LKQ Corporation (LKQ) Q4 2013 Earnings Report, Transcript and Summary

Greetings, and welcome to the Fourth Quarter and Full Year 2013 Earnings Call for LKQ Corporation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joe Boutross, Director of Investor Relations.

Thanks, Rob. Good morning, everyone. Thank you for joining us today. This morning, we released our fourth quarter and full year 2013 financial results, and provided our full year 2014 guidance. In the room with me today are Rob Wagman, President and Chief Executive Officer; and John Quinn, Executive Vice President and Chief Financial Officer. Rob and John have some prepared remarks, and then we will open the call for questions. In addition to the telephone access for today's call, we are providing an audiocast via the LKQ website. A replay of the audiocast and conference call will be available shortly after the conclusion of this call. Before we begin with our discussion, I would like to remind everyone that statements made in this call that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding our expectations, beliefs, hopes, intentions or strategies. Forward-looking statements involve risk and uncertainties, some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. We assume no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made, except as required by law. Please refer to our Form 10-K and other subsequent documents filed with the SEC and the press release we issued this morning for more information on potential risks. Hopefully, everyone has had a chance to look at our 8-K, which we filed with the SEC earlier today. As normal, we are planning to file our 10-K in the next few days. And with that, I am happy to turn the call over to Mr. Rob Wagman.

Thank you, Joe. Good morning, and thank you for joining us on the call today. Revenue reached a new quarterly high of $1.32 billion in the quarter, an increase of 23.3% as compared to Q4 2012. Net income for the fourth quarter was $77.9 million and diluted earnings per share were $0.26, a 23.8% increase over the $0.21 reported for the fourth quarter in 2012. Organic revenue growth for parts and services was 9.9% for the quarter. Total organic revenue growth for the quarter was 7.7%. For the full year, our EPS was $1.02, representing an increase of 17.2% from the $0.87 reported in 2012. Our reported earnings in both years had some special items that I'd like to highlight to help in your evaluation of the year-over-year results. Please note, 2013 diluted earnings per share included charges equal to $0.04 per share resulting from restructuring and acquisition-related expenses, a loss of -- on debt extinguishment and a change in the fair value of contingent consideration liabilities, all of which we exclude when setting our EPS guidance. Additionally, full year 2012 diluted earnings per share included a $0.04 per share gain from the settlement of a previously disclosed lawsuit and a $0.01 per share loss related to restructuring and acquisition-related expenses and the change in fair value of contingent consideration. So all things considered, I'm really pleased with the year-over-year growth. Revenue reached a record $5.1 billion in 2013, an increase of 23% as compared to 2012. Net income for the full year was $311.6 million compared with $261.2 million for the prior year, an increase of 19.3%. Organic revenue growth for parts and services for 2013 was a strong 11%. Total organic revenue growth for the year was 9.3%. During the fourth quarter, we purchased over 70,000 vehicles for…

Thanks, Rob. Good morning, and thank you for joining us today. Before I begin with our prepared remarks, I want to comment on a topic of discussion regarding LKQ over the past few months, namely unfounded allegations made regarding the quality of our accounting practices. The management of LKQ and our Board of Directors, auditors and other constituents take seriously any allegation of accounting irregularities or ethical complaints made against the company or any member of management. We have a comprehensive compliance program to ensure that the financial statements signed by Rob, Michael, our board and me are in compliance with GAAP. We operate a whistleblower hotline, where we encourage employees to come forth with any concerns. We review at least quarterly with our Audit Committee any complaints regarding accounting or auditing matters. We have a talented internal audit department that reviews our systems and controls that has direct access to the Audit Committee. We involve numerous independent advisers, such as valuation firms and outside legal counsel in the preparation of our financial reports. Our banking partners, underwriters and other constituents regularly perform due diligence on the company, management and our books and records. In addition, our external auditors, Deloitte & Touche, provide an independent assessment of the financial statements and of the quality of our internal control procedures. The company, our auditors and our audit committee have reviewed each and every allegation ever asserted regarding our accounting practices. As I speak today, I can confirm there are no outstanding or unresolved matters. I can also confirm that although there have been queries, as one would expect in any large public company, there has never been a complaint found to have any material substance or resulted in a change in our books and records. I also note that Deloitte has…

