Good morning. My name is Sean and I will be your conference operator today. At this time, I would like to welcome everyone to the LKQ Corporation Third Quarter 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. Thank you. I will now turn the conference over to Joseph Boutross, Director of Investor Relations. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and welcome to LKQ's third quarter 2016 earnings conference call. With us today are Rob Wagman and Nick Zarcone. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for this call. Now let me quickly cover the Safe Harbor. Some of the statements that we make today may be considered forward-looking. These include statements regarding our expectations, beliefs, hopes, intentions or strategies. 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 statements. For more information, please refer to the risk factors discussed in our Form 10-K and subsequent reports filed with the SEC. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release and slide presentation. And with that, I'm happy to turn the call over to our CEO, Rob Wagman.

Thank you, Joe. Good morning and thank you for joining us on the call today. This morning, I will begin our review with a few high-level financial metrics followed by an update on our operating segments and some macro trends we witnessed in Q3. Nick will follow with a detailed overview of our financial performance. Turning to slide 3, Q3 revenue reached $2.39 billion, an increase of 30.3% as compared to $1.83 billion in the third quarter of 2015. Net income for the third quarter of 2016 was $122.7 million, an increase of 21.1% as compared to $101.3 million for the same period of 2015. On an adjusted basis, net income was $139.3 million, an increase of 26.8% as compared to $109.9 million for the same period of 2015. Diluted earnings per share for the third quarter 2016 was $0.40, an increase of 21.2%, as compared to the $0.33 for the same period of 2015. On an adjusted basis, diluted earnings per share was $0.45 in the third quarter of 2016, reflecting a 25% increase over $0.36 for the same period of 2015. During the quarter, we continued to witness the lingering effects of a mild winter and the headwinds of certain trends in the North American car park. Despite these dynamics the company delivered organic revenue growth for parts and services of 3.7%, an enviable performance compared to many companies in the global auto industry that were confronted with similar challenges and subsequently witnessed negative growth in the quarter. Turning to our North American organic revenue growth, during the quarter, organic revenue growth for parts and services was 2.1%, which is down from the first half of the year and below our expectations. Clearly, the macro trends in North America, such as miles driven and the size of the…

Thanks, Rob, and good morning to everybody on the call. I'm delighted to run you through the financial summary for the quarter. And over the next few minutes, I will address the consolidated results of our company and review the performance of each of our core segments during the third quarter before touching on the balance sheet and addressing our revised guidance for 2016. The third quarter of 2016 when taken as a whole was an excellent quarter with revenue, Segment EBITDA and adjusted EPS of 30%, 32% and 25%, respectively, when compared to the third quarter of last year. While the revenue growth in North America was a bit behind expectations, the margins in this segment were very strong. In addition, the European operations continue to perform well and the two big acquisitions generally performed on target. As Rob mentioned, consolidated revenue for the third quarter of 2016 increased 30% over last year. That reflects a 33.2% increase in revenue from parts and services, partially offset by a 9.4% decrease in other revenue. The components of the parts and services revenue growth include approximately 3.7% from organic, plus 32.6% from acquisitions for constant currency growth of 36.4% before backing up the translation impact of FX which was a 3.2% decline. I will provide a bit more detail on the organic growth of each business as I walk through the segment results. As noted on page 11 of the presentation, consolidated gross margins declined 190 basis points to 37.0% due primarily to the impact of the acquisitions. You will recall that both Rhiag and PGW have lower gross margins than our historical businesses. Excluding the two big acquisitions, gross margins were actually up about 60 basis points. While the consolidated gross margins were down, consolidated operating expenses as a percent…

Thanks, Nick. As a company, we are always focused on financial performance, but we are equally focused on facing change head on and rapidly adapting in order to continuously deliver positive results for our stockholders, employees, and most importantly, our customers. There is no question that weather impacted various lines of business and many markets for our companies thus far in 2016, a similar scenario to what we witnessed in 2012. We firmly believe that like 2012, this impact is temporary and that the macro trends continue to present opportunities for all of our segments. Yet we don't rest on our laurels and simply blame softness in our business on uncontrollable circumstances. Rather, during those periods, we strive to maintain our historical growth rates and our leading positions by focusing on what we can control such as the margin improvements we recognized in this quarter. It is clear as headwinds present themselves, our team of nearly 41,000 employees globally actively adjust to market conditions to effectively and profitably manage their businesses not only for today but to position us well for the future. This focus allowed us again to deliver double-digit EPS growth in the midst of a challenging environment. So, a big thank you to the LKQ team. And with that, operator, we are now ready to open the call for the questions.

