Rush Enterprises Inc (RUSHB) 2013 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Rush Enterprises third-quarter 2013 earnings results conference call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions).

As a reminder, this conference call is being recorded. I would now like to hand the conference over to Mr. Rusty Rush, Chairman, CEO, and President. Sir, you may begin.

Welcome to our third-quarter earnings release conference call. On the call today with me are Marty Naegelin, Executive Vice President; Steve Keller, Senior Vice President and Chief Financial Officer; Jay Haselwood, Vice President and Controller; and Derrek Weaver, our Senior Vice President and General Counsel and Secretary.

Now Steve will say a few words regarding forward-looking statements.

Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risks and uncertainties, our actual results may differ materially from those expressed or implied by such forward-looking statements.

Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2012, and our other filings with the Securities and Exchange Commission.

As you have read in the news release, our net income was $15.2 million or $0.37 per share on gross revenues of $913 million this quarter. We are very pleased with our revenue growth. But we will continue to see a higher overall G&A expense, given the pace of acquisitions over the next several months along with significant investments, in the significant investments we are making in technology and human resources to support our larger organization.

And we are also accelerating the rollout plan of our business operating system which will also impact expenses.

We did see an increase in truck sales this quarter, although certain market segments remain challenging. Our Class 8 retail sales were up 26% and our Class 4 through 7 retail sales were up 24% over the last quarter with both accounting for more than 5% US market share.

Navistar is gaining market acceptance with its SCR engine strategy and this momentum resulted in increased truck sales for our Navistar division this quarter. We expect our truck sales to continue at their current pace for the rest of the year. We mentioned last quarter that we believe 2013 US Class 8 retail sales could fall short of forecasted levels.

Recently, industry experts reduced the Class 8 forecast for 2013 to 188,000 units anticipating that 2000 -- and we are anticipating in 2013, about 5.5% below 2012. Industry experts also reduced their US Class 8 retail sales forecast for 2014 to 215,000 units.

With signs of economic improvement continuing, we expect Class 8 truck sales to increase next year. We are also encouraged by the activity we have seen in the segments of the medium-duty market which is expected to reach 193,500 units next year.

Aftermarket revenues were strong and our absorption rate remains above 114%. We expect demand for maintenance and repair to continue into 2014. We believe our purpose is to keep customers up and running when and where they need us with our expanded network of service points, growing portfolio solutions, and technology that improves diagnostics and customer communication.

Let's talk about growth. We completed two acquisitions this quarter -- Midwest Truck Sales in Kansas and Missouri and Transauthority in Virginia. We have also announced purchase agreements with two additional dealer groups -- Prairie International in central Illinois and Chicago International Trucks and Indy Truck Sales in Illinois and Indiana.

We also added an International parts and service location in Springfield, Ohio, and we will open a new Peterbilt and Paclease dealership in Corpus Christi, Texas, in December. When completed, our network will expand to 106 dealership locations in 20 states. This not only adds significant presence and service coverage, for customers operating in the Midwest and the Eastern US, but also gives us the ability to support those who run through these regions on route to other destinations.

Finally, I would like to thank all of our employees for their efforts this quarter, given their contributions to helping us expand our network and intellect new technologies at a very accelerated pace. We are happy to have the employees of Midwest Truck Sales and Transauthority join our family. And we look forward to welcoming those at Prairie International, Chicago International Trucks, and Indy Truck Sales in the near future.

With that, I will take your questions.

(Operator Instructions). Chaz Jones, Wunderlich.

Good morning, guys. Nice quarter. Just want to start off by asking what is your confidence level that we get to 188,000 this year. And then, maybe, Rusty, kind of a take on how you expect next year to progress as we move through the year.

Well, I am confident in 188,000. As I mentioned last quarter, I thought the 198,000 was a little -- 197,000 or wherever it was that was a little bit strong. So the 188,000 sounds about right to me.

As far as next year, given what -- given all the -- I have had a lot of communication with a lot of customers over the last 60 days. And I do believe that that number, I am pretty confident in that number. I am confident in at least a 210,000 number. But obviously, it will accelerate throughout the year. I would expect it to be a back -- I don't want to say back half loaded, but a little heavier in the back half than the front half. Maybe 45% front half, 55% or so back half.

