Welcome to the O'Reilly Automotive second quarter earnings conference call. My name is Victoria I will be your operator for today's call. At this time, all participants are in a listen-only mode and later we will conduct a question-and-answer session. Please note that this conference is being recorded. And I will now turn the call over to Mr. Tom McFall. Mr. McFall you may begin.

Thank you, Victoria. Good morning, everyone, and thank you for joining us. During today's conference call we will discuss our second quarter 2017 results and our outlook for the third quarter and remainder of 2017. After our prepared comments, we will host a question-and-answer period. Before we begin this morning, I would like to remind everyone that our comments today contain forward-looking statements and we intend to be covered by and we claim the protection under the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as estimate, may, could, will, believe, expect, would, consider, should, anticipate, project, plan, intend or similar words. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest annual report on form 10-K for the year ended December 31, 2016, and other recent SEC filings. The company assumes no obligation to update any forward-looking statements made during this call. At this time, I did like to introduce Greg Henslee.

Thanks, Tom. Good morning, everyone, and welcome to the O'Reilly Auto Parts second quarter conference call. Participating on the call with me this morning are our co-presidents, Greg Johnson and Jeff Shaw; as well as Tom McFall, our Chief Financial Officer. David O'Reilly, our Executive Chairman, is also present. I'd like to begin our call by thanking Team O'Reilly for their continued dedication to providing consistently excellent service to our customers. Our financial results for the first six months of 2017 were below our expectations but we strongly believe the customer service delivered by our team on a daily basis is the best in our industry. And we remain confident their contributions will continue to drive us forward as the market leader. Now I'd like to spend a few minutes discussing our second quarter comparable store sales results before I turn the call over to Greg, Jeff and Tom for a more detailed overview. As we announced in our press release earlier this month, our comparable store sales results of 1.7% for the second quarter fell below the guidance of 3% to 5% we set going into the quarter. We established our second quarter guidance with the expectation that business would normalize as we moved past the volatile weather backdrop of the first quarter based on our confidence in the strength of the fundamental drivers of demand in our industry and our trends exiting the first quarter and entering April were in line with our expectations. However, as we moved through the quarter, we continued to see pressure to overall demand in our industry. As we have seen in the past, when our industry encounters sluggish demand like we saw in the first half of 2017, it can at times be difficult to determine the exact causes of the slowdown…

Thanks, Greg. Good morning, everyone. Again I'd like to echo Greg's comments and thank Team O'Reilly for their relentless dedication to providing outstanding customer service. 2017 has been a challenging year thus far but our team's commitment to customers hasn't wavered a bit and we continue to be well positioned to profitably gain market share moving forward. I would now like to provide some additional color our second quarter comparable store sales results. As Greg has already mentioned, we exited the first quarter and entered April on an improved trend as we began to see some pickups in typical spring business. However, as we moved through the quarter in May and June, we encountered increased softness to our business. And even though the change in comparable store sales was positive in each month of the quarter, the stepdown in business in the last two months of the quarter drove the shortfall to our comp guidance, resulting in the 1.7% increase we reported on July 5th. On a category basis, we saw broad pressure across product lines throughout the quarter but the headwinds were most pronounced in weather-related categories. These categories include ride control and drive line, which is susceptible to increased wear and tear during the harsh winter conditions. We also experienced softness in the last two months of the quarter in categories such as cooling, HVAC and refrigerants. The headwinds in these hot weather categories were especially prevalent in the Central and Southeastern U.S. which are significant markets for us and did not see typical high temperatures during the second quarter. Our comparable store sales increase was driven by increase in average ticket size, offset by pressure on ticket counts for both DIY and professional customers. Our DIY comps in the second quarter slightly outpaced professional customer comps for…

Thanks, Greg, and good morning, everyone. I'd also like to begin my comments today by thanking our team for their continued dedication to our company's success and the relentless commitment to excellent customer service. Both Greg Henslee and Greg Johnson have discussed our sales results in detail. So I won't repeat what they've said, but I will add additional comments to give perspective to what we saw in the marketplace in the first half of 2017. Those listening today who have followed our company and this industry for a long time know that we operate in a very stable environment. And that the highs for our industry are never too high and the lows are never that low. Regardless of the broader market conditions that might exist at any given time, we've always set a very high bar for ourselves and we're certainly not satisfied with the 1.7% comparable store sales growth results. In our day-to-day discussions our field management team from store managers up the chain to senior vice presidents, we never accept soft market conditions as an excuse for falling short of our goals. One of the most common mottos in our store operations group states that as long as there are customers' cars in our competitors' parking lots or there are other company delivery trucks dropping off parts to professional shops in our markets, we haven't captured all the business that we're entitled to and we're missing an opportunity to grow sales. This has been our philosophy since the beginning and it still applies to the current market conditions. In my 33 years in this business, we've seen many cycles of slower demand in our industry and we've seen strong demand return after these periods of sluggish growth. Just as importantly, we've seen time and again the…