And your first question comes from the line of Ben Bienvenu from Stephens Inc. Your line is now open.

Yeah. Thanks. Good morning, guys.

Good morning, Ben.

You talked about some of the performance disparity in the CCC numbers across geography persisting into 3Q. That's a little bit surprising I guess with the thought that maybe the impact from weather would be less substantial in 3Q across the markets. Maybe your thoughts as to why there's that disparity still in 3Q despite what I would think would be a little bit less impacted.

Yeah. Thanks, Ben. We certainly look into that with CCC and with some of our customers. And what we find is that the vast majority in collisions are drivable collisions. So, they do tend to take time to get repaired when the customer is ready to get the car into the shop. So, it does tend to drag on through the entire year actually with the drivable collisions. And then you look at just the overall claims volume being up just 2.4% for the whole year. There is just been a light amount of claims being filed this year. It's just been a really soft year that has carried through all through Q3.

Yeah. Ben, this is Nick. Think about the map of the United States. I'm going to give you some names of the states where claim volume was down year-over-year: Maine, New Hampshire, Vermont, Massachusetts, Connecticut, New York, Pennsylvania, Ohio, Michigan, and Indiana. The only big states missing there in that swath are New Jersey and Illinois. New Jersey was up 0.5% and Illinois was up 0.2%. So, that whole Northeast and Midwest section of the country just has lower claim volumes.

One other area too, Ben, that we saw was weak was Western Canada, the decimation of the fracking industry up there. Our claim volume is down, way down there as well, as well as our business. So, it's not just weather. It's some economic conditions as well.

Interesting. That's really helpful color. Thanks. And then shifting gears to the Andrew Page business, it looks like from some of the numbers that we've looked at, actually the sales productivity per store is pretty good, but it sounds like maybe operationally that they're underperforming and not particularly profitable stores. Just curious as to what best practices you can bring there to that business to improve the profitability of the stores and then ultimately, what you think the contribution could be from that chunk of stores.

Sure. Unfortunately, under a whole separate world, we were not allowed to integrate the businesses. But we do believe purchasing will be the biggest benefit. We tend to buy a little bit better than they do. We are, under the whole separate world, allowed to sell to each other, so we are supporting the business today. But until we can fully integrate the business -- when we do integrate the business, it will be logistics. We believe we have a much – with Tamworth 2 coming online, we're going to be able to much better support those businesses with inventory and deliveries, which we think will make a huge operational benefit for those stores that they have.

Yeah, just to be clear, Ben, that business was sold. It basically went into receivership, and we bought it basically through a prepackaged bankruptcy process to give you the U.S. analogy, if you will. So, obviously, the performance of the business was headed down by the time we got the assets. We do think there is an ability, by adequately stocking their warehouses and their stores, to actually drive revenue back north to where it was pre their financial issues .

And just one last update on the CMA. We are close to filing our submission to the CMA. They have up to two months to decide what the next steps are. So, when we get released, we'll be ready to start integrating the business hopefully by Q1.

Okay. Great. Thanks, guys.

Thanks, Ben.

Your next question comes from Craig Kennison with Baird. Your line is now open. Craig R. Kennison - Robert W. Baird & Co., Inc. (Broker): Good morning. Thanks for taking my questions as well. I wanted to probe the North American business a little further. Could you explain how much of that business is tied to collision trends versus mechanical trends?

So, the salvage business or the recycling business, Craig, is roughly a 50/50 split. The aftermarket business is almost wholly collision-focused. So, when you look at it in its entirety, out of our total revenue on a consolidated global basis, slightly less than 30% of our revenue is collision-based. Craig R. Kennison - Robert W. Baird & Co., Inc. (Broker): That's helpful. And then, Rob, you mentioned a statistic from CCC that claim volume is up only 2.4%. That sounds like a decent number. Could you give some context to that? What was that figure in the full year of 2015, for example?

