Financial Performance & Capital Allocation - Group 1 generated $656 million in free cash flow in 2021 and $293 million in 1Q 2022[5] - The company completed $2.5 billion in acquisitions in 2021 and $550 million year-to-date in 2022[7] - Group 1 repurchased 1.6 million shares over 4Q21 & 1Q22, representing nearly 10% of their share count[7] - In 2021, Group 1 completed $1.8 billion Prime Auto Group acquisition[34] - From 2020 through 1Q22, Group 1 repurchased 2.6 million common shares, or approximately 15% of the company's outstanding common shares, for a total of $405.9 million[34] Operational Highlights & Growth Strategies - AcceleRide® units sold experienced 77% year-over-year growth in 2021[9] - Parts & Service generates approximately 45% of total gross profit[28, 34] - Group 1's Texas locations generated 36% of 1Q22 total new vehicle unit sales[25] - 1Q22 Same Store P&S Sales increased by 18.6% year-over-year[44] - In March 2022, over 60% of vehicles sold utilized at least 1 component of the AcceleRide platform[58]

Financial Data and Key Metrics Changes - Group 1 Automotive reported adjusted net income of $185 million from continuing operations, translating to adjusted earnings per share of $10.81, a 96% increase year-over-year and an all-time quarterly record [9][11] - The adjusted results excluded noncore items totaling approximately $16 million from the sale of two franchises and excess real estate [10] Business Line Data and Key Metrics Changes - The U.S. same-store used vehicle retail unit sales declined by 4% compared to Q1 2021, while customer pay same-store revenue grew by 19% [16][19] - Same-store collision revenues increased by 28% and wholesale parts revenues increased by 29%, contributing to a 19% growth in same-store total after sales revenue [19] - AcceleRide sold 5,800 vehicles online, representing over 9% of total U.S. retail sales, with a 22% sequential increase from Q4 2021 [21] Market Data and Key Metrics Changes - The U.K. new vehicle order bank exceeds seven months, with some luxury brand orders extending into 2023, indicating strong pent-up demand [12] - Texas market outperformed total U.S. same-store growth in new vehicle sales, used vehicle sales, after sales, and net profitability [13] Company Strategy and Development Direction - The company plans to focus on high-quality external growth actions, including the acquisition of two large U.S. Toyota stores expected to generate $550 million in annual revenues [31] - The balance sheet and cash flow generation will support a flexible capital allocation approach, including share repurchases and pursuing external growth opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer demand for vehicles remains extremely strong, with most units sold almost immediately after OEM delivery [11] - Inflation may impact lower demographic sectors, but the company has not observed a decrease in consumer activity in its stores [46][48] Other Important Information - The company had $216 million in total cash liquidity as of March 31, with $319 million of adjusted operating cash flow generated in Q1 [24][26] - The quarterly floor plan interest decreased by 30% year-over-year, while non-floor plan interest increased by 32% due to debt rates related to acquisitions [28] Q&A Session Summary Question: Comments on parts and service performance - Management confirmed strong customer pay growth and a slight decline in warranty work, with digital service appointments fully integrated at Prime [35][36] Question: Inventory management and sales - U.S. inventory was reported at a nine-day supply, with over 60% of sales occurring off the truck [37][38] Question: Capital allocation and share buybacks - Management confirmed that share buybacks and acquisitions are part of their capital allocation strategy, with a focus on improving structural earnings power [41][43] Question: Demand trends in the market - Management indicated that while inflation affects lower demographics, overall demand remains strong, particularly in luxury brands [45][48] Question: AcceleRide performance and customer retention - AcceleRide customers show a higher attachment rate for F&I products compared to in-store customers, with a retention rate of 71% for AcceleRide customers [57][70] Question: Future outlook on F&I and gross margins - Management acknowledged that margins may not remain high indefinitely, but emphasized their flexible cost structure to adapt to changing conditions [76][78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-13461 Group 1 Automotive, Inc. (Exact name of registrant as specified in its charter) (State of other jurisdiction of incorporation or organizati ...