Thanks, John. To summarize, we are pleased with our fourth quarter and full year 2013 performance. I am proud of the achievements we made in 2013 and confident that the strategic framework we have in place for our operating segments has positioned the company well for continued growth in 2014 and beyond. As we enter the new year, the trends in our North American business are favorable. New vehicle sales hit 15.6 million in 2013, up nearly 8% from 2012. During 2013, the vehicles in operation reached the highest point on record since Q3 2008. This trend, combined with an improving employment landscape, should lead to an increased driving during peak times, which would bode well for our North American collision business and for our recently acquired Keystone business. As I am sure everyone is aware, this winter has posed some unique challenges for all businesses, and we were unfortunately not exempt from the negative impacts of the winter in North America. As a company, we witnessed a number of days in multiple key U.S. and Canadian markets where we were forced to close due to extreme weather conditions. From Texas to Maine, many cities declared state of emergency, forcing motorists off the roads. While this has caused some headwinds for Q1, we are optimistic that there's a backlog of work that will make its way through the base of repairers throughout the course of 2014. In fact, last week was the first week of the year that we had no weather disruptions, and we posted our highest revenue week ever. As part of our growth and diversification strategy, Europe continues to provide exciting opportunities for the company, and we are quite pleased with the performance of this segment so far and the value it has created for our stockholders.…

[Operator Instructions] Our first question comes from Craig Kennison with Robert W. Baird. Craig R. Kennison - Robert W. Baird & Co. Incorporated, Research Division: Maybe I could start with the weather issue. I think a lot of people would have expected that given the harsh weather and the accident frequency increase, we would see more volume in Q4 and Q1. I'm guessing people don't factor in the lost selling days. But given what Copart said about volumes being so high recently, shouldn't we expect that to start to flow through in the back half of Q1 and then into Q2?

I think that's fair, Craig. Obviously, there is a backlog at the shops. I did listen to the Copart call as well, and I think that backlog at the salvage auctions bodes well for us, too, in terms of buying. There'll be plenty of salvage available. And generally speaking, when there's more salvage available, we can buy at little bit better rates. Let me just talk about the quarter so far. We did face quite a bit of disruption from the weather with major cities basically shut down. We had to deal with our own distribution concerns, but we also faced many customers that were closed due to the weather. We are certain there's a backlog at the shops just from our data that we've had with our customers. And we do expect that to work through the back half of the quarter and into other quarters as well throughout the course of the year. Craig R. Kennison - Robert W. Baird & Co. Incorporated, Research Division: And then shifting into Europe, I'm sure there's a large investor base that's interested in your progress there. What's the pipeline look like, Rob? Are you more focused on executing what you've got, or are there opportunities that you think could happen in 2014?

We're focused on both, Craig, both on, obviously, execution, but we do have people over on our side doing some M&A work, and the pipeline looks good. It takes time. They're relationship-driven acquisitions where we have to get to know the companies, make sure we're getting the best in the marketplace. But I do anticipate more acquisitions in that marketplace. Whether it be 2014 or 2015, I'm not sure. But certainly, the pipeline looks very good there. Craig R. Kennison - Robert W. Baird & Co. Incorporated, Research Division: And then one more, and I'll get back in the queue. But John, I appreciate your comments on sort of the accounting and the discipline behind that. Can you confirm whether we should expect to see an unqualified opinion in the 10-K and whether goodwill is carried at an appropriate level based on how you've carried it in past 10-Ks?

I don't want to speak for Deloitte, because they haven't, obviously, issued their opinion yet, but I expect a clean opinion and with no goodwill impairment issues whatsoever. We completed our goodwill testing, as we do every year in Q4, and cleared that hurdle handsomely, frankly.

Our next question comes from James Albertine with Stifel. James J. Albertine - Stifel, Nicolaus & Company, Incorporated, Research Division: On the -- I just want to get a sense for given the Keystone acquisition, you came in at the end of the day toward the lower end of your full year guidance. I wanted to understand if that was more timing-related or sort of expense-driven or if there was something else in there that was more of a pressure than you anticipated in the -- toward the end of the year?

Keystone didn't really impact it, I don't think at all, really, because we obviously completed that in January. I think we had talked a little bit about the timing of Christmas. We weren't sure whether that was going to hurt us. Our sense is things both in North America and in Europe really slowed down in the back 2 weeks of December, frankly. I don't know that we would want to blame necessarily anything on that, but our sense is that, that probably did hurt the sales a little bit in Q4. James J. Albertine - Stifel, Nicolaus & Company, Incorporated, Research Division: I appreciate that. And if I could ask one more just on gross margin. It looks like while down year-over-year, and you attributed I think some of that pressure certainly to Sator and some international growth, however, it looks like the degradation actually has improved, if you will. I'm trying to get a sense for how you're looking at gross margin trajectory going forward and how that contributes to your expectations for FY '14.