We'll get that. We're looking for that right now, Craig. I just want to state that I know in 2012, we had very similar results to what we're seeing this year. In 2013, it did bounce back. And we believe just some of those macro trends that we're seeing, new car sales are definitely a little bit of a headwind at first, as I mentioned in my prepared remarks. Those are starting to come out of warranty, so we do expect some help there. We did mention on the call the increase in total losses. The good news there is that CCC is anticipating that those start to level off now because of the newer car part getting into the system. And then of course, the regional segmentation that we're seeing. As Nick mentioned, the Northeast and the Midwest, just really getting decimated by claim volume. So, we are hoping for a normal winter, and we do expect it to obviously bounce right back. Craig R. Kennison - Robert W. Baird & Co., Inc. (Broker): And as you look for that number, if I could just slip in a quick question on Europe and the margin there. I know it's under pressure due to the mix of some of the new businesses you've acquired, but where do you think that margin can settle over time at the gross margin level as you extract purchasing synergies? And thank you.

Well, we were at 36.2% in the quarter. Last quarter, we're at 37.4%. Some of that is just seasonal differences, Craig. So, gross margins, you figure – with the addition of Rhiag, I think I mentioned in my comments, Rhiag was at around 33.5% gross margin, so that's what's pulling it down from historical levels. We would hope to get a 1% or 2% from procurement over time. That's a hard process. The vendors are not anxious to just give us big discounts. But we're working at it very hard. John and his team over in London, they've got a dedicated group that's focused on nothing but trying to execute a pan-European procurement program. Craig R. Kennison - Robert W. Baird & Co., Inc. (Broker): Thank you.

And, Craig, on the number you're looking for, we'll circle back with you. We need to get in touch with CCC on that. Craig R. Kennison - Robert W. Baird & Co., Inc. (Broker): Thank you.

And your next question comes from James (sic) [Jamie] (41:09) Albertine with Consumer Edge. Your line is now open.

Great. Thank you and good morning, gentlemen.

Good morning.

Wanted to ask just as a point of reference, I know you are a few months, maybe a quarter or two out from the CMA process kind of fulfilling its duties, but if we were to look at prior integration of something like Unipart would that be a good proxy for us to think about with respect to dilution initially and then sort of the opportunity over time with Andrew Page?

Yeah. Andrew Page, we've got actually earlier in the process by the time that Unipart kind of went out the stores or basically vacant. Andrew Page, its stores were ongoing. We have inventory, depleted inventory but inventory in the stores which we're rebuilding and the like. So, we do think, however, that we will be able to get Andrew Page back to profitability. It's probably going to make us for $0.01 to $0.015 in the fourth quarter. And so, we would look in 2017 once we are able to kind of fully work with their team, get their customer service levels where they need to be particularly the fulfillment levels and inventories back at the right levels. We can grow revenue and that will help the profitability as well. We'll take some cost savings just related to procurement, some back-office stuff, maybe a little bit on the logistics, but we do think we can drive it back into profitability, which will, obviously, help the overall margins.

Yeah, Jamie, unfortunately, with the hold separate (42:54), we can't really dig into the locations at this point. So, initially, our focus will be on purchasing, logistics, and the back-office functions.

Okay. Great. That's helpful. Thank you for that. And then a quick question, if I may, on Pittsburgh Glass. Congratulations on the new customer you signed up on the aftermarket side. I just want to understand sort of what that can do to your margin if we kind of look forward, just sort of maybe asking for reminder on the OE versus aftermarket contribution to gross margin. And then a point of clarification, we understand that PGW is your only business exposure to OEMs directly. Is that true or is there another business channel or subchannel that we're missing with respect to OEs directly? Thanks.

I'll answer that question and let Nick take the margin question, Jamie. It is the one exposed to OE the most. We have a little bit of exposure on the KAO side, the accessories side, because we do see that as new car sales are up, we do well on the accessory side. But it's sort of a secondary issue there. But the OE business is the only one that has true cyclicality to the OE production.

Yeah. Jamie, this is Nick. As you can imagine, the gross margin profiles of the aftermarket business and the OE business are very different. Operating costs are as well, since there's no real distribution and selling expense related to the OE business. But order of magnitude, the ARG gross margins are well north of 30%, where the OE margins are in the mid-teens.

Okay. Great. So this sounds like it'll be a mixed benefit, based on the fact that you're adding that aftermarket customer if I heard you correctly.

Exactly.

Correct.

Great. Perfect. Thank you so much and best of luck.

Thanks, Jamie.

And your next question comes from Sam Darkatsh with Raymond James. Your line is now open. Sam J. Darkatsh - Raymond James & Associates, Inc.: Good morning, Rob. Good morning, Nick. How are you?