Thanks, Jeff. Now we'll take a closer look at our quarterly results and updated guidance for the remainder of 2017. For the quarter, sales increased $114 million, comprised of a $54 million increase in comp store sales, a $60 million increase in non-comp store sales, a $1 million increase in non-comp non-store sales, and $1 million decrease from closed stores. Consistent with our historical practice, we have included the results of the acquired Bond stores as a component of our comparable store sales percentage calculation starting in the first quarter. For 2017, we now expect our total revenues to be $8.9 billion to $9.1 billion, which is a reduction from our previous range of $9.1 billion to $9.3 billion as a result of our performance in the first six months of 2017 and our revised comparable store sales growth guidance range for the full year. For the quarter, gross margin was 52.4% of sales, an improvement of 60 basis points over the prior year driven by a substantially lower LIFO headwind in the second quarter of 2017. The LIFO impact resulting from continued incremental cost reductions was a headwind of $10 million in the second quarter of 2017 versus $23 million in the same period of 2016 when we realized significant cost reductions from a specific supplier negotiation. We're anticipating the headwind for each of the third and fourth quarters of 2017 to be approximately half of the second quarter amount but could see additional headwinds if cost reductions exceed our current expectations. I would now like to provide some additional details on the impact to our earnings per share from the new share-based compensation standard. As Greg indicated, we realized a benefit in the second quarter of $0.09 related to the application of the new standard which requires excess…

Thank you. And our first question comes from Matt Fassler from Goldman Sachs. Please go ahead. Matthew J. Fassler - Goldman Sachs & Co. LLC: Thanks so much and good morning.

Good morning. Matthew J. Fassler - Goldman Sachs & Co. LLC: My first question, Tom, is a follow-up on your last topic, which related to the buyback. You bought back a lot early in the quarter. I think this is the first time in a while that there had been no buyback subsequent to the end of the quarter. And I know the stock had already come under pressure at that point in time. So can you discuss the mechanics of the grid and of the program and where you are today? We know where you're leverage is but what your comfort level is with it and how you all would feel about moving into that range now given where the stock price is versus recent history.

Okay. When we look at our buyback program, we have a certain period of time that we have an open window. As we enter the last three to four weeks of the quarter, we close trading but we file a 10b5-1 and we buy off a predetermined grid. So, if we look at this last quarter, when we filed our grid we had a certain amount of dollars of shares we were going to buy and we bought those dollars of shares prior to the reduction of the stock price. So in that closed period we can't adjust our purchases. Matthew J. Fassler - Goldman Sachs & Co. LLC: So you're able now to reset the grid, if you will, and start again? Would that be what you would expect to have happened in the ordinary course?

So our open to buy period opens two days after our conference call and will close again about three weeks before the end of the third quarter and we will make daily market decisions on buying shares back during that period. Matthew J. Fassler - Goldman Sachs & Co. LLC: That's super helpful. And then the follow-up I'd like to ask relates to your comments on Hispanic customers. It's obviously an atypical topic but it's been coming up from time to time. For you all to mention it, presumably you have an empirical sense that this has been a factor. So if you can talk about what you've observed, if it's on a regional basis and how one actually assesses that this is transpiring, and maybe how big of a magnitude that is in terms of the impact on the business?

Okay. Well, to start, Matt, I don't have a measure of the magnitude but what I can tell you is that in our market areas that we know to be heavier Hispanic areas, South Texas, Arizona, Southern California, just those areas, not that there aren't significant Hispanic populations in other parts of the country but those are the most prominent. We've seen some unexplainable softness. And also the words we hear from the Street are that some of the Hispanic shops are not open. They've closed. There's just not as much traffic in those Hispanic areas as what there has been. And so we ask ourselves these questions internally and there's an organization called NPD that gathers data for all retailers and this observation applies not just to the automotive aftermarket but to other industries as proven by the data that NPD has gathered from a multitude of retailers which shows that these areas that are heavy Hispanic that there's been a decline in retail transactions not just in the Hispanic demographic but in general. But it's attributed to those being heavy Hispanic areas that is being attributed to this kind of decline in spending among the Hispanic population. Matthew J. Fassler - Goldman Sachs & Co. LLC: And has this trend been evident, Greg, through the fiscal year or did this particular piece of it accelerate in the second quarter?

