Good day, ladies and gentlemen. Welcome to the Genuine Parts Company Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I’d like to turn the conference over to Sid Jones, Senior Vice President of Investor Relations. Please go ahead, sir.

Good morning. And thank you for joining us today for the Genuine Parts Company fourth quarter and full year 2020 conference call. With me today are Paul Donahue, our Chairman and Chief Executive Officer; Carol Yancey, our Executive Vice President and Chief Financial Officer; and Will Stengel, our newly appointed President. As a reminder, today’s conference call and webcast include a slide presentation that can be found on the Genuine Parts Company Investor Relations website. Before we begin this morning, please be advised that this call may include certain non-GAAP financial measures which may be referred to during today’s discussion of our report as reported under Generally Accepted Accounting Principles. A reconciliation of these measures is provided in the earnings press release issued this morning, which is also posted in the Investors section of our website. Today’s call may also involve forward-looking statements regarding the Company and its businesses. The Company’s actual results could differ materially from any forward-looking statements due to several important factors described in the Company’s latest SEC filings, including this morning’s press release. The Company assumes no obligation to update any forward-looking statements made during this call. Finally, consistent with prior two quarters, we’ve accounted for the Business Products segment, S.P. Richards, as discontinued operations for all periods presented. Now, I’ll turn the call over to Paul for his remarks.

Thank you, Sid, and good morning, everyone. Welcome to our fourth quarter and full year 2020 earnings conference call. We appreciate you joining us today and hope you are all staying safe and well. Our fourth quarter results reflect the benefit of our ongoing strategic actions, despite the continued challenges of COVID-19. The GPC team was agile and adapting to dynamic conditions and executed on our initiatives to deliver customer value, operational efficiencies and strong financial results. We are grateful to our 50,000 associates for their unwavering commitment to excellence, while responding to unprecedented business and economic conditions, which have continued for nearly 12 months. Our operational focus is on ensuring a safe work environment, supporting our talented workforce and further strengthening our strong culture. In January, we’re pleased to promote Will Stengel to President, and we now welcome Will to this quarterly call. As our Chief Transformation Officer since 2019, Will helped our business units work to achieve a variety of strategic initiatives and significant cost savings in 2020. Will’s vast skill set and relevant experience in his previous career with HD Supply, have added tremendous value to our management team. His exceptional talent, proven leadership and experience make Will an excellent choice as our Company’s next President. And we look forward to his future contributions. You will hear from both Will and Carol later in the call, and then we’ll take your questions. So, now, turning to our fourth quarter financial results. Total sales for the quarter were $4.3 billion, down 1% due in part to the continued challenges of COVID-19. While our Automotive sales were strong in Asia Pac, the pace of recovery slowed in Europe and North America relative to the previous quarter. Industrial sales grew progressively stronger during the final three months of 2020 and…

Thank you, Paul. Good morning, everyone. First, I want to say that I’m incredibly proud to be a part of Genuine Parts Company. The Company has an impressive history of success, and it’s an honor to be on the GPC leadership team. I’d like to thank Paul and the Board for their vote of confidence. As Paul mentioned, I joined the Company in late 2019 as Chief Transformation Officer. Previously, I held executive leadership positions at HD Supply, including time as President and CEO of HD Supply Facilities Maintenance, and various other strategy and operating roles. My experience in distribution-related businesses fits well with GPC’s portfolio, business model and strategic initiatives, where consistent profitable growth, operating leverage, strong cash conversion, and disciplined capital allocation are all key value drivers, with the dividend an especially important part of the GPC capital allocation strategy. I’m excited about the future potential of Genuine Parts Company. Each of our GPC businesses enjoy leadership positions within attractive fragmented markets with scale and capabilities to win. We have leading global brands and longstanding relationships, based on reliable customer service and value-added expertise. And our unique culture that is based on a clear set of core values and purpose serves as an important common foundation. Strategic actions taken in 2020 accelerated the transformation momentum built over recent years as we work to simplify the business and further define our critical focus areas. The global teams executed well as we navigated the pandemic and demonstrated an ability to act quickly and deliver results. Our strategic actions provided clarity for areas where we want to increase our focus, including profitable organic growth, driving operating productivity through simplification and integration, disciplined and strategic capital deployment and investments in talent to develop and build capabilities. Despite a challenging and unprecedented year, our diverse businesses proved resilient and built solid momentum as we enter 2021. In my new role, I look forward to working with Paul and the global leadership team as we align resources within our focus areas to execute these initiatives and deliver value as a team. I’m also looking forward to spending time in our operations and with our customers and suppliers. In addition, we’ll continue to further refine and advance our longer term strategic roadmap. We’re excited about the numerous potential opportunities that new technologies and emerging trends could present for GPC. As we look to the future, we feel well-positioned to execute our strategic priorities to the benefit of all our stakeholders, and I look forward to working with the leadership team to drive results. Thank you. And I’ll now turn it to Carol for her comments.

