Good morning. My name is Mia and I will be your conference operator today. At this time I would like to welcome everyone to the 2009 second quarter earnings release conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. (Operator Instructions) I will now turn the conference over to Mr. Tom McFall, Chief Financial Officer. Sir, you may begin your conference.

Thank you, Mia. Good morning, everyone and welcome to the O’Reilly conference call. Before I introduce Greg Henslee, our CEO, I would like to read a brief statement. The company claims the protections of is Safe Harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by forward-looking words such as expect, believe, anticipate, should, plan, intend, estimate, project, will or similar words. In addition, statements contained within the press release that are not historical facts are forward-looking statements. Such as statements discussing among other things expected growth, store development, integration and expansion strategy, business strategy, future revenues and future performance. These forward-looking statements are based estimates, projections, beliefs and assumptions that are not guarantees for future events and results. Such statements are subject to risks, uncertainties and assumptions, including but not limited to competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental approvals, our ability to hire and retain qualified employees, risks associated with the integration of acquired businesses, weather, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the risk factors section of the company’s Form 10-K for the year ended December 31, 2008 for more details. At this time, I’d like to introduce Greg Henslee.

Good morning everyone, and welcome to our second quarter conference call. Participating on the call with me this morning is, of course Tom McFall our Chief Financial Officer and Ted Wise our Chief Operating Officer. David O’Reilly our Executive Chairman is also present. It’s now been a little over a year since we closed on the acquisition of CSK auto and embarked on the task of integrating CSKs operations into O’Reilly. This has been a very significant task, and we’ve still got a long way to go to be fully integrated and able to execute our go market strategy in the western half of the country. At the same time, however, we’ve come a long way in a relatively short time. We’ve integrated many of the headquarters functions, converted or merged the stores in the middle of the country, where we have distribution reach from an O’Reilly distribution center, converted the Detroit distribution center to O’Reilly systems and material handling equipment, implemented delivery service to commercial customers in most stores, improved inventory availability, adjusted our pricing to be market-competitive, and many other projects that will lay the ground work for the incremental improvements in the CSK store performance overtime. On top of all this, the core O’Reilly stores continue to perform very well, generating a solid comparable stores sales gains in both the commercial and do it yourself sides of the business. Clearly, the first year following the inquisition has been a challenging yet outstanding year for team O’Reilly, and it’s one that will be reflected on in the future as one of the greatest years in our country’s rich history. I want to thank all of team O’Reilly for your commitment to our continued success and for the great job you’re doing in taking care of our customers and…

Thanks, Greg, and good morning, everyone. Well, in the second quarter, we increased our story count to 3,287 locations with net gains at 15 new stores in the last quarter, and 108 new locations so far this year. This number is actually nesting out to 102 stores when you subtract the store closures in the first quarter due to the consolidation with the checkered stores. Our company’s expansion over the year remains 150, which at this point, we’re well ahead of schedule. In addition 15 new store installations, we relocated three new stores to new locations and completed 11 store renovations and O’Reilly. This is a tremendous accomplishment by our field installation group, considering the task of the ongoing CSK store conversion steering at the same time. To give a brief overview of our expansion activity by state, North Carolina their growth in 11 new stores last year. This gives us 21 new North Carolina stores so far this year, which was the growth plan to support our new 325,000 square foot of Greensboro, North Carolina distribution center that had a very successful opening in May. North Carolina and the surrounding states will continue to be a key part of the future expansion. Ohio was next in new store quarter and 15 year-to-date. Texas followed with five new locations and a total of 14 new stores so far this year, which gives us 519 stores in Texas. Served by our Houston, Dallas and our new Lubbock distribution centers, we continue to find great expansion opportunities in the state. South Carolina added two new stores, for a total of eight stores this year. The additional 20 new stores net out in 12 different states. We’ve had store growth in 22 states so far this year, which has made possible by the…

