Good day, and welcome to the Snap on Incorporated First Quarter 2021 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Sara Verbsky, Vice President, Investor Relations. Please go ahead.
Recorded. Thank you, Nick, and good morning, everyone. Thank you for joining us today to review Snap on's Q1 results, which are detailed in our press release issued earlier this morning. We have on the call today Nick Pinchuk, Snap on's Chief Executive Officer and Aldo Pagliari, Snap on's Chief Financial Officer. Recorded.
Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. Recorded. After Nick provides some closing thoughts, we'll take your questions. As usual, we have provided slides to supplement our discussion.
Recorded. These slides can be accessed under the Downloads tab in the webcast viewer as well as on our website snapon.com under the Investors section. Recorded. These slides will be archived on our website along with a transcript of today's call. Any statements made during this call relative to management's expectations, estimates or beliefs recorded or otherwise state management's or the company's outlook, plans or projections are forward looking statements and actual results may differ materially from those made in such statements.
Recorded. Additional information and the factors that could cause our results to differ materially from those in the forward looking statements are contained in our SEC filings. Recorded. Finally, this presentation includes non GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Recorded.
Additional information, including a reconciliation of non GAAP measures, is included in our earnings release and in our conference call slides on pages 14 through 16. Recorded. With that said, I'd now like to turn the call over to Nick Pinchuk. Nick?
Recorded. Thanks, Sarah. Good morning, everybody. As usual, I'll start the call by covering the highlights of our recorded. And along the way, I'll give you my perspective on our results.
They are encouraging. Our markets, they're standing firm. Recorded and on our progress, it's made us stronger than ever before. And we'll also speak about what it all means. Recorded.
We believe it means we're getting better and better positioned for more even while we're still in the midst of a once in a 100 year recorded. And after all that Aldo will move into a more detailed review of the financials. Recorded. We believe our Q1 is clear confirmation of Snap on's ability to continue its trajectory of positive results, recorded further accommodating to the virus environment, overcoming period to period variations from business to business, dealing with macroeconomic headwinds recorded and advancing along our runways for both growth and improvement. Our reported sales in the quarter of 1,000,000,000 recorded.
$24,600,000 or up 20.2 percent, including $19,200,000 of favorable foreign exchange and recorded. $11,300,000 of acquisition related sales. Organic sales growth was 16.3%, gains in every group. Recorded. It's our 3rd straight quarter of being above our pre pandemic levels.
And ongoing contributions from our Snap on value creation processes, recorded. The principles we use every day, safety, quality, customer connection, innovation and rapid continuous improvement or RCI, they all combine to drive that progress. $2,000,000 from last year, which included $7,500,000 of restructuring charges. OpCo operating margin was 19.6%, recorded up from the 2020 level of 16.3% or 17.2% as adjusted for restructuring. Recorded.
For Financial Services, operating income of $65,300,000 increased 14.8% recorded and the delinquencies were down. Even in the midst of a pandemic stress test during commercial trial of what we would call extraordinary proportion recorded. And that results combined with OpCo for a consolidated operating margin of 23.9%, a 300 basis point improvement as reported recorded and up 2 20 basis points as adjusted. 1st quarter EPS was $3.50 recorded up 40.6% from last year's $2.40 And excluding the 2020 restructuring charges, EPS grew 34.6%. I said it before and I'll say it again.
We believe Snap on is stronger now than when we entered the Great Withering. Recorded. And we also believe that our Q1 results testify to just that, especially when we compare them to 2019 before the virus. Recorded. So let's do that.
Versus 2019, our sales in the past quarter grew 102,900,000 recorded or 11.2 percent and that reflects $15,300,000 of acquisition related sales, dollars 11,600,000 of favorable foreign currency and a $76,000,000 recorded. 8.1 percent Economic Gain. The 2021 OpCo operating margin of 19.6 percent was up 50 basis points recorded from the 2019 level as adjusted for a legal settlement in that earlier period. And that 50 point gain recorded. Was achieved against 80 points of unfavorable currency and acquisition impacts, all while still absorbing the COVID Now to our markets, auto repair remains quite resilient.
The technicians are rolling. They know they've weathered the depths recorded. And I've learned to accommodate the virus environment and are moving to psychological recovery. There's still some air of vigilance, But their activities are robust and they know they won't be shocked again by a spike. They're quite positive regarding The future of driving as people pivot from shared mobility to individual transportation and its Vehicle repair with the technicians is a strong and resilient market.
You can hear it. You can hear it in our franchisees' recorded and you can see it written clearly across our double digit numbers. Also on auto repair, there are shop owners and managers. Recorded. There are signs that the auto business is rising.
Demand for new and new cars is high, but dealership repair and maintenance and warranty recorded. So there is a gradual gain and we're positioned to take advantage with the broader and stronger product line with innovations Like our Triton D10 Diagnostics and new acquisitions like Dealer FX, putting us deeper into dealerships than ever before recorded and providing us a clearer view of the future repair trends, new technologies and evolving vehicle platforms. Recorded. Dealer FX puts us at the right place at the right time as things change. Finally, let's talk about Critical Industries, what Snap on rules out of the garage, solving tests of consequence.
This is where C and I operates, The most international of our operations. And these are the customers that have been most impacted by the virus. They're slower to accommodate and to recover, recorded, but they have been recovering. And in the quarter, the results showed that trend despite some significant headwinds, including the continuing impact recorded. The February freeze in Texas, some challenged business sectors like oil and gas and troubled geographies like Southeast Asia.
Recorded. Despite that variation, we did see growth in critical industries, improvement in a number of areas. In aviation and education and heavy duty fleet, recorded. They all combined to overcome the continuing turbulence in natural resources. Also in C and I, S and A Europe, recorded.
Another quarter of double digit growth with broad strength across its geographies in places like France, Spain, Italy, recorded. Germany and the Nordic region and from our Asia Pacific division, up double digits as well with solid increases in key countries like China, recorded in India and Japan. So overall, I describe our C and I markets as improving and representing clear recorded. And coupled with our auto repair related businesses, we believe there's clear overall progress along our runways for growth, enhancing the van network, expanding to repair shop owners and managers, extended critical industries and building in emerging markets, Leveraging our broadening product line, wielding our strengthening brand and deploying the increasing recorded. Understanding of the work that is the hallmark of Snap on people even in the throes of the pandemic shock.
About a year ago, as we entered the virus, we recognized the resilience of our markets and the strength of our model projecting a B recovery and that's how it played out. You can see it in the results. Recorded. So now let's turn to the segments and discuss those results. In the C and I Group, recorded.