Thank you, Will. As a reminder, our comments this morning primarily focus on adjusted results from continuing operations, which excludes restructuring, inventory, transaction and other costs and income. We will begin with a review of our key financial information and then provide our full year outlook for 2021. Total GPC sales were $4.3 billion in the fourth quarter, down 0.7% from 2019. For the full year, sales were $16.5 billion, down 5.6% or down 2.3%, excluding divestitures. Our adjusted gross margin for the quarter was 35%, a 40 basis-point improvement compared to 34.6% in the fourth quarter last year. For the full year, adjusted gross margin improved 100 basis points to 34.5% from 33.5% in 2019. Our team has been focused on a number of margin-enhancing initiatives, and the fourth quarter and full year gains represent the 13th consecutive quarter and the 5th consecutive year of improved gross margin for the Company. Our steady progress in expanding gross margin in the quarter and the year reflect a variety of factors, including the favorable impact of sales mix shifts to higher gross margin operations, positive product mix shifts, strategic pricing tools and analytics, global sourcing advantages and strategic category management initiatives. In addition, the full year gross margin also benefited from acquisitions and divestitures, which impacted our results through the nine months. We would add these positive factors were partially offset by a decrease in supplier incentives due to lower purchasing volumes. And finally, as we assess the pricing environment in the fourth quarter and 2020 overall, there was minimal impact of price inflation in our sales and gross margins. As Paul mentioned earlier, we’ll see how this plays out in 2021, but we have not had any impact of inflation to this point in the year. Our adjusted selling, administrative…

Thank you, Carol. Looking back on the quarter and the year, we are proud of our team for their continued focus on executing our strategic growth initiatives and cost actions. The GPC team and our Automotive and Industrial business proved resilient in meeting the challenges presented by the COVID-19 pandemic. We closed the year strong with a strong financial performance. We want to thank each of our GPC team members for their continued support, dedication and commitment to serving customers and being the best. We entered 2021 as a stronger, more agile Company, with streamlined operations at a more optimized portfolio focused on the global Automotive and Industrial businesses. We are well positioned with a stronger balance sheet and strategic plan to capture profitable growth, generate strong cash flow and drive shareholder value. We are off to a solid start to the year with global automotive sales growth and ongoing industrial recovery and operational improvements. With the continued rollout of COVID-19 vaccines, we look forward to a global recovery from the pandemic and a strengthening economy. For all these reasons, the GPC team is excited about 2021. And we look forward to reporting on our progress as we move through the year. So, thank you for your interest in Genuine Parts Company. And with that, we’ll turn it back to the operator for your questions.

Thank you. [Operator Instructions] Our first question comes from the line of Bret Jordan with Jefferies.

Hey. Good morning, guys. When you look at the NAPA U.S. trends, I guess, it wasn’t quite clear on the commentary. It sounded as if December ended flattish or December ended up. And I think, could you talk a little bit about regional performance as well as NAPA Company-owned stores versus independents in the fourth quarter?

Happy to do so, Bret. And, let me start with the Company store versus our independents. Our Company stores slightly outperformed our independents in the quarter. We’ve seen that already reversed in the other direction in January. That’ll flip month-to-month, quarter-to-quarter. So, no real big news there. Regionality, what we saw in the quarter was kind of consistent with what we’ve been seeing. We saw really good performance out West. I’m really proud of our Western division and the job that group is doing. Our Mountain team, as they have all year, had a solid quarter. And the Mountain, Bret, just FYI, they stretch from Colorado, Montana, all the way down to Texas. We saw some softness in the Southeast. We saw a little softness in the Northeast as well. In relation to your question about the cadence of the quarter and December specifically, we started out the quarter okay. And I’m assuming that question was around U.S. Automotive, Bret?