Thanks Ted. Now I’ll take a more in depth look at the numbers. Sales increased $547 million, a 78% increase over the prior year, and $1.25 billion for the quarter. The increase was attributable to a $54 million increase in O’Reilly comp store sales, $39 million in our new store sales, flat non-comp non-store sales and $454 million from the acquired CSK stores. For the year, we are raising our total revenue guidance to $4.8 billion to $4.9 billion. Gross profit was 48.2% of sales for the quarter versus 46.6% in the first quarter of 2009. The improvement was driven by an increase bank synergies and an advantageous pricing environment as it relates to products comprised primarily of these commodities, although we do not expect this environment to continue. We’ve been very successful in completing the acquisition related negotiations with our vendors, and we are raising our estimate of the merchandise acquisition cost savings in 2009 to $60 million to $65 million from our previous guidance of $50 million. We are also raising our annual total estimate of the merchandise acquisition cost savings, starting in 2010, from $75 million to approximately $90 million. For the year, we’re raising our gross profit guidance to 47.4% to 47.8% of sales. SG&A for the quarter was 36.3% of sales versus 32.5% in the prior year. The 3.8% increase was due to the higher cost structure required to new stores. Taking a look at SG&A, we continue to benefit from more than expected fuel cost and we continue to incur additional store labor costs at the CSK stores to accomplish the expensive product line resets that are under way. We continue to work hard to eliminate and we continue to expect 2009 SG&A synergies to be $7.5 million to $12.5 million on top of…

(Operator Instructions) Your first question comes from the line of Scot Ciccarelli with RBC Capital Markets.

Good morning, Scott.

Can we talk a little bit about the comp depression of the converted stores? I know, there is major timing issue depending on when stores get converted, etc. Can you just help us reconcile the plus double digit comps we’re seeing after call it, 15, 16 weeks and the negative 3.4% that we saw posted in the quarter?

Well, Scot you’re talking about what we referred some of the stores we converted on the year end call, I believe. Several of those Checker stores did really well out of the gate. In that, we explained that we were excluding the first four weeks of the, of those stores converging with us, because the negative trend continued and that was their performance at that point. What we gave you for the whole comp or at least the Checkers store comp, the decrease of 3.4% includes those stores that were converted in the second quarter and includes the performance of those stores as they continue to try to climb out of the negative trend that they were in. The 51 stores that we reported on at the end of the first quarter they were converted before the end of the year, as I mentioned in my prepared comments, continue to comp positive. This time of year what we are up against is comparing against CSK numbers, which has some effect, is that they were extremely heavy promoters of all products, both non-automotive and automotive, and we don’t have nearly the promotional activity they’re going on, as compared to them. And for that reason, the double digit comps that we were saying aren’t happening, but we continue to gain traction on the wholesale side, and overtime, we’ll continue to build the retail business. So we feel pretty good about and how we’re doing with the converted stores, and obviously, they’re not comping double digit, as some of the others did out of the gate in the middle of the winter.

And, Greg, just a clarification, when you guys do the full conversion, we know that the stores have to kind of fall in the hole, as you mentioned, but are those stores comping down? Is it double digits? Is it down 18? Can you just give us an idea of how much of a hole they have to dig themselves out of?

Well, it varies by store obviously, and there are some of the stores that were comping double digit coming into the conversion and the double digit negative I mean, comping negative double digit coming into the conversion, and it takes a little while to dig out of that. So yes, we had some that were comping like that, and some that were doing okay into the conversion, and they obviously comp much better continuing the trend that they were on. Yes, there were some of those Checker stores, and some other Murray’s stores for that matter that is exhibited by our [Inaudible] stores, we are doing coming into the conversion, that we’re certainly struggling prior to the conversion, and are doing better, but it takes a while, as I said, to dig out of the that they were on.

Okay. Thanks a lot, guys.

Okay. Thanks, Scot.

Your next question comes from the line of Christopher Horvers with JP Morgan. Christopher Horvers – JP Morgan: Thanks and good morning, guys.