On a reported basis, including $9,200,000 of favorable foreign currency translation and $7,300,000 of acquisition related sales, 1st quarter volume rose recorded. 15.3% compared to last year. Organic sales were up 9.5%. Double digit growth in our European hand tool business A mid single digit rise in Critical Industries led the way. From an earnings perspective, C and I operating income of $50,700,000 including $1,400,000 of unfavorable currency represents a rise of $19,200,000 compared to the $31,500,000 registered in 2020, recorded, which included $4,400,000 of restructuring.
That all means on an adjusted basis, an adjusted increase recorded of over 40% and as adjusted increase of over 40% and the operating margin was 14.7% Now when compared with 2019, the pandemic free measuring stick sales were up 7.2% and that included $10,000,000 or 3.1 percent organic recorded. $8,000,000 of acquisitions and $5,200,000 for favorable foreign currency. Once again, C and I demonstrated sequential improvement. Go back and look at their numbers, they keep getting closer and closer. Now they're above pre pandemic levels despite the ongoing uncertainty.
It's recorded. It's one of the things I think we want to remember, the virus isn't growing. We're still bearing it and we didn't have it in 2019 and C and I is above that level. As part of the trend, recorded. We remain committed to extending in critical industries.
That's the C and I sweet spot. So we'll keep strengthening our position recorded. Developed specially to make critical work easier. One example is our CT-nine thousand and ten 3eight inches drive 18 volt brushless recorded. The newest member of our Monster Lithium family aimed at tight spaces, sustained power, rugged durability and precise control.
Recorded. The 9010 features 3 20 pound feet of bolt breakaway torque and 2 40 pound feet of working torque, all the power a technician needs when they're working in confirmed quarters. Recorded. It offers a variable speed trigger and 3 speed selections in forward and reverse. That means greater control, adaptable to any applications and no over torquing, important.
Recorded. The 9010 advanced design also reduces motor temperature rise, delivering higher durability and great power to weight ratio. Recorded. Man, it's fitted with 100 lumen headlight that helps technicians work in dark environments, just what's needed for those close jobs. And the 18 volt battery with 5 amp hours ensures consistent output and recorded.
Extended run time, which translates to less charging and more efficient workday. And all of this comes and this is the best part, I think, all of this comes in an extremely compact size, only 6.75 inches recorded. And it's already one of our $1,000,000 hit products. I don't want to leave C and I without mentioning S and A Europe. Recorded.
Our next question comes from the line of Chris Worley with Needham. Our next question comes from the line of Chris Worley with Needham. Our next question comes from recorded. The twin headwinds of a difficult COVID environment, Europe is not so easy these days and the uncertainty of Brexit, no small feat. Well, that's C and I, continuing sequential improvement and position for more.
Recorded.7000000 of favorable currency and a $95,700,000 or 25 percent organic gain, double digit growth both in the U. S. And the international operations. Recorded. The operating margin was 20.7 percent, yes, 20.7 percent, up 780 basis points recorded.
Compared with pre virus 2019, Tools Group sales grew 68,100,000 recorded 16.6%, including $5,200,000 favorable currency translation and $62,900,000 or 15 or recorded. And this year's 20.7 percent operating margin was up recorded for 130 basis points compared with pre pandemic 2019. The Tools Group is responding to the challenges of the day, recorded. Increasing its product advantage, fortifying its brands and further enabling its franchisees. And the results show it.
Recorded. We do believe our runway for coherent growth enhancing the franchise network represents a continuing recorded. And there's evidence that we're realizing some of that potential across the VAN channel in our franchisee metrics, the financial and physical indicators that we monitor closely. Recorded. Again, this quarter, they remain clearly favorable.
And based on those metrics, we believe the franchisees recorded. And they say so. And our direct interactions at events like recorded. This past January's kickoff meeting held this year at a distance, it was a great affair. Well attended, strong orders, visible commitment to our brand, recorded.
I zoomed into several myself and they were brimming with enthusiasm and optimism. Our franchisees, entrepreneurs and professionals all are pumped, confident and reaching higher. The Tools Group quarter, that's a strong advantage for us. Recorded. The Tools Group quarter was also marked with Snap on value creation, customer connection and innovation, offering new products, sometimes recorded.
Just an improvement on an established line, but clearly making work easier, solving problems, delivering productivity gains. Recorded. One such add is our KERN 6817 Drawer Single Bank Epic Series Rollcap configured entirely with extra wide 62 inches drawers, greater flexibility and capacity and a standard footprint, making the most of limited shop space. Recorded. Our franchisees are already calling it uninterrupted storage.
It's the 1st large capacity roll cap with a full complement of extra wide drawers in the recorded. It's made in our Oglala plant. I saw some of them being made there just last month. The local team is proud of them. Recorded.
It comes with 2 swivel and 2 rigid casters located right on the corners of the box. It doesn't seem like much of a change, but that's a clever innovation that provides recorded. Mobility in tight spaces while also greatly enhancing box stability. That's a very important feature for a high capacity unit. The KER 681, recorded.
EPIC strength, styling and styling, 8,000 pounds of load capacity and more than 45,000 cubic inches of storage space. Recorded. The franchisees are saying it's been a clear hit and they're right. We spent some time recorded over several quarters, working to expand franchisee selling capacity, harnessing social media, recorded. Improving product training and RCI and van operations and it's paid off.
Selling capacity is up. And you can see it clearly in the 3 recorded. I don't need to say any more about them. Now let's speak about RS and I. Recorded.
1st quarter organic sales rose 7.6% with varying gains across the board. Undercar equipment coming back, delivering double digit rise, diagnostics and information products, independent repair shops, recorded. Growing at mid single digits and the business focused on OEM dealerships advancing low single digits. Recorded. Operating earnings of $81,400,000 including $1,500,000 of unfavorable foreign currency effects increased $4,100,000 from 2020, recorded, which included $3,100,000 of restructuring costs.
Compared with 2019, sales grew $19,700,000 or 6%, recorded. Including a $10,000,000 or 3.1 percent organic gain, dollars 7,300,000 from acquisitions and $2,300,000 of unfavorable foreign currency. Recorded. We clearly see the potential and our runways for growth in the RS and I Group, expanding Snap on's presence in the garage recorded with coherent acquisitions and a growing line of powerful products. ArcelorMittalI's organic growth in the quarter was broad based, recorded.
But the double digit rise in undercar equipment was especially welcome turn and was led by innovative products like recorded. Our newly introduced TruPoint ADAS calibration system, advanced driver assistance systems or ADAS are recorded. Recorded. Crosswind Stabilization. These new features are great, but what's really music to our ears recorded.
