Good day, and welcome to the Snap-on Incorporated Fourth Quarter and Full Year Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Leslie Kratcoski. Please go ahead.

Thanks, Hannah, and good morning, everyone. Thanks for joining us today to review Snap-on's fourth quarter and full year financial results, which are detailed in our press release issued earlier this morning. We have on the call today Nick Pinchuk, Snap-on's Chief Executive Officer; and Aldo Pagliari, Snap-on's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions. As usual, we've provided slides to supplement our discussion. You can find a copy of these slides on our website next to the audio icon for this call. These slides will be archived on our website along with the transcript. Any statements made during this call relative to management's expectations, estimates or beliefs, or otherwise statements on management's or the company's outlook, plans or projections are forward-looking statements, and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those forward-looking statements are contained in our SEC filings. With that said, I'll now turn the call over to Nick Pinchuk. Nick?

Thanks, Leslie. Good morning, everybody. I'll start with the highlights of our fourth quarter and our year. I'll give you my perspective on the results, on the markets and on the progress we've made. Then, Aldo will move into a more detailed review of the financials. The results of our fourth quarter were encouraging with sales increases and profit gains across our businesses, continuing our positive trend. We had opportunities, and we had headwinds. We took advantage of those opportunities, and we overcame the headwinds. The result was organic sales growth of 9.8%. If we include a $5.7 million contribution from Pro-Cut and $21.5 million of unfavorable foreign currency translation, overall sales in the quarter were $857.4 million, a rise of 7.5%. Our EPS was $1.97, up 23.1% from the $1.60 in 2013. And that rise reflects an opco operating margin of 16.9%, an increase of 140 basis points. Financial service earnings of $42.2 million in the quarter were also up significantly. And the consolidated operating margin, including both Financial Services and opco, reached 20.4%, an improvement of 190 basis points compared to the 18.5% of last year. Looking at our markets. The automotive repair-related segments continue to be favorable, driven of course by expanding and aging car parts and year-after-year technology changes, all driving demand for our product. The Tools Group and the Repair Systems & and Information, or the RS&I, Group took advantage with volume growth by our van network and gains in OEM dealerships in independent repair shops confirming the progress. But we also had opportunities rooted in our expanding capabilities and product lineup for the critical industries and in growing physical strength in emerging markets, areas within the Commercial & Industrial, or C&I Group, arenas that were challenged by a variety of headwinds, fluctuating currencies and…

Thanks, Nick. Our fourth quarter consolidated operating results are summarized on Slide 6. Net sales of $857.4 million in the quarter increased $59.9 million or 7.5% from 2013 levels, reflecting broad-based gains across all of our operating segments. Organically, sales increased 9.8%, excluding $5.7 million of acquisition-related sales and $21.5 million of unfavorable foreign currency translation. Consolidated gross profit of $411.3 million, increased $32.8 million from 2013 levels. The gross profit margin of 48% in the quarter improved 50 basis points, primarily due to savings from RCI initiatives and benefits from higher sales, partially offset by increased restructuring and other costs. Operating expenses of $266.1 million increased $11.2 million, primarily due to higher volume related and other expenses. The operating expense margin of 31.1% improved 90 basis points, mostly due to sales volume leverage. We incurred $1.1 million of restructuring costs in the quarter. There were no restructuring costs in the fourth quarter of last year. As a result of these factors, operating earnings before Financial Services of $145.2 million in the quarter increased $21.6 million or 17.5% compared to the prior year; and as a percentage of sales, improved 140 basis points to 16.9%. Operating earnings from Financial Services of $42.2 million on revenue of $59.4 million in the quarter compared to operating earnings of $33 million on revenue of $47.4 million last year. The year-over-year increases in both operating earnings and revenue, primarily reflect the continued growth of the Financial Services portfolio as well as revenue and earnings from an additional week of operations in 2014. As you may know, Snap-on operates on a fiscal calendar, which results in an additional week to our fiscal full year and fourth quarter every 6 years. As a result, our 2014 fiscal year contained 53 weeks of operating results, with the…