Sure, good question. The -- in the quarter, yes, we're down about 100 -- year-over-year in the quarter, we're down about 30 basis points. Sator and the paint deals are probably about 90 basis points negative, and we saw the rest of the business actually get some slight improvement, mostly in North America. So probably about 60 bps there offsetting that. So we do feel like we're continuing to get a little bit of traction in the North American business margin. Nothing dramatic yet because we really haven't seen cost of goods sold come down in terms of the commodity prices -- excuse me, in terms of the car prices, and commodities have not been our friend. They weren't our friend really last year throughout the whole year. They were volatile year-over-year, they ended up slightly negative on the whole year. In terms of going forward, I just caution everybody, don't forget that Keystone Automotive is going to drag down margins again. We said that probably low 30% gross margins on that business. If you do the math, we're coming up with circa 110, 120 basis points negative impact to the entire company. Failing that, you're just going to see the seasonality. Scrap, as I mentioned, is down right now. We think that's a short-term phenomenon. Turkey pulled out of the market earlier this year, which was I think partly driven by the political unrest there. So hopefully, that springs back, and we'll be at least at neutral, which is what we're projecting for the year. And then the rest of the gross margin, I don't really anticipate any dramatic changes, unless, as I've always said, "unless something changes," which is commodity prices go up or we see some improvement in the cost of goods sold associated with the salvage business.

Our next question comes from John Lovallo with Bank of America Merrill Lynch.

John, we've -- I certainly appreciate the comments that you made about some of the accounting allegations. I guess from where we're sitting, the 2 questions that we're hearing from investors, the 2 points of concern, I think, are: One, are you seeing any additional pricing pressure from OEMs versus past years? Or I mean -- or really, is this what you characterize the price matching programs as kind of regional, kind of spotty and really nothing new?

I think I'll let Rob handle that one.

Thanks, John. John, the OEM price match is definitely regional and spotty, and they've been around for many years. GM in that recent report was highlighted, so we actually got some stats for the call. There are roughly 6,000 parts in that program. GM offers over 300,000 different SKUs, and less than 10% of their dealers even participate in the program. Apparently you have to get truckload shipments in order to participate. And then what we did, we also pulled our data since 2009 on all GM parts sold. We looked at all parts and our top 5 parts sold. In fact, the sales are actually in line with our overall performance of roughly about 6.6%. For the parts that are sold just in collision in North America, our growth was roughly 6.6%, and that's right in line. So this program doesn't appear to be hurting us. Like I said, the numbers are in line with other manufacturers. So we do see a little bit of regional, spotty attempts to apply this, but with 10% of the dealer network participating, it's really not a factor to our numbers.

That's very helpful. And the second question would be on just the number of ECP stores that you think are needed to cover the U.K. market. I mean, the way we are thinking about it at least is the U.K. market, let's call it, 15% of the U.S. market, and if you look at the number of kind of AutoZone, GPC, O’Reilly type stores, I mean, it's probably 15,000 to 20,000 in the U.S. So 15% of that, you're somewhere around 3,000 stores, and maybe haircut that a bit because there's a smaller DIY market and your stores tend to be bigger. But I mean, is it fair to assume that there's still room for more stores in the U.K.?

There is. As we announced, 20 new stores have been approved for this year, which, by the way, we expect to get them all done by Q2. So we'll have those 20 stores in, which will put our total at 165 if we get those 20 done. We believe -- you've got to remember, the U.K. is roughly the size of Oregon. So it's much more compact, and the people are squeezed into a much smaller area. So it allows us to reach a much greater penetration with a smaller number of stores. We believe the right number, when it's all said and done, we have been saying pretty consistently, it's about 175 to 200. We're leaning towards the 200 number, John, because basically, you want to be within 5 miles of the population base we're trying to serve. So 200 in the U.K. Of course, we look at Ireland as another opportunity which we haven't touched yet as well. Northern Ireland, we're in, but not southern Ireland. So there's plenty of opportunity left, and those would be the full ECP branches that we talked about. We did talk about in some more remote areas, we call them ECP light branches, for example, maybe half the size with half the inventory, but be able to service a more remote area. We think another 25 of those. So 200 full branches, about 25 ECP light branches, so we still have at least a couple of years of buildout left, probably closer to 3.

