Attached files
| file | filename |
|---|---|
| 8-K - 8-K - PEP BOYS MANNY MOE & JACK | a11-13687_18k.htm |
| EX-99.1 - EX-99.1 - PEP BOYS MANNY MOE & JACK | a11-13687_1ex99d1.htm |
Exhibit 99.2
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
|
(UNAUDITED) |
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share amounts)
|
|
|
April 30, 2011 |
|
May 1, 2010 |
| ||||||
|
|
|
|
|
% |
|
|
|
% |
| ||
|
Thirteen weeks ended |
|
Amount |
|
Sales |
|
Amount |
|
Sales |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Merchandise sales |
|
$ |
408,627 |
|
79.6 |
|
$ |
409,189 |
|
80.2 |
|
|
Service revenue |
|
104,913 |
|
20.4 |
|
100,844 |
|
19.8 |
| ||
|
Total revenues |
|
513,540 |
|
100.0 |
|
510,033 |
|
100.0 |
| ||
|
Costs of merchandise sales |
|
285,329 |
|
69.8 |
|
283,796 |
|
69.4 |
| ||
|
Costs of service revenue |
|
93,089 |
|
88.7 |
|
88,642 |
|
87.9 |
| ||
|
Total costs of revenues |
|
378,418 |
|
73.7 |
|
372,438 |
|
73.0 |
| ||
|
Gross profit from merchandise sales |
|
123,298 |
|
30.2 |
|
125,393 |
|
30.6 |
| ||
|
Gross profit from service revenue |
|
11,824 |
|
11.3 |
|
12,202 |
|
12.1 |
| ||
|
Total gross profit |
|
135,122 |
|
26.3 |
|
137,595 |
|
27.0 |
| ||
|
Selling, general and administrative expenses |
|
108,900 |
|
21.2 |
|
111,632 |
|
21.9 |
| ||
|
Net gain from dispositions of assets |
|
89 |
|
— |
|
45 |
|
— |
| ||
|
Operating profit |
|
26,311 |
|
5.1 |
|
26,008 |
|
5.1 |
| ||
|
Non-operating income |
|
587 |
|
0.1 |
|
584 |
|
0.1 |
| ||
|
Interest expense |
|
6,497 |
|
1.3 |
|
6,608 |
|
1.3 |
| ||
|
Earnings from continuing operations before income taxes |
|
20,401 |
|
4.0 |
|
19,984 |
|
3.9 |
| ||
|
Income tax expense |
|
7,996 |
|
39.2 |
(1) |
7,824 |
|
39.2 |
(1) | ||
|
Earnings from continuing operations |
|
12,405 |
|
2.4 |
|
12,160 |
|
2.4 |
| ||
|
Loss from discontinued operations, net of tax |
|
(37 |
) |
— |
|
(210 |
) |
— |
| ||
|
Net earnings |
|
12,368 |
|
2.4 |
|
11,950 |
|
2.3 |
| ||
|
Retained earnings, beginning of period |
|
402,600 |
|
|
|
374,836 |
|
|
| ||
|
Cash dividends |
|
(1,585 |
) |
|
|
(1,579 |
) |
|
| ||
|
Shares issued and other |
|
(667 |
) |
|
|
(756 |
) |
|
| ||
|
Retained earnings, end of period |
|
$ |
412,716 |
|
|
|
$ |
384,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
| ||
|
Earnings from continuing operations |
|
$ |
0.23 |
|
|
|
$ |
0.23 |
|
|
|
|
Discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
| ||
|
Basic earnings per share |
|
$ |
0.23 |
|
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
| ||
|
Earnings from continuing operations |
|
$ |
0.23 |
|
|
|
$ |
0.23 |
|
|
|
|
Discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
| ||
|
Diluted earnings per share |
|
$ |
0.23 |
|
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cash dividends per share |
|
$ |
0.03 |
|
|
|
$ |
0.03 |
|
|
|
(1) As a percentage of earnings from continuing operations before income taxes
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
|
(UNAUDITED) |
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
|
|
|
April 30, 2011 |
|
January 29, 2011 |
|
May 1, 2010 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Assets |
|
|
|
