Snap-on Incorporated (SNA) Earnings Call Transcript & Summary

Good morning. If everybody could please take your seats. All right. Break a leg. Welcome to the Snap-on Incorporated 2022 Annual Meeting of Shareholders. We are delighted that we can all be back in person again this year, so it's great to see everybody. My name is Richard Miller. I am the Vice President, General Counsel and Secretary of Snap-on and I will be your parliamentarian for today's meeting. At this time, I would ask that everybody please turn off your cell phones. With that, I call the 2022 Annual Meeting of Shareholders to order, and they gave me a gavel. People in the building will get very tired of that soon. Each of you should have received the order of business and the rules of order, and I would ask that you please abide by those rules. It is now 10:04 a.m. on April 28, 2022. The polls are officially open. If anyone has not yet voted and wishes to do so, or cast your vote, the inspectors of election, Abby Cowart and Fred Papenmeier of Computershare, are in the back of the room, and can help you with that. Attending today's meeting in person are the following members of the Board of Directors. I will ask each of them to stand when I call your names. David Adams, Executive Chairman of Curtiss-Wright Corporation; Karen Daniel, retired Division President and Chief Financial Officer of Black & Veatch Corporation; Ruth Ann Gillis, retired Executive Vice President and Chief Administrative Officer of Exelon Corporation; James Holden, Snap-on's Lead Director and retired President and Chief Executive Officer of DaimlerChrysler Corporation; Nathan Jones, retired President, Worldwide Commercial Consumer Equipment Division of Deere & Company; Henry Knueppel, retired Chairman of the Board and Chief Executive Officer of Regal Beloit Corporation; Dudley Lehman, retired Group President of Kimberly-Clark Corporation; Gregg Sherrill, retired President Chief -- I'm sorry, Tenneco -- CEO of Tenneco Inc.; Donald Stebbins, retired President and Chief Executive Officer of Superior International; and Nick Pinchuk, Chairman, President and Chief Executive Officer of Snap-on. Nick will present an update on the performance of your company at the conclusion of our formal business. Also, here today are Eric Kulju and Emily Vondrum, representing Deloitte & Touche LLP. They will be available to answer any questions after the meeting. We have an affidavit that notice of the meeting was mailed as required, and will be incorporated into the meeting minutes. Seeing that all shareholders have had an opportunity to vote, will the inspectors of election please confirm that all ballots have been counted.

Mr. Chairman, all ballots have been counted.

Thank you. It is now 10:06 a.m., and the polls are officially closed. There are 53,416,885 shares of company common stock, each having 1 vote on each proposal. I have been advised by our inspectors of election that we have a quorum with more than 87% of all shares outstanding represented at the meeting. Voting results are stated as a percentage of the stock represented at the meeting, unless otherwise stated. We have 3 official pieces of business today. First is the election of our directors. The Board has nominated the following candidates to serve until 2023 Annual Meeting: David C. Adams, Director since 2016; Karen L. Daniel, Director since 2005; Ruth Ann M. Gillis, Director since 2014; James P. Holden, Director since 2007; Nathan J. Jones, Director since 2008; Henry W. Knueppel, Director since 2011; W. Dudley Lehman, Director since 2003; Nicholas T. Pinchuk, Director since 2007; Gregg M. Sherrill, Director since 2010; and Donald J. Stebbins, Director since 2015. Each of the director nominees received votes in favor of at least 86% of the shares outstanding and therefore, each has been elected. Our second item of business is the ratification of the Audit Committee's selection of Deloitte & Touche as the company's independent registered public accounting firm for 2022. Over 92% of the shares represented voted in favor of this proposal. Therefore, the Audit Committee selection of Deloitte has been ratified. The last item is the advisory vote to approve the compensation of Snap-on's named executive officers as presented for shareholder approval in the proxy statement. As an advisory vote, this proposal is nonbinding on the company. Since over 89% of the votes cast voted to approve, the Snap-on named executive officer compensation by the nonbinding resolution is hereby approved. This completes our official business. It is now 10:09 a.m., and the meeting is formally adjourned, and I get to use my gavel again. At this time, we will have a short video on Snap-on. Enjoy. [Presentation]