Group 1 Automotive, Inc. (NYSE:GPI) Q4 2021 Earnings Conference Call February 10, 2022 10:00 AM ET Company Participants Pete DeLongchamps - Senior Vice President-Manufacturer Relations, Financial Services and Public Affairs Earl Hesterberg - President & Chief Executive Officer Daryl Kenningham - President of US & Brazilian operations Daniel McHenry - Senior Vice President & Chief Financial Officer Chris Gillette - Vice President & Corporate Controller. Conference Call Participants Michael Ward - Benchmark R ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for the quarter ended September 30, 2021 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $296.9 | $87.3 | | Inventories | $850.8 | $1,468.0 | | Total Current Assets | $1,570.8 | $2,004.2 | | Goodwill | $1,034.5 | $997.1 | | **Total Assets** | **$4,757.6** | **$5,089.4** | | **Liabilities & Equity** | | | | Floorplan notes payable, net | $318.0 | $1,095.1 | | Total Current Liabilities | $1,046.1 | $1,842.7 | | Long-term debt | $1,276.3 | $1,294.7 | | **Total Stockholders' Equity** | **$1,918.6** | **$1,449.6** | Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $3,509.2 | $3,039.6 | $10,219.7 | $7,861.7 | | Gross Profit | $653.2 | $512.0 | $1,805.1 | $1,287.2 | | Income from Operations | $246.8 | $187.1 | $665.3 | $336.0 | | Net Income | $172.1 | $126.4 | $465.0 | $186.4 | | Diluted EPS | $9.33 | $6.83 | $25.21 | $10.08 | - As of September 30, 2021, the company's retail network consisted of **117 dealerships in the U.S.**, **55 in the U.K.**, and **16 in Brazil**[25](index=25&type=chunk) - During the first nine months of 2021, the company acquired **nine dealerships** (two in the U.S., seven in the U.K.) for a total of **$74.6 million**[36](index=36&type=chunk) - On September 13, 2021, the company entered an agreement to acquire **Prime Automotive Group for approximately $880 million**, which includes 30 dealerships[38](index=38&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Details management's perspective on financial performance, strategic initiatives, and segment results [Overview and Long-Term Strategy](index=24&type=section&id=Overview%20and%20Long-Term%20Strategy) Outlines the company's strategy of acquisitions and digital platform growth amid semiconductor shortages - The company's 2021 priorities include **growing through acquisitions**, improving the **AcceleRide® digital platform**, and growing parts and service gross profit[98](index=98&type=chunk) - The pending **Prime Automotive Group acquisition for ~$880 million** is expected to add 30 dealerships and **$1.8 billion in annual revenues**[100](index=100&type=chunk) - The AcceleRide® online retail platform saw U.S. total online retail unit sales **increase by 67.8%** in Q3 2021 compared to Q3 2020[104](index=104&type=chunk) - Global semiconductor chip shortages have severely impacted new vehicle inventory, with days' supply dropping to approximately **14 days** at the end of Q3 2021[112](index=112&type=chunk) [Results of Operations - Consolidated](index=27&type=section&id=Results%20of%20Operations%20-%20Consolidated) Reports a 15.4% consolidated revenue increase in Q3 2021, driven by strong used vehicle sales and higher new vehicle margins Consolidated Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,509.2M | $3,039.6M | 15.4% | | Total Gross Profit | $653.2M | $512.0M | 27.6% | | New Vehicle Units Sold | 35,126 | 39,869 | (11.9)% | | Used Vehicle Retail Units Sold | 43,240 | 38,347 | 12.8% | | New Vehicle Gross Profit per Unit | $4,773 | $2,489 | 91.8% | | Used Vehicle Retail Gross Profit per Unit | $2,279 | $1,854 | 23.0% | | SG&A as % of Gross Profit | 59.0% | 59.7% | (0.8)% | Consolidated Operating Highlights - Nine Months 2021 vs 2020 (Reported) | Metric | Nine Months 2021 | Nine Months 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $10,219.7M | $7,861.7M | 30.0% | | Total Gross Profit | $1,805.1M | $1,287.2M | 40.2% | | New Vehicle Units Sold | 114,882 | 101,701 | 13.0% | | Used Vehicle Retail Units Sold | 126,301 | 105,665 | 19.5% | | SG&A as % of Gross Profit | 59.8% | 67.7% | (7.8)% | [Results of Operations - U.S. Segment](index=32&type=section&id=Results%20of%20Operations%20-%20U.S.%20Segment) The U.S. segment's total revenues grew 18.6% in Q3 2021, driven by strong used vehicle sales and higher new vehicle margins U.S. Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,662.4M | $2,244.6M | 18.6% | | Total Gross Profit | $535.0M | $415.7M | 28.7% | | New Vehicle Units Sold | 25,984 | 27,980 | (7.1)% | | New Vehicle Gross Profit per Unit | $5,388 | $2,852 | 88.9% | | F&I PRU | $2,261 | $2,030 | 11.4% | - U.S. new vehicle inventory supply was only **11 days** at September 30, 2021, a sharp decrease from 41 days in the prior year[127](index=127&type=chunk) [Results of Operations - U.K. Segment](index=39&type=section&id=Results%20of%20Operations%20-%20U.K.%20Segment) The U.K. segment's revenues rose 1.3% in Q3 2021, though same-store sales declined due to severe new vehicle supply constraints U.K. Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $750.4M | $740.8M | 1.3% | | Total Gross Profit | $103.7M | $87.6M | 18.3% | | New Vehicle Units Sold | 7,381 | 10,689 | (30.9)% | | New Vehicle Gross Profit per Unit | $2,910 | $1,571 | 85.2% | | F&I PRU | $857 | $739 | 15.9% | - On a constant currency basis, U.K. same-store revenues **decreased 14.6%** in Q3 2021, driven by a **38.6% drop in new vehicle unit sales**[143](index=143&type=chunk) [Results of Operations - Brazil Segment](index=45&type=section&id=Results%20of%20Operations%20-%20Brazil%20Segment) The Brazil segment showed strong recovery in Q3 2021, with revenues increasing 77.7% as operations normalized post-COVID Brazil Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $96.4M | $54.3M | 77.7% | | Total Gross Profit | $14.5M | $8.6M | 68.7% | | New Vehicle Units Sold | 1,761 | 1,200 | 46.8% | | New Vehicle Gross Profit per Unit | $3,510 | $2,196 | 59.8% | | SG&A as % of Gross Profit | 60.9% | 79.9% | (19.0)% | - On a constant currency basis, Brazil's same-store revenues **increased 73.1%** in Q3 2021, reflecting a strong recovery[155](index=155&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with sufficient capital to fund operations and the upcoming Prime Acquisition - As of September 30, 2021, the company had **$296.9 million of cash** on hand and total immediate liquidity of **$913.9 million**[195](index=195&type=chunk) - The company generated **$593.8 million in adjusted net cash from operating activities** for the nine months ended September 30, 2021[180](index=180&type=chunk)[182](index=182&type=chunk) - A commitment letter for a **$250.0 million unsecured bridge loan** has been secured to partially finance the Prime Acquisition[193](index=193&type=chunk) - During the first nine months of 2021, the company **repurchased $18.6 million of common stock** and paid dividends totaling **$17.2 million**[197](index=197&type=chunk)[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is primarily exposed to market risks from interest rate fluctuations and foreign currency exchange rate changes - A **100 basis-point change in interest rates** would impact annual interest expense by approximately **$1.2 million**[201](index=201&type=chunk) - A hypothetical **10% devaluation of the GBP and BRL** would have decreased nine-month 2021 revenues by **$181.9 million** and **$20.7 million**, respectively[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of September 30, 2021[206](index=206&type=chunk) - **No material changes** in internal control over financial reporting were identified during Q3 2021[208](index=208&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to have a material adverse effect on its financial results - The company is **not party to any legal proceedings** expected to have a material adverse effect on its business[210](index=210&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) Highlights significant risks from the semiconductor shortage, the Prime Acquisition, and potential changes to sales models - The global semiconductor chip shortage has reduced new vehicle days' supply to **14 days**, posing a material risk to financial results[214](index=214&type=chunk) - The **Prime Acquisition** presents numerous risks, including integration difficulties and potential for unanticipated liabilities[220](index=220&type=chunk)[221](index=221&type=chunk) - There is a risk that the company may **not obtain necessary manufacturer approvals** for the Prime Acquisition dealerships[217](index=217&type=chunk)[219](index=219&type=chunk) - Vehicle manufacturers in the U.K. are exploring an **agency model** for new vehicle sales, which could alter the company's business model[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and no share repurchases during the third quarter of 2021 - **No shares of common stock were repurchased** during the three months ended September 30, 2021[228](index=228&type=chunk) - As of September 30, 2021, the company had **$150.1 million available** under its current share repurchase authorization[228](index=228&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) Lists key exhibits filed with the Form 10-Q, including agreements for the Prime Acquisition and required certifications - Key exhibits filed include the **Purchase Agreement for the Prime Acquisition**, a financing Commitment Letter, and CEO/CFO certifications[231](index=231&type=chunk)

Group 1 Automotive, Inc. (NYSE:GPI) Q3 2021 Earnings Conference Call October 28, 2021 10:00 AM ET Company Participants Peter DeLongchamps - SVP, Manufacturer Relations, Financial Services and Public Affairs Earl Hesterberg - Chief Executive Officer Daryl Kenningham - President, U.S. and Brazilian Operations Daniel McHenry - Chief Financial Officer Conference Call Participants Michael Ward - The Benchmark Company John Murphy - Bank of America Richard Nelson - Stephens Inc. David Whiston - Morningstar, Inc. R ...