Is that they require periodic calibrations to make sure they're working with precisions and calibrations can be complicated. Sensors recorded. Cameras vary considerably across vehicle makes and models. And if you get a faulty recalibration, it leads to rework and it's not good for safety. Recorded.
So our new John Bean 2.8ES calibration system is the fix, making sure the vehicle is physically aligned correctly, recorded. Guiding calibration of the sensors and documenting that the procedure was performed appropriately. It does so and it does so recorded. The multitude of makes and models sing regularly in OEM and aftermarket shops. The new TruPoint is easy to use.
Required. It requires minimal training. It compensates for the floor irregularities that are so common in garages and bedevils alignment and calibration. Recorded. It's quick and efficient and it's OEM compliant.
It's a powerful product right in the crosshairs of automated vehicle technology that's so prominent today. Recorded. Progress in diagnostics and information with independent repair shop owners and managers was also clearly evident in our diagnostics business, recorded in our RS and I activity. And in this quarter, the launch of our new Triton D10 handheld helped author that positive. Recorded.
The new Triton is ultrafast, a 2 second boot up, and it has a best in class 10 inches touchscreen. Recorded. It's geared to the more capable technician offering a one touch full diagnostic code scan, scope capabilities for performance display recorded and guided testing of suspect components that you may want to replace, but you want to make sure there's a problem. Recorded. It's loaded with our Fast Track intelligent diagnostic rooted in our proprietary database of over 200,000,000,000 vehicle events, a Snap on only feature recorded that enables quick and accurate diagnosis of even the most difficult and unusual repairs, ensuring an efficient and effective solution recorded for those very, very time consuming problems, just what the capable and senior technician needs.
Recorded. Now as I've said, we've spent I've said before, we've spent considerable effort working to help franchisees sell the complex tools recorded today efficiently and it's paying off with Triton. Each of our franchisees received a demonstration unit facilitating the hands on recorded. Training guided by the video presentations that were a prominent part of our network's February sales meetings. Recorded.
Following that initial instructions, the demo unit could then be put immediately in the hands of a technician to physically showcase the great benefits of our powerful new tool and it worked. Recorded. The launch has been a success. Our franchisees are comfortable selling a new and complex tool and many are now calling the Triton D10 the best diagnostic recorded. Finally, RS and I got a nice boost in the quarter.
As often is the case by recorded by new technologies and OEM dealerships helped by some significant essential tools and equipment programs supporting the new electric vehicle launches. Recorded. We're quite positive about RS and I's future with Prairie Shoppe owners and managers as the vehicle industry evolves. Recorded. It plays to our strengths.
So that's the highlights of the quarter. Continued and strong progress. Recorded. Our 3rd straight period exceeding pre pandemic levels. C and I sequential improvement, recorded.
The Tools Group strong and pumped. Organic sales rising 16.3 percent. Opco operating margin 19.6 percent EPS 3.50 dollars a big rise and most important, recorded. More testimony that Snap on has emerged from the turbulence much stronger than when we entered. It was an encouraging quarter.
Recorded. Now I'll turn the call over to Aldo. Aldo?
Thanks, Nick. Our consolidated operating results are summarized on Slide 6.
Recorded.
The Q1 of 2021 exhibited robust financial performance, particularly as compared to last year when we experienced the initial shock of the virus. Recorded. The quarter's results also compared favorably with the Q1 of 2019, which being a pre pandemic time period may serve to be the more meaningful baseline. Recorded. Net sales of $1,024,600,000 in the quarter increased 20.2% from 2020 levels, reflecting a 16.3% organic sales gain, recorded $11,300,000 of acquisition related sales and $19,200,000 of favorable foreign currency translation.
Recorded. Additionally, net sales in the period increased 11.2 percent from $921,700,000 in the Q1 of 2019, including an 8.1 percent organic gain, dollars 15,300,000 of acquisition related sales and $11,600,000 of favorable foreign currency translation. Recorded. Consolidated gross margin of 50.1% compared to 49.5% last year, which included recorded. The gross margin contributions from the higher sales volumes and benefit from the company's RCI initiatives were offset by 40 basis points recorded of unfavorable foreign currency effects.
Operating expenses as a percentage of net sales of 30.5% proved 270 basis points recorded from 33.2% last year, which included 30 basis points from restructuring costs. The improvements primarily reflect the impact of recorded. Higher sales and cost containment actions, partially offset by higher stock based cost and 30 basis points of operating expenses related to acquisitions. Recorded. Operating earnings before financial services of $200,900,000 compared to $138,900,000 in 2020, recorded.
19.6 percent improved 330 basis points from 16.3% last year, which included 90 basis points for restructuring costs. Recorded. Financial Services revenues of $88,600,000 in the Q1 of 2021 compared to $85,900,000 last year, recorded. While operating earnings of $65,300,000 increased $8,400,000 from 2020 levels, recorded principally due to the higher revenue as well as lower provisions for credit losses. Last year's provisions included a $2,600,000 charge recorded for higher reserves resulting from the economic uncertainty caused by COVID-nineteen.
Consolidated Operating earnings of $266,200,000 increased 36% from $195,800,000 last year. Recorded. As a percentage of revenues, the operating earnings margin of 23.9% compared to 20.9% in 2020, which included 80 basis points from restructuring costs. Recorded. Excluding the restructuring cost, operating earnings margin in 2021 increased 220 basis points from last year.
Recorded. Our first quarter effective income tax rate of 23.5 percent compared to 24.2% last year, which included a 10 basis recorded. $6,000,000 or $3.50 per diluted share increased $55,400,000 or $1.01 per share recorded from 2020 levels, representing a 40.6% increase in diluted earnings per share. Additionally, recorded. Net earnings increased $14,700,000 or $0.34 per share from 2019 levels, representing a 10.8% increase recorded in diluted earnings per share.
Net earnings in 2020 included restructuring charges of $6,000,000 after tax or $0.11 per diluted share and net earnings recorded. Included a benefit of $8,700,000 after tax or $0.15 per diluted share from a legal settlement. Recorded. Excluding these items, diluted earnings per share of $3.50 in 2021 increased 34.6% from 2020 recorded at 16.3% from 2019 levels. Now let's turn to our segment results.