I wanted to try that just to see. I'm sure I could do it better than Rich Miller here. Look, welcome back, everybody. Isn't it great to be back together? I was just standing out in the hallway, greeting everybody when they came in and I thought, how wonderful it is to see everybody. Although we were together for the 100th anniversary in the parking lot and it's a tremendous time. I want to welcome you to our annual meeting. It's an extraordinary event always, and I always, always look forward to it. This is a company that -- you can see some of the emotion in the video. But it's a company that was founded more than 100 years ago now and it was founded on a timeless principle, the respect for the dignity of work. And all that time, we have been enlisted in the idea of making special tools, making tools that enable working men and women to accomplish tasks that are critical and cannot -- they cannot fail at the need for -- the need for repeatability and reliability is extreme and allow them to move the world forward. It's a cause that is as relevant today as it was all those 100 years ago. And I'm here to tell you that this is a company -- that's going to be the run through my whole speech. This is a special company, one that has a storied history and has an encouraging now, and we have an exciting future, I can tell you. And I can tell you, we've had some difficult times in these days. The once-in-100-year withering of the COVID, the daughters of the COVID, the inflation and supply chain disruption. We've had interruptions. We've got all kinds of things. We have war in the Ukraine, and we have lockdowns in China, yet we've come through it stronger. You can look at the numbers, and I ask you to judge yourself that we have come through this stronger than when we entered. And I'm here to tell you today, and I'm proud to tell you today that your company has never ever been stronger. Before I get -- before things go off the rails later, I only have 3 hours of the Board meeting to survive. And so I'd like you to give the Board of Directors another round of applause. And if for no other reason than save me. Actually, our Board is a terrific board. It's filled with eminent people who have been steadfast throughout this period and have created the underpinning that have allowed us to get through it all. I stand here, I was sitting here looking at my notes, but also, I was listening and watching the video. I have to tell you, every time I see it, it's terrific. We duplicated some of the stuff we did at the SFC and out in the parking lot because we thought it would look better here today for you. And we also wanted to, one more time, talk about our 100th anniversary. This is the last official event. We'll recognize the 100th anniversary, and it was something special. The solitary trumpeters, heralding the first days of Snap-on's second century, intoning the compositions of Philip Glass, which he wrote for the 1984 Olympics. I've been waiting 38 years to use it. But it's haunting. And it seems to awaken emotion. I think it does. You have the litany of endorsements and testimonies from franchisees and technicians -- our franchisees and our customers. And then you have the responses by the people of Snap-on, those who have been here a long time, declaring. And we have been for 100 years, and new people, the younger generation vowing now and for many years to come. And then the words, the words. Let me tell you of the people, essential to the serious and unique to the world, standing firm against the threat, preserving all we know when it's the gloom. And that's the way it was. You can see the words of Bryan Neil, a franchisee from Mendon, Illinois, down in the Missouri border. And he says, I feel like I change lives every day, every week. And so he believes it. And so all of us believe it. Other words, like we are the wielders of insight and experience, forged over decades but sharpened by the new. We are the bringers of prosperity and satisfaction. We are the bearers of pride and dignity. We are the shapers of lives and the deliverers of dreams. These are the words that declare who we are. And for Snap-on people, they ring with truth and emotion. And like I said in all these videos, and this one is no exception, we do not lean on outside consultants or marketing firms to author this video. We use people inside. And in fact, I'd like to introduce to you some of the now the producers of the Snap-on video. In the back of the room, I think this is [ Bridget Correa ], Jeff Zuehls and Sam Bottum. Stand up. Let's give them a round of applause and give them something special. Now my attorneys have said that I must have everyone read, in detail, this following statement, this cautionary film. All right? That's enough. Okay. Let's go on from here. We start every presentation at Snap-on. And in fact, every meeting room in Snap-on has this placard in it. It declares who we are. We say our mission is to provide the most valued productivity solutions in the world. It declares our beliefs. We believe in nonnegotiable safety, uncompromising quality, passionate customer care, innovation and rapid continuous improvement. We have certain values. These are values everybody, the human race should have. They're kind of natural law, but we declare them because we want to make sure that we always follow them. We believe in integrity and truth and respect and teamwork and listening. And our vision is to be the relationship of choice for all those we interact with. This is who we are. And we're founded -- and that -- those concepts have run through Snap-on from the very beginning. We were founded long ago about now, 100 years, 100-plus years, and was founded -- it really does say, the video says, it started with a spark. And the spark was an idea, and the idea forged the dream, and the dream shaped lives. And the idea was from an engineer in Milwaukee, Wisconsin, Joe Johnson, and he got the idea to take 5 handles of different shapes, a crank, a T, an ellipse, and put them together with 10 sockets of different dimensions and he said those 5 handles did the work of 50 tools, and it revolutionized tool sets all over this country. It was an innovation and a tradition of innovation that has been handed down to us, and we have tried to keep it alive. But he did something else that was really special. I know many of you heard this story, but I love to tell it, so I'm going to do it anyway. He bypassed the normal use of distributors and told his salesmen to go direct to the customer and go into the garages, and lay those 5 handles and 10 sockets out on green felt as if they were as precious as surgeon's knives, implying -- so that if the technician used these tools, he would imply to the world that he was doing something special, perhaps as special as a surgeon. And the idea that the Snap-on, the sign Snap-on is the outward sign of pride and dignity that working men and women take in their profession is what drives our corporation today. We show a Model T here, in which some of those first tools were delivered and you'll see a version of it out here in the museum if you care to stop later. But one of the great things about this event and many events that we've had is we have living links to the founders with us. I'd like to introduce them. We have the grandson of Joe Johnson and his wife, Kathy. Greg and Kathy Johnson. Greg has been with us -- Greg was with us for almost 30 years, the VP of Internal Audit and the VP and Controller, and we have Sara Tutskey, the granddaughter of Joe Johnson and her husband, Paul, who is also with us for more -- was with us for just over 30 years and was the Vice President of EQS and the Vice President of Western region. Stand up, ladies and gentlemen, and let's give them a round of applause. Living links to our founders. It makes us special. And then, we like to say that -- and I think one of the underrated things about a company, and I've been in a few good ones, is the power of place. And our place is Kenosha. It's the place -- we didn't -- we weren't here in the beginning. We started here in 1929. And here's a picture of the factory, the first factory in Kenosha. I'm still trying to figure out how it's oriented, but that's one of the first buildings here, moving in 1929. And since then, the people of this town, this city has been the wellspring of our capability and energy. It has allowed the dream, the Snap-on company to reach across the nation and the world. And part of that has been the support of the community. So we have some community leaders here with us that I'd like to recognize. We have John and Cameron Swallow from Carthage College. We have Bryan Albrecht from Gateway College. We have Debbie Ford from Parkside, places that give us tremendous resurgence to our business and our employee base, our associate base. We have Samantha Kerkman, the new county executive. And we have our own homegrown community hero, Ms. Terri Wruck, who's been with us 27 years and just has received the Kenosha Susan B. Anthony Award for community service. So ladies and gentlemen, please stand up and let -- let's give them a round of applause. Thank you all. Snap-on is a company that celebrates the makers and fixers. These are the people who actually, during the difficult times -- historians will say that America, and countries, in fact, all over the world are dependent on the people who actually make and fix things. And the more of these people you have, the better and stronger your company has or your country has, and the U.S. has benefited from this over the years. We can see it, how the people like Rose Will Monroe from the hills of Kentucky went to Willow Run and became known as Rosie the Riveter, and her sisters and brothers allowed or made the industrial substrate that allowed America to win one of the wars it couldn't afford to lose. And just in the last threat, the great withering that's the virus, the people of work, the makers and fixers stood and maintained their posts while we engage -- keeping a society from disintegrating, while we maintained and -- maintained and defeated the great COVID. This is one of the reasons we follow this. We here are the people of work. And through those difficulties -- through the difficulties, I said we emerged stronger. I'm going to show financial or numerical evidence of that. But how we did this over all these years is we rise, and we rise on product, on brands and people. During the COVID, during the virus, when things were dark, and there was a lot of fear, makers and fixers were meeting that fear with vigilance and accommodation, and we kept investing in our product, our brand and our people. I like this picture particularly because it's got some of the people from the Murphy plant, a great plant. We have [ Samantha Moore ] there and [ Rhonda Traber ], who is a legend down there, and [ John Welburn ]. Our product is unique productivity solutions. And sometimes, people think we're a hand tool company. We are. We have the best hand tools ever. You can see a bunch of them here, socket sets and wrenches and screwdrivers. You can also see some insulated tools, which shows the -- it's a kind of a harbinger of the electric vehicles, but you can also see diagnostics units. You can see power tools. You can see software, and you can see some of the great and complicated undercar equipment products we have. We have a terrific stable of brands. Now, everybody knows about the Snap-on brand. It is, after all, the outward sign of the pride and dignity that working men and women take in their profession. But we also have Bahco in Europe. People say -- if I want an adjustable wrench, they say, "Pass me the Bahco." And every year, at the Sweden Rock Festival, hundreds of people, hundreds of people, literally, line up to get tattoos, real tattoos, not temporary tattoos on their body of the fish and hook. We have Challenger. They do the same thing for Snap-on, by the way. We have Challenger Lifts. We have AutoCrib tool management systems. We just acquired Dealer-FX. We have a number of different brands that create the same type of pride. And then, we have great people. You can see these people. Look here, the Algona tool factory in Algona, Iowa. It's a place where you can't get there from there -- from here. It's a 4-hour drive and a 6-hour flight, that kind of thing. By the way, I have to stop here now. Well, Kenosha is quite a place. I love Kenosha, but do you realize that it's colder in Kenosha today than Anchorage, Alaska? This is not good. Not good. I don't know what's going on. Okay. So all right. We have people from Algona. We've got people from Mitchell 1, the array at the bottom is Mitchell 1. There are the Tools Group engineers. And then, there are power tools engineers at the SFC. We have a great team. So we rise. We've gone -- we rise on our product, our brand and most importantly, on our people. And we have emerged stronger from the virus than we entered, and I have the numbers to prove it right now. All I can say to these numbers is boom shakalaka. I got that from Stripes. Okay, let's take a look at some of the numbers. I want you to -- there's 2 things about the numbers here. You can look at the numbers, I think these are the EPS numbers, but I want you to look at the red line for a minute. Okay. So we're going to go from 2019 to 2020 to 2021. The numbers are, what, $12.41, $11.44, down in a virus and then $14.92. I was relieved at this number, because it's kind of easy to remember for an American, if you know what I mean. Okay. These numbers are up, what, 30.4% versus the 2021 number is up 30.4% versus 2020 and 20.2% versus 2019. Pretty good, double digits versus the pre-COVID level. Look at the sales, $3.73 billion, I believe it says, in 2019. Then it dropped a little bit, not so much, to $3.59 billion. But last year, a record. In 2021, a record, first time ever, over $4 billion. $4.250 billion represents, I think, it's 18.4% growth over 2020 and 14% over 2019. And then, if you do something here in -- the financial geniuses do something called organic throwing out currency and other things, and it's 15.1% and 10.4% for those years. So we have those. And then look at the operating margin. This is the profit as a percent of sales. So it was pretty good. 19.2% in 2019, went to 17.6%, then went up 20%, a record again. I'm going to show you a trend of this later and I preview, tip, it's pretty good. But what I want you to see is the red line. See the red line? Each of these diagrams have had a red line. And what we said when we were in the nadir of the virus, second quarter 2020, we had an earnings call. And we told everybody we think we're going to have a V-shaped recovery. And the analysts kind of chuckled, I think, a little bit thinking, how the heck is anybody going to have a V-shaped recovery in this pandemic? Well, we did. Each of these, the EPS, the sales, this OI margin, operating income margin, shows the V-shaped recovery in vivid terms, and the people who delivered that, along with all the people in this room in some ways, but the leaders of this are here with me and I'd like to introduce them. First of all, from Scranton, Pennsylvania, for whatever that's worth, our Chief Financial Officer and Chief Nick Pinchuk critic, Mr. Aldo Pagliari. And then from Calcutta, India, our Chief Development Officer, and recently of Lake Forest, Illinois, Mr. Anup Banerjee. Let me see if I can get this right. And from South Jersey, the President of our Repair Systems and Information business, Mr. Tom Ward. From parts unknown, also known as Iowa, the President of our Tools business, the Tools Group, Mr. Tim Chambers. And from the Basque Country, the President of our Commercial Group, Mr. Jesus Arregui. And then we are here in Kenosha, but just like the 100, we're not really fully alone. Because we have somebody up here, I think. Soon, will appear. There he is. This is from Shanghai, China, at a standstill, locked down in his apartment for 4 weeks, Mr. James Ng. James. You got to hear this guy. James, how many times you been in quarantine?