And I guess my next question was I recognize that mix always plays a big issue, but how quickly do you think we can expect operating margins to begin to rebound? Obviously, this quarter revenue was up nicely, but operating margins continue to run on a consolidated basis in the low 3% range.

Is there something in terms of mix or along those lines that is going to turn around operating margins as we look out here the next couple of quarters?

Well, as I have talked about the last three quarters or so, the organization has changed immensely in the last three years. We have gone -- we are going to be -- when we conclude our acquisitions in the middle of January, we will have gone from roughly 2,400 employees to 6,000 employees in 106 locations. And the infrastructure that it takes, we had reached a tipping point here, oh about a year ago. So the infrastructure it takes to support that, obviously as I have mentioned, we had to increase our G&A, with stronger corporate support, to support an organization of that size.

At the same time, we believe we are just about there from that piece. But I think the exciting piece when you look at it is there is, probably based on 2012 revenues, acquisitions of over $600 million and those aren't Navistar acquisitions which were depressed market share. So there is a lot of leverage ability, we believe, there to add -- to continue to add increased revenues.

So, as we get in I would tell you the middle of next year, I think you should be able to see what you are looking for there, Chaz.

Great. I will jump back to the queue. Thanks.

Neil Frohnapple, Northcoast Research.

Hello, guys, congrats on a nice quarter.

Thank you.

Rusty, you noted you expect truck sales to continue at their current pace for the remainder of the year. Is this comment relevant for both heavy- and medium-duty deliveries for the fourth quarter?

Yes. I would say that is across the board. And a lot of things -- everybody gets caught -- too exact in these numbers. Timing has a lot to do with everything, but I would expect what we can see, and I will be honest with you, I was just told of an order we are taking this morning for a few units that we will probably try to deliver before year end, but then some others can get moved out depending on bodies and things like that. But the pace we are seeing is very similar to what we have seen in the last few months right now.

All right, great. And, Rusty, you mentioned you talked with a lot of customers over the last 60 days. What are you seeing overall from your fleet customers? Is there still a lot of hesitancy out there to pull the trigger on expanding their fleets at this point, or are you --?

Yes, I think expansion for sure. I think that is still -- there is some hesitancy there. Given the new hours of service that went into the summer and things, they are trying to get their arms around all of that. But in spite of some maybe choppy reports that you have seen from a few of them and some -- I still believe -- I think there are some other issues behind that, I still believe that freight is still decent. We are not going to say it's great, but it is still decent.

Rate is another issue, though. Obviously, I do believe as you look across the board that they have not gotten the rate that I feel they deserve, given the issues from -- now this is on the freight trucks -- that they deserve given what they have had to deal with over the last several years from whether it is in hours of service or whether it is a cost of equipment given EPA requirements over the last decade, et cetera. They have not gotten the rate increases they deserve.

But I have got to hope and believe that they will come, that they will reach that point where they do start getting it. And people will start getting -- become more -- looking forward, maybe looking forward to some expansion of their fleets.

But, you have also -- just remember, Neil, especially on the Peterbilt side of the house, 50% of what we sell or more is vocational. It is oil and gas. It is construction, it's refuse. It is all of those other. It is crane, it is all of the other different segments that we sell on that site of the house for sure. So, and our whole market, our strategy has always been to be very diversified in how we go to market.

So while it does have a huge impact on our numbers, it is not our sole -- we are not solely based upon what the over road business is doing.

Great. Thanks for the color there. And one last one, you mentioned the pickup in Navistar deliveries. Is that stemming from more the Cummins ISX engine or are you seeing a pickup from the 13-liter MaxxForce engine as well?

More the ISX. Okay? But you have got to remember the ISX came out first in January. We really didn't get any 13 liters until the end of May. They really didn't start. So that was about a five-month lag between rollout of engines. So we would expect the 13 liters to begin to pick up pace also and at the same time, if you look -- or actually our medium-duty Navistar deliveries were down.

But I think there was a lot of people anticipating the release of the Cummins engine and now that that has been done, I would expect those to start accelerating, too. Especially next year.

Great. Thanks so much, guys.

Jamie Cook, Credit Suisse.

Good morning, guys. This is actually [Linda Yan] in for Jamie Cook. Could you guys talk a little bit more on the vocational side? What are customers -- what are your end markets doing there and how are your customers reacting?