Good morning. Christopher Horvers – JP Morgan: Can you talk about the synergies? It seems like they’re running ahead of plan. You’ve provided a number with the cost of goods synergies at the end of the fourth quarter last year. Can you talk about where you are through the end of the second quarter, on cost of goods synergies; and from accounting perspective, don’t they get hung up in cost of goods until you sell that product? So shouldn’t the synergies accelerate into the back half of the year?

Good question. To address the first part of the question, the synergies are tied to when the products replace them at CSK stores. To the extent that we sign new deals and the O’Reilly product line exists and is already in the stores as we said, selling them, but at a lower cost. So we’re going to see the synergies build as we get the product all aligned at the CSK stores. I think we made that comment on the last two calls. From your question of does this get hung up in inventory, you got to remember that we’re LIFO based accounting. So the last product that we bought and in this case, the last product we brought which is at a lower cost is the first one that we sell. Christopher Horvers – JP Morgan: And any quantification on where you are from the cost of goods side, you talked about the SG&A side?

We expect to see $60 million to $65 million for the total year. Obviously, the first quarter being by far the lowest as the product line deducts changeovers, haven’t started at the CSK stores. So we would expect it to continue to mount through the year. When you look at 2010, the $90 million that we’re estimating should be spread relatively flat across the year based on the amount of product that we move within each quarter. Christopher Horvers – JP Morgan: Okay. So you don’t want to tell us the exact number, is what you’re saying. And then, as a follow-up on a separate topic, can you talk about, the disruption you have a thousand stores that you’re going to convert in the West Coast starting in the fourth quarter. Is there something that you can do to change the process that will or is there something different about those stores that will make it less disruptive so the hole won’t be so deep?

Well, let me kind of define a little bit about what these conversions entail, and maybe the difference between the conversions that we’ve done here in the center part of the country, as compared to those that we’ll do out West. The Checker stores in the central part of the country and the Murray’s stores that we’ve done these full conversions on. Basically, what we’re doing to those stores is, we are pulling all of the merchandise mother stores, pulling the fixtures out of the stores in many cases, and replacing those fixtures. If we decide to reuse the fixtures and they’re relocated and the store is reset. The display area is redefined to countermove in the POS system, basically we kind of lift clean and place the new store, and it’s extremely disruptive. Now we try our best to continue and do some business, and facilitate customers that need emergency parts and stuff like that, while we’re going through this, but it it’s a disruptive process, but it’s short. It’s painful, but it doesn’t move very long. In the CSK stores out west, their back room merchandise will have already been changed prior to us doing any display-area conversion, and the majority of those stores really don’t have to have these huge resets of the display areas that Murray’s stores had much larger display areas from what we would typically have, and that required a huge layout reset, whereas the CSK stores in the central part of the country, but also the ones out west don’t have a big disparity between the sizes they were using as compared to what we would typically use. So the layout doesn’t have to be changed as much. So the CSK conversions in general would be much less disruptive, because not only will the back room merchandise have been changed, thus majority of the front-room merchandise will have been changed, and the only conversion of the reset activity that will happen is we want to modify the layout a little bit, but there won’t be the lifting of inventory and the replacement of inventory we would had with these stores, which creates most of the disruption, because it makes that inventory unavailable for sale as it will continue to be available for sale with the western CSK convergence.

I might also add just from a parts specialist standpoint, the familiarity with what they’re selling, the part numbers, where it’s at in the store, all of that will be behind us at the time of the conversion, system conversion. I mean, they will be selling the brands, for months and actually even years at that point. So from a product knowledge standpoint, it won’t be a challenge. Also, just categorically, I think the 300 stores that we finished converting, they were running in a negative comp prior to the conversions, prior to time we wanted, so we had a little deeper hole already established to dig out of. Christopher Horvers – JP Morgan: Thank you.

Thanks.

Your next question comes from the line of Steve Chick with FBR Capital Markets.

Hi, thanks.

Hey, Steve.

Hi. How are you?

Good.