Six.

Six times? How about -- is this one...

Plus this, lucky 7 lockdown.

Lockdown, right. And how many days? How many -- can you go out of your apartment? What do you go out of your apartment for?

Only for the COVID test.

Only for a COVID test. How many times a day you're getting COVID tests?

Two times. One using the antigen at home before you go downstairs, then you take the PCR test.

Is it true that you risk arrest when you go out to dump the garbage?

You're not supposed to dump the garbage.

I see. All right. So by my account, Mr. James Ng, by the way, has never had the virus. He's been in quarantine for more than 160 days in 2 years for Snap-on. Let's give him a round of applause. Good to see you, James. Okay. Now so those are the kind of V-shaped recovery. Let's look at the trend here. We have a trend here. This is a trend of the sales. I think we go back to 2010, sales and operating income margin, I kind of like it. Starts at $2.620 billion, $2.62 billion. Then it goes to $2.850 billion, $2.85 billion, then $2.94 billion, then $3.06 billion, then $3.28 billion, then $3.35 billion, then $3.343 billion, then $3.69 billion, then $3.74 billion, then $3.73 billion, then the aforementioned $3.59 billion, and coming out, $4.25 billion. Nice trend. And look at the operating income margin, maybe even better. I don't know. It's a nice margin. It starts out at, I think, 12.1%. So in other words, 12.1% of all sales dollars became profit, 14.5%, 16.6%, 18.1%, 19.3%, 19.3%, 19.4%, 19.2%, 17.6%, and we ended up this year at 20%. And these things do not happen. I'm looking at this trend, and I can tell you that the people who know me a long time, the people who really know who I am recognize that I am the fortunate successor of greater predecessors. And we have here in the audience, representatives and some of my predecessors, first of all, from the seventh -- Norm Lutz, the seventh President of Snap-on, who was here in the -- stood in this place in the late '70s and started Snap-on with the New York Stock Exchange. We have his daughter and her husband, Susan and Bill Kenyon from -- all the way from Libertyville, Illinois, but they grace us with our presence all the time. Stand up, Susan and Bill, let's give them a round of applause. And now a man who needs, I think, no introduction, but I'm going to give him one anyway. My former boss, the man who gave us so much. He taught us how to rediscover who we are. He started our safety program. He gave us the words rapid continuous improvement. He got us moving on this way. And to the extent we see this trend from 2010, it is built on his work. So let me introduce my former boss, my current counselor, my ongoing friend, the legendary Mr. Jack Duane Michaels. So we have some more trends to show you. Look at the -- I think we have an EPS, earnings per share, trend. I'm putting this up for a reason. Look at 2010. The earnings per share in that time, I think, was $3.19, right? Okay, I want you to remember that number. Let's put that away in our pocket, $3.19, 2010. Okay. Then $4.71, then $5.20, right? Then $5.93, then we go on from there. $5.93 then $17.14 and $18.10. $18.10. Then 11 -- at $18.10. Then we go to $12.44, then $11.44 -- $12.41 then $11.44, then $14.92. So let's talk about our retirees for a minute. To the extent we can get these kinds of numbers, we stand on the shoulder of our retirees. And we have some of them here. We have some of them here. We have Barb Griffin, who everybody knows, who was with us 24 years, and she was with the Tools Group in finance and delivered so many of the Tools Group's performance. Very important to us. We have Dan Kasper, who was a tax -- the Director of Global Tax, has decided in retirement to go to genealogy. And I'm worrying that he's going to look and discover that he was descended from a Roman tax collector. And then we have Mr. Rich Caskey and his wife, [ Michelle ]. Rich Caskey was with us 37 years, and most people -- he's been gone about 3 years. But in general, most people thought he was retired for 40 during that period. So stand up, ladies and gentlemen. We stand on your shoulders. Okay. Now Snap-on has a special characteristic. We pay dividends. And in fact, we started paying dividends in 1939. And the dividends, we pay -- started paying the dividend in 1939, and we paid a dividend every quarter since then, and we have never reduced it, which means it is one of the longest-serving, longest strings of uninterrupted, unreduced dividends in the history of the New York Stock Exchange. In fact, we may have the longest characteristic for the New York Stock Exchange because of this dividends' activity. You can see this as starting way back in 2010 of $1.22 and rolling on $1.30, $1.40, $1.58, $1.95, $2.20, $2.54, $2.95, $3.43, $3.93, $4.47 and $5.11. And in fact, we raised the dividend by 15.4% last quarter or the fourth quarter of last year. So this is a solid record that is difficult to match. And then, I haven't mentioned in any of this, the finance company. The finance company has done pretty well in the same kind of thing that I've shown you in other places, where you see our revenue for the finance company was $337.7 million in 2019, and then it went $348.9 million and $348.9 million again. And then, our profitability was $245.9 million, $248.6 million and then $272 million, up in 2020. So the finance company has made contributions to all of this. So in effect, if you see this, you see the V, you see the trend, almost the uninterrupted trend, except for a little bit down during the height of COVID, you see that your company has emerged from the great withering, the virus, the once-in-a-100-year pandemic stronger than ever before. Now where are we going? We say we have an exciting future. And we say the way to the future is long -- runways, runways for growth and runways for improvement and runways for growth. Let's talk about the runways for improvement. And they harken back to our beliefs. Remember, I said we believe on nonnegotiable safety and uncompromising quality. Well, our runways for improvement are just this. We call it Snap-on Value Creation. These are the processes which move us forward: safety, quality, customer connection, innovation and rapid continuous improvement. Let's talk about safety. You ask if you're a public company and you're financially oriented, what are you thinking about safety? Well, first of all, you want to keep your people safe. And secondly, when you make tools for working men and women, if you can't keep your own people safe, what does that say about your tools? Well, we're proud of this record. Started this surveillance -- this trend was started by Jack, going all the way back to the beginning. We're now -- maybe 15 years ago, we're 90% less likely at Snap-on to have an accident today than we were just those a little bit over a decade ago. And we have 102 facilities in Snap-on, and 81 of them did not have a lost-time accident. Quality. There's a lot of ways to measure quality. You can measure quality by assembly critical defects or factory critical defects. There are a number of different ways -- or warranty or so on. But we like to measure it by how people react to us. Liana Acevedo from New Jersey, a 3-year motorcycle mechanic. She, by the way, has a blog called Girls Who Wrench. Very interesting. She loves her job. And she says, one of the reasons why she's been able to do it, what inspired her to do it was use great tools like Snap-on, the quality of Snap-on tools. And then we have other people who say things like your tools are special to me and they're my tool of choice, and they're of high quality. And we have people -- look on the bottom of this slide, the birthday cake. That's not a birthday cake, sorry. It's a wedding cake. And we -- I think we showed pictures in the beginning where wedding parties are posing in front of Snap-on signs. And then we have two pictures here, but I have many of these, of newborn babies who are the parents of those newborn babies decide to put a Snap-on wrench in their hands as the first thing, because they believe what the baby touches first will influence their lives for better or worse, they believe in Snap-on. And then we have a box -- or grieving people ask us to send those small toolboxes so they can enshrine their loved ones' ashes in it. The outward sign of pride and dignity, indeed. Now I've asked myself, how does this come about? It certainly comes about from the beginning. It has nothing to do with me, of course. But the thing is that it comes about from the beginning. And in some ways, you can -- people join the company and you see the progression. When people come to the company -- we're going to have some new people in a minute. They come probably for a job. They've got to have a job. You got to keep your family or