Jim L. Wade: The company does not give specific numbers for specific regions. The comparables, taking out the Florida and the Gulf Coast regions was about 2.8% for the quarter.

Jack Balis (Focus Research): Do you believe that by 2008, deferred demand will come back and the industry should benefit from that and if so, shouldn’t you have more new stores to take advantage of that trend?

Jim L. Wade: There is some deferred maintenance going on that is going to come back over time because it ultimately has to be done. All the initiatives that the company is undertaking, are the ones that have caused it to see business come back when it successfully implement those decisions. In terms of how that affects the store expansion, a lot of the things that the company is doing will allow its new stores that it will be opening to be more effective going forward, both in terms of how they are merchandised as well as the occupancy cost and other factors that influence their performance. 140 to 150 stores are still a lot of stores, and a year from now, Advance Auto Parts will be in a better position to have better performing new stores.

Richard Weinhart (BMO Capital Markets): What were the comparables excluding Florida and the Gulf states for the first quarter, or could you clarify what kind of an impact you had between first and second quarter?

Jim L. Wade: It was about the same numbers in both quarters. The comparable in the second quarter excluding Florida and the Gulf Coast was higher than the first, but not significantly different.

Richard Weinhart (BMO Capital Markets): Is the sales boost that you are hoping to get from the expanded parts selection based on data related to customers that have essentially walked out because you did not have the part you tracked at or is this based on some additional market share gains related to kind of increasing traffic?

Elwyn G. Murray III: It is based on a number of things, not the least of which is input from the company’s parts pros where it has gathered a lot of insight from them on what is missing in the market. The company has data sources that allow it to see what late model and particularly where import coverage is needed in different markets. Likewise, what are the brands that it is not in that it needs to be to be credible with its commercial customers. Additionally, it has the capability to perform what effectively it calls a lost sales function in the store level, so literally in 3100 stores; it is able to capture sales that were missed on parts. There are a number of things that are serving as good inputs to improve the company’s parts availability. Based on some of the early indicators, the company is seeing results there.

Richard Weinhart (BMO Capital Markets): Are you actively going to be advertising this expanded selection to your commercial customers?

Elwyn G. Murray III: The company is working with its marketing group to formulate communication at the right time. That is taking some lead time, but about the 1st of 2008, the company wants to be poised to communicate what it is doing.

Ryan Rentria (Cars Capital): Your comparables guidance for the fourth quarter is 2 points higher than for the third one and you said the sales initiatives would have a limited impact and the comparisons about the same. Why is it that you are expecting acceleration in the business in the fourth quarter?

Jack Brouillard: There will be more of the initiatives coming to bear in the fourth quarter, and embedded in that. The external environment is going to freshen and there will be more opportunity to do business, but the combination of Advance Auto Parts’ own efforts being that much further along and a belief that the external environment is going to improve.

Ryan Rentria (Cars Capital): The $50 million in cost reductions in 2008 is on top of the $20 million in the second half of this year, so it is an aggregate of $70, is that correct?

Jim L. Wade: No. The $50 million for 2008 is the impact in 2008; the $20 million in 2007 is the impact in 2007. They should not be added together.

Nancy Hoch (J.P. Morgan Securities, Inc.): Could you talk about whether your 11% to 12% operating margin target is still intact and you are getting a nice jumpstart from the express reductions, but what gets you the rest of the way towards that target?

Jack Brouillard: It is a combination of returning to reasonable levels of comparable store sales as a result of all of the initiatives that are under way and those that are not yet underway but will be underway. The company is focused on having a more cost cautious culture within the company and the sum total of the things it has been talking about. The company still thinks that target is a reasonable target for it to achieve.

Nancy Hoch (J.P. Morgan Securities, Inc.): You talked about your systems investments and a trade off this year with more emphasis shifting towards inventory management. Can you talk about where you are funding those investments from?

Jim L. Wade: The company looks at all of its CapEx for 2007 and 2008, and as part of that, has reprioritized some investments, it has eliminated other investments and all of that is reflected in the revised CapEx guidance it has given. The funds are there to do what needs to be done. It is a matter of aligning it with the strategy and ensuring that all the other investments it is going to produce the returns.

Nancy Hoch (J.P. Morgan Securities, Inc.): Have you increased the size of the IT bucket or are you deemphasizing some other IT initiatives at this point?

Jim L. Wade: The company has not increased, but rather redeployed and ensure that all of its CapEx spending in IT is focused on these initiatives that matter most to the business.

Cid Wilson (Kevin Dann & Partners): You mentioned that there were some learning experiences that you got from Autopart International. Where do you feel those missed opportunities were?