Dealership Operations - As of June 30, 2021, the company operated 117 dealerships in the U.S., 48 in the U.K., and 16 in Brazil[92]. - The company acquired two Toyota dealerships in the U.S. and seven dealerships in the U.K. in 2021, with expected aggregate annualized revenues of $420 million from these acquisitions[96]. - The company focuses on strategic acquisitions to enhance dealership performance and capitalize on economies of scale in the U.S., U.K., and Brazil[95]. Sales Performance - During Q2 2021, U.S. total online retail unit sales increased by 111.3% compared to the same period in 2020[98]. - New vehicle retail sales increased to $1,855.3 million, a 74.6% increase compared to $1,062.7 million in the same quarter of 2020[111]. - Used vehicle retail sales rose to $1,195.6 million, reflecting an 86.5% increase from $641.2 million year-over-year[111]. - Total revenues reached $3,700.4 million, marking a 73.6% increase from $2,131.2 million in the prior year[111]. - Retail new vehicles sold reached 42,893 units, a 62.0% increase from 26,472 units sold in the same quarter of 2020[111]. - Used vehicle wholesale sales grew by 31.6% to $176.0 million, indicating strong demand in the wholesale market[114]. Financial Performance - Total gross profit increased to $661.3 million, an 84.3% rise compared to $358.8 million in the previous year[111]. - Gross profit for new vehicle retail sales surged to $165.3 million, a 159.2% increase from $63.8 million in the same quarter last year[111]. - SG&A expenses increased to $376.7 million, up 58.8% from $237.2 million in the same quarter of 2020[111]. - The gross margin for total revenues improved to 17.9%, compared to 16.8% in the same quarter last year[111]. Inventory Management - New vehicle days' supply of inventory decreased to approximately 20 days, down from 52 days at the end of December 2020 and 61 days at the end of June 2020[106]. - The new vehicle inventory stood at a 16 days' supply, which was 48 days lower than the same period last year[119]. Cost Management and Efficiency - The company emphasizes cost management and productivity improvements across sales and service departments to enhance operational efficiency[102]. - The company implemented a four-day work week for service technicians and advisors, resulting in increased retention and expanded service capacity without additional capital investment[99]. - Total same store SG&A as a percentage of gross profit decreased from 62.5% in Q2 2020 to 55.8% in Q2 2021, indicating improved productivity and higher vehicle margins[120]. Digital Initiatives - The company is leveraging digital initiatives to improve customer experience and streamline operations, including the rollout of AcceleRide® to U.K. dealerships[98]. - The introduction of "Sell A Ride" on the AcceleRide® platform allows customers to receive cash offers for used vehicles within 30 minutes, enhancing inventory acquisition[100]. Diversity and Inclusion - The company is committed to diversity, equity, and inclusion through a dedicated council and ongoing training programs for employees[104]. Market Outlook - Future growth priorities include increasing sales penetration in the digital retailing platform AcceleRide® and expanding market share in the used vehicle business[94]. - The company cannot predict the future impact of the COVID-19 pandemic on its business, despite significant recovery in operations[105]. Cash Flow and Liquidity - Total cash on hand as of June 30, 2021, was $198.7 million, excluding $326.1 million used to pay down the U.S. Floorplan Line[163]. - Net cash provided by operating activities for the six months ended June 30, 2021, was $752.1 million, an increase of 9.3% from $688.2 million in the same period in 2020[167]. - As of June 30, 2021, total available liquidity was $779.5 million, consisting of $198.7 million in cash and $580.8 million in additional borrowing capacity[180]. Tax and Interest Expenses - Provision for income taxes increased significantly by $60.4 million, or 284.1%, reaching $81.7 million for the six months ended June 30, 2021[156]. - Floorplan interest expense decreased by $6.6 million, or 28.8%, for the six months ended June 30, 2021, compared to the same period in 2020[158].