you, yourself warm and safe and dry. And those people contribute energy to us. When I spoke of the wellspring of energy and capability from Kenosha, that's what I meant. But then after a while, they're here and they launch, they realize, "I can make a career out of this. I'm going to learn things. I'm going to apply a trade like leadership." We have leaders here in the first row. And they are the people who lead us and channel the energy over these difficult times. But then, there are the special people. Not so unusual here, but they are special to us, who give us not a job, not only a career, but a life. They're with us for a long time. And over that time of years, over that expanse of years, they are the people who influence the culture of the company, their characteristics is what makes this company what it is over time. And the people we have who have been here decades are the reason why people see Snap-on tools as so strong, continuing that activity. It is one of our great strengths, not only their experience, but the influence they have on us and others. It is why people make wedding cakes out of our tool trucks and put our wrenches in the hands of their newborn and bury their ashes in it. And so I have three of them here that I want to introduce to you. First, I want to introduce the Vice President of our sales -- I want them to stand up individually. The Vice President of our sales organization who's been here 35 -- Tools Group, North American Tools Group organization and franchise -- and franchising, Mr. Jeff Howe, 34 years. Jeff, stand up. And then, I have Ms. Jody Djuric, an Expeditor II, in this building. She has -- she's lived here in Kenosha a long time, and she has a daughter, [ Erica ], who's about to become a veterinarian and practice here. I'm giving a little boost there. But she's been with us 46 years. Jody, stand up. And then, I have a man who has influenced the trajectory of our technology, graduate of the University of Michigan, one of the best metallurgists in the country. Someone who, together with Rich Caskey, taught me my first lessons about Snap-on. His name is Gary Henning. He's here with his wife, [ Cindy ] and his daughter, [ Ashley ], and he has been with us 48 years. Gary, [ Cindy ], [ Ashley ], stand up. Let's give them a round of applause. These are the things that make quality in Snap-on, you see. Our culture is influenced by the long-standing people we have. They become like us and we become like them. So it's safety, quality, customer connection. We reach out. One of the reasons why Snap-on is effective is we understand what will make work easier. And we spend more time in more workplaces than anybody else. We have 4,800 franchisees. We have thousands of direct salesmen. We are in 700,000 repair garages around the world. We're in 3,700 technical schools, making new technicians Snap-on customers for life. And in this building, right here, around this area, we have 4,000-plus customers visit us every year. And all that idea, all that insight, remember, I started out by saying one of the words we have is insight and experience forged over decades, but sharpened by the new, leads to great innovation and great new products. And you can see some of these up here in terms of diagnostics, in terms of software, in terms of hand tools and power tools and equipment. But we have awards. We had 2 top -- MOTOR Top 20 awards as best tools last year. We had 2 PTEN Innovation Awards, and we had 8, 8 People's Choice Awards. Because when they ask technicians what are the best tools, they always say Snap-on. And this leads to our engineering team. So I have 3 engineers here who I'd like to introduce to you. First is David Doyle, who is an engineer in our Tools Group. And I said yesterday to the Board, one of the fastest-growing products here is our pliers business, and he was the engineer behind our long nose Talon Grip pliers. I also have Bob D'Agostino, who got a degree in physics in a town I know very well, Syracuse, New York, and is our Director of Algorithm Development in the Tools -- in the Conway factory for our aligners. And let me tell you, when -- in another life, I worked on the guidance system that landed the Viking probe on Mars in 1976. I only mention it because the subsequent 2 probes crashed. So I worked on the guidance system that got it there. But I can tell you that the mathematics and the algorithm around alignment in a car garage are every bit as complicated as inertial navigation. And then -- and he's been with us 11 years. David has been with us 5 years. And they have [ Charles Frontczak ], who's been with us 6 years and is responsible for much of our new electronic power tools. And he's also -- used to be a baker. So I want to have special -- give him special thanks because on Fat Tuesday, he brought over a whole bunch of paczki. They were good. I don't know why I bothered eating them, I should have just applied them to my waist. They were pretty good. Okay. Gentlemen, please stand up. Let's give our engineers a round of applause. And then finally, remember, safety, quality -- runways for improvement, safety, quality, customer connection, innovation and rapid continuous improvement, that is making your business better. And if you look at this trend, we can see back in 2006 or so, the operating income margin, in other words, the percent of sales that went to profit was 6.5% through rapid continuous improvements. Every day, we have people in every site that works on this. We have teams working constantly to make things better. Snap-on people get up every day and think about how to make things better. And then we have a number of different bigger events. And even once the year, the management team goes into a factory and works at something and learns more about improvement and tries to help the factory. Takes the factory 6 months to recover from that visit, but it's okay. But why? In fact, look at the results, 6.5% to 20%. 1,350 basis point improvement in a world where people kill for 5 basis points. Rapid continuous improvement. So our way forward is just continue to do that, to keep pushing those processes of safety, quality, customer connection, innovation and rapid continuous improvement. But there's something else. When we thought about this and we tried to figure out how we would go forward, we thought about Snap-on. And the Snap-on heritage is about a company that makes wrenches, sells it through vans to mechanics. And we do it better than anybody else. Our wrenches are great, our franchisees are tremendous, and we are the darling of the mechanics. But this is a narrow description of what we do. Actually, what we do is we observe work in the workplace. It doesn't have to be a garage. It can be a flight line. All that has to happen is it has to be critical. And it doesn't have to -- the product we sell doesn't have to be a wrench. We now know it could be software or under-the-car equipment or power tools, a whole array of products. And so we can sell a product. We observe work. We define a product or devise a product that will make work easier and we sell it into critical spaces, that is where the penalty for failure is high and the need for repeatability and reliability justifies a Snap-on-level product. And we don't have to sell it through the brands, although we do, very well. We can sell it direct and through distributors. And this has resulted in us understanding what our principal value-creating mechanism is at Snap-on. You can see it right here. Actually, I love the picture of the patent wall. That's our patent wall down here. There are -- in case you were wondering, there are 3,332 patents on that wall right there. Each one of those little blocks is a patent we have gotten. But our principal value-creating mechanism is to observe work, figure out what will make it better, and turn out that tool. That's why when products change, we end up having a very, very target-rich environment. And so this lead -- led us to come up with our runways for growth, which are enhance the van channel. We're in the van channel already. We got to make it better. And if you look at the numbers of the van channel, you would believe that's true. Expand with repair shop owners and managers. There's a customer -- the van channel sells to the technicians, the repair shop owners and managers are standing right next to them, but they love Snap-on. Extend to critical industries, roll the Snap-on brand right out of the garage and use our other brands there where people are working on critical stuff. I mean the military, when the 50-caliber bullets are going overhead, I think that sounds pretty critical to me, and therefore, they're looking for a solution that will work. And then build in emerging markets. Let's talk about enhance the van channel. Well, we want to build the