Next question comes from the line of Nate Brochmann with William Blair. Nathan Brochmann - William Blair & Company L.L.C., Research Division: I wanted to talk a little bit more specifically, John, if we could, and I mean clearly, we can add some of these numbers up, but I know that not all the accounting is finalized on the amortization for Keystone 2. But can you give us a rough sense now that it's closed in that you kind of have some numbers behind you what we should expect in overall accretion for this year?

You're talking from Keystone? Nathan Brochmann - William Blair & Company L.L.C., Research Division: Yes, Keystone 2.

Yes, we haven't -- I mean, we haven't disclosed any specific number associated with that. I want to hold off doing that until we get the other numbers finalized. But I think, with -- if you take the EBITDA and use a fairly heavy rate for the depreciation and amortization, and then apply 4.5% interest. And then remember, that business is all in the U.S., or primarily in the U.S., it's going to be a full 39% tax rate. You'd probably come up with a pretty close number to what we're thinking in terms of pro forma-ing, Nate. Nathan Brochmann - William Blair & Company L.L.C., Research Division: Okay, fair enough. And then second question is -- I mean, obviously, you guys are doing great in terms of the top line growth, and certainly, the acquisition part of the story continues to kind of increase the overall expense level a little bit. But can you give us a sense of maybe on a few of the internal programs or what you guys are looking at the overall expense side to let some of the accretion maybe from the past deals flow through, even as we continue to do maybe a few more tuck-ins here and there, just in terms of a sense of where we are on the opportunity to kind of limit a little bit of that expense growth going forward.

Yes, I'll start, and then maybe, Rob, you can join in. Obviously, we continue to look at the transportation network, and the strategy has always been to try to fill in the holes and shrink the average distance that the parts move, and we've done a lot of work on that recently, re-tendering some of those transportation links. We continue to look at opportunities when warehouses come available to see if we can co-locate the facilities. And obviously, we're talking with the new Keystone operations to see if there's any opportunities to co-locate those. I think, as an example, I think Rob talked to some of the -- was it 9?

10.

10 cross stocks that we've currently managed to co-locate. It's an evolution that just -- we don't want to run out and do -- replace warehouses before the leases are up, obviously. But just as the leases get expired, we try to see if we can co-locate facilities. It's not -- over time, I think some of the -- you will see the industry moving towards more of electronic procurement, the CCC product that we've been talking about. It's very early days, but you are seeing a lot of electronic ordering coming through for that. We're finding that's improving the accuracy, which means fewer returns, it's improving the -- obviously it's a lot easier to process an electronic order. And we're seeing that pressure coming not only from the shops, but also some of our insurance partners as well. I think we talked in the past about State Farm's product. They're trying to implement some kind of an electronic ordering process, which, at the moment, is actually causing a little bit more cost for us as opposed to less. But ultimately, I think the industry goes to that sort of a platform of some kind.

Yes, and I was going to highlight, Nate, on top of what John said, that the Keystone integration is a great example. I couldn't be more pleased with the speed of that integration, to have 10 cross stocks in about 1.5 months folded into our facilities. Stage 2 of that, now we've got them moved in, will be to start sharing deliveries wherever we can, of course, to try and gain efficiencies. We actually expect, as a result of that, our service levels to increase. We'll be able to get to the customers even quicker. So we're very pleased with that, and I think we'll continue to leverage that. And to John's second point on the CCC system, just one upgrade that's coming at the end of Q2, we'll be launching e-invoices to all of our customers through CCC, which will allow substantial savings for our customers, and hopefully, eventually us on the admin costs. So we're continuing to look at those opportunities to tuck in the businesses together, and I think the KAO acquisition is a great example of how fast we can move on that. Nathan Brochmann - William Blair & Company L.L.C., Research Division: Okay, great. And then just last question, John. Usually, at this point, you kind of give us what could impact kind of the high or the low end of guidance in terms of what may or may not be in there. I would assume that you're probably not, even on the high end, including a lot of benefit if you roll out more of the collision parts or if the Manheim really does drop maybe a little bit more significantly. I assume that that's not in there at all, but could you give us a little sense for what is in there on the low end versus the high end?

