Good day, ladies and gentlemen, and welcome to Monster Beverage Corporation's Second Quarter 2016 Financial Results. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session with instructions following at that time. As a reminder, this conference call is being recorded. Now, I'll turn the conference over to your host, Mr. Rodney Sacks, Chairman and CEO. Please begin. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Thank you. 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 Tom Kelly, our Senior Vice President of Finance. Before we begin, I'd 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 February 29, 2016, as well as our most recent report on Form 10-Q filed April 29, 2016, 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…

Thank you, ladies and gentlemen. Our first question is from Judy Hong of Goldman Sachs. Your line is open. Judy E. Hong - Goldman Sachs & Co.: Thank you. Hi, everyone. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Hi. Hilton H. Schlosberg - Vice Chairman, President, COO, CFO & Secretary: Hi, Judy. Judy E. Hong - Goldman Sachs & Co.: So first question is just looking at the U.S. trend. I guess the gross sales number in July, I know you called out the less shipping day issue, but just broadly, it seems like maybe trends are a little bit softer in the measured channel data. So first, what do you think is driving that? Secondly, how much is the non-measured, the non-traditional channel, really adding to the growth, because it looks like the second quarter U.S. number for your DSD business actually came in pretty healthy. And then my second question is just on Latin America. It sounds like you're making progress with the bottlers there in Mexico and Brazil, and just trying to get a sense of, is this more of a staged transition, where you're going into certain regions within that country with one bottle and then you roll out to other bottlers? Or how much of this could really have an impact in the more near-term? Thanks. Rodney Cyril Sacks - Chairman & Chief Executive Officer: We got to get you to start asking single questions, because our memory is not good enough to have all six of them all answered. Judy E. Hong - Goldman Sachs & Co.: It's really two. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Two, but the two gets subdivided into categories. I'm not quite sure how many they are. But okay. Just going back to what,…

Pardon me, Judy. Judy E. Hong - Goldman Sachs & Co.: Hello?

Yes. Your line is open. Judy E. Hong - Goldman Sachs & Co.: Okay. Sorry. Can you hear me now? I think I was cut off from the queue. I think I'm still mute. Oh, am I on? Okay, because I can't hear. Anyway, I was trying to just get a better sense of your Latin America transition and whether you're transitioning to one bottler at different stages or is this just more of a broader rollout into Mexico and Brazil from a transition standpoint? I can't hear anything. Can you hear?

Pardon me. I'm still on. I think we're having technical difficulties. Wait one second, ladies and gentlemen. Please stand by. Judy E. Hong - Goldman Sachs & Co.: Hello? Rodney? Hilton? Can you hear me? I don't understand. All right. We can't hear you, Rodney and Hilton. I think people could hear me.

Ladies and gentlemen, please stand by. Your conference will resume momentarily. Again, please stand by. Your conference will resume momentarily. Again, ladies and gentlemen, please stand by, your conference will resume momentarily. Again, please stand by, your conference will resume momentarily. Speakers have rejoined and you still have Judy Hong is still on. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Thank you. Judy, can you hear us? Judy E. Hong - Goldman Sachs & Co.: I can hear you now. Thank you. Rodney Cyril Sacks - Chairman & Chief Executive Officer: (41:28) Judy E. Hong - Goldman Sachs & Co.: Yes, and I apologize for my two questions and then... Rodney Cyril Sacks - Chairman & Chief Executive Officer: Sorry, we just get focused on one, and then we just lose track of the other one. What was the other question we were still – you wanted to ask me? Judy E. Hong - Goldman Sachs & Co.: It was related to Latin America. You talked about transitioning in Mexico and Brazil and I just wanted to get some color on whether this is one bottler you're transitioned or is this the broader country in both...? Rodney Cyril Sacks - Chairman & Chief Executive Officer: No, that's fine. What was happening was you have FEMSA that has a lot of areas in which they have operations. And even though they're in different countries, they don't necessarily fill up (42:04) the whole country. So ultimately, we spent a lot of time ultimately in negotiating and getting to a deal with FEMSA. Once we're done there, it didn't facilitated moving quite quickly with other bottlers in each of these different countries. So as we indicated in the call, we have transitioned the whole of Mexico to all of the bottlers…

Thank you. Our next question is from Evan Morris of Bank of America. Your line is open.