Right. What we are continuing to see as we have throughout this year, as I mentioned earlier in the year, we are starting to see an increase in activity in the construction markets. We are -- where it especially has affected our medium-duty business. That is one other reasons for the growth in our medium-duty business. It also, I see more mixer business, Class 8 mixer business going on. We are working on a couple of transactions for the first quarter right now.

So, I would tell you from a vocational side if I was to go look at, say, oil and gas, it is still soft.

You have got to remember we are probably 1,200 to 1,500 units off of what we were in 2011 and 2012 in the oil and gas sector. So the results we show this year, I am very pleased with, given what we have dealt with from a downturn in that market segment.

But, that is the one good thing about a very diversified approach to a market is that you -- you are not reliant upon just one sector. So, we feel pretty good about where it would -- as Navistar continues to gain momentum, as we believe oil and gas will be better especially towards the second quarter or so of next year, not like it was in 2011 and 2012, but it has bottomed in my mind. It should start coming back. There should be some capital expenditures. They have cut off all of this year most of your large companies have, given their accelerated purchases in 2011 and 2012. We expect that to start coming back to a more normalized -- I am not going to say 2011 and 2012 rates and an increase in construction, then you have got to feel good, you have got to feel pretty good about that. With all those three (multiple speakers) -- growth that I am looking at right there.

Yes that's helpful. So, for looking at your 2014, I guess the industry forecast, where do see in markets that could have a possibility of upside are downside to that forecast? Is that an energy market or is that in some other markets?

I would just think it is the overall. I still believe that a lot of our over the road, remember everything is still driven. The total numbers are still driven by over the road business.

So you are going to say that the biggest impact of the down -- if there is a downside to it, it would be the over the road piece of it. I don't think oil and gas could get much -- a lot lower than it did from a CapEx expenditure.

Our parts and service business is still very good in the oil and gas business. So as far as there's still a lot of fields that are working and things like that that the support we had to grab going on there, just the cap side of it. But it is not the big driver of that 215,000 number. It is still the over the road business.

So, that is where you -- you are -- probably your -- that is where your challenges if there will be challenges will come from.

Great. Thanks.

Brad Delco, Stephens.

Rusty, lot of moving parts now. With so many acquisitions I lose track of the names (multiple speakers). But with what you have done with the network, say in the last even six months to a year, where do you think in the normalized truck market your market share is for Class 8 and medium-duty?

Oh, oh, oh, oh. Okay, you are going to make me project out here. I would hope when we complete all these acquisitions, as I said there is still $600 million of revenue based on 2012 Navistar stores that are not even in what you are looking at right now. Okay.

But at the same time, understand that gets a little hard to project. But I would hope by the end of next year, third quarter of next year, 6%, Class 8. Solid 5% plus in medium where we have been down around 4%. I would think somewhere in that range, but a consistent, somewhere in that range. Only on an annualized basis.

Remember, everybody gets caught up last -- I remember last quarter everybody was getting on me. Oh, it you are only 4.4% in Class 8 and I said just wait. We will end up at around 5% or better especially given the issues we have got with Navistar's issues, but as they are coming back now. So, let's say 6% and 5%. And maybe it will be better. We will just have to see, but that would be what I would think.

That's helpful. Then, going back to the parts and service piece as well, because I would imagine a lot of these acquisitions do have some component of parts and service. But you have been putting pretty high teens, low 20s type growth on that segment of the business. What do you think the acquisitions by themselves would do to numbers next year?

Well, let me slow you down a little bit there, Brad. Same-store -- I wish I was growing at that kind of level. I did in 2010 and 2011, but the hills got a little taller here in 2012 and 2013. So it has been mid- to high single digits, okay, on same-store growth in parts and service. Let's don't put me that far out there, I would hate to have that commitment out there continuing right now.

But, we do see the levels of growth at new stores to be at a higher level. For example, if I was to look and say, the Ohio acquisition. I am not going to say every acquisition is the same, but the growth there from a parts and service perspective has been in the low double digits, low to mid double digits and accelerating. Because you find as you implement your strategies with already proven strategies there that you are able to accelerate some of that.

And the revenue mix of acquisitions is we can get that more similar to our revenue mix, which is to push more parts and service. So I just don't want you to carry away with that other, your first comment that the same-store growth is in the teens, because it is not. Not when we are already -- it is when you come out of a trough, but not at this part of the cycle.