It was talked about early in the year as a foreseen problem and as something that many observed. And then, I'd say, late in the first quarter NPD started talking about it and I think that now it's a pretty well-known observation among most retailers that it's a bit of an issue in these heavy Hispanic areas. Matthew J. Fassler - Goldman Sachs & Co. LLC: Got it. Thank you for your take and thank you for answering my questions. Appreciate it.

Thanks, Matt.

Our next question comes from Seth Sigman from Credit Suisse. Please go ahead. Seth I. Sigman - Credit Suisse Securities (USA) LLC: Thanks a lot and good morning. My first question is around the trend in July. So I think you said that the business is solid thus far in the third quarter. Does that imply an improvement from the end of the second quarter? And then if so, Greg, you highlighted a number of issues that are weighing on the industry. Most are not necessarily short-term issues so I guess the question is what could be driving that sequential improvement and is there anything specific that you're doing differently?

The trend is alive (36:46). What we say is business has been solid. Yeah, we've had a slight improvement over the second quarter. We have confidence in our 1% to 3% guidance. We have tough compares on a three-year stack basis. That's why we feel confident that we will be on our guidance. As far as the drivers of the softness in our business, multiple factors, the weather theme cures, the vehicle population, the bubble I talked about in vehicles that were sold in 2008 to 2011, that cures over time. When there's economic uncertainty and consumers defer repairs, that cures. We felt we've benefited the last two or three years from some decrease in the amount of unperformed maintenance and we may be building more unperformed maintenance right now as a result of those deferrals. But we feel like that cures over time. The primary thing that we're doing right now that I think positions us better long-term is we're aggressively pursuing a more robust omni channel strategy. We want customers – as any retailer would, we want customers to see O'Reilly Auto Parts for what we are the same as if they walk in a store if they're on their phone or their computer at home or on their iPad or whatever it is. And I think the launch of our new website puts us in a much better position to show customers the quality of the company that we are and the levels of the service that we provide. But then secondly, as we position ourselves to execute our strategy from an online promotions and things like that and that's what we're in the process of doing. I don't want to go into a lot of detail about exactly what our strategy is because I don't want to tell our competitors what we're doing ahead of us doing it. But I will tell you that it's a primary focus of our company and I think it's one of the things that will help us drive improved comparable store sales in the future. Seth I. Sigman - Credit Suisse Securities (USA) LLC: Okay. Thank you for that. And then my follow-up question is around the growth algorithm for the company going forward. If we assume the 1% to 3% is the new norm for comps over the medium term, how does that play out from an earnings perspective?

You want to take that, Tom.

Yeah. Seth, I'm sure we're not saying that our long-term growth rate is 1% to 3%. We're not going to set guidance beyond the end of the year. What I would tell you is that we are a company that opens a lot of stores and have a lot of immature stores and have a lot of growth potential in markets that we're not in. We're going to need to be in the 2% to 2.5% comps to leverage our SG&A. So our expectation on the medium to long-term is that we're going to be above that percentage. Seth I. Sigman - Credit Suisse Securities (USA) LLC: Okay. Thank you.

Thank you.

Our next question comes from Scot Ciccarelli from RBC Capital Markets. Please go ahead.

Good morning, guys.

Good morning, Scot.

How are you. I guess I'll address the elephant in the room here. There's obviously been a lot of handwringing regarding Amazon trying to get more aggressive in this segment. Given some of the product price differentials that we can see, do you guys envision a scenario where you have to enact some type of price matching program over time to protect market share, particularly in the DIY segment?

Well, here's what I would tell you. I think if a customer decides to buy an auto part online, which is not a new phenomenon. This has been going on for some time. I think that we're going to take the position that we need to have promotions and other venues on which a customer can buy a product online at a discount compared to what they would buy it for in one of our stores. I can tell you this. If a customer walks into our store and they are buying a product and they bring to our attention that Amazon or RockAuto or whoever it may be has it priced for less, obviously, they need the part that day and they want to buy it that day, or they wouldn't be in our store. We work with them to come up with a price that makes sense for them to walk out of the store with the part. We don't walk customers over pricing relative to Amazon and online pricing pressure.