metrics, make the van driver stronger, make each van -- make of them rich actually, is what we want to do, and it's working that way. They're getting better. Give them product, give them a range of product. We now have 4,000 products on the van. And when the guy pulls out the catalog, he's got 40,000 products in that catalog that he can sell to the customers. And then try to make it more efficient because after all, the van driver sells directly to technicians and there are only 24 hours in a day and 7 days a week. Now we have a lot of franchisees. We have 4,800 actually. It's about 3,500 in the United States. But we keep turning them over -- not turning them over, but introducing new people. And I have with us a new franchisee from Kenosha, [ Mr. Wayne Cole ]. He's back there with Greg Mann. Stand up, Wayne. He's been with us, he's been a franchisee only 1.5 years, and you take a look at the future of our franchise business. Expand with repair shop owners and managers. Tom Ward's business, the RS&I business. And basically, we have a lot of understanding of parts and services, and we want to leverage that. We want to teach the owners and managers. The cars keep changing, we want to teach the owners and managers on how to keep up with the technology, arm them with the product, and to also, frankly, teach them how to run the business. We want to keep adding products to that portfolio, and we have. Dealer-FX is the latest one. And that business was up 13.3% in the quarter, just the last quarter. So growing well. Extend to critical industries. Basically, what this is, is find places like the military, aviation, oil and gas, mining, wind, places where customers has to -- where the task is critical, and learn the business. So by observing the work and then turning out product lines that will do this. Last year, we brought out more than 4,000 products for this customer base. And then build in emerging markets. The whole thing about emerging markets, you're talking about them all, China is kind of down now because they're all locked down. 400 million people, by the way, are locked in their houses in China. So China isn't looking too good, but we're still talking about India and Thailand and other places like this. And it's about building manufacturing capacity, building product that fits those people and finding a distribution system that will have it, and we're working on this situation. This is our way forward. And part of the reason why we believe so much is we keep adding new people, people who have energy and capability. I'd like to introduce some of them now. Right over here. I think they're sitting over here in the second row. We have a guy named Nick Freelove, who's the data coordinator with the marketing. I like his name, by the way. The first name, not the second name. Nick is kind of -- you got a good name. Good start. He's been with us a couple of years. We have Mr. Deepak Trisal, who is our Manager of Sourcing. He's been with us less than a year. By the way, Nick is from -- he's from some school I never -- I don't know if anybody -- Iowa State. Did anybody ever go to Iowa State? Tim Chambers went to Iowa State, so he's from Iowa State. Same school. Weak football team. Then, okay, Deepak Trisal. He's from -- he's the Manager of Strategic Sourcing, and he's been with us less than a year, and he has this distinction, to my knowledge, of being the only manager at Snap-on that has declared cricket as his favorite sport. Then we have [ Traymon Grant ] from back here, back in the kitting center, who is a lead coordinator there, a Milwaukee Bucks fan, has been for a couple of years and was my partner for a period of time on the rapid continuous improvement event we conducted in the back. And then we have Jordyn Leadingham from EQS, who has been with us a couple of years and has graduated from the University of Wisconsin-Milwaukee. And these are the kinds of new people, great new people that we have added to our business and they have the energy and capability and drive that will underpin our future. Stand up, ladies and gentlemen. Let's give them a round of applause. So one of the things that -- looking to the future, I think one of the things we have is that if you look at this chart, it shows the growing of the car parc. You look at when it was in the beginning, what, 230 million cars and then it rolls out 280 million now. But the big thing is the aging of the vehicle is 9.5 years, now it's over 12. So this kind of trend creates this kind of tailwind that allows our business to be stronger. But the real tailwind has to do with the complexity and technology that's rolling through the vehicles. One of the things, as I said, we go into a garage, we observe it. We observe the work and we create a new tool. And part of the things that drives this is continuing change. And if you think about it, this is the golden age of auto repair because change is abundant. You always hear about electric vehicles. Well, electric vehicles are going to need tools just like the other vehicles, and there's no evidence that there's less service associated with them. So we have electric vehicles. But you not only have electric vehicles, the electric vehicles, you have introduced new electric vehicles, but then there's new plug-in hybrids. And there's new versions of the hybrid. And then it's going to be decades if they eventually replace the internal combustion engine. So the cars are -- the garages are going to become dizzyingly complex associated with just the drivetrains. And then you have all kinds of new features, a lot of them associated with autonomous cars. They call them advanced driver assist systems, things like lane departure warnings, and this creates more complexity in the garage. If you doubt this, think about this, your car is now a neural network of sensors to keep you on the road, no lane departure and so on. And if you doubt that, bang your bumper sometime and then see what it costs you to get it repaired. This, I tell you, is music to our ears. So we have an -- we not -- like I said, we started out by saying we have a storied past, an encouraging now and an exciting future, and we do. But what confirms that we're on that path, I think, is our first quarter numbers. Let's take a look at these. 1,097,000,000 sales, up 8% organically. Profitability. Profitability, 20%. Remember, it was an all-time high, up 70 basis points from the prior quarter. And the earnings per share, $4, up 14.3% year-over-year. Now remember, I showed you that long chart, and I said remember the number, $3.17. That means that in the year 2010, our full year 4-quarter number for profitability was $3.17. This year, our one quarter profitability number was $4. Quite a bit more. And this was done against some difficult times. The COVID is still here. Still here. You can see it in the U.K., the lockdowns in China and so on. We have the, like I said before, the descendants of the COVID or results of the COVID, which is inflation and supply chain disruption. Try buying chips or getting steel these days, not so easy. We have the war in Ukraine disrupting some of our markets. We have the lockdowns in China occurring and we just had a system interruption. So I would like to introduce you to some of the special people who have guided us through this. First of all, the quarterbacks of our response to the COVID, Ms. Mary Bauerschmidt and Raul Colon. Stand up. And then we have supply chain problems, and we have, from our staff, our Vice President of Strategic Sourcing, the man who finds all this stuff when we can't find it and tells the suppliers they shall not pass when they try to give us extraordinary pricing increases, Mr. Govind Arora. And then, as everybody is acutely aware, we had a system interruption and we dealt with it. We shook it off, and I'd like to introduce you the captains of our effort against that, Ms. June Lemerand and Ms. Heather Utlaut. Stand up, please. So that's our story. I mean we're a company that is celebrating the makers and fixers. That's what we do. We have emerged from the virus stronger than when we entered. We had our tailwinds in terms of our essential industries. All the things we do are critical and therefore, cannot let off. If they do, there is a problem because you need to keep society from disintegrating, and we have new technologies rolling through this. We have a storied past and an encouraging now. And I hope I have demonstrated to you that we have an exciting future rising on products, brand and people. And we are committed, we are engaged and enabled by the power of place we get from Kenosha. We are committed to Kenosha, and you can see the testimony to our commitment, rising about 100 yards behind me, outside. We're committed to Kenosha now and for many years to come. Now let's go to questions.