Yes, I think Rob mentioned that Q1 started off a little bit slow. In the -- January, we were shut down in a number of places. We see other industries that are unrelated to us, like restaurants and so forth, saying their sales were down. I don't know if people didn't have accidents because they weren't driving to the restaurant or not. So to the extent how big the backlog is in those shops, we don't really know yet, but if -- our sense is that this is a much better weather environment than we had a year ago. The other things that could be impacting, obviously, are the FX rates, the weather for the rest of the year. Scrap, we assume scrap is going to be relatively neutral to us. That could be favorable or unfavorable. I think the Manheim Index, we just assume sort of steady as it goes. I don't think there's much risk on the upside to that. Our bias is that it will probably come down over time. I've been saying that on this call, though, for a fair number of quarters. I still believe it to be true. I just, it's a question of when. Obviously, the new car production took a little bit of a step back in January. They think that's the weather, but the systemic trend there that we see is probably good for us. There has been some threats of port strikes. I don't think that's going to impact us yet. We're going to try to manage that and build up the inventory. If it looks serious, we'll try to get the product off the water sooner, but obviously, that could have an impact on us. Rob, did you...

That's right. Like I said, Nate, in my remarks that I was very encouraged by last week, the first week of the year that we were -- went a week without uninterrupted distribution runs, and we posted a record week. So it feels like there is some pent-up demand that's going to be coming through the system.

And Europe is -- I just mentioned that briefly. Europe is suffering from a very mild winter, frankly. While we were hit here, they were suffering from a mild winter, and that was unfortunate for them because things like battery sales and stuff just don't -- are not happening over there.

Our next question comes from the line of Bret Jordan with BB&T Capital Markets. Bret David Jordan - BB&T Capital Markets, Research Division: A question on Keystone, now that you've had it for a bit. I guess if you could give us some thoughts on maybe how you see that business growing, going forward as it exists today, and then whether or not there's any change as far as the distribution model that you can make, either adding more direct or incremental points-of-sale that might change the growth rate from just a traditional 3-stepper into something else?

Sure. And as I mentioned, the speed of integration, we are thrilled with, Bret. I never envisioned getting 10 of these cross stocks already co-located, so we're very pleased with that. I personally have had the opportunity to interact with the associates at Keystone, the customers and suppliers. Keystone puts on 3, what they call, "big shows" with customers and vendors. They were all held in January and February. And I got to join 2 of those. It's really just getting to know people and know the space. The Keystone people or new Keystone colleagues have presented us an opportunity in one major market to add additional warehouse, would make the sixth distribution center. We've already approved it. Great potential for market share gains in that particular market. The operation synergies, as I said, they're not just for cost savings, but I believe there's going to be meaningful enhancements to the customer service levels. We'll be able to get the parts to the customers even quicker, at less expense is what we hope. Back-office synergies, really in line with our expectations and progressing very well. I just want to talk about some of the cross-selling opportunities as well. At the 3 shows, we actually launched LKQ products to those customer base. Basically 3 main product lines come into play here: ATK, which is our re-man engine division; Goodmark, which is our classic car collision parts; and our Coast to Coast line, which is wheels and accessories. Very well received by the customer base there and very interesting crossover of sales opportunities there. It's early. I want to warn everybody that these are early days, but we actually are starting to talk with our European counterparts over at Sator and ECP of the potential of European distribution of these products. So…

I will take this weather over a -- 50-degree weather any day of the week. I think it's just going to be lumpy, Bret, like I said, just because so many days we couldn't deliver the parts, but I am expecting that backlog to come through. Bret David Jordan - BB&T Capital Markets, Research Division: And one last question. Do you have the most recent number on alternative parts penetration?

I don't. We did get an update from CCC. CCC reports that figure, the annual figure in March. However, during the year, CCC actually reported APU fluctuating between 37% and 38%. I think in June, it was at 38%. It does move depending on seasonality and supplements that hit the marketplace. We think, when the final number is in, it's obviously between -- somewhere between 37% and 38%, but it could very well round down to 37%. But we actually believe there's a reason why the number has been flat recently. And we've really discussed it in the past, but I just want to reiterate as long as we get asked the question. As you know, APU is computed and reported as dollars spent on alternative parts as a percentage of total dollars spent on all repair parts. There have been 3 major trends impacting APU recently: First, the aging carpark. LKQ, this is a pretty interesting stat, compared to 2008, we're selling on average a 2-year older model year part than we were in 2008 because of the aging carpark. Obviously, an older car part is going to command a lower part price. Second, with the recent lower-than-average sal rate [ph] that has limited the availability of recycled parts that we have even to sell. After the fall of new car production between 2008 and 2011, fewer cars reached the salvage pools and then obviously, fewer parts, and what I call our sweet spot, that 3 to 8 years, Bret. However, we think the recent improvement in the sal rate [ph] over the past 3 years should start to mitigate that trend. And we think that the average age of vehicle will start coming down, and obviously, because those -- that bigger tranche of vehicles are now starting to…

Our next question comes from the line of John Lawrence with Stephens.