A good quarter, two questions, I guess. Maybe Tom, to clarify, did you say the comment at the end there, about the LIFO reserve, is that was there a $29 million credit in the quarter? Is that how we look at that? And I think that’s against an $8 million expense of a year ago; and if I got that number right, I don’t know if that means the FIFO group margins actually, were they down for the quarter?

The answer is that it was a reduction of the reserve. So it was theoretically a helper, but you can’t take the change in LIFO and add it to gross margin and get FIFO.

You can’t be that simple about it? I know the LIFO account can get pretty complex, but, I guess the question, well, if you can’t so were FIFO gross margins actually up in the quarter?

Yes.

You mentioned the commodity pricing fees.

Yes.

And margins as a third contributor so…?

We cannot change this call into an accounting call, the answer is yes, the FIFO gross margin were up in the quarter.

Okay. All right. Well, we can try, probably going through the nuances offline, too. Okay. And second, if I could. So it sounds like sales trends so far this quarter have held up very nicely. Can you just clarify I mean, last year, we had in the southeast, a pretty big ash shortage of convert trends. So, can you talk about as we look into the quarter upcoming, as I remember it, you started the quarter off at 3% to 4% rate of growth in comps a year ago and actually ended the quarter at 1.5. So, how are you thinking about that with your guidance? I think once again looking maybe on the conservative side and can you clarify does the comps pricing get a lot easier from here?

Yes. If I remember right, third quarter last year, the easier part of it, comparison for this year, the tougher part last year was the earlier part of the quarter. So yes, it little bit easier and we’re just trying to be realistic in our comp guidance as we can, without being too aggressive. We’ve been on a good run here with core O’Reilly from a comparable store sales perspective and we don’t see anything in front of us within the next few months that will either change the trend the projection being that gas prices will stay fairly reasonable that there’s not going to be a significant spike in new car sales, which I didn’t know there would be that much of a difference very quickly anyway. I wouldn’t say we’re being conservative with our guidance of 4% to 6% with core O’Reilly, but we’re certainly going to work to continue to generate comparable store sales, keeping what we’re generating right now and hopefully continue that through the quarter.

Okay. Great. Thanks, Greg.

Thanks, Steve.

Your next question comes from the line of Craig Kennison of Robert W. Baird

On the commercial side of the business, the repair shops we talked to are telling us that repair part availability has become a serious problem across the industry. Is that dynamic, I guess, providing you with an opportunity to build new relationships and maybe take some share on the commercial side?

Well, we work awfully hard to make a wide array of parts available and one of the things that our industry has gone through over the past 10, 20 years is a huge proliferation of necessary to service the vehicle fleet on the road; and I feel like we’re positioned much better than most companies to provide parts and be hard to find and for that reason, as we make these that inventory available for the expanded distribution network out west, we would expect some improvement or hopefully significant improvement in our commercial business in the western stores. We continue everyday to dial in the method by which we determine what parts we keep in our distribution centers and our stores based on a vehicle population, failure rates we see, and the vehicles that exist in each market and then just demand in general. So, I’m not sure what part of the country you guys talk to or what repair shops you talks to. Acquiring parts for the repair shop is always a challenge. They hope to have the parts in 30 minutes no matter what kind of car they’re working on or what the part is and we work car to do that. Sometimes that’s not possible, but we feel like we’re well positioned to provide the parts as compared to minimum others.

That is helpful. Thank you.

Thank you.

Your next question comes from the line of Brian Nagel with Oppenheimer. Brian Nagel – Oppenheimer: Thank you. Good morning.

Good morning, Brian. Brian Nagel – Oppenheimer: Just a couple of questions; first off, on gross margins, I appreciate all the comments you gave us in your prepared remarks, but as we look at the improvement its been a 320 basis points, which was better than the 200 basis points you showed in Q1, so isolate that incremental say 120 basis points, is that largely commodities then if I go along the three parameters that you gave us?

The larger part of that would be acquisition synergies, as we completed deals with our vendors, some of the major vendors we’ve highlighted took longer to deals done combined, as we change over the parts at CSK, especially the hard part. We buy a lot more effectively than they have in the past and those are that’s the biggest, by far, piece of the gross margin improvement. Brian Nagel – Oppenheimer: Okay. So and in the comments with respect to gross margins going forward, you think now we’re sort of past the peak point of that?