Good, Sam. Sam J. Darkatsh - Raymond James & Associates, Inc.: Nick, if you had this in your prepared remarks and I missed it, I apologize. Within your North American parts and services organic growth, the 2.1%, can you parse out volumes versus price mix in that?

Yeah, we got benefit from both. The pricing was slightly more than the volume impact. That doesn't mean we were necessarily increasing prices across the board, Sam. As I mentioned I think last quarter, a good portion of the price increase comes from just selling a newer part and the mix shift as to what parts we're selling. And so it may come across and looking like we're taking prices up, but it just has to do with that we're selling a slightly more expensive part. But again slightly more than half of the growth was price related. Sam J. Darkatsh - Raymond James & Associates, Inc.: Two more quick questions. And I guess one of them is more critical than the other. The first would be, I mean with the increase in total losses – I recognize that it's a smaller percentage of the overall claims versus repairable claims. But with the increase in total losses, does that have the threat of either overwhelming or offsetting the advantages you have with the SAAR sweet spot over the next few years?

I don't think so, Sam. I don't think – we like total losses because that's where we get our inventory from as well. So there's still 82% of the cars that are in accidents are getting repaired. So I see that as a wash actually. Although fewer cars are being repaired, but they tend to be older cars is what CCC is telling us. So they are totaling an older car, which makes sense because the average model year is up to 11.5 model years old. But the SAAR rate is much more important to us, getting new cars into the system, because the new car is going to be fully insured. And that's why I'm pretty bullish on 2017. We're getting these 1- to 3-year cars out of warranty into our sweet spot. So we'd like to see a strong SAAR rate by far. Sam J. Darkatsh - Raymond James & Associates, Inc.: Last quick question. Obviously, Germany made some news with respect to the resolution, trying to ban combustion engine production over time. I know it's a long-tailed item and it's far from even being industry standard, but how does that affect your business longer term, Rob, if it does become kind of the world we live in?

If there's a shift to electric vehicles, that's a little bit more of a problem. If it's going to be more diesel, that's actually a positive. Diesel engines sell for far more than what we get for a gas engine actually, so depending on where it goes. I was actually in China last week, and they're having similar initiatives over there as well. But nobody seemed concerned about it, the people we talked to. So it's a long tail as you said. Sam J. Darkatsh - Raymond James & Associates, Inc.: Thank you both, gentlemen. I appreciate it.

Thanks, Sam.

Your next question comes from Nate Brochmann with William Blair. Your line is now open. Nate J. Brochmann - William Blair & Co. LLC: Yes. Good morning, everyone.

Morning, Nate.

Hey, Nate. Nate J. Brochmann - William Blair & Co. LLC: So wanted to talk just – I hate to harp on the North American issues a little bit. But, one, just wondering if you had any thoughts in terms of the fact that the miles driven were up, but the claims were less in terms of being up. I get the disparity across regions and what not, but usually, those have a little bit of a tighter correlation in terms of why those claims wouldn't follow directly with the miles driven. And then second part of that in terms of going in next year, obviously, Rob, you've been very bullish in terms of, hey, assuming a normal winter, we have easy comps or easier comps. In theory we should be back to that 5% to 7% North American parts and service organic growth range. Is there anything underlying the surface? Assuming again a normal winter and things kind of go back like they did in 2013, anything underlying the surface that you would think would be such a substantial headwind where we wouldn't get there?

Nate, when I look at some of the normal weather conditions, as I said, we're getting cars starting to come into that sweet spot. There's a lot of macro good tailwinds for us in terms of miles driven. The late model car park for our KAO business, normal winter will certainly spur our glass business as well. I don't see any major headwinds that could impact that other than another mild winter. And on top of easy comps, as you said. It just feels like there's enough positive tailwinds behind us that are going to make 2017 look like 2013. Nate J. Brochmann - William Blair & Co. LLC: Okay. And I haven't heard of anything, but no underlying shifts or anything that we might not be seeing that your customers are saying in terms of something going on that we wouldn't be thinking of?