Good evening, everyone. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Good evening.

Just on the Mutant launch, you talked about being in advanced stages. If you could just talk a little bit about the sort of the planned size of the rollout, just the channels. Is it just going to be focused on C-stores initially or other channels as well? And then just – it would be helpful is just if you've launched other kind of new platforms, not necessarily flavor extensions, but new platforms like this, how additive has it been to your sales growth in let's say the first 12 months to 18 months? Rodney Cyril Sacks - Chairman & Chief Executive Officer: I think that each country is unique. Where we've been in countries, and we've transitioned, you obviously are going into all channels. Where you run into smaller countries, particularly where you got a bottler with good connections with some of the measured channels of the modern trade, you are going to the independent stores and the modern trade and grocery at the same time. Other markets, we just generally try and focus first on the down the street and the independent markets and then go into the market. So you can't – there's no single formula for all of these markets. There isn't even a single formula for which markets you're going into. These are being done on opportunistically on the basis that when we are able to conclude agreements with the Coke bottlers, when we're able to properly terminate on due notice to our existing bottlers if there are bottlers in those markets and – we will then go into markets. I mean, you take Argentina, there we haven't gone into the market – in that market, we are at the moment engaged in planning production and looking at the changes being made to the line…

Yeah. I agree. Thank you. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Thank you.

Thank you. Our next question is from Mark Astrachan of Stifel. Your line is open. Mark Astrachan - Stifel, Nicolaus & Co., Inc.: Yeah. Hey. Good afternoon, guys. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Hi, Mark. Mark Astrachan - Stifel, Nicolaus & Co., Inc.: So, two questions. One, quickly, just why was concentrate or the strategic brands, Coke brands, whatever you're calling it these days, why was that better? And is that sort of a good run rate to use on a go-forward basis? And then second question, not to confuse you, but I think it's fairly straightforward. So on China, beyond negotiations with Coke bottlers, is there anything else that prevents you from commencing distribution? Like is there any formula or manufacturing approvals that are still needed? Rodney Cyril Sacks - Chairman & Chief Executive Officer: Okay. Let me deal with the China first. In the case of China, we already have product approvals, and we have manufacturing approvals, with two of the three bottlers. With the third bottler, we have product approval and we're pretty much, I think, we're almost through with the product, I don't think we've actually seen it, but I think it should be imminent, and then we'll go through the manufacturing approval process. We don't see any problem with that. It's already been approved by two independent Chinese authorities or provinces and that should be fine. And even if there were some technical hiccups, we could supply product from the Shanghai area, for example, to one of the other areas, and produce it there. So those shouldn't be issues. We just – obviously, we are in the planning stages. We're just trying to get to the finish line on a couple of issues, on the value chains and the sharing and…

Thank you. Our next question is from Kevin Grundy of Jefferies. Your line is open.

Thanks, guys. Good evening. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Evening. Hi, Kevin.

Hi. So a quick clarification on the July sales update. That was selling-day adjusted, correct – or was not selling day adjusted for two days, so... Rodney Cyril Sacks - Chairman & Chief Executive Officer: It's wasn't. That's our actual estimate, and we are saying that, we actually had 10% less selling days. I mean, that's why we made that point, yes.

So it's something closer to like high-single digits. Is that fair? On a selling day adjusted basis? Rodney Cyril Sacks - Chairman & Chief Executive Officer: We're not going to extrapolate, but we think that, obviously, that does happen, I mean, if you're selling, you're selling, and you just don't have those deliveries. So, it's a delivery up and that's why we again pointed to the fact that the retail sale numbers going out of the store is up substantially higher than, for example, our sales are showing. And that's why we really are cautious because this single month is a very, very difficult month to start trying to look at and look at trends and this happens to be one of those months where we looked – we can all see the number and say, okay, but you look at these other factors, and we just don't feel there's any significance to it. But that's how we read, and we run the business more on a trend basis than a single period of time.