There is a positive environment out there on these commodities. I think that’s when we look forward for the last half of the year, when you work through our numbers, the gross margin estimate for the second half of the year is slightly less than what was achieved in the second quarter, and that’s really coming from the expectation that those abnormally high gross margins that we’re seeing high commodity will revert to the norm.

Okay. That’s helpful and then second question I had more broad based, but with respect to the converted stores, anything changing there with the competitive response as you convert these CSK stores?

Well, our business is a very competitive business, and there are several, very solidly managed companies that we compete with and, we’ve not noticed anything different happening in the markets that we’re converting stores as compared to stores that where we were not converting stores. So although there were certainly plenty of competitors, and we work hard to adapt to everything that our competitors do, and really our philosophy has been that we have a very solid strategy. So we continue to tweak that strategy ongoing, but we’ve not had to adapt anything our competitors are doing on the conversions and we’re pretty confident in just our ability to execute the business model as we have in the O’Reilly stores and that’s what we’re working to establish right now. I mean, we’ve not seen any big change in our competitors in those markets.

Okay and then just one final question. You gave us a lot of numbers with respect to the performance of the conversion stores in different stage of conversion. Just overall, is that the sort of say hit to comps that you’ve seen in the early stages of these conversions? Is that consistent with, what you thought you would see before you exited into this process?

Well, these stores that we’ve converted in the center part of the country are stores in most cases that we overlap with, and when we were buying the company, we of course evaluated the performance of new stores and distribution center they were in. We could see that those stores that we overlapped with were struggling very negatively, we bought the company. We’ve done things to try and amend that ongoing, the biggest step being to convert these stores. So most of these stores were on a negative trend to begin with and following the conversion that trend continues with the added disruption of the conversion itself, as soon as start pulling out. As I said, the Checker store conversions, the stores that are in the center part of the country in hope, if we take all of them, they’re open and there’s a 100 days freedom I believe and those stores are comping positive so far this. So I think we’ve pulled out of the negative territory with those as a whole. They’re now comping positive, and hopefully we’ll continue that trend as we establish these stores as stores that have better access to inventory, competitive pricing, and are serviced by a distribution center that’s giving them at least five nights a week replenishment and in many cases need times a day access to at least 100,000 SKUs, which allows them to be a very savvy competitor with stores that don’t have that kind of the excess inventory.

Okay, thanks a lot.

Okay. Thank you.

Your next question comes from the line of Michael Baker with Deutsche Bank.

Just two questions, one would have a bit bigger picture, then one maybe accounting minutiae. On the bigger picture question, so you viewed as your business, I think, a little bit defensive, does well in a poor economy. So how do you think of things, if auto parts sales get better, cash for clunkers, etc., if the general economy stabilizes? Do you think that could pull some business away from you? Then on the accounting question is your goodwill has been going up. I’m wondering if you could discuss what behind that. Thanks.

Well, obviously we’ve been doing this for over 50 years, and we’ve seen ups and downs in the business with different economic trends. I’ve been here 25 years, and with different things that can happen in the economy, you see swings. Really, we’ve done well in many years in good economies, when cars weren’t selling, and then we wouldn’t expect instruction at all for cash for clunkers program. Obviously, it may increase new car sales some and we wouldn’t think we would see a material change in demand for auto parts. Some of the categories that are really suffering right now are truck accessories, accessories in general. Dress up parts for new cars and trucks. We just don’t, those things are selling more and so our performance is somewhat muted by the fact that those product categories are doing very poorly and those categories do much better when new cars do sell well. So, we don’t see anything in the immediate future, at least our radar that would abruptly change demand for auto parts. We’ll obviously keep an eye on that and we’ll report if anything that we think could cause a disruption. I wouldn’t foresee us needing to update our guidance or comparable store sales for some time to come and there is something does a real good change in the economy.