The only thing that we've heard from our customers interestingly enough is that they're having a hard time hiring technicians. And just getting the work out the door has been a little bit of a challenge for that side of the business, but that they will fix. They will find people to fix the cars. I'm absolutely convinced of that. So, no, nothing underlying that we're hearing from our customer base whatsoever. Nate J. Brochmann - William Blair & Co. LLC: Okay. Great. And then, two, you talked about obviously controlling what you can on the margin side, and kudos for delivering that. And it still feels that we're kind of in the relative early innings in terms of seeing the results as you pointed out mix sequentially, so that continues to go well. Anything else on the top line though that you can do to help your cause in terms of whether it's trying to buy more cars or we talked before about getting into the transmission remanufacturing business or anything on the incremental side of trying to just push incrementally on the sales effort?

Absolutely. We did mention that we've been trying to buy a better car in anticipation of these newer cars coming into the sweet spot. So, we will be pushing more cars through the system, absolutely. That is our goal. We're in the process of acquiring more property wherever we can to process more vehicles, so that is absolutely a focus as well as introducing new product types. We talked about the number of certified parts continue to go up. We're carrying a much stronger level of those parts as well. So, I think our inventory is going to be well positioned to meet the organic growth needs that we have. Nate J. Brochmann - William Blair & Co. LLC: Okay. And then just last question, Rob, just because you brought it up in terms of hiring technicians. Is there anything going on in the surface, underlying again in the surface where the cars are becoming so complex and the diagnostics so complex that any worry even past the warranty period that more cars, whether it's a collision or a mechanical repair would be going back to the dealer for some reason?

We don't think so. I've talked to honestly the MSOs quite regularly on their thoughts on that, and they don't believe that technology is not insurmountable for a technician not trained in a dealership environment. So, they are confident, as you can see, by their acquisitions. They continue to acquire companies. They think they're well positioned to be able to handle those repairs. More importantly, I think, is our manufacturers' ability to replicate those parts over in Taiwan, and they're seeing no issues whatsoever acquiring the correct aluminum or the high-strength steel. So, no issues on either side. Nate J. Brochmann - William Blair & Co. LLC: Okay.

And, Nate, one other thing is even if there were more cars headed into dealer collision repair shops, that doesn't mean that there is more OE parts because the insurance companies are still mandating which parts are going to be used. Just the week before last, I was – spent the day with customers out in the field, including dealers, and they basically have said that they don't have the ability to select the parts being used. The insurance companies are driving it all. So, it doesn't make a difference where the repair is being held and done. The choice of parts selection is still being driven by the insurance companies. Nate J. Brochmann - William Blair & Co. LLC: Outstanding point. Thank you very much for the time. Appreciate it.

Thanks, Nate.

And your next question comes from Bret Jordan with Jefferies. Your line is now open.

Hey. Good morning, guys.

Hey, Bret.

Question. I guess you've given the CCC number on repairable claims growth year-to-date of 2.4%. What's the total claim so we can factor in the losses? Because obviously, some of the salvage auction guys are seeing more volume flowing through theirs. Insurance companies opt not to repair, but what's the total crash rate?

It's about 6%, which includes comp, which are flood losses, tornadoes. So, yeah, the auctions are getting that benefit. Those are cars that don't get repaired because of the floods and hail damage, severe hail damage that totals a car.

Okay. And then I guess on Andrew Page, 102 stores, assuming it's finally approved. How many of those you think you need to close? Is there a lot of duplicate real estate there with ECP?

No. There is, however, they've got a unique customer base. So, we're going to look at that on an individual basis, but as it stands right now, we plan at keeping the vast majority open because they have service to different customer to a certain extent, and the brand is so strong. We'll look at that post CMA clearance.

Okay. And then one last question on Specialty. I think you said you were pretty happy with the 3.7% growth. Where do you see that being? And I guess, when you acquired the original Keystone, it was sort of seen as growing in line with the core North American business at the time. I guess, now that we've owned it for a couple of years, is it something that you think is a lower single-digit grower or is it the change in the mix as you've bought Stag and Coast that has brought the growth down into the low to mid single as opposed to mid to upper single?

True to the three quarters, we're actually above the North American growth, and I think that's going to continue, Bret. I think that the volume continues to be strong. The RV sales are up year-over-year. So, as long as that continues, we do expect decent organic growth in that line of business.

Yeah, for the first nine months, the organic growth in Specialty was 7.3%.

Right.

Okay. And I guess, from the competitive landscape in Specialty, do you see anything changing? Obviously, Amazon is talking about auto parts these days, our favorite topic recently. And Specialty and performance is a category they are focusing on. Do you see any change? Are they making inroads or is it pretty much status quo from your customer base?