All right. We'll have questions now. Do we have any? We have people roaming the floor here.

Hi, Nick.

Barb.

How are you doing?

Okay.

All right. My question is, what is the status of Snap-on's pension plan and how healthy is it?

Are you retired? All right. Okay. Pension plan is solid. I mean you're not supposed to make statements like this, but I wouldn't worry too much about it. I think we're in pretty good shape. We're pretty well-funded. If you look at the basis of funded, I think we're well into the 90% range, if now, we're overfunded now. And that can go up and down because as you know, Barb, it depends quite a bit on interest rates and a number of different things, but we are committed to making the pension because, because we believe that we have been handed a great company by people like you and the people to your right, our retirees. And to the extent we reach higher, we stand on your shoulders. So it's part of our commitment to make sure that you're okay in your retirement. And you can go off to Florida and party all the time and have those drinks with the umbrellas in them. Okay. Next question. Any other questions? Other questions.

Good morning.

Morning.

Walking this morning, I couldn't help but admire the new building. First of all, congratulations on the new building. If you could tell us a little bit more about it, when the moving date might be? And are there any additional future building plans?

Your guess is good as mine on the movement day. I think we're going to move in between now and August. We plan a ribbon-cutting in August. The purpose of the building is -- remember, I said that the runways for growth, enhance the van channel, expand with repair shop owners and managers and extend to critical industries. Well, extending to critical industries mean you have to have quite a bit of product and you have quite a complicated product line. Some of our product lines aimed at the military or aviation are 100 or 200 items -- have 100 or 200 items in it. It's what we assemble back here. And as we build that business, we need more room to do that for both the product that feeds those lines and for the ability to do it. As for other plans, we don't have any currently, but we do have land out here in the back. So I don't know. We are committed to Kenosha. It's the wellspring of our energy and capability. All right. What else do we have?

Good morning.

Who's next?

Snap-on has been...

They're fighting over it. This is good. Right. Yes.

Snap-on has been successful for the last 100 years. What do you see for the next 100 years? My grandchildren and great-grandchildren will be much interested.

Look, I think Snap-on is an extraordinary company that can get bigger. I mean I think the whole idea of criticality seems to be coming more and more important. One of the things that seems to be the hallmark of new equipment, everybody would think would be computerization and so on. And that's some of it, and we addressed that. But two things are at a premium these days, is efficiency that emanates from precision. And precision means you need the kind of tools either software or hardware to adjust those precisely. Think about it. If you have, say, for example, on a car, you have an automatic parking system. Let's push the button and park, right? Parallel park, right? Okay. Bad idea if your car's out of alignment, right? Crash. So there's a lot of things like that, that keep expanding the need for this. And that's what we see. You almost see, not as much invention of mechanical things, or even electronic things, you see optimization. And our products are tools of optimization. So I see us getting better. I see us expanding into more critical industries. I see the repair industry getting more complex and needing more of our tools. As I said, they are getting more situations in -- more different kinds of cars going forward, which will drive more needs for mechanics. You're already seeing that mechanics -- the demand for mechanics is going up. So I think that's probably where you're going to see us expand, into precision, into critical industries. And 100 years from now, Snap-on will be more in aviation and oil and gas and those things, maybe even auto repair, but still be very strong in auto repair. And I invite you to our 150th anniversary because we've got the -- we got a time capsule at our 100th anniversary out in the back. We filled the time capsule. We're going to bury it outside. So when we have the 150th, we'll bring that out. I hope you're there. I know that Snap-on will be here. All right.

Good morning, Mr. Pinchuk. I have a question. With the COVID lockdown in Shanghai and some other cities in China, how does this impact our business in China and also in Asia?

Well, yes, if they stay locked down forever, that will really affect our business. I think it really -- they're a twofold question. Shanghai itself locked down wouldn't be a problem. But the port of Shanghai being locked down is a problem. And the fact is there are 400 million people, not just the -- what, 40 million residents of Shanghai that are locked down, so that can be a problem. That will affect a portion of our Asian business. It will affect shipments to the United States in terms of power tools and other things which we use and shipments all over Asia. Right now, there are ways to get around that. And so we will be able to manage over that with minimal impacts in the near term. If it stays forever, we'll have to figure out how to resource from that -- whatever is made in that -- the plant that's near Shanghai. That's simply it. I think the thing about -- there's almost nothing that will happen there that will derail us completely. Whatever happens, we'll just adjust to it. We'll figure out how to do it. For example, if the Shanghai port is down for a long, long time, and we have our Kunshan factory, which is not in Shanghai, comes up, we'll ship to other ports. It will cost us more money. So it's hard to assess how much cost that will be. Right now, the betting though, is James, who I was just on the phone with, bets that this is going to end by May 5, which is when the vacation ends in China. There's a vacation that's enacted pretty soon. In fact, I think it's May 1 onwards. And so after that, I think it will open up. And then it's a question of how quickly will the ports clear. And that doesn't matter so much because we'll send it to other ports, it will just be a matter of cost. And that won't be so bad for us, we'll continue to go and try to find offset someplace else. So I don't see it being a big factor. It's just that -- I said on my earnings call, it's always something. It's always something. Actually, that's why you have these guys in the front row. They're supposed to be able to figure this out. Okay.

You mentioned RCI. I'm a little familiar with that. So could you tell me something that specifically that's happened in the last year in the -- in Snap-on?

Sure. There's a lot of things, I think. But RCI applies to a lot of things, but let's just say, in the back here. We worked on the line, which imprinted the new products that are coming out. In other words, laser worked on the new product, gave the labels to the products that came up. We reorganized it so it could be done quicker and we took time out of that situation. That's one thing. Other things are RCI is working -- let's say, for example, our air conditioning business in Europe. Air conditioning business in Europe had difficulty because the chips they were using were in short supply, and they weren't being able to deliver. And the heat is coming. And I can assure you, working in air conditioning, if you can't deliver early, you are out of the season. You don't sell anything because the demand is like this. So over the last several weeks, they've been using RCI teams to redesign and figure out how to get chips, both where can you source the chips, what can you do to the design, what can they do for delivery. And they now have the same product, but with different chips in it as functional as before, and they can deliver in time for the heating season. So those are examples. But there's thousands of examples, every year, associated with this kind of thing. It's one of the reasons why the profitability went from 6.5% in 2006, I think it was, to 20% this year, 1,350 basis points improvement. It's because of all those incremental increases. Credit companies look at better ways to process applications. Those are the kinds of things. Almost anything you can think of, you can find ways to improve it. This is one of the real features of RCI. It taps the understanding of the people who actually work on something to say, how could you do it better? And you work on it, you make it better. That makes it more efficient. You can turn stuff out cheaper. And then you look at it again and say, "I can do it even better and then even better." It's amazing. And it's worked throughout. It's one of the things that courses through the veins of our company. All right. Anything else? Yes?