No, understood. And I get that same-store sales are lower, but trying to break down the $600 million of revenue you said -- what portion of that (multiple speakers) --?

You try to break that down, let's say it is similar to ours, okay. It is not going to be that far off. I could get off line probably and get you a little better numbers on that, but it is going to be very similar.

The problem is, it is just not enough, right. Our deal is to get it larger. Our deal is to grow it. Especially we believe that given some of the Navistar stores have been under a lot of stress for the last year or two. Their truck sales may not have been what they should have been or historically were probably two or three years ago.

No, that makes sense. Well, those are all my questions. I'll get back in queue. Thanks, Rusty.

Rhem Wood, BB&T Capital Markets.

Good afternoon. My first question, you guys have made all these recent acquisitions. Do you feel you are at a point where you need to stop and digest what you have and implement the new systems? Or can you continue with this same pace?

No. We are reaching a pause point at this moment. I am not going to say stop. Stop is very much too definitive for me. But at the same time, the organization -- I have -- it has been a very stressful year for the organization. That is why I am very proud of the performance we have had.

But at the same time, we set the stage for the rest of this decade, or are starting to set the stage for the rest of this decade as to what we are as a overall solutions provider who differentiates himself from his competition in the marketplace.

At the same time, you never know when an opportunity would come along that makes sense inside of it. But at the accelerated pace, we are not going to continue at this pace from an acquisition perspective in 2014.

But that is not to say there won't be acquisitions in 2014. So I don't want you to read into it that it is just a stop.

But as I have talked about before, I want to reiterate. I have -- we have, the organization has changed. We have had to add some G&A. We are going to accelerate the rollout of our business -- our SAP business system -- because we are very confident in it. Prior -- in fact, I want to speak to that a minute.

Prior to a month or two ago, we were on a pace that was not -- we were not going to get it completed until 2016, second, third quarter. We have decided to accelerate the rollout of our SAP business system because we believe it gives us a definitive advantage at the point of sale, at the point of business. So we have now decided to accelerate it, have it all done before the end of the first quarter of 2015.

So we have a lot going on next year besides just acquisitions as we continue to accelerate that.

And we continue to build out our corporate infrastructure to support these stores the way they need to be supported going forward. So, acquisitions while there may be some more, it will not be at the current pace for next year.

Thanks, that was helpful. So, second question, you guys have obviously seen order rates for Navistar trucks improve and they are saying the same thing. But, specifically, what are you hearing from your customers who have been testing these trucks that gives you confidence that they will come back and buy at a bigger level and Navistar will continue gain back share?

And then along with that, have you had to discount pricing at all to get these trucks moving, or, maybe, can you explain why the average pricing -- I know mix has a lot to do with this, but why the average heavy-duty pricing was down in the quarter?

Sure, I can explain that. Well, obviously, with Navistar accelerate -- remember Navistar is more of a fleet truck on the Class 8 side. Most of what we sell goes -- in the Navistar business -- goes into the over the road business. Over half of what we sell on the Peterbilt side is in the refuse, is in the construction, it is in all of those other niches which tend to have bodies and things sometimes and other additional components added to them.

So that is really -- it is more of a mixed issue than anything else. I don't want to get into pricing by brand. It has to do more with the market mix and market segment mix as to where they go into.

Thanks. Then, a couple of numbers that you typically give. Can you give us the margins by heavy-duty and medium-duty, light-duty and used? And then Navistar unit sales, the heavy-duty, medium-duty and bus sales?

Sure. Go ahead. Steve has got them right here.

The margins for heavy-duty were 6.7, medium-duty 5.3, light-duty 3.7, and used were 9%. The Class 8 sales for the Navistar region were about 520 units this quarter.

I think if I am not mistaken, of our increase sequentially in Class 8 and Navistar was about two thirds of it. Sequentially.

And the medium-duty sales in the quarter port Navistar were about 154 units. And we sold about 610 buses or so during the quarter.

Last one. What was the same-store growth percentage in parts and service? (multiple speakers) and the AR for the same-store as well?

6.2.

Okay, great. Thank you.

Art Hatfield, Raymond James.

Good morning. Rusty, on the Class 8 sales to jump from Q2 to Q3, how many units were from the acquisitions that you closed in the quarter?