On your question for goodwill, Michael; we had a year to adjust our opening balance sheet and purchase price allocation. This will be the last time it’s adjusted. The primary reason that goodwill went up were additional liability reserves primarily related to legal issues resolving around former CSK management.

Okay. Thanks for that clarification.

Thanks Michael.

Your next question comes from the line of Alan Rifkin with Bank of America.

Hi, good afternoon. Thanks very much for taking our question. This is [Winston Sneasy] in for Alan. Just to get into the accounts a little bit more. I know you folks had said in the past that generally, a good way to think about the converted stores were that they would comp negative potentially in the high singles to double digits and then, within the four to six weeks period post-conversion, would turn flat then to positive. Just wondering if that’s still a good way to think about it going forward and then as a follow-up question, more of a point of clarification. Regarding the Murray stores, now they represent roughly around 2% of the store base. Is it safe to assume that it’s actually less of percentage of revenues than that? Then your reported negative 11.9 comp was that relatively in line with your expectations? Thank you.

Okay. Well, on the converted stores and when I speak of this, I’ll speak of the converted stores representing the checker conversions and not the Murray’s, but on the Checker, I think your comments are correct. It’s somewhere in the four to six weeks following the conversion. Those stores would typically start to pull out of the negative range, depending on how far the negative they were. Our experience has been that the Checker stores would pull out somewhere in that range. As I said, the Checker stores as a whole are comping positive so far this quarter. So, I think your comment there relative to the comments we previously made is accurate. On the Murray stores, those stores were, I guess performing poorly to a greater degree than the Checker stores and their business model is different enough that it may take a little longer on those stores. We’ve got a lot of effort right now going into the way we go to market, in Chicago and Detroit. We’re working to improve the performance of those stores. There’s a whole lot of effort in our company. As a matter of fact, Ted and I spent a lot of time this morning prior to the call. So, we’re doing a lot of things there to convert those stores to our business model. Continue to build on the retail business that they’ve done. Those stores pose a little bit bigger challenge than the rest of CSK in general, which is the reason that we reported Murray tests separately. Murray, as you said, represents about 2% of the store base. I would say it represents a slightly more than that as a percentage of revenue --.

Slightly more, okay.

A little bit more. Those stores had a higher average per unit than what the remainder of the stores has been. So, you’ll be finding more that the 2% that you looking from a store comp perspective.

Okay, great. Thank you very much.

Okay. Thank you, Vincent.

Your next question comes from the line of Tony Cristello with BB&T.

Good morning, Tony. Tony Cristello - BB&T: Hey, guys. I guess, as a point of clarification, Greg you noted that and I guess you could look at it two ways. Either the 51 stores, I think, you said were actually comping positive. If you look at that group of 51 that you noted in Q1 that comped plus 4.3, how positive are those? I mean, are they 4.3 still? Are they better or they worse than that level?

Yes. They’re low single-digits. We didn’t put the number in the press release, and don’t want to file an 8-K by providing the exact number, but it’s low single-digits on the 51 stores that we have concluded at the end of 2008. Tony Cristello - BB&T: Okay and the other question, then, I have is, when you look at the West Coast stores, you’ve got 80% of the line changeover in the parts there. Is it simply replenishment now that gets you going from 2% to 6% to 8% to drive the commercial, or are there what are the sort of important pieces we need to look for to know that that business is going to start to turn or what can contribute to getting those comps going at an even greater level.