Financial Data and Key Metrics Changes - Group 1 generated adjusted net income of $190 million, equating to adjusted earnings per share of $10.31, an increase of 173% year-over-year and 264% compared to Q2 2019 [9][10] - Adjusted SG&A as a percentage of gross profit was 55.9% in the U.S., 63.4% in the U.K., and 68.8% in Brazil, showing significant cost control improvements [14] Business Line Data and Key Metrics Changes - U.S. same-store new and used sales increased by 11% and 12% respectively compared to Q2 2019 [15] - Aftersales gross profit in the U.S. increased by 17% compared to Q2 2019, indicating strong recovery in aftersales business [18] - In Brazil, despite a nearly 50% decline in retail units sold versus Q2 2019, margins grew across all lines of business, achieving the lowest SG&A as a percentage of gross profit in the region's history [25] Market Data and Key Metrics Changes - U.K. retail sales saw a 31% sequential increase from Q1 2021, driven by pent-up demand from Brexit and the pandemic [13] - Aftersales revenues in the U.K. increased sequentially throughout the quarter, with June seeing an 11% same-store increase over June 2019 [12] Company Strategy and Development Direction - The company is focused on external growth through acquisitions, having recently acquired 9 franchises in the U.K. expected to contribute approximately $300 million in annual revenues [30] - The company is prioritizing digital retailing through its Acceleride platform, which sold a record 5,600 vehicles in Q2, more than double the prior year [20] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer demand for vehicles and expects this trend to continue into the third quarter and beyond, assuming no material changes in demand [11] - There are concerns about the ongoing inventory challenges due to supply chain issues, with expectations that new vehicle inventories will remain tight for the foreseeable future [52][53] Other Important Information - The company reported total cash liquidity of $525 million and an additional $255 million in borrowing capacity, indicating a strong financial position [26] - The quarterly floorplan interest expense decreased by 13% year-over-year, reflecting improved financial management [29] Q&A Session Summary Question: Impact of Ford's order-to-build model on inventory - Management expressed that a leaner distribution system would reduce inventory carrying costs and land requirements, which would be beneficial for the dealer group [32][33] Question: Differences in F&I per unit between U.S. and U.K. - Management acknowledged legal and market differences but indicated potential for improvement in the U.K. market [36][37] Question: Sustainability of SG&A savings - Management indicated that SG&A savings are expected to be sticky, with no significant changes anticipated in Q3 performance [39] Question: Future acquisitions and capital allocation - Management stated that while M&A remains a priority, share buybacks could be considered if acquisition opportunities do not meet financial return hurdles [61] Question: Inventory supply and sustainability of momentum - Management confirmed that new car inventories remain lean, while used car inventories are in better shape due to new sourcing practices [65] Question: Agency model implications in the U.K. - Management discussed potential agency model discussions with OEMs, noting that it could lead to a demand-pull system beneficial for retailers [69] Question: Pent-up demand in parts and service - Management sees significant pent-up demand and is transitioning back to a 4-day work week to expand capacity [49] Question: Feedback on F-150 Lightning - Management reported high customer interest in the F-150 Lightning across their Ford stores [81] Question: Impact of potential corporate tax rate increase - Management estimated a blended tax rate could rise to around 27% if the corporate tax rate increases [83]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13461 Group 1 Automotive, Inc. (Exact name of registrant as specified in its charter) (State of other jurisdiction of incorporation or organ ...

Group 1 Automotive, Inc. (NYSE:GPI) Q1 2021 Earnings Conference Call April 29, 2021 10:00 AM ET Company Participants Pete DeLongchamps – Senior Vice President-Manufacturer Relations, Financial Services and Public Affairs Daryl Kenningham – President-U.S. and Brazilian Operations Daniel McHenry – Senior Vice President and Chief Financial Officer Earl Hesterberg – President and Chief Executive Officer Conference Call Participants Michael Ward – Benchmark John Murphy – Bank of America Rick Nelson – Stephens Ra ...