Starting with the C and I Group on Slide 7. Recorded. Sales of $345,700,000 increased 15.3 percent from $299,900,000 last year, reflecting a 9.5 percent organic sales gain, dollars 7,300,000 of acquisition related sales and 9 point $2,000,000 of favorable foreign currency translation. The organic gain includes double digit increases in the segment's European based hand tools business recorded and for Asia Pacific operations as well as a mid single digit gain in sales to customers in critical industries. Recorded.
Improvements in year over year sales growth were widely seen across Europe as well as in most emerging markets. Additionally, recorded. Within Critical Industries, strong sales gains were achieved in Aviation, Heavy Duty and Technical Education, while year over year declines in the Natural Resources recorded. As a further comparison, net sales in the period increased 7.2% from 2019 levels, representing a 3.1% organic sales gain, recorded $8,000,000 of acquisition related sales and $5,200,000 of favorable foreign currency translation. Recorded.
Gross margin of 38.7 percent improved 190 basis points from 36.8% in the Q1 of 2020, recorded, which included 150 basis points from restructuring charges. Aside from the improvements resulting from the lower restructuring cost, recorded. Contributions from higher sales volumes were partially offset by 70 basis points of unfavorable foreign currency effects. Recorded. Operating expenses as a percentage of sales of 24% improved 2 30 basis points as compared to last year, primarily as a result of the higher volumes recorded and savings from cost containment actions.
Operating earnings for the C and I segment of $50,700,000 including $1,400,000 of unfavorable foreign currency effects compared to $31,500,000 last year, recorded. The operating margin of 14.7 percent compared to 10.5% a year ago. Turning now to Slide 8. Sales in Snap on Tools Group of $478,300,000 increased 27.2 percent from $375,900,000 in 2020, reflecting a 25 percent organic sales gain and $6,700,000 of favorable foreign currency translation. Recorded.
Organic sales increase reflects double digit gains in both our U. S. And international operations. Net sales in the period increased 16.6% recorded from $410,200,000 in the Q1 of 2019, reflecting a 15.1 percent organic sales gain recorded and $5,200,000 of favorable foreign currency translation. Gross margin of 45.9% in the quarter improved 320 basis points from last year, recorded primarily due to the higher sales volumes and benefits from RCI initiatives.
Operating expenses as a percentage of sales of 25.2% improved from 29.8% last year, primarily due to the higher sales volumes and savings from cost containment actions. Operating earnings for the Snap on Tools Group of $98,900,000 compared to $48,600,000 last year. The operating margin of 20.7% recorded compared to 12.9 percent a year ago, an increase of 7 80 basis points. Turning to the RS and I group shown on Slide 9. Recorded.
Sales of $347,600,000 compared to $314,600,000 a year ago, reflecting a 7.6 percent organic sales gain, recorded. $4,000,000 of acquisition related sales and $4,800,000 of favorable foreign currency translation. Recorded. The organic increase includes a double digit gain in sales of undercar equipment, a mid single digit increase in sales of diagnostic and repair information products to independent repair shop recorded. As compared to 2019 levels, recorded.
Net sales increased 6%, reflecting a 3.1 percent organic sales gain, dollars 7,300,000 of acquisition related sales recorded and $2,300,000 of favorable foreign currency translation. Gross margin of 46% declined from 47.9% last year, recorded primarily due to the impact of higher sales and lower gross margin businesses and 70 basis points of unfavorable foreign currency effects. Recorded. As a reminder, Undercar Equipment as well as facilitation program related activity, both of which had healthy sales increases in the quarter, recorded. We typically have a gross margin rate that is below the RS and I segment's average.
Operating expenses as a percentage of sales of 22 point 6% improved 70 basis points from 23.3% last year, which included 80 basis points of restructuring costs. Recorded. Excluding the effects of restructuring, benefits from the higher sales volumes were more than offset by 80 basis points of operating expenses related to acquisitions. Operating earnings for the RS and I Group of $81,400,000 compared to $77,300,000 last year. The operating margin recorded 23.4% compared to 24.6% a year ago.
Now turning to Slide 10. Revenue from Financial Services of $88,600,000 compared to $85,900,000 last year. Recorded. Financial Services operating earnings of $65,300,000 compared to $56,900,000 in 2020. Recorded.
Financial Services expenses of $23,300,000 decreased to $5,700,000 from 2020 levels, recorded primarily due to lower provisions for credit losses resulting from $2,400,000 of lower year over year net loan charge offs recorded and the absence of the previously mentioned Q1 2022 $200,000 charge. As a percentage of the average portfolio, Financial services expenses were 1.1%, 1.4% in the 1st quarters of 2021 2020, respectively. Recorded. In the Q1, the average yield on finance receivables was 17.6% in 2021 compared to 17.7% in 2020. Recorded.
The respective average yield on contract receivables was 8.4% 9.0%. The lower yield on contract receivables in 2021 recorded. Includes the impact of lower interest business operations support loans for our franchisees. These loans were offered during the Q2 of 2020 to help accommodate recorded. As of the end of the Q1, approximately $11,000,000 of these business operating recorded.
Total loan originations of $261,800,000 in the first quarter increased 6 point recorded. $2,000,000 or 2.4 percent from 2020 levels, reflecting a 1.7% increase in originations of finance receivables, while originations of contract recorded. We are now seeing a strong financial recorded. Services portfolio decreased $25,800,000 in the 1st quarter, primarily due to an increase in net collections. Recorded in the Q1 last year and down 20 basis points as compared to the Q4 of 2020.
We believe this reflects the typical seasonal recorded. That customarily results in a decline in the Q1 followed by increases later in the year, usually peaking in the Q4 where we compete recorded with the technician's holiday related discretionary spending. As it relates to extended credit or finance receivables, recorded. Trailing 12 month net losses of $43,900,000 represented 2.55 percent of outstandings at quarter end, recorded, down 7 basis points sequentially and down 44 basis points as compared to the same period last year. Now turning to Slide 12.
Cash provided by operating activities of $319,300,000 in the quarter increased to $105,900,000 recorded at comparable 2020 levels, primarily reflecting the higher net earnings and net changes in operating assets and liabilities, including recorded at $32,100,000 decrease in inventory. Net cash used by investing activities of $207,200,000 included $200,000,000 for the acquisition of DealerFX and capital expenditures of $19,300,000 partially offset recorded by net collections of finance receivables of $12,100,000 Free cash flow during the quarter of $312,100,000 recorded was 158 percent in relation to net earnings. Net cash used by financing activities of $131,000,000 recorded, including cash dividends of $66,700,000 and the repurchase of 722,000 shares of common stock recorded for $151,900,000 under our existing share repurchase programs, partially offset by proceeds from stock purchase and option repurchased $93,000,000 As of quarter end, we had remaining availability to repurchase up to an additional $268,700,000 of common stock recorded under existing authorizations. Turning to Slide 13. Trade and other accounts receivable increased $10,100,000 from recorded.