Nick, I know you're expecting a question from me, but I don't really have a question. I just have a statement. As a retiree, every month, I get reminded how proud I am to be part of the Snap-on lifestyle. It goes to -- a check goes into my checking account. I don't see it. Sara does.

Yes. I'm familiar with the phenomena. Yes.

Yes. But I want to thank you and everyone involved with Snap-on because every time I see that come in, it reminds me of my pride to have been part of Snap-on, so thank you.

Well, you're from the Johnson family. And we really mean when we said it started with a spark and the spark was an idea, and the idea was Joe Johnson. We are merely the stewards of the spark and the keepers of the dream. We stand on your shoulders because you were here for 30 years. So whatever we have today is in part because of what you contributed to us. We thank you. All right. What else? We have one over here. Yes?

Good morning, Nick. [ Gene Smith ]. I don't know if you remember me or not.

Yes, I do. I won't reveal why I remember you, but okay. Yes. We were on a team together once.

Yes, a few times. Yes, it was fun. It was fun.

Yes, it was fun.

Since I've been retired for 5 years, my wife really never knew what I did, but -- my question goes back...

Neither did we.

My question goes back to -- so what are you doing about the current supply chain problems?

Wow. Aren't you in supply -- weren't you in supply?

Yes.

Yes, right.

We didn't have problems then.

Well. Govind just whispered to me. He said our first step was to anticipate it and urge you to retire. No, [ Gene Smith ] is one of our great people. He did a great job. And this, I'm just funning with him. Well, here's what we're doing. We're -- to the extent -- first of all, Snap-on has a natural advantage. Our supply chains are shorter. We tend to make in the markets where we sell. 80% of what we sell off the van is made here right in America. We're vertically integrated, which is a technical -- which is a kind of a business term for -- meaning, we don't buy that much. If you think about a hand tool plant like the Milwaukee plant, raw steel comes in the back of the plant. And hand tool comes out, we add very little, but capital and labor to it, really. People work on it, and we have capital, but we don't buy much for it. So we have that natural advantage. And then we have, oh, 85,000 SKUs. In other words, 85,000 products. So we don't buy that much of any one particular thing, which means that if we're short of it and we can't find it, we can usually go on a spot market and buy it. Now it's more expensive. So you eat the cost and therefore, you had to figure out how to deal with that cost. So that's one of the things we do. We are very active in the spot market. Secondly, we've been very active in redesign. One of the things about management, as you know -- I know you know this, I'm just going to summarize it in a way. The balance between every manager, every business has a balance between what you're working on that's going to help you today and what you're working on so that you have help for tomorrow. You have -- you can eat tomorrow. The balance between today and tomorrow is one of the things that inhabits every business. But the realization is the path to tomorrow leads right through today. And in these times, the energy that has to go to today has to rise because there's much more nonstandard conditions, like not being able to get things that you were getting on a regular basis. So the idea that our management team, with alacrity, can ride to the sound of guns and figure out what to do that day to solve the supply chain is really the secret associated with this. I got to go out and buy on the spot market. In other words, change what you do normally. Don't follow the process, get out of it. Because in this time, alacrity, speed is everything. That's the second thing. Then thirdly, we have -- if you look at the Tools Group, we control the customer interface. So we can agilely market. So to some extent, if we can't get lemons, we try to sell oranges. And that works. So you got those 3 things. So you have buying on the spot market, you have riding to the sound of guns, redesigning the product so you find things that are available and put them in your products so you don't have to depend on those things that are not. And then finally, trying to market agilely. Get people to buy what you actually have. I would say it's all about revving up the speed at which you react to things. By the way, if you look at the first quarter numbers, you start to believe that these guys are okay at it. All right. Any others? Nobody wants to know who's going to win the NBA championship? You can guess who I think is going to win the NBA championship, right? The World Champion, Milwaukee Bucks, will repeat this year, I believe, right? Let me just close. I know I've been up here a long time. But I think how I want to close is this. This is a company. I want to reinforce what I said. We have come out of this great withering. And we have shouldered some tremendous dislocations in terms of supply chain, which [ Gene ] just talked about, and the inflation, and in fact, now the lockdown in Shanghai and the war in the Ukraine, and kept moving onwards. Your company really is stronger than it's ever been. So I think I would just summarize by saying, I have done what I said I would do. I have told you of a company stronger than it's ever been. A company that rises out of product from wrenches, to undercar equipment like aligners, to power tools, to tool storage cabinets, to software, product that is demanded and enables people. Product that is born out of the idea of insight and experience, forged over decades but sharpened by the new. I have told you of a company that rises on brands. And that brand is stronger than it ever was. Mechanics say so. Parents of newborn babies say so. And grieving relatives of former mechanics who bury their ashes in our boxes say so. This is a special company. We rise on product, on brand and on people. And I've also done what I said I'd do -- or the video said I would do, and telling you of a special people who are essential to the serious and unique to the world, who stood firm in the virus, preserving all we know amidst the gloom. These are special people. These are the makers and fixers who we serve and then the people in this company who do serve them. The makers and fixers are people who have delivered us in the worst of times and have propelled our country on to the heights that it is today. The people have stood firm, keeping our society from disintegrating while we engaged and defeated the COVID, the makers and fixers. I've told you of a company who focuses on that. We are a people of work. And we know, one of the things we have determined is that the world we know, the way we move, where we live, the energy we raised, the way we move, the hopes we hold and the dreams we dare are all shaped by work, and we are the people of that work. We are enlisted in a cause that is as timeless as it was 100 years ago. But my main message here is when I say Snap-on rises on its people, I mean everyone here. You see, we're a company that -- a company is a place where people come together to create a benefit for themselves and for others that they could not create individually. And to do that, you need support from a wide range of people. And in fact, this is true, Snap-on rises not just on one group. We enjoy the confidence of our investors. We enjoy the commitment of our associates. We enjoy the conviction of our franchisees. We enjoy the faith of our customers. We enjoy the support of our community. And yes, we stand on the legacy of our retirees. When I say we rise on people, I mean everyone here, not just people who are members of Snap-on. So I put up here the 100th plus. And the 100th plus was to remind us that we passed through the COVID, to remind subsequent generations of Snap-on that we did pass through the COVID. So this last celebration of the 100, I would simply say, let's celebrate the makers and fixers, the people who have kept our society moving. Let's celebrate who we are. We are the bearers of pride and dignity and of dreams. Let's celebrate all of us. Let's celebrate all of us here, all who contribute. Let's celebrate all the people of Snap-on, those who make a difference now and for many years to come. Thank you all for coming. I'll see you next year.