growth that's cushioning also some of this deflation.

Okay. That's great. Thanks. Stanley M. Bergman - Chairman & Chief Executive Officer: Okay. So thank you all for calling. We remain very excited about the businesses that we're in. We're very pleased with the progress being made by each of our four business units, actually in the U.S. and abroad. Our Value-Added Services continues to pay off both from a sales and profit point of view and from a connectivity and the stickiness with our customers. So we remain quite bullish about our business. And so if you have any questions, please feel free to give Carolynne Borders a call. Carolynne, what's your extension?

I'll be on my phone which is 631-662-4317. Stanley M. Bergman - Chairman & Chief Executive Officer: Okay. And/or Steven Paladino at extension 5915 at Henry Schein. So thank you and we look forward to speaking again in 90 days and/or seeing you at conferences. Thank you very much.