Thanks, Aldo. We believe our fourth quarter and full year results are clear evidence of the abundant opportunities that lie along our strategic runways for growth and of our continuing progress of taking advantage of those possibilities and in achieving amidst challenge and turbulence. The vehicle repair market is both favorable economically and familiar operationally, and we are advancing in that arena. The van channel is being enhanced. The Tools Group is continuing to rise, sales up 11.8%, operating margin increased by 200 basis points. And we believe the franchise -- that franchisee confidence and capability are stronger than ever. We're expanding repair shop owners and managers, profitable growth in dealerships and independent shops, Pro-Cut and Challenger integrated smoothly giving us more to sell, an OI margin of 23.1% and volume growth of 6.9%. We're reaching into new areas for new customers, growing coherently. The extension to critical industry is working. Double-digit growth with those customers in the quarter, 4 straight quarters of robust increases. And we're building firm physical capabilities in emerging markets. Activity in China and in India, up nicely in the quarter. Put that progress together with our with commitment to Snap-on Value Creation, and you will see encouraging results. You see organic sales increases of 9.8% and a margin gain of 140 basis points to 16.9%. In fact, you see our fourth quarter. And as we move forward, we know there are headwinds. We know there are more challenges. But we also believe that our team has unique opportunity rooted in growth and improvement, and has the intent and the capability to continue our positive trend of strategic and financial progress, ensuring that we will exit 2015 stronger than when we entered. Before I turn the call over to the operator, it's appropriate that I recognize our franchisees and associates, an extraordinary group. Once again, I know many of you are listening. Please know that this encouraging quarter is the result of your effort, for your contributions to our performance, for your support of our team and for your commitment to our future. You have my congratulations, and you have my thanks. Now I'll turn the call over to Hannah for questions. Hannah?

[Operator Instructions] And we'll take our first question from Liam Burke with Wunderlich Securities.

Nick, can you give us a little color on how much incremental growth you got from company-supplied vans, like the Rock 'N Roll van, to help supplement the van franchisee effort?

Well -- yes, sure. Look, the Rock 'N Roll vans, as you know, are sort of like a time shared event, which add retail space on a time-sharing basis. Each of the -- each technician, they go around and they visit various technicians for 2 to 3 days. We've grown them from, I think, 18 in the first quarter of 2012, up to around 59 in North America last year. They're not growing anymore. But suffice it to say, that big-ticket items, which tool storage is one of them, was up ahead, greater than the overall Tools Group of 11.8% in the quarter. So they pace the -- they were among the pacing elements -- big-ticket items were among the pacing elements for our growth in the Tools Group. And it's clear that the -- that those 59 in North America, and I think it's 64 international -- in total because we have some in the U.K. now and Australia, have helped drive the way. And of course, that's together with our TechKnow vans, which have increased the same way. The TechKnow vans are now up, I think, to 31, which it started at 14. So those are both helping grow this business. And it has moved faster than at 11.8%.

Okay. And on new product introductions or innovation, did you have a good year in terms of hit products and were they divided equally between industrial and automotive?

I would say we had a good year, yes. I'm pretty positive about the year. We had some really fine new products and the numbers were the like last year. Compared to just, what, 2006, they're several times, as I said many times, that number. And I would say that they are divided, kind of, not quite equally. I'd say the Tools Group gets a little more of those because we have more people really in the workplaces for the automotive repair business, and therefore, those ideas are rolling back with greater frequency. But we are getting a good representation from the industrial business, from the critical industries. And you know, I can offer to you that we've advanced our critical industries, not hit products, but we're expanding that business. For example, we added in the year, 996 new aviation products. We added over 600 oil and gas products, military products over 800, power generation. So we're adding products. They are not all the hit products. I'm not saying that, but we added new products to create excitement in that business. The hit products are those that sell over 1 million and create the excitement. We're getting those in industrial. We're still today getting more out of the vehicle repair side of the business. Still, a very good year for that, I'm very pleased. And in fact, when you look at these numbers, it's hard for you to appreciate it, but I believe very strongly that it's generated by the enthusiasm and the attention-getting that these great new products get when people in the vans or when our salesmen call on customers and say, "Wow, that's a new product. I'd like to get it," and they add other products to it.