Yes. That was U.S.

Yes. October started out okay, pretty much in line with September. We saw softness in December, -- and then we saw softness in December as well. I think the first couple of months were probably more related to a little bit warmer weather than -- especially in November, plus we saw a little bit of a COVID resurgence in the U.S. December is a bit unique, Bret. And if you remember, we had a big December a year ago, 2019. We were going up against some pretty tough comps. So, that certainly impacted December as well. But look, here is a good news, Bret, for us and the NAPA team is, we had a really strong rebound in January, both DIY and DIFM, which we’re really pleased to see the commercial business bouncing back in January. And that’s carrying into February as well.

Okay, great. And question is on the supply chain. It sounded as if you were saying maybe there is a couple of categories where stock levels could be better. Is there anything to call out there? I mean, it sounds like batteries have been a great category this winter, but maybe some supply constraints there. I mean, are there any standout categories we should be looking at?

Well, you hit the first one, Bret. We have had -- and we did have a good year in our battery business. And I expect with this cold weather, we’re going to see even a greater surge in our battery business. But supply has been a challenge. And I think you’ve heard that elsewhere. Pleased to say, we’re not seeing that in Europe. We have a strong battery business. We actually just launched the NAPA battery across Europe. We have our suppliers taking good care of us over there. And we’re seeing really good business across Europe in the battery business. But, that would be the call out. There’s a couple of other suppliers that are impacting us. And look, these guys are battling labor shortages due to COVID, some shortages of raw materials. So, I understand they got their challenges, and we’re hoping to see improvement here as we roll into ‘21.

And I guess, just a quick follow-up on your Europe comment. It sounded as if you said both the U.S. and Europe had sequentially softened a little bit from the third quarter. But, could you talk a little bit how you saw Europe roll through the fourth quarter and maybe there are trends into January?

Yes. So, Europe, they started out really strong. As you know, they had a great third quarter, mid-double-digit increase, Bret. And we had a good October. They were up high single digits in October. We saw a big reversal in November, a double-digit swing from October as Europe locked down due to COVID. So, we saw the third wave come through and that just kind of knocked the wind out of our sales. December bounced back a bit from that softer November. But again, good news, much like North America, we saw a nice rebound in January, and our European team was up strong mid-single-digit. So, we’re encouraged. And we got a lot of good things going on with AAG. I would really, Bret, call out our UK team. They had a really strong year, despite some pretty severe lockdowns during the course of the year. But, again, I couldn’t be more proud of our UK team.

Our next question comes from the line of Chris Horvers with JP Morgan.

First of all, a follow-up question. So, as you talked about the year-to-date in the U.S., you mentioned, do-it-for-me, the pro business getting better. Did that turn positive so far in January and February?

Yes, absolutely. Yes. We had a double-digit increase in January, and we saw it on both sides of the counter, Chris. We saw it in DIY, as we did most of 2020, our DIY business was strong, like most in the industry. But, where we struggled a bit in ‘20 was in our commercial business. And our commercial business I think is a bit unique compared to most. It’s very, very heavy commercial fleet, government municipalities, but again, really pleased to see that business turn positive in the month of January. And I’m hopeful, Chris, with this -- some of the weather we’re seeing and the reopening of the economies and the vaccines getting out there that -- and along with a little bit of a lift in miles driven, we’ll see some resurgence in our DIFM business.

And then, following up there, as you think about the fleet business, how are you thinking about that? Obviously, there’s been some strain on colleges and governments. And are you seeing any sequential improvement in those businesses? Presumably, they remain negative. And, how are you thinking about the outlook in ‘21?

Well, we do think we’ll see improvement overall in that fleet business in ‘21. And January certainly is a good indicator, Chris. Look, there’s a ways to go. By any stretch, we’re not out of the woods in relation to the upheaval caused by COVID. But, we are seeing green shoots, and we are pleased to see a real solid January.

Yes, understood. And then, on the Industrial business, if you’re up 2% in January, that’s not stimulus-driven, and you’re guiding, I think, 3% to 5% comps -- or 2% to 4% comps in that business in 2021, and you did it down 8% in 2020. So, is there something that you’re seeing there that provides caution why you wouldn’t expect higher same-store sales in that segment, or is that -- you’re just trying to be conservative given the unknown of COVID?