Days sales outstanding of 62 days compared to 64 days of 2020 year recorded. Inventories decreased $16,400,000 from 2020 year end. And on a trailing 12 month basis, inventory turns of 2 point $400,000 at year end 2020. Our net debt to capital ratio of 12.4% compared to 12.1% at year end 2020. Recorded.
In addition to cash and expected cash flow from operations, we have more than $800,000,000 in available credit facilities. As of quarter end, there were no amounts outstanding under the credit facility recorded and there were no commercial paper borrowings outstanding. That concludes my remarks on our Q1 performance. I'll now briefly review a few outlook items for 2021. We anticipate that capital expenditures will be in the range of $90,000,000 to $100,000,000 We currently anticipate that absent of any changes to U.
S. Tax legislation, recorded. Our full year 2021 effective income tax rate will be in the range of 23% to 24%. Recorded. I'll now turn the call back to Nick for his closing thoughts.
Nick?
Thanks, Alba. Well, that's our first recorded. Another encouraging period, resilient markets through the shock and on the way to psychological recovery. The 3rd straight quarter of upward trajectory, recorded. Clear year over year achievement and the 3rd straight quarter of results exceeding the pre pandemic levels of 2019.
Recorded. RS and I sales continuing upward with OI margins of 23.4 percent attenuated but still strong. Recorded. C and I, ongoing sequential growth across the world and OI margins 14.7%, up nicely even from 2019. And then the Tools Group.
Sales up organically 25% versus 2020, up in all product lines and in all geographies. Recorded. Volume up 15.1% versus 2019 and an OI margin of 20.7%. Finally, recorded. Financial Services, in the midst of the greatest stress test, profits up, delinquencies down, rock solid.
And it all came together with Snap on sales rising organically 16.3% versus 2020 and 8.1% recorded. Recorded. And the EPS, dollars 3.50 a substantial rise versus both 2020 2019. Recorded. We do believe that Snap on is abundant opportunity as the COVID recedes and the world shifts away from the cities and away from shared transportation recorded.
And as new vehicle technologies make the car park more complex and we further believe that we are stronger today than when we entered the storm, recorded. Our advantages of product, brand and people are even greater and we're in a favorable position to wield those strengths, realized the opportunities and continue our positive trajectory throughout 2021 beyond. Before I turn the call over to the operator, I'll speak directly to our franchisees and associates. Many are listening. I want you to know that your work in this withering has made a difference to our company and to our society.
For your efforts in keeping our world and its critical mobility intact, recorded. You have my admiration. For your contribution to our progress in this Q1, you have my congratulations recorded and for your unfailing dedication to our team in both smooth and turbulent times, you have my thanks. Recorded. Now I'll turn the call over to the operator.
Operator?
Recorded. And our first question comes from Gary Prestopino with Barrington Research. Please go ahead, sir.
Hey, good morning, everyone.
Recorded. Hi, Gary. A couple
of questions here, Nick. We haven't really seen this kind of growth Tools Group since probably earlier part of last decade, a lot of that was dealing with tool storage. Recorded. And I don't think it's the same issues now. I mean, if you could cite 3 or 4 things that are different in the growth metrics recorded.
Now what you're seeing, especially over the last couple of quarters versus what you saw maybe when tool storage was really revving up
recorded. Yes. I think there's a couple of things. I think one, this isn't a tool storage and it was a much more focused growth. Recorded.
We introduced the certainly the first thing is when we had that ride, we introduced the rock and roll calves recorded. And the Technos, which really focused on more or less a particular product line. This was a broader thing, much more rooted in a kind of agnostic process of from a product point of view of expanding the capabilities of the tools recorded. We harness social media better. We're training them better to get the elevator pitch down and we RCIs advanced.
We worked on recorded for quarters before, maybe even in 2019, and we worked really hard in the COVID because we had time to focus on it and that's really paying off. It's showing that these The other thing is I think, boy, I think we got some good products, particularly around hand tools. We've packaged the hand recorded. So we're selling not only individual tools, but also kits, kits aimed at a particular problem and they're becoming pretty profitable. We didn't popular.
We didn't talk about them on recorded. The call, I mean things like putting together a set of sockets that are for particular applications in foam, they're wildly popular. And then The other products we have in terms of tool storage and diagnostics, they're really recorded. And that's driving that broad appeal. And then the final thing, I think you could think, look, there's a lot of this is condition.
You could people might say this is recovery, but recorded. The sales off the van all last year exceeded the sales to the van. So you Wouldn't think there'd be recovery in that, not so much recovery in that situation. It's gone off the banners at the same level. The whole year was up.
And Same thing is happening this quarter. Sales off the van are the same as we're selling to them. So you look at this, you might say it's a stimulus and a stimulus could be helping us this way. We don't know. When you talk to technicians and people in the factory, stimulus seems to be, well, it's going into bank accounts or paying off debt.
And the other thing about it is, recorded. By the way, we think it's product and process based because the international business, U. K, Australia And Canada are up and there ain't no stimulus there.
Right. Okay. That's good. Recorded. And then in terms of, I guess, it's dealer FX, couple of questions on this one.
Recorded. What can you tell us in terms of their installed base across dealerships versus The amount of dealerships that you actually service, can you give us some idea of just how much white space there is out there for this product?
Yes, they tend to be. Recorded. There is, I would say, maybe in the double digit percentage recorded of the dealerships, but they tend to be concentrated in a couple of OEMs. And so there's a lot of white space to go in that recorded. We see that tremendous opportunity.
And the other thing about dealer FX, I think we talked about this in the acquisition. They're just now sort of rolling out recorded. This new, their updated system that was ready to go, but the COVID hit. So now they're getting a chance I guess the apple with full force. But again, these are things we knew when we acquired them.
It's early days. We've only owned them for a couple of months. So recorded. We're pretty confident we're in the right place and the right time like I said in my comments.
Are they going to be are there Revenues booked in the RS and I segment?
Yes. They're going to be in RS and I. They're clearly in our Yes, because they're going to sell to dealers. We see them as sort of like the advanced warning net for us is from a strategic point of view. Remember the old DEW line that used to be across Canada To make sure we figured out what the Russian bombers were doing when they're coming over the Gulf over the North.
So this is the same kind of thing. Recorded. Okay.