So, Greg, with the growth of RockAuto and Amazon's, let's call it, increased penetration, have you had to work with more customers in terms of trying to find, make sure that customer doesn't walk back out the door?

Every single price override we do is heavily monitored. I get reporting on it. Jeff gets reporting on it. All of our SVPs, EVPs, we get detailed reporting and no it hasn't increased in the last six months over what it was in the six months prior. It's something that's been going on for some time, but it has not changed markedly in the last six months.

Got it. Okay. Thanks a lot, guys.

Okay. Thank you.

Our next question comes from Michael Lasser from UBS. Please go ahead.

Good morning. Thanks a lot for taking my question. It was mentioned earlier that for the first time in a while the professional business under-comped the DIY.

Hey, Michael, we can't hear you.

Is that better?

Yeah, I can hear you now.

It was mentioned earlier for the first time in a while the professional business under-comped the DIY business. Do you think that there's evidence that you might be losing market share or at least not gaining market share at the same rate that you've been? And why or why not?

Hey, Michael, we lost you again.

Is that better?

Yeah, I can hear you now.

So professional under-comped DIY, do you think you're losing share in the professional business? Or at least not gaining the share that you had been?

No, we don't think that. Here's what I would tell you is that we – in every store, we know the shops around it very well. And what I can tell you is the shops aren't busy as they were at this time last year. There's just absolutely no question about it. I think that we've been able to defend and grow the wholesale business that we have, or the professional business that we have, and that that business has been a little slower this year than what it was last year. And I think the fact that our retail business grew slightly better from a comp store sales perspective than our professional business did just kind of lends to the fact that I don't think this decrease in comp store sales that we've seen this year is appropriately attributed to online for retail as the primary driver of the softness. And I think that the softness runs across both DIY and do-it-for-me.

Are you seeing any changes in the competitive...

Michael, we can barely hear you.

I'm sorry. The quick follow-up is are you seeing any changes in the competitive landscape on the professional side of the business?

We couldn't hear, Mike, I'm sorry.

Okay. I'll follow up later.

Okay, thank you.

Our next question comes from Steve Forbes from Guggenheim. Please go ahead.

Good morning. Maybe just a follow-up on that question there that Michael was asking. I mean, from your standpoint, you kind of look at what's going on in both professional and DIY, can you just remind us or I guess provide us with a little color on what you think the respective growth rates are for the industry by segment? Where are they running? How should we think about them as we look out, really maybe just for the remainder of this year?

I would say somewhere in the -- I think the industry's put out some reporting here recently that they said somewhere in the 1% to 2% range, something like that. I think the DIY would probably be the low end of that, do-it-for-me would be the high end of that.

And then just a quick follow-up. You talk about investments and what you're doing proactively maybe with the website, so you think about the elasticity of demand and potentially driving an enhanced customer value proposition. I mean, are there other incremental investments that you think could have an impact on share? And then maybe just a second component of that is given the trends you're seeing across the industry, are you seeing signs that less well-positioned players or competitors are pulling back investments, pulling back on strategic and proactive investments to maintain profitability as you think about the evolution of the landscape here?

Well, I think there are always things that you can do to drive incremental market share. You can give up margin with national accounts. You can put more inventory in the stores. There's a point of diminishing return on inventory deployment, but the more inventory you have in an auto parts store, the more you'll sell. It's just a proven fact and we've always known this. But we feel like we're well positioned from a supply chain standpoint and that those kinds of investments in an aggressive sense just don't make sense considering the level of availability that we have today. I think what we're doing omni channel is a great investment and will be good for us. I think some of the things that we can do from a service level standpoint on the do-it-for-me side of the business relative to having better control and tracking of where our vehicles are. I think that's a positive thing. There are several things, minor things, that we are investing in that will drive better customer service levels, and that's ultimately the driver of sales growth in our business. And several things we'd work on. We don't just put them out publicly because we don't want to tell our competitors ahead of time what we're doing. But there are several things we're working on now that we feel like will drive incremental sales growth. As far as competitors pulling back on things, yeah, I think there's – I wouldn't call them investments, I would call them spend savings. But yeah, we have a major competitor who's cut their operating expense through field management in a pretty major way. And I would see that as having some impact on their ability to grow sales and provide the levels of service that maybe they provided before as they have taken advantage of the opportunity to control expenses a little better.