Yeah, status quo. Amazon, these are big bulky parts, as you know. They have not shown any desire at this point to stock a lot of that product. So, at this point, our customer base is still very strong, coming direct to us.

All right. Thank you.

Thanks, Bret.

And your next question comes from Bill Armstrong with C.L. King. Your line is now open. William R. Armstrong - C.L. King & Associates, Inc.: Good morning, gentlemen. On the North American 2.1% growth, are you seeing any disparity or divergence between mechanical versus collision repair?

As Nick mentioned in his prepared remarks, our core parts business did well. Where we saw a little bit of softness, Bill, was in the wheel business and the collision cooling business and obviously, a little bit of paint that's tied to the collision itself. Soothe mechanical side of the business did okay and the salvage side of the business. William R. Armstrong - C.L. King & Associates, Inc.: Okay. And then your Q4 guidance or the implied Q4 guidance, you mentioned your foreign exchange assumptions of $1.22. What would be the cents per share impact of that lower foreign exchange?

Yeah, Bill. Thanks for asking the question. The FX is likely going to hit us for $0.01, maybe slightly more than $0.01. We think that scrap is going to hit us for at least $0.005, maybe a little bit more. As I mentioned, Andrew Page will likely hit us for close to a $0.015, and that's really the sum and substance of the slight tweaks to the guidance. William R. Armstrong - C.L. King & Associates, Inc.: Got it. Okay. Thank you.

Thanks, Bill.

And your last question comes from Jason Rodgers with Great Lakes Review. Your line is now open.

Thanks for squeezing me in. Just a question again on North America. Have you seen any change for OEM price matching or any other change in the competitive landscape?

No, not at all, Jason. The OEs are still doing the same things they've done and haven't increased their price matching programs whatsoever. It's interesting on the – you can talk about competition. We are obviously active acquirers in the business, and we obviously get to see financials, and we're seeing the industry struggle. They don't seem to be taking market share from anybody, our competition, so from the financials we've seen.

You mentioned weather. I mean, is this more of a function of the economy, just customers not repairing their cars, as you say, drivable collisions?

That's definitely a part of it. There is certainly some economic uncertainty out there with the elections going on. That's for sure. Yes, when the car is drivable, the consumer can elect to pocket that check that they get from their insurance company. It is interesting when we've done our channel checks on that, Jason. The insurance companies never know if the car actually got repaired. It's pretty interesting. When they write a check to a third party, that customer can repair the car or obviously take the money. They would not know unless there was a supplement. In other words, they wrote an estimate for $1,000, ship said they need $1,200, then they would know obviously because they have to write an additional check, but the vast majority of the time, the insurance company doesn't even know if the car got repaired.

Okay. And then finally, just looking at the collision revenue number in the U.K., up 13%, which is still strong but maybe off a little from historical growth rates. Just wondered if you could talk about that business and your efforts to increase benefits there?

Yeah, still very pleased with our collision growth there, double digits. They too had a mild winter, and it's also been similar to the United States, an influx of new car. Registrations are up dramatically in the UK, so they're getting a little bit of headwind from the new car, again, that it tends to get new parts. They are also coming out of that in the next year, so we do expect the tailwind to start to emerge with the car part getting a little more in the sweet spot. So, same number of insurance companies in our program, very consistently happy with the results we've been delivering, and no one has been turning their backs on us in terms of stopping the program. So, we are starting our initial – just an update on the continent. We've talked about bringing the collision parts to the continent. We are just starting our initial talks with some of the Netherlands insurance companies to start bringing collision parts into that market as well. So, we anticipate 2017 being a launching of that program as well.

And before we wrap up the call, I just want to make one thing clear because there was some analyst who put out notes this morning before the call with the implication that the change on the accounting standard, the benefit of lower tax rates got rolled into our adjusted EPS. That's incorrect. Adjusted EPS of $0.45 excludes the benefit, excludes the benefit of the adoption of the new accounting standard. So, if we had let it just roll through, we would have reported $0.47. Likewise, our guidance for the year excludes the benefit of the new accounting standard.

And there are no further questions at this time. I turn the conference back to Rob Wagman for closing remarks.

Thanks, everyone, for joining us on the call today. We look forward to updating you on our Q4 results and the 2017 guidance on our next call in February. Have a good day, everybody. Thank you.

And this concludes today's conference. You may now disconnect.