Genuine Parts Company Earnings Call Nuggets: Automotive Business and Earnings Per Share
David Gober – Morgan Stanley: Paul, just a quick one for you on the Automotive business. Just curious if you could talk at all about either the monthly cadence within the quarter, I know you said at the last quarter that you’re starting to see some green shoots, so just curious if that scaled throughout the quarter, if it was relatively even? Then I guess, a follow on to that also, if you’re seeing any – what you’re seeing in terms of regionality. I know obviously, there was for the better part of last year, you had some significant differences across regions and just curious if you’re seeing that reverse or have you seen different reasons normalize in the Automotive business?
Paul D. Donahue – President: Let me take the first one regarding the trending throughout the quarter. The quarter actually strengthened as we move through the quarter, so May was a bit better than April and on a per day basis, June was a bit better than May. So, we do remain encouraged by what we’re seeing in Automotive and we’re encouraged by the trend that we’re seeing. In terms of regionality David, we did see, if you recall in our previous call, we were, challenged as I think many were in the Midwest, Eastern and Central parts of the country. We have seen that area of the country, certainly the East and the Midwest have come back strong. The Southwest has been a good performer for us for the last couple of years, they continue to do well and the rest of the country is pretty much performing as we expected.
David Gober – Morgan Stanley: Tom or Carol, I guess just on the overall EPS guidance, I just wanted to confirm that, that includes the $0.22 benefit from the recast on the Exego deal, and just curious if that also was kind of contemplated in the prior guidance?
Thomas C. Gallagher – Chairman and CEO: Yes, it does include that and, yes it was contemplated in the prior guidance.
Earnings Per Share
Scot Ciccarelli – RBC Capital Markets: Just one more clarification on the EPS. Does that include the gain as well or just kind of the run rate of Exego?
Thomas C. Gallagher – Chairman and CEO: It includes the gain and the 450 to 460 is an all-in number.
Scot Ciccarelli – RBC Capital Markets: But you didn’t previously anticipate the $0.22 gain when we got the original 445 to 460, correct?
Thomas C. Gallagher – Chairman and CEO: We anticipated that it would be a gain and it might be instructive just to see that you’re probably familiar with the accounting on this. And we had a high range and the low range on the anticipated gain and it’s a very complicated process and you can’t narrow it down until you get to the very last moment. And we tried to take an appropriate look at it when we gave you that prior guidance and as it turns out we were reasonably close with what it actually turned out to be.
Scot Ciccarelli – RBC Capital Markets: Regarding the comments about kind of gross margin, SG&A run rates I guess is there anything that’s impacting maybe that little bit of the shift that we’ve seen to higher gross margin and higher SG&A other than the Asia Pacific business or is that — it really center on that?
Carol B. Yancey – EVP and CFO: So we gave you the one-time amounts that are in both of those numbers. So, taken those into account what we would say that our core gross margins were up slightly, excluding the impact of GPC Asia Pacific and the one-time adjustment and at SG&A because of the decline in sales in the non-automotive businesses our SG&A really we didn’t have the improvement there and that’s the loss of leverage and you see that in the operating margins. So, what we’re seeing on a go forward basis is, you are going to see just a slight shift there, if you will, that’s due to GPC Asia Pacific, but we’re going to continue to focus on our normal improvements in both of those lines.
A Closer Look: Genuine Parts Earnings Cheat Sheet>>