Rob, would you comment just a little bit, if you go back, remind us maybe history a little bit of when there's this type of availability in the marketplace at the auctions, what have you seen that variability be as far as the pricing and the ability to, as you get to a certain point in those cycle times to be able to get a better price for that car?

We tend to see -- it tends to follow supply and demand, John. And the supply is obviously going to be increased. We do some of our better buying in this time frame because the auctions are plentiful and we just buy a lot of cars. So I expect this will be a good buying period for LKQ with the influx of the salvage and just the sheer availability of those cars starting to come through the pipeline should bode well for our purchasing.

And you've got some -- you mentioned some backlog, but just in general, how long, if you buy the car today, just in terms of timing, how long -- that cycle time before you sell that part is roughly what?

Yes, generally speaking, depending on the backlog we have at our operations. But from the time we buy it, bring it into our facility, we triage it, getting the fluids out, getting all the hazardous materials out, inventorying it and keeping in mind that backlog, it's 4 to 6 weeks from the time we buy it until it's actually in inventory and ready to go because we have a pretty healthy backlog as we speak right now.

Great. And last question on Europe, though. Obviously a lot of progress with the insurance companies. What do you think the time frame is for some of these other pilots to be reviewed and decisions made?

I'm optimistic that in '14, we'll be bringing some of these things over the hill here, John. We've gotten really great response and, again, with 80% growth, it's worked really well for us. What has also been a powerful play for us is the paint acquisition we did there, being able to bundle options to our body-shop customers. We're very happy with the synergies that are coming along and have been achieved, and they will be achieved over the time frame we've made public to the street. And we're making progress on leveraging that distribution network as well, so we can get the products on the same trucks. Our paint NDC, we opened an NDC, a national distribution center, just for our paint products, will be fully operational by the end of March and will be servicing all the branches. And then obviously, having those nationwide delivery capabilities for our paint is allowing us to gain national accounts on the paint business. So I'm very pleased with that and expect continued growth there.

Operator, I see we're running a little over -- to just be respectful of people's time, maybe one more question.

Okay. Our final question comes from Sam Darkatsh with Raymond James. Sam Darkatsh - Raymond James & Associates, Inc., Research Division: Back on January 16, Rob, you came out with a press release, and in there, you mentioned, you reminded us that neither the company nor its insiders can buy LKQ stock during a blackout. Once the blackout now has been lifted, can we expect to see a fair amount of insider purchases in the coming days?

Some of us, some of the Section 16 officers sold stock in December, and unfortunately, they're blocked out for 6 months as an SEC rule. So we won't be able to -- those who did sell in December won't be able to do anything. As far as the company itself buying back stock, I don't think that's going to happen, Sam. We think the better use of our capital is to continue our acquisition strategy. And the board has not authorized a stock purchase buyback at this time. Sam Darkatsh - Raymond James & Associates, Inc., Research Division: Are you or John restricted to buying stock in the next 6 months?

We both are. Sam Darkatsh - Raymond James & Associates, Inc., Research Division: Okay. And so the intent, or at least -- putting words in your mouth, hopefully, I'm not doing that, but after that restriction has been lifted, assuming no material increase in the stock price, would you imagine that you would be interested in buying the stock back at these levels?

I would be. Sam Darkatsh - Raymond James & Associates, Inc., Research Division: Okay. Last question. ECP stores, John, you mentioned the 12-month comps for stores that were open at least 12 months. Do you happen to have the growth rates of those stores that were open at least 2 or 3 years?

We have the more than 1 year and that is -- just a second, I'll look.

Yes, we're looking that up right now, Sam.

I thought that was in your remarks. Sam Darkatsh - Raymond James & Associates, Inc., Research Division: I think in your remarks, you said it was like either 19% or 21% growth for stores open at least 12 months. But obviously, that would be inflated by those stores that are rolling into the comp base that are only 13, 14, 15 months old. And then you've got a fair amount of those. So to get a sense of what the true organic growth of the business is on stores that have been open for at least 2 or 3 years might be helpful for us.

And my script was just on the last quarter, so I think you're looking for more detail.

We don't have a breakout between years, Sam. We just bifurcate it between open more than a year, which was 19% in Q4 and 21% for the full year, and then less than a year.

Thank you, everyone, for your time this morning. We look forward to speaking with you in April when we report our first quarter 2014 results. Thanks, everybody.