Thank you.

Thank you.

Our next question comes from Mike Baker from Deutsche Bank. Please go ahead.

Hi, I guess a couple of follow-ups. One, you were asked about the pricing environment and how you would potentially match pricing, but I guess following up on that, have you seen any changes in the pricing environment or anybody getting more competitive, including either your core main competitors, someone like Walmart, some of the online competitors? Are you seeing anyone try to be aggressive on price?

Really nothing unusual. There's always promotions that go on. Especially when sales are soft, you'll see competitors that go out with -- for instance, R-134a, the refrigerant that runs the air conditioners in vehicles, it's typically sold in 30-pound cylinders. We've seen it being sold below cost on promotions here in the last month or so by some of our competitors. So, you see those kinds of things. And then also kind of a phenomenon that's happening in our business is we've – most of this has started hitting certain repair jobs like brakes, for instance. We now, and most of our competitors also, sell two rotors and a set of brake pads at (49:28) different levels of pricing that are discounted over what they would be if you bought just the components. And same thing for an air conditioning compressor job. We would include an accumulator and an orifice tube and a compressor and some flush in a kit and sell that at a price that would be discounted if you just bought the components by themselves. And our competitors do this also. So that kind of promotional activity has lowered prices a little bit, but that's not unusual. These kinds of things have gone on forever. Relative to Walmart and online, I would say nothing's really changed. Most of the online players. I mean, the only reason anyone buys something online, for the most part, is when it comes to auto parts, because in other sectors I think it's a matter of convenience because you don't need it right now and it's easy to order from Amazon or whoever and get it delivered to your house. In auto parts, a lot times – most times – it's needed right away. So the only reason you would consider online is price, and they've always been cheaper than the brick-and-mortar stores.

Makes sense. Sounds like a good deal. I'll have to pick up some of that R-134a, I think you called it. A follow-up. If one can assume that if it's promotional that might hurt gross margins, I understand you're investing in your stores and you're going to continue to do that. But if we look longer term, do you have areas of cost where you think you could potentially cut if needed, if there's any sort of pricing concern that occurs longer term?

We do. I mean, there's a lot of costs that are variable in our company that we could cut if we felt like that long-term we needed to do something to drive our profitability. Most of the things we do, because I feel like that we've managed the company pretty tight for a long, long time. Most of the things that we would cut would be payroll oriented and the biggest part of our payroll, of course, is in our stores providing customer service. And so, any of those cuts come at a cost relative to the level of service we're able to provide our customers and we would think long and hard before we would decide to make a material change there that would result in us not being able to be dominant from a service standpoint as we feel like we are today.

Yeah, understood. That makes sense. Okay. Thanks for the time, guys.

Okay. Thank you.

Our next question comes from Carolina Jolly from Gabelli, please go ahead.

Good morning. Thanks for taking my question.

Sure.

Just very quickly, Tom mentioned opportunities to enter markets that O'Reilly's not currently in. Given the industry weakness, have you seen any improvement in M&A opportunities or targets, especially in the Northeast? And then also just do you have any details around Bond Auto's performance for the quarter?

Well, on the M&A environment, there's always companies that we're interested in and areas in which we don't do business. And I can tell you we're working on some things right now that we have not yet disclosed, but when we have certainty we will disclose those at the appropriate time. But, yeah, there's opportunities there that we work on ongoing. And, on Bond, we are now well through the inventory conversions. We still have some to do. We're not completely done, but we have reset all the stores to look more like an O'Reilly store and a lot of the merchandise changes that needed to be made to fit our model and our distribution and supply chain have been made. But there's still some ongoing. So, we're in a position now to start growing the business from where we're at. So, I would say the heavy lifting is, most of it is behind us, although we still have a little bit in front of us, but we're in a good position there to start executing our business model and start growing the business. And what I would tell you is that Bond performed very well on the do-it-for-me side of the business and they underperformed on the DIY side of the business. So, we're going to maintain and grow the business on the do-it-for-me side using all the tools that we provide, but on the DIY side we'll put those stores in a position to grow DIY business. And we expect good results from them in the next year or two now that we have them in a position to execute our business model.