Well, look, Chris, there is a little certainly a bit of conservatism built into those numbers. We feel really good about the prospects for a strong recovery in our Industrial business in ‘21. We’ve seen now eight straight months of PMI. We generally trail that metric by a few months. So, yes, we feel good. Especially when you look back at 2020, Q2, we were down 17; Q3, down 9; and Q4, down 3 and then post a positive January. But, that conservatism that you kind of referred to, Chris, again, we’re not out of the woods. We’re still seeing some plants shut down just in the last couple of weeks. We do a big business with the OE automotive plants. We’ve seen a number of those shut down to raw material shortages. We’re still pressured in the Southwest with oil and gas. So, yes, we’re -- we feel good, but we’re also seeing still just a few headwinds out there on the Industrial side.

Got it. And then, last question is, Carol, can you talk about how you’re thinking about gross margin rate in 2021 and as well as SG&A, given you did have a big COVID cost savings number that you’re going to lap against?

Yes, happy to. As far as gross margin, and look, the team, we couldn’t be more pleased with what we’ve done in the gross margin area. We have, and you saw we finally anniversaried the impact from acquisitions and divestitures. So, our core gross profit in Q4, really pleased to see our initiatives working. We do expect, as we look ahead to have continued improvement in gross profit, may not be at the level that it’s been, but we would expect to see continued gross margin improvement. And, we’ve called out the initiatives in that area before from product mix and strategic category management and even our pricing and global sourcing. And then, I’ll make a few comments on SG&A, and then maybe let Will add and talk about what we’re going to see for 2021. And, you’re right. We did have the temporary cost savings, but more importantly our permanent cost savings of $150 million do roll in to 2021. And we expect to -- while some of those, certainly, the temporary savings come back in. When you look at our outlook for 2021 on SG&A, we have improvement when you go back to say the 2019 levels. So, we really have permanently reduced our cost structure, if you will. But having said that, there’s still things we’re working on that. We’re going to see headwinds in terms of payroll and freight. And I’ll maybe let Will talk about a few things we’re doing to maybe offset some of those headwinds.

Yes, Chris. So, maybe just back on gross margin. I mean, gross margin is going to continue to be a focus for us as we move forward. I think, in the prepared remarks, we did a nice job of laying out kind of some of the details in terms of what that means. But category management around pricing, global sourcing, et cetera, will be important priorities for us as we move forward. On the SG&A, there is really kind of two ways to think about it. First is, the importance, as Carol alluded to, of keeping these temporary cost savings out. So, converting them from temporary to permanent, and that’s a daily activity that we work on with the teams here. But then, obviously, very discrete productivity initiatives around the globe around SG&A, ranging from labor productivity in DCs, evaluating and analyzing indirect spend, low-cost country opportunities for back-office functions, et cetera. So, we’ve got a laundry list of very tactical actions. And we’re excited about the momentum that we’ve got.

[Operator Instructions] Our next question comes from the line of Michael Montani with Evercore.

I also just wanted to offer congratulations to Will on the promotion.

Thank you, Mike.

So, if I could start off -- just was on the SG&A front first off. Is there a way to think about the potential dollar growth year-over-year and/or the kind of organic comps that we would need to see to get natural leverage there? Carol and Will, I think, historically, kind of 2% to 3% was the number organic growth, but if you could give us an update there?

Yes. Look, we have -- and as you have seen, we are guiding to organic growth at -- in the 3% to 5% range. We certainly expect to have margin improvement with that organic growth. And again, we’re looking at getting ourselves back to certainly to a sales level at where 2019 was but a profit and operating margin level that’s greater than that. So, I think, it’s at the low end of the 3% that we can have margin improvement. And I certainly think that you’ll see that with some of the initiatives we talked about.

Okay, great. And, if I could, just on the NAPA front, just wanted to parse out, in the fourth quarter, if there’s any extra color you can share, Paul, on DIY versus DIFM comps? And then, if you could help us just to understand the traffic and ticket split for the comp.