Understood. Thanks for the clarification there. And Hilton, another point of clarity; on the gross margin, if I understood you correctly, you had an unfavorable impact of $24 million on cost of goods, so the top line was very strong in the quarter, I guess, relative to expectations. The margins came in a bit lower than consensus expectations, but is it fair to say that the gross margin would have been closer to about 66% on a pro forma basis, adjusting for that? And number one, is that fair? And number two, is that sort of a reasonable expectation going forward here? Hilton H. Schlosberg - Vice Chairman, President, COO, CFO & Secretary: Okay, firstly, we don't give guidance. So, I'm not going to comment on gross margins going forward. What I can tell you is that, in the quarter, because of the accounting and for the consolidation of AFF, we did not get the benefit of the lower cost of goods in this quarter because we had the inventory, and they had the inventory and everything was related to fair value adjustment. So we did not get the benefit of the, A, lower cost of sales in this quarter. We will get it in subsequent quarters. If you look at what that number should have been had we not had to account for – on these fair value adjustment methods, we would've added $24 million to our gross profit. And whatever that percentage is, that's what the percentage is.

Very good. All right, that's helpful. Just one more for me, if I could come back to Mutant and Hydro. Hilton, can you talk a little bit about the receptivity from retailers, particularly in the convenience channel, which is what you're targeting at this point? And a little bit on your level of confidence that you're going to get the type of merchandising and shelving that you want. And that is sort of at a different point in the cooler from the existing portfolio. Just sort of minimize cannibalization there. And then also maybe if you could just give us a little bit of clarity on the Hydro launch and when you anticipate that hitting. Thank you very much for your time. Hilton H. Schlosberg - Vice Chairman, President, COO, CFO & Secretary: So sales teams have been not making calls on Mutant, and many of the retailers, many of the major retailers, and in general, the reception has been good. I'm not sure that of any negatives that have been portrayed so far. We have very specific merchandising objectives for this product. It's not going to compromise our space or the Coca-Cola space. So we've very specific merchandising objectives, and all I can say, and I don't want to say too much, but the launch is proceeding in accordance with plan, and the communication with the retailers is also proceeding in accordance with plan. We have not had any negatives to speak of.

Yeah. Okay. Thank you. Rodney Cyril Sacks - Chairman & Chief Executive Officer: All right, then of the Hydro side, we are dealing with the planning on that product, but we really focusing on getting Mutant down into the market and doing that and we have our sales team and obviously the Coke bottlers have theirs, so you want to focus on one thing at a time. We do propose to follow with Hydro launch. We think that may still be – we're anticipating in the fourth quarter. Again, it may be subject to getting the cooperation and the ability of the bottlers to focus when they get to that holiday season that does become a bit tight. But subject to that, we should be able to get Hydro after, again, later in the fourth quarter. And then we do have one or two additional product – innovation product lines, one particular one planned for launch towards the end of the year, beginning of next year. But again, depending on simply timing, we may get the products done and shipped at the end of year, but probably will be fully launched in January or late January. So there is the sort of the innovation pipeline going forward. There are a number of individual items that we are still also looking at introducing in this period in the next couple of months – next six months.

Thank you. This ends the Q&A portion of today's conference. I'd like to turn the call over to Mr. Rodney Sacks for any closing remarks. Rodney Cyril Sacks - Chairman & Chief Executive Officer: Thank you. On behalf of the company, I'd like to thank everyone for their continued interest. We continue to believe in the company and our growth strategy, and remain committed to continuing to develop and differentiate our brands and to expand the company, both at home and abroad, and in particular, to expand distribution of our product through the Coca-Cola bottler system internationally. We are particularly excited about the new opportunities that we have going forward, with a robust portfolio of energy drink product throughout the world, comprised of our Monster Energy brand, together with the strategic brands, as well as for our new Mutant product line. Thank you very much for your attendance.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Have a wonderful day.