That were closed in the quarter, very (multiple speakers) nine, really. I think it was one, how about that? Just a handful because those acquisitions were just coming online. I think everybody we bought out wanted to deliver before we got the stores. So, but the big Navistar acquisitions, the big one is, of course, the Chicago and Indy area acquisition, which will come in January. And then we are closing one this weekend with the five Central stores we are excited about in Central Illinois, which will give us full broad coverage across the Illinois -- across Illinois.

Okay.

We are very -- Art, I want to take this one second. We are very excited about where we are going to be. If you look at a map, you go across from Kansas City to Missouri, across Illinois, Indiana, Ohio, ran across Virginia, North Carolina, down to Atlanta. That is -- we are very excited about where our Navistar network, what it is going to look like when you look out and we get through it in January.

In the parts and service business, the same-store growth that you are seeing, what drives that? Is it the age of the fleet that you see in the marketplace? Is it you doing a better job of -- not to say you have ever done a bad job, but just being a more focused job on marketing. What you can do. Ryder talks about this opportunity they see given their network of maintenance facilities. And I think you are in the same boat. Getting large fleet operators to outsource their out of network maintenance needs Are you seeing anything -- I know you have talked about that. So talk (multiple speakers)

I need to speak to that real quick. I didn't mean to interrupt, obviously I meant to let you finish. You know when I look at it I -- as I've talked before over 20% of our technicians do not work in our shops. We have probably got up to 250 mobile trucks, 150 technicians and growing in customer shops. Our -- the way we go to market, the way we will continue to go to market as we go throughout this decade, grow into the rest of this decade is where are your pressure points, where are your pain points, what can I help you with? How can I keep you up and running?

Our goal given our geographic footprint is to continue to expand, just as you spoke about Ryder talking about, those -- take advantage of those abilities that we have to leverage off of that network. But not just in store, but in territory, to have the base to go out and do what we need to do to take care of a customer.

And we continue with technology, continuing to grow which always increases complexity of product. We believe those opportunities will only grow as we get into the next -- go throughout the rest of this decade. So, yes there is no question about that.

In new territories we go into, I mean we went into Ohio. They didn't have mobile text. They didn't have people and people, other people shops. We have already got that. We are not to the levels we want to be, but we -- because we are actually making huge real estate investments. We are building a new store in Cincinnati going -- we are getting, fixing to get ready to break ground now. Closing dirt and closing 23 acres in Columbus to build a new store there. Looking for real estate in Cleveland.

But right now we had to attack it by going to them but to your point, yes, we believe the outsourcing of other maintenance along with other mechanical work in the future will be a way with the future. Not everything. We know that all fleets aren't going to do that.

But at the same time, the complexity of product, the investment in training, the investment in diagnostic equipment it takes and the up -- staying up-to-date with everything, you know, that is what we do. That is what we do. And the larger our network is the better off, the more sense we can make to a customer to go out and take it on an overall perspective take care of that for them. Take care of their breakdown systems. Can we take over your breakdown department, we will supply the people and then we will manage your -- help you manage the fleet across our broad network in and out inside of our network. So anyway I know I get a little long-winded there but I get pretty excited.

No, no, that is good stuff and as I think about that though and as you grow that side of the business isn't that a real positive tailwind to margins going forward? Because I think for the most part these opportunities are, you would have limited investment tied up in most of these opportunities.

Yes, we will have some investment. The one thing about -- the one thing you have got to remember about mobile is and stuff like that sometimes the cost are a little more but if it is incremental (multiple speakers) that is what we are after. You are not cashing percentages, you are cashing dollars at the end of the day.

So a lot of this business is business we are not getting and we are going out and trying to capture. But to your point, it doesn't take CapEx investment you know, a truck here or there, but you are not building a $15 million facility, okay?

Right. So if I think about that and I can kind of ponder that with regards to margins but as we go forward, your comment to Chaz about maybe middle of next year we start to see margins normalize. Help me understand the situation with regards to your big opportunity being just growth in Navistar as that comes back and the investments you have made through acquisitions to get positioned for that. How to think about margins because as you point out because of the mix, or where those trucks typically get sold in the fleet, it is a little bit lower margin that you are historically used to.

So how could -- how should we think about operating margins for Rush Enterprises going forward in that regard?