Yes. Well, the reason is distribution capability assumes and I like said, 80% of the lines have been changed. The reason the distribution capability assumes important is it gives the stores in the area around the distribution center time of the-day access, those DCs out there will have it in excess of 100,000 SKUs and our average store will have 20,000, 22,000 SKUs, something like that. So that’s the big thing that allows us to really start penetrating the commercial side of the business and then the stores that don’t have same day access to the distribution center, if they’re in the Metro, we try to augment the fact that they’re not posted DC with the hub store. There are many stores will be in areas that might not have access to a hub store, and by having our distribution capability out there, the stores would have overnight access. During the night, they can have anyone of over 100,000 SKUs to their stores. So they can have it first thing next morning and installer customer in that market and that’s a big thing. Those kinds of service levels are what have allowed O’Reilly Auto Parts to grow into the company that we are today; and without that, we simply can’t execute our commercial strategy out there. Getting the distribution centers in place is a very, very important thing from a replenishment standpoint, because it allows us to deploy more SKUs and get away from some of the depth you have to have with the weekly replenishment, that’s more important just from an access to broader array of SKUs which we’re working to establish.

Tony, this is Ted. I also want to add and as you know, the wholesale business is very relationship based and CSK was a retailer in a little wholesale business, so there’s a process we have to go through store-by-store, recruiting and building the ISS, installer service specialist that can be a delivery service once we get the parts and prices inline. That is an ongoing process, and we’ve made some great headway, and continue to hope that every district manager, every REM, that’s one of their primary focuses right now is building the right key to address the wholesale business going forward.

Tony, one more thing I’ll add to that, is just from a systems standpoint, our systems, our point of sale and sourcing systems are really held to service the wholesale side of the business, and those stores will benefit significantly from using our system to look up from out of our distribution center and other stores as opposed to what they’re using now. Tony Cristello - BB&T: Great. Very helpful. Thanks, guys.

Thanks, Tony.

Our final question comes from the line of Gregory Melich with Morgan Stanley.

Thanks. I had really just one question with a couple parts and it’s about the core O’Reilly store’s comp. I’m still a very impressive performance, and it sounds like the commercial got a little bit better sequentially and maybe the DIY got a little bit of a deceleration sequentially. Could you describe that? Are we getting that right? And then second, within that what was traffic and ticket on the retail side and was your growth into it forming more business with existing customers or winning new accounts?

Yes. Well, you’re right. The commercial business was stronger in the core O’Reilly stores than the DIY business. Not by a huge margin but it was better. From a traffic and Tom, you have the traffic numbers?

Both traffic and average ticket contributed to the positive comps.

Yes.

On the do it for me side, did you find without acceleration more about getting more items in the basket and getting more business with your existing accounts or were you able to get out and get new accounts in this environment?

Well, that’s a tough one to measure. We’ve grown our business with our existing customers ongoing; but usually, when we set up a store, we open an account for virtually everyone who can possibly buy a part for us just to make sure when they do make the first transaction, it’s easy. So, it’s a little bit hard to measure who’s not, because generally the customers around our store will do some business with us, but I would say that we’ve probably don’t with their job penetrating our existing customers, doing more business with them, as their business has improved in the economy also, because there’s typically not a lot of customers around the store that we just simply wouldn’t be doing business with.

Got you and finally, with a lot of the dealerships closing and that service business moving around do you think that’s helped some of your commercial accounts get more business yet, or has it not..?

Well, I think it’s helped some. I think that as these dealers close, there’s an array of things that will happen. Sometimes that business that was going to the dealership will be disbursed out among the after market shops around the dealership. Some of it could possibly go to dealership in another area and some of it goes to new shops that are open either in the existing dealership location, because some of the dealerships are continuing service operations and used car lots or maybe another brand or something like that, and some of these highly skilled technicians and shop managers are going out on their own and opening shops, which will potentially be customers of ours. So I would say the net-net of it is it is a positive for the after market and for us but there’s a variety of things that happen as the dealerships close.

G:

Okay. Thank you.

We have reached the allotted amount of time for questions. Do you have any further remarks?

Yes. I would like to thank everyone for their continued interest in our company. We worked hard to move through the CSK acquisition and take advantage of the opportunities that we saw when we acquired CSK. I can tell you we feel even more encouraged today than we have, and it’s been the case as we have worked through this with the prospects of the business that we do in the western half of the country as we get in position to execute our business model. We’ll look forward to reporting our results in the third quarter this year. So, thank you very much for your time.

This does conclude today’s conference. You may disconnect at this time.