Yes. Thanks, Mike. Let me take the latter part of that question first. As we look at ticket comps and we look across the globe, I’m really pleased with the trends we’re seeing in Australia -- our Asia Pac business was up strong in both average ticket size and traffic. Canada, we were up both average ticket size and traffic. U.S., our average ticket was up, which has been a trend we’ve seen for a number of quarters now. Traffic was down a bit in the U.S., again, not a surprise because we saw a real surge in our digital online, deliver-to-store, pick up at curbside. So, folks are still a little bit reticent I think to walk into stores. And then, the other question, Mike, you asked was around DIY, DIFM in the quarter, in Q4. What we saw was much like we had seen throughout the year with -- or the latter part of the year, I should say, with DIY held up strong and DIFM was certainly pressured in the quarter. But again, as I think I mentioned earlier in a question, really pleased to see both trending up in January. So, we’re cautiously optimistic that we’re going to see our DIFM return to solid growth in 2021.

Our next question comes from the line of Scot Ciccarelli with RBC Capital Markets.

Hey, guys. This is Beth Reed on for Scot. I just had a question on the acceleration in the U.S. auto business that you’re seeing into January and February. Is there any way to kind of quantify the impact of stimulus on that acceleration? And any other factors you would call out that you think are the main drivers?

Yes. Thanks, Beth. Look, stimulus monies are definitely impacting the DIY business, I think, not only for us, but our peer group. But, we are a dominant DIFM business. That’s 80-plus-percent of our business at. So, I don’t really believe we see much impact, if any, stimulus on our DIFM business. Yes, I think, if I were to point to perhaps some of the lift that we’re seeing early in the year. Look, the weather is a factor. There is just no two ways about it. And, we’re seeing a return to a more normalized winter that we haven’t seen in a few years. What’s unfortunate, Beth, and we don’t want to take this lightly. There are lots of folks out there in the Texas region that are without power. They’ve been without power for a couple of days. So, we don’t mind seeing winter. I just wish it wasn’t quite as extreme and the impact that it’s having. We’ve got a number of distribution centers, branches, stores that are closed throughout Texas, Oklahoma, Tennessee, Mississippi, Alabama. So, it’s definitely taken a toll here this week. We’ll see the long-term impact of a really cold weather, and it will show up months down the road when parts begin to fail as a result of some of this really brutally cold winter.

All right. Got it. And then, just a quick clarification. Did you say January trends have largely kind of continued into February?

Well, they certainly did. But, what we’re seeing right now is with the number of DC closures were across Texas and the other states I just mentioned, along with many of our Industrial branches. I think the number I saw yesterday, Beth, we had about 90 of our Industrial branches were closed. So, it’s going to have a little bit of an impact probably for a couple of days. But, again, we’ll recover. And I expect that will have a positive impact longer-term on our business.

Our next question comes from the line of Daniel Imbro with Stephens.

Yes. Thanks. Good morning, guys. And yes, I’ll pass my congrats on to Will.

Thanks, Dan.

Carol, I wanted to start -- and apologies if I missed this, trying to screw away the cost cutting last year with maybe some of the organic growth slowing. You targeted $100 million. Obviously, you exceeded that meaningfully. I think, you said $150 million in permanent cost cuts. As you look back with hindsight, is it possible, in some places, you may have cut too deep, and that’s part of the reason for the organic growth slowdown? And then, if not, can you maybe share some detail on where you did remove the cost, so we can better understand why that isn’t impacting service levels?

Yes. Look, we -- as you look at our cost savings, and again, this was done early on in response to the very-drastic declines in volume that we saw from Europe starting at the end of Q1 to North America and other geographies. We had -- Q2 was one of our worst quarters ever in the Company’s history. And with that, there was actions that needed to be taken. And as related to reducing payroll, reducing positions, we had furloughs, we had deferred travel and entertainment, we looked at facility and lease reductions, we looked at our facility costs, we looked at -- I mean, we looked at anything and everything. And it was -- again, we did that without impacting our service, but we did it to adjust to the lower volumes. And then, as volumes have come back, we looked at those costs. Again, some of those costs had to come back in. During this time, we also didn’t let up on our investments in productivity and automation. So, we had a number of automation projects that we continue to work on that would help us with productivity improvements, where we rationalize facilities and put in more automated conveyor systems. That helped us as well. So, again, we -- the permanent savings go back to a year ago. Those were largely payroll related, the $150 million. Again, we were very comfortable to how those were done. The temporary ones were just that. They were temporary in nature. And remember, part of that temporary was government subsidies. So, again, we had about $60 million in government subsidies that are nonrecurring. The fact of the matter is we go into 2021 with a lower overall cost base and excitement about the initiatives we have in place to keep our cost structure down.