Yes. I mean, I would -- good question. A lot of it has to do -- operating margins, a lot has to do with the size of the truck market, okay. Look for our -- I like to break it into segments. Our and like I'll break it into gross margin to begin with. And our gross profit operating margin on truck sales will probably be a little more difficult to maintain because there is a lot more -- it is a lot more fleet business not owner operator type small stuff. But as Navistar continues to grow as a piece that is going to grow the truck sales probably at a more accelerated price than the parts and service as their market share continues to gain. You follow me? And that is the big cap cost, the big revenue piece is the truck, right, itself.

So operating as far as a return on sales, if you can look at it from that perspective, is going to be a little more difficult if they accelerate from say 14% to 20%. Because we are going to be selling a whole lot more trucks, growing the parts and service business that quickly to keep up with that pace will be very difficult.

So I know I am not giving you exactly a straight answer I am looking forward --. I do know that the leverage ability of what we put in place and continue to spend should take hold in the back half of next year as we vacate these two stores and that 600 online. But (multiple speakers)

Let me ask --.

We are in the low 3. So let's say we get it up to somewhere around an upper 3 number would be my thought.

Okay. But --

Let's talk about the back half of next year. Because this acquisition we are taking on in January is a very -- while we are very excited about the one we're doing here this weekend, it is not as large. The one we're taking on in January is 650 employees and over $400 million in revenue and that is based upon 2012 numbers, which was depressed market share numbers.

So the size of it once we get integrated into our business, you know that that always takes about six months. So (multiple speakers) --.

So, let me ask you this. I mean, also, I would assume next year and you have been very helpful, but you also got a little bit of a headwind because of the SAP rollout.

That is no question. If you want me to quantify that, I will go ahead and -- here is what is going on.

I want to get this so I can get it out on the table. As I said in the press release, as I said in my early comments, we have decided to go ahead and accelerate the rollout of our SAP business system. While it has taken me longer -- taking us longer to get it done than we wanted, and probably cost us more money, we are very, very excited about the benefits we see at the operating level.

So we have decided to -- I didn't want to wait till the middle of 2016 to get it finished. I think the benefits are much -- we need to get it out there. And get it out to all of our stores. Where it is probably running at over half to two thirds of our Peterbilt stores now. We want to accelerate that pace to finish it by the end of the first-quarter 2015. So to quantify that, this year the rollout piece, the cost of rolling it out there was about 5 -- I am going to put it in EPS numbers. It was about $0.05 of EPS this year.

Our original plan was to continue it at about $0.05 the next two years for each year. By accelerating it, it is going to cost me another $0.04 or $0.05 okay? But I am going to -- it is probably going to cost us $0.14 next year to roll it all out next year but that is the decision I have made.

Okay, but that goes away in 2015.

What's that?

That goes away in 2015 and that goes the way of the rollout piece, yes.

Yes sir. Yes, that goes away in 2015. But we believe the benefits far outweigh the incremental, if you were to look at it was going to be $0.5. It will be $0.14 in one year so it will be $0.09 of EPS, we believe. Those are rough numbers -- don't -- maybe it could be, it could be $0.10. But they are right it is right in that range. Okay? That is what we project it will take to accelerate it because of the increase, we have to hire some additional people additional traders to do what we need to do to get it out there to backfill to get it out there that fast. But I did not want to wait.

Do you mind sharing with us what you think the annual benefit is?

Oh, I do. (laughter). I think you'll see it in the numbers. How is that?

I may not be around in 2016. So --

Well why do you think I accelerated to 2015. I thought I might not be around either. You and I are think along the same lines.

As always, very helpful. Thanks for the time.

(Operator Instructions). Bill Armstrong, CL King and Associates.

My question has to do with the SAP rollout, but you just answered it. So thanks.

You are welcome, Bill. I just -- I wanted to get on and say I hope everyone understands we are very excited about the system. It has been a long arduous six or seven years to get it done, but I am telling you it will be, from our perspective, it will give us an advantage in real-time management of our business that is far superior to any other businesses and that is out there and available inside not just the truck business but the automotive business in total.

I am showing no one else in queue at this time, sir.

Okay, with that, we appreciate everyone's calling this morning and look forward to speaking to you, I guess it will probably be February when we release first-quarter numbers. Or fourth-quarter numbers, excuse me. Thank you all very much.

Ladies and gentlemen, thank you for participating in today's conference. This concludes our program for today. You may all disconnect and have a wonderful day.