And we'll take our next question from David Leiker with Baird. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: I wanted to start on the organic growth in the Snap-on Tools Group. You were running 6% or so, the last -- the first 3 quarters of the fiscal year. You jumped up to approaching 12% here in Q4, almost double the growth rate. Anything in particular that's behind that? And any sense on how sustainable that kind of a growth rate is going forward?

Yes, I know -- I don't know. I think -- we have been -- you and I have talked about this many times. I mean, the Tools Group numbers, like you say, 11.8%, 6.0%, 6.6%, 6.0%, 10.2%, 9.5%. In fact, the Tools Group now -- the Tools Group has now grown greater -- 5% or greater in, I think, the number 18 of the last 19 quarters. So they've shown some fairly strong performance. And all I can say about it, in general, David -- what I can say first, in general, is that what's happening here is the effect -- the continually increasing effect of understanding how to help the franchisees be more effective, which authored things like the vans, the Rock 'N Roll cab and the TechKnow van. And we're just getting better at bringing out new products and finding those sweet spots in the -- for the customer needs that excite the customers and get that stuff moving off the van. That's what's happening here. Our ability to make the franchisees more productive and effective and the experience that's building in our team to be able to wield this model, which has always been, I've said, the model that fell from Saturn, more effectively. One of the world's great models, those guys in the Tools Group are probably wielding it better than ever before. In this quarter, I think you might say, we had a particularly great customer connection and innovation season, like Liam just add, that's one. And two, we had things like power tools and some great power tool products that came up. I was in a shop the other day, and in fact, Monday -- Tuesday -- sorry, Tuesday, I was in a shop and the technician said, "Boy, I got this new CT8850,…

Well, we have some great guys in the competition. We have some great companies, Stanley and Danaher behind Matco and so on. But at the garage level in the vans, from each of our positions, we see that our franchisees don't often mention the competitors. They reference themselves versus where we have been or where we are going. I just did a van ride, like I said, on Tuesday. And my van driver never mentioned the competitors. He only mentioned how we could get better or how satisfied he was with certain of our new products. So I see this. And I see it across our product line. Our people are confident of our hand tools. Our people are confident of our tool storage because they are beautiful pieces. Our people are confident about our diagnostics and our software because they provide a better insight to repairing the car than ever before. And you know what's happening in the marketplace now, it used to be garages wanted diagnostics. Well with the extension of all the computers on cars, every technician needs to have a diagnostics to repair these days. And so you can see this kind of confidence in our franchisees. And yes, they say, "Well, I'd rather have this or I need something else." But it's always with reference to themselves, it's not much compared to their -- it's not really compared to their competition as much. I hardly ever hear about that. That's not to say, they're not capable and capable people and aggressive people, but when I go out, I hear mostly about ourselves.

Our last question is from David MacGregor with Longbow Research.

You and your organization have built a tremendous compound earnings growth story here, and it's-- it really shows. So congrats on all the progress. I wanted to ask just a couple of questions that are just kind of following up on the earlier questions. And I start with the Tools Group. And you made the observation that you aren't adding any more vans, I guess, on the Rock ‘N Roll Cab Express. Just looking at the 17.5% origination growth in the finance portfolio suggests that the storage is still a big part of the Tools growth story and the margin, 200 basis points, probably is driven in part by that as well. How do you keep the growth going if you've stopped opening new stores in this enterprise? And maybe talk to that, for starters.