And then you also just mentioned some new tools for the EV market. Could you maybe elaborate
a little bit on that? Recorded. Well, these things those things are particular to a particular vehicle. We have a business, we call the EQS business that really is rooted in new technology. When new technologies roll out, we're one of the people the OEMs come to to say, hey, put together a set of tools.
Now recorded. In one of these, we have a 70 unit toolset that we provide that supports a certain new vehicle recorded. That's coming out. So I mean that's one of the things. And so and yet there's another one for another new vehicle.
So as people roll out new vehicles, They commissioned these kinds of things to facilitate the dealerships to be ready to deal with it. And then everybody figures out what other things might happen and that shows up and recorded. We launched other tools to match that, that the OEMs didn't even anticipate going forward. Those are the kinds of things. Recorded.
We have a set of tools. We have a standard set of tools for electrics that are what we call insulating tools with glass infused Gladstone fused nylon that allows us to technician to use them safely against ANSI approved against reported on some pretty high voltages. And so that's sockets and pliers and screwdrivers and kits to disconnect the electric
Okay. And just lastly real quick, I don't want to take up too much more time. I would assume some of these Calibration tools for ADAS and things that you've got out there, these are also applicable to the EV market?
Yes. Recorded. Yes, sure. They're rooted they're pretty much agnostic to the powertrain. They're more or less having to do with the sensor the neural net of the sensors
Okay. Thank you so much.
Sure.
Thank you. And our next question comes from Christopher Glynn with Oppenheimer. Please go ahead, recorded.
Thanks. Good morning. Congratulations on the Good morning, Mike. So picking up on recorded. Your answer to one of Gary's questions, you talked about coming out with new kits and follow on tools as new Platforms come out in EV and elsewhere.
So it underscores your visibility. And then with the Dealer FX Group, you talked about how that recorded. And your visibility, I'm just curious how that pairs with your already seeming copious visibility into the new platforms.
Well, the thing is this, that we have visibility into the new platforms via our franchisees, which visit the dealers every day. So they tend to have recorded. A look at the what I would call the more persnickety problems that arise all the time associated with vehicles that no one ever anticipated. Recorded. The Dealer FX is the repair shop management software.
So you get to see what's happening in aggregate recorded kind of like a databases to look at this kind of thing and say, okay, well, they're having a lot of problems here, they're having a lot of problems there. And you get to understand recorded. The difficulties associated with that. So it's not so much an observational thing as a computational thing. Those are the kinds of things that help.
So it just adds to our position. Recorded. And then we also have a non Parell position in the repair shops afterwards, after vehicles age and they end up in independent repair shops, which is what you're What you're referring to, we're in more shops for more hours than 8 days and that's what drives our product line. So when new technology show in, whether you're talking about automated vehicles or electric vehicles, They're going to roll through this. We're going to see them via dealer FX probably first.
Then we're going to see them via the franchisees that call on dealerships to understand the nuances of recorded. Some smaller and more difficult problems that are harder to predict via just maybe the bigger problems, the 20,000 foot problems that the software And then as they roll into the aftermarket, we have probably almost proprietary visibility on that. That's what generates our proprietary database
recorded. Great. And then on SOT, you talked a lot about the recorded kind of throughput enhancements. Do these sales levels that you've seen in the past few quarters represent recorded. Pretty maximized realization of the newly availed bandwidth of the franchise channel into the addressable market?
Well, that I don't know. You know what I mean? I don't know that. All I know is they can go that high. Recorded.
We now approved it's sort of like a stress test. We know they can go that high and they're not complaining. I had a franchisee tell me. Recorded. I asked him about something about his market.
I asked him about what is the market like and so on. He says, I don't know. I'm too busy selling tools. Recorded. So he's out there now.
He didn't say he didn't have more capacity because he was asking me for more units. So in other words, he was short of a particular product line. So he thought So we think they probably have a little more upside. But in this kind of situation, Chris, you'd have to keep pounding. Recorded.
We'd say, okay, we got to keep working on expanding the capabilities because no matter where they are, you want more when you go forward, right?
Recorded. Right. So you feel you have further runway to continue to work on the throughput side of the equation itself?
Sure. Recorded. Sure, sure. What happens is just one question. What happens is you observe what's happening at a certain throughput level and that reveals The pitch points and you work on that.
Great. Last one from me. Finance receivable collections exceeded additions. I don't recall many years seeing that. Are you seeing more customers paying with cash?
Well, Chris, I think what you see is the technician base they're employed, they got more money in their pocket and they seem to be servicing their debt and recorded. I guess just an overview Nick provided earlier, people are servicing their debt in a more pragmatic way. Recorded.
Sounds great. Thanks guys.
Sure.
Thank you. And our next question comes from Luke Young with Baird. Please go ahead. Recorded.
Good morning, guys. Good morning. Couple of questions. First, a near term question. Nick, hoping you could just Talk qualitatively about daily sales trends through the quarter.
Certainly looking at the 2019 comps for the Tools Group especially help to frame the absolute level of recorded. But I just want to better understand the sequential momentum you saw in the Q1.
Yes. Look, I think recorded. One of the things we're seeing is, our 3rd quarter our 3rd month recorded. What's higher in this period, but they're almost always higher a little bit if you look at this. So I would say, we would have said that adjusted for what we expect, the sales were about level recorded kind of constant.
Generally, we have our own sort of like View of what's going to happen when you roll out at the beginning in Q1, for example. And so we have some view. But this generally seemed recorded about what we expected. We weren't surprised by any month in this quarter, I would say. So I think we think it's kind of held strong each quarter.
I don't see attenuation, if that's what you're asking.
Recorded. It is. Thanks for that.
Yes. And then We didn't see any anyways. Okay.
And then a bigger picture recorded. We've seen in the new car market the past, say, 6 or 9 months with respect to electrification, especially ADAS as well. And all these changes Take a while, of course, to ultimately filter through to the aftermarket. Hoping you could just expand on how these changes are impacting your thinking around investment priorities recorded today both organically and M and A. And should we think that, for instance, they impacted the thinking around the Dealer FX acquisition, for example?
Recorded. Yes. I mean the thing is, sure. Look, we like change. Like we said, I think we've said till the dogs, till the cows come home that change is our recorded.
And the earlier we can see change, the more we can, as you say, call in the air strikes about investment and so on. And so the DealerFX acquisition was about positioning ourselves at the forefront, recorded at the vanguard, if you will, of new technologies, not just electric vehicles, but new technologies that would impinge recorded. Now so that's what we're doing. So we'll continue to look at that in terms of, okay, what do we learn from that? How can we invest in other places To follow that change.