Hey Daniel, I’ll just add a comment to that as well because it’s been mentioned before, and I touched on it in my prepared remarks. But just to call out, in our NAPA business here across the U.S., we have over 3,000 sales professionals between our Company stores and our independent stores that are working with our shops and professional garages every day. So, the thought of did we cut too deep, we don’t believe so. And again, I think, what we saw were some transitory challenges in ‘20 that are going to bounce back in ‘21.

Got it. That’s helpful. Thank you guys for that. And then, I wanted to ask a clarifier on the comp growth you said earlier, Carol. I think, you said within Auto, 3% to 5% comps with 4 to 6 total revs, and then Industrial is 2 to 4 with total revs in 3 to 5. Most of those would imply roughly only 100 basis points of FX headwind. I guess, can you help me understand how they have a similar amount of headwinds between the segments when Automotive has a much larger European footprint? So, I would think, FX is more of a tailwind to the Auto business. So, trying to reconcile, yes, the magnitude of FX impact. Thanks.

Yes. Just to be clear, the same-store sales guidance that we gave in relation to the total sales is more of the impact of the carryover of acquisitions from 2020. So, we had a number of bolt-on acquisitions in the automotive space and then we also had three Industrial acquisitions late in 2020. So, the 1% differential is the carryover of M&A. Our implication for foreign currency is really neutral. And we also have inflation neutral in these numbers. As Paul mentioned, we expect we will see some inflation at some point. But, this is truly just what we know today as far as organic growth, plus a little bit of carryover from acquisitions that’s in that guidance.

Our next question comes from the line of David Bellinger with Wolfe Research.

I want to follow-up on January, but a bit of a different context. So, a few of your auto parts competitors have indicated comparable sales accelerating into the double digits, maybe since its January. It seems as though NAPA comp sales are up high single digits at this point. So, is there anything that’s changed versus your peers from the last few quarters? Is there something strategic on your part that helps them to narrow the gap versus competitors, or is it really the mix of business that’s driving that better delta now?

Well, look David, it’s a reasonable question. We’ve been working on a number of initiatives throughout the course of 2020 that I would tell you I think are really beginning to take hold. We are not nearly as weighted towards the DIY side. So, even though we’re seeing some nice lift in DIY, it’s not going to move the needle for us like DIFM. So, what I would point to and how we’re narrowing that gap is the slight recovery we’re seeing from COVID, markets opening back up, I think, we’re going to see miles driven tick back up. We haven’t seen any official numbers out of December, January yet. But that coupled with some winter weather is all going to help spike our DIFM business. And again, we’re really, really pleased to see that spike in the month of January.

Got it. Okay. And then, my follow-up here, how are you thinking about the pace of parts inflation throughout 2021? You mentioned a limited benefit last year, maybe a low single-digit rate coming this year. Are you getting ahead of that now and flowing some price to both DIY and commercial, given strengthening demand? And, do you expect to fully offset any cost increases through price this year?

Yes. Look, we are getting early indication from our suppliers. I mean, look, our suppliers, as Paul mentioned, they’re facing raw material increases, freight and ocean cargo and just the significant increases that our suppliers are facing, labor shortages, labor inflation. We are hearing that our suppliers are discussing price increases, we believe, certainly in Automotive, it’s been very rational. And as these price increases come that they will get passed through. Also on the Industrial side, our teams are trying to stay ahead of that and doing a lot of things to make sure that those can -- when they do get the pricing, they can pass them along. I would tell you that will probably be more second half weighted. Again, some of this is managing through the uncertainty right now, but probably more second half weighted. So, the 1% to 2%, 1% to 3%, if you will, is on a full year basis, but probably more second half. But again, that’s not in any of our numbers. And the last thing I would just add, and you heard Will talk about it, our teams have so many terrific initiatives going on in the gross margin area, especially in terms of pricing. So, we’re a lot more agile today. We have a lot more analytics and a lot more strategic pricing initiatives that will help us offset this as well.

There are no further questions in the queue. I’d like to turn the call back to management for closing remarks.

We’d like to thank you for your participation in our year-end and Q4 conference call. As always, we appreciate your interest and support of Genuine Parts Company. And we look forward to reporting out to you on our first quarter results in April. Thank you. And have a great day.

Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time. And have a wonderful day.