Great, thanks for all of the color.

You bet, thank you.

Our next question comes from Seth Basham from Wedbush Securities. Please go ahead.

Thanks a lot and good morning.

Good morning.

My first question is just around some of the color I would love for you to provide around omni channel functionality. You talked about potentially having a new website with enhanced promotional functionality. Can you give some more color on that and also how you might reorient your stores to be more omni channel in nature?

Sure. Well, our new website launched earlier this month. It's just a lot cleaner website. It has what's called a responsive design so that if you – no matter what device you go to the website on, our servers detect the type of device and the size of the screen and the fit and the functionality to fit the device you're on, which is a big deal. So, those are just kind of primary platform type of things. The bigger changes are in the shopping cart and the ability for us to do some things that we couldn't do in our previous shopping cart. And we feel like that moving forward that allowing promotions that allow us to be more price competitive online will be important in light of the fact that there appears to be so much concern over the online players, the way they price products, and we see that, we hear it in our stores. We hear it from others and we want to make sure that we're in a position to serve customers regardless of how they want to buy a part, whether it's online or from us. One of the biggest factors when it comes to omni channel for us is the ability for a customer using a mobile device, for instance, to gather information, look up parts, and if they want to order the part and pick it up in the store they can do so. And a lot of the business that we do online with DIY customers is actually buy online, pickup in store. So, they can go online, buy it, print a ticket at the store. We have the part sitting there waiting with a receipt when they come into the store to get it and it just makes it a real easy transaction. So, those kinds of things are important to us and I feel like they're sticky when it comes to customers using us as a service for parts. And then also just having access to repair information and the things that they need to work on cars, including specifications, torque, the tools they need, stuff like that. So, we're just going to become much more engaged in using these devices to help customers do the things that they're doing when they buy products from us, and we're in the process now of executing a strategy that we have worked on for some time now. And the first step in the execution of that strategy was the deployment of the new website, which, again, has been active now for a couple weeks.

Got it, that's helpful. And could you remind us or give us some color as to what percentage of your online orders are picked up in the store and whether you're changing the process you use in the store to make it even more frictionless for customers to pick those up?

75% of it is picked up in store, the remainder is bought online. So, I think we have a pretty seamless process now. When a customer orders a part, buy online, pick up in store, it works pretty slick. There's not a lot we could do to make it work better unless we knew their license plate number and ran out and gave it to them when the pulled up or something, and we may do that someday. But right now, we're not doing that. They come into the store. I might mention, the majority of our online business is actually B2B. We have a huge business in B2B where we're integrated into the shop management systems. We have a great browser product that allows shops to order parts using a browser that we've deployed that allows them to see pricing and availability and get information that they might need to work on cars, and so forth. So, omni channel, both on the do-it-for-me side and DIY side, is a significant focus for us right now.

Helpful. And my last question is just around your labor management strategy. You talked about wanting to maintain high service levels even in a slower industry environment, but the number of employees that you have per store has declined about 3.5% for the last two quarters. So, is there a change of how you think about the mix of full-time versus part-time labor or any other changes to your labor strategy?

I think that over the last couple of years we probably – here's what I would say. Going back to when the Affordable Care Act was originally implemented, we had way less part-timers than what our competitors had and we decided maybe it would be – we should test having more part-timers and kind of pursue that strategy. We did that for some period of time and realized that while there's certainly a place for part-timers in our stores when it comes to drivers and merchandisers and just a variety of jobs that have to take place, for professional parts people, to become – or for someone to come to work for us and become a professional parts person, they really need to be full-time. So, I would say right now we're kind of headed back to a little more full-time than we were just a couple years ago. And is that maybe what you are seeing to some degree when it comes to the raw head count with the decrease you're referring to because we are simply working individuals more hours than what they previously worked.

Got it. Thank you.

Great. Thank you.

We have reached our allotted time for questions. I will now turn the call back over to Mr. Greg Henslee for closing remarks.

Thanks, Victoria, and we'd like to conclude our call today by thanking the entire O'Reilly team for their diligent work in providing the customer service levels that drive our business. We remain extremely confident in our ability to continue to aggressively and profitably gain market share in the remainder of 2017. I'd like to thank everyone for joining our call today and we look forward to reporting our 2017 third quarter results in October. Thanks.

Thank you, ladies and gentlemen, this concludes this call. Thank you for participating. You may now disconnect.