But make no mistake about it. The revelations occur in each aging of the vehicle. Recorded. So things change as you roll out. When the vehicle rolls in, people think this is what's needed.
And then a couple of years go by And we see that these are what's needed. And some of it isn't even this is what I was trying to say before, is some of it isn't the fact that you have to repair, let's say, a particular item or you have to recalibrate the sensors. It might be revealed to us in the difficulty of doing Those processes, which everybody first you understand, oh, you got to do it. And then you realize, wait a minute, recorded. On these particular vehicles, you need special tools just to do them because they're configured in an odd way.
This is and we learned that as it went through. Recorded before only maybe hopefully at a faster pace which gives us more to sell. And so our activities will be to try to anticipate those changes
And we'll take our next question from Scott Sember with CL King. Please go ahead.
Good morning, guys, and congrats on the strong results in the quarter. Recorded. I think you, Aldo, you might have answered this question, but the Growth in originations versus the Tools organic sales, obviously, there's a pretty recorded. Is that entirely because more you're seeing more mechanics Basically buy with cash or is there something else, some other new ones that we should
put in on? Couple
of things. I think there's a little bit. I think there's more cash in the system. So that's probably recorded. If anything, that's probably not negative, it's probably a positive.
I think that again, you're still at stages where your psychological recovery is not completely the same Everywhere in the country. So I think people broadly speaking are still a little bit more measured when they approach big ticket items as compared to Hand tools, power tools, things of that nature. I still think there's that nuance. But when the Tools Group sells 25% organically recorded. Without having to dig deep into extended credit, we feel that means there's borrowing capacity down the road that opens up future opportunities for them.
So we Kind of like the mix in that respect.
Got it. And in RS and I, the on the CARA care, I mean, that was the first recorded. We've seen a major increase like that in a while. So I'm wondering is that being driven by stronger collision market demand? And if so, recorded.
What are you hearing about miles driven? Because obviously collision repair is based a lot of it is based on miles driven.
Yes. Look, I think recorded. Actually, it's not really collision repair was better in the United States, not so good in Europe. Recorded. That I would say the big feature there for us was the undercar equipment, recorded.
Aligners in particular, but this ADAS stuff, stuff that really focuses on the neural network of the business. That's what drove that change. You're right. It was a really welcome change, double digits for the equipment. That was a turn of events that we really love.
We haven't talked about the thing like that associated with equipment in a while. So that's part of the overhang that because it's a lower margin business that's part of the mix overhang on RS and I. But recorded. That turned, I think, based on the change in vehicle complexity recorded now driven by the autonomy, these autonomous features and therefore undercar equipment was important. We're starting to see some recovery in collision in the U.
S. Like I said, Europe seems to be dead as a doornail. The miles driven, recorded. We're seeing it start to come back. The curve looks just like other years.
It's just came back from the shock of the virus. So it went down 30% recorded year over year in the shock and now it's according to BLS data, according to the data we see it staying around 10% below pre COVID levels and it's inching back. I would expect though that as people look and that's not surprising. Every time you look you turn on TV, you see people Speeding in from home. Once people go back, I think this all changes.
Got it.
And just last question on flushing out the Tools Group. Recorded. You said it was pretty much everything was up, but it sounds like hand tools and diagnostics probably led the way. That's correct. Yes.
Recorded. Yes, not pretty much. Everything was up, but hand tools led the way. Diagnostics was strong. Power tools was nice recorded.
So smaller ticket items were are ascendant in this period. You can see our RA business, Aldo kind of said because recorded. The guys are a little more like I used the word, there's still an air of vigilance. They're positive, But they're a little more vigilant in this situation. So even the tool storage, they tend to be focused on the smaller purchases recorded.
But I would say that each of the each of them, each Product line had a pretty good quarter, maybe not up to the 25%. We're pretty satisfied with all the product lines. But the top one was hand tools.
Recorded. Got it. That's all I have. Thank you.
Okay. Thank you.
Thank you. And our next
recorded. Good, good. How are you? Yes, so just a quick one on inflation. So I know you said this recorded.
Plenty of times, steel is only, I don't know, 85,000,000 $90,000,000 of COGS, but prices are up a good bit recorded pretty persistently. So anything in terms of price increases or Rising costs relating to inputs that you would elaborate on?
Yes. Look, yes. Well, recorded. Look, we've got material inflation in these numbers. You can't see them, can you?
Right. And recorded. Part of the thing is you got you got you kind of got an interesting cocktail of reduced travel, controlled costs, material inflation flowing through this. And the general managers in our business are balancing all these like balls in the air. And so, yes, we might see some, but we're not At the same time, we can also price.
And I think the Tools Group has got another price increase going out. They just announced recorded. In April, early April, they announced the price increase. So they're going to have one coming up. And so we think we're the price leader and we can price for visible inflation.
So you recorded. So we might see some going forward, but we think it's under control. I mean, this is I think I said in another forum that this is kind of what they pay us for to manage this stuff. Recorded.
Okay. Fair enough. And then if I wasn't mistaken, did I hear that the Education segment was up recorded. In 1Q. So it sounds like a change.
Yes, what happened there? It's good.
Well, look, I think, yes, I think Everybody is anticipating the schools. I think there are some schools back. And then but I would say the big factor, Curt, is that the Schools are starting to anticipate the return of the students. So they're starting to facilitate. So the education business is up principally because you're selling to the schools.
Recorded. And so we have a 2 pronged view there. We sell to the students and the schools. And we see a lot of students starting to warm up. And I think recorded.
I also think in this day and age, you're starting to see, if I were sitting in a community college and I'd see the Biden administration rolling in there and I don't think it's a political revealed to reveal that he has a particular bent given his wife's orientation and things he said to community college technical training. And so I think that might be positive view and created an air of optimism in the school. So I think that changed the dynamics. It was we're pretty pleased to see it. And in fact, recorded.
Again, the critical industry businesses got back above the pre COVID levels. I think that I don't want people to miss that. We're above pre COVID levels. And by the way, we're bearing the COVID at the same time. So I think that and that's where C and I was.
They've been going each quarter. They've been getting a little closer to 2019. This time they flipped above it. We view that as an incredibly positive event.
Got it. Makes sense. All right guys, thanks very much. Good luck for your time.
Recorded. Thank you. And our next question comes from Dave MacGregor with Longbow Research. Please go ahead.
Yes. Good morning, everyone. Recorded. Good morning, Nick. Congratulations on the strong results.
Thanks.