Well let me say a couple of things. First, just thanks for your compliments about compound earnings growth. But actually, I don't think it's that surprising. This is a great business. It's a great business that has a lot of opportunity and runway further. So we are not so surprised by such things because it is a business that has so much untapped opportunity for both growth and improvement. Let me come back to the idea of keeping it growing. Yes, it is a challenge. But you know that we've grown -- the Tools Group has grown 11.8%, 6%, 6.6%, 6.0%, 10.2%, 9.5% in the subsequent quarters, same-store sales. And then the other thing is, we're getting better at bringing out new products. We just launched another tool storage unit at the kickoffs, David. And you know what it is? It's a tool storage. It's these tool storage, big boxes, you can envision them, and they're gleaming in different colors. They've got great features. You can plug in your power tools and all this stuff, and now we equip them with a downtown sound bar. Now I don't know if you've ever been in a garage, but a sound bar in a tool storage box sounds like a cool thing to me. Everybody who sees them and hears them is going crazy. So new product is a great -- are a great advantage, so that helps it, too. And then the other thing is, we just have to keep thinking of new ways. The Rock 'N Roll Cab was an innovation by the -- brilliant innovation by the Tools Group guys to figure out that they could help the van -- virtually expand the space of the van, which is one of the limitations. They just have to keep coming…

That's good detail. I guess, the second question I had was, again, following up on a previous question on competition, and you talked about with respect to Stanley and Matco and the others. I wonder if you could just talk about how much competition you're feeling and maybe particularly within the diagnostics business. But how much competition you're feeling from the automotive retailers? And I guess the question really is, as the category...

What do you mean? What do you mean automotive retailers? Can you define it for me? David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Yes, the AutoZone, Pep Boys, O'Reilly, those guys. I guess my question really is, as that diagnostics category evolves and the technologies that represent, kind of, the foundation of that category become less expensive, how do you respond to protect your great business from price competition, increasing availability? I mean, is it innovation? Is it warranties? Is it credit? Is it support and service? How do you go about...

I'll tell you what, I tell you what, all of the above, I think. Remember first -- I think, first, that we start with a great product enabled by an extraordinary base of information with, I think, better insight on repair than anybody else. We have a product that will tell you, okay, if you have a make and model and powertrain of a car, and it's a certain model, what the typical repair is on that model based on big data. It's the only one available. And we have an understanding. A lot of the competition comes at the lower end with code readers and so on, a little bit less sophisticated. Technicians are looking for more levels of sophistication. They want to read what the car says. They want to be able to put the car through functional tests, through its paces. They want to be able to reprogram it. They want to be able to see what the OEM says as a standard fix. And then they want the whisper tips and the tips that come out of the big data. We have all of that. Almost no one else does. So our product keeps evolving and getting stronger in that regard. And if anything, the requirements for this gets bigger because it used to be -- the computer content on cars are getting more and more. This is one of the reasons why nobody can repair cars anymore because they're so complicated. And even in garages, you need -- what used to be a situation where you needed one big unit to handle everybody and you could pass it around, well, you can't be working on a car today, in many cases, without these things. So every technician wants one. And so you have that. And then finally, finally, we have our franchisee armed with the TechKnow vans, up close and personal with the technician to help him through the product, tell him what he needs to know, how to use it, and find out what his particular problems are. We have customer connection and customer delivery like no one else has. And so that's why we don't feel so much heat from those other guys. We think this is a robust market that's going to keep growing. We think it's only going to get more demand in this area. And we think we have significant advantages in data, in hardware and in software. And our software business -- our hardware business was strong. We just had a great launch. And our software business was up more than the hardware business in the quarter.

That concludes today's question-and-answer session. Ms. Kratcoski, I'll turn the conference back over to you for any additional or closing remarks.

Thanks, Hannah, and to everyone, we appreciate you joining us today. A replay of the call will be available on our website shortly. And as always, we thank you for your interest in Snap-on. Have a good day. Bye.