I guess first question, I'm still really struggling on this Disparity between originations and the sell through. You indicated the sell through was equivalent with the sell in. So let's call the sell through up 25%, originations up 2.4%, which is a
Wait a minute. Wait a minute. Wait a minute. Just a minute. Recorded.
Sell through is equal absolute. It was a little bit better in the Q1 of last year. So when you're comparing those things, you start to bollocks up a little bit. Last year wasn't as bad sell through as sell to the vans was in the Q1. Recorded.
So, generally, if you come back and say, Alethia, so I just want to stop you there. But in general, if you're talking about volume, recorded. The volume off the vans, same as the volume on the vans this quarter. Understand what I said?
Yes. I've long time to. What should we be using then as a sell through number for this quarter?
Well, it's roughly the same. Roughly the same.
Same as the sell in?
Right.
Okay. It's a large disparity nonetheless, however you want to recorded. And I guess I'm really struggling with just kind of the nature of that given you also indicated that all the segments are up. Recorded. And I guess the question just becomes given that originations generally revolve around extended credits recorded.
And contract credits obviously as well, but it's bigger ticket. So I guess the question is just can you break out big ticket for us and help us just understand what big ticket recorded on a year over year basis.
Well, here's what I'll tell you is that the big ticket items weren't up like the 25%, But they were up nicely in the quarter. So they were
up In the double digits?
No, they weren't up double digits in the quarter. Recorded. But they were up again when you look at the absolute numbers they were reasonable in that situation. So we're pleased with those numbers. So you add that.
Recorded. And then within the big ticket items, let's put diagnostics side, we look at tool storage. The tool storage mix has been for a while closer recorded to the, let's say, carts and other things. And there's a lot more RA going on. So the franchisees are flushed with recorded.
So you're seeing some of those franchisees finance these items. That's really the factor. Recorded. Now you could argue that you could also argue, Dave, that we're I think that's really what's going on. You could also see recorded.
It's hard to tell this. You could see we're getting stimulus money to pay for some of those things instead of borrowing. But we kind of view that as great because as Aldo said, You just got borrowing capacity out there in the future. So this is a really good thing for us. We love it when RA is up.
Recorded. Okay. Well, maybe I'll take it offline with Aldo and try and get through the math a little bit better. I wanted to ask you about recorded. You didn't care about just volumes on the quarter because you'd indicated that you'd announced in April a price increase, which I think is May 1.
Recorded. You've got kind of you've communicated to the franchisees that you're experiencing growing backlogs. I don't know if that's around tool steel or what may be responsible for that. But Under those circumstances, my understanding is there's been there's some pre buy going on in the month of March. And I'm just wondering if you can quantify for us the extent to which you
think that's how it is. Recorded. I'm sorry? I don't think that we don't think that's true. First of all, the announcements goes out in April.
So recorded. I don't think people are pre buying. The people may be buying generally what happens in these kinds of things are buying recorded. The kickoff programs or the even back to the kickoff program. So they're fundamentally buying off that.
We I'm talking to a bunch of franchisees and they keep telling me recorded. Their inventories are low on this stuff. They'd like to get more, but they don't get them. They don't have them. So I think recorded.
This is the idea of the pre buy, we didn't see any of that. Now I'm not saying franchisees are what, 3,500 of them. So you can get windshield surveys on them and you can get different ones will have different views. I could probably get a 100 different opinions When I go out, but generally, we don't see that, Dave. We see the situation.
They're not stuck. In fact, we think we're confident that Franchisees' inventories are actually down or flat at best. Recorded. They're not up. Really.
So if
you look back to the Q1 of last year, sales off the van exceeded sales to the van. Recorded.
Yes. I find that a little surprising given everybody in the franchise world knows that there's stimulus money coming down the pipe and they want to be positioned for that. And then My understanding is you communicated to the franchisees that there was a backlog issue in March, and I would have presumed that guys would pre buy on that. So I'm a little surprised to hear that inventories on the truck are flat to slightly down. It would have been a little counterintuitive, I guess.
And then last question for me is just on price elasticity.
I don't necessarily see it that way, but anyway, necessarily they could order, but they might not have.
Recorded. Yes. Okay. Right. Can you just talk about So
you wouldn't have a sale.
Right.
Recorded. Okay. And then price elasticity around storage, I guess, these are some pretty big increases we're seeing in steel prices right now. And as a consequence, I would expect some pretty big increases on price tags on some of the storage product at least and maybe in hand tools given what's going on with Nickel Alloy product. But can you just talk about how you expect that to play out over the balance of the year as you raise your prices?
How vulnerable do you think that category is to higher prices given you've
been taking care of this? Sure. Look, I think it gets to be a complex question, David, because almost everything is there's a lot of promotions floating through the system. So recorded. It's not just list price increases, it's also what are your promotions and so on.
So we've never had a problem, recorded. Tool storage or otherwise in terms of getting or matching inflation. We've never seen that. So I can only tell you what is in history and recorded. It's a complex cocktail.
You raise the list price. You adjust your promotions. You have long term promotions. You have drop in promotions. It's a dizzying array of those recorded.
And what comes out the other end is a matching of the inflation. So generally, you feel we can do that on a macro basis. Recorded. And you can't do that unless you do it in tool storage and hand tools.
Right. I'm more focused around the mechanics Capacity to purchase and their purchasing power and these products just maybe finding themselves a little out of reach. You're not concerned about that right now? You're not getting an indication that
We don't see that being a problem right now and there was inflation in this period. Recorded. So I mean the thing is we don't see that being a problem now. Of course, you can't say it will go on forever, but I think the listen, I think the whole thing is this. Recorded.
The mechanics seem to love to buy tools. It's one of the top things on their priority. And I think that these kinds of changes don't necessarily make a difference. Now who's Say how inflation would play out across the country in a lot of different commodities, but I think I would tell you this, I think we would be one of the last to be affected by
recorded. If I could just for the model, two quick ones. What was the U. S. Versus international in terms of growth recorded.
About the same. About the same. And secondly, what percentage of trucks now have 2 associates and how has that changed year over year?
Recorded. It's about the same. It's up a little bit. It's in the 20% to 25% range.
Recorded. Thanks very much, gentlemen.
Sure.
And that concludes today's question and answer session. Ms. Vrbski, at this time, I would like to turn the conference back to you for any additional or closing remarks.
Thank you all for joining us today. A replay of this call will be available shortly on snapondot recorded. Tom, as always, we appreciate your interest in Snap on. Good day.
And this concludes today's call. Thank you all for your participation. You may now disconnect.