|
|
|
| |||
|
Current assets: |
|
|
|
|
|
|
| |||
|
Cash and cash equivalents |
|
$ |
100,374 |
|
$ |
90,240 |
|
$ |
87,806 |
|
|
Accounts receivable, less allowance for uncollectible accounts of $1,385; $1,551 and $1,752 |
|
19,460 |
|
19,540 |
|
20,277 |
| |||
|
Merchandise inventories |
|
578,272 |
|
564,402 |
|
561,351 |
| |||
|
Prepaid expenses |
|
26,225 |
|
28,542 |
|
24,510 |
| |||
|
Other current assets |
|
56,598 |
|
60,812 |
|
61,277 |
| |||
|
Total current assets |
|
780,929 |
|
763,536 |
|
755,221 |
| |||
|
Property and equipment - net |
|
696,090 |
|
700,981 |
|
699,439 |
| |||
|
Deferred income taxes |
|
62,851 |
|
66,019 |
|
57,440 |
| |||
|
Other long-term assets |
|
32,642 |
|
26,136 |
|
17,541 |
| |||
|
Total assets |
|
$ |
1,572,512 |
|
$ |
1,556,672 |
|
$ |
1,529,641 |
|
|
|
|
|
|
|
|
|
| |||
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
| |||
|
Current liabilities: |
|
|
|
|
|
|
| |||
|
Accounts payable |
|
$ |
231,663 |
|
$ |
210,440 |
|
$ |
218,472 |
|
|
Trade payable program liability |
|
53,060 |
|
56,287 |
|
34,273 |
| |||
|
Accrued expenses |
|
225,891 |
|
236,028 |
|
245,242 |
| |||
|
Deferred income taxes |
|
58,066 |
|
56,335 |
|
33,082 |
| |||
|
Current maturities of long-term debt |
|
1,079 |
|
1,079 |
|
1,079 |
| |||
|
Total current liabilities |
|
569,759 |
|
560,169 |
|
532,148 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Long-term debt less current maturities |
|
294,852 |
|
295,122 |
|
305,931 |
| |||
|
Other long-term liabilities |
|
67,338 |
|
70,046 |
|
74,250 |
| |||
|
Deferred gain from asset sales |
|
149,732 |
|
152,875 |
|
162,328 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Stockholders’ equity: |
|
|
|
|
|
|
| |||
|
Common stock, par value $1 per share: |
|
|
|
|
|
|
| |||
|
Authorized 500,000,000 shares; issued 68,557,041 shares |
|
68,557 |
|
68,557 |
|
68,557 |
| |||
|
Additional paid-in capital |
|
294,984 |
|
295,361 |
|
293,363 |
| |||
|
Retained earnings |
|
412,716 |
|
402,600 |
|
384,451 |
| |||
|
Accumulated other comprehensive loss |
|
(16,293 |
) |
(17,028 |
) |
(17,223 |
) | |||
|
Treasury stock, at cost - 15,901,648 shares and 15,971,910 shares and 16,088,014 shares |
|
(269,133 |
) |
(271,030 |
) |
(274,164 |
) | |||
|
Total stockholders’ equity |
|
490,831 |
|
478,460 |
|
454,984 |
| |||
|
Total liabilities and stockholders’ equity |
|
$ |
1,572,512 |
|
$ |
1,556,672 |
|
$ |
1,529,641 |
|
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
|
(UNAUDITED) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
|
Thirteen weeks ended |
|
April 30, 2011 |
|
May 1, 2010 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net earnings |
|
$ |
12,368 |
|
$ |
11,950 |
|
|
Adjustments to reconcile net earnings to net cash provided by continuing operations: |
|
|
|
|
| ||
|
Loss from discontinued operations, net of tax |
|
37 |
|
210 |
| ||
|
Depreciation and amortization |
|
19,884 |
|
18,214 |
| ||
|
Amortization of deferred gain from asset sales |
|
(3,143 |
) |
(3,148 |
) | ||
|
Stock compensation expense |
|
638 |
|
737 |
| ||
|
Deferred income taxes |
|
4,458 |
|
3,552 |
| ||
|
Net gain from disposition of assets |
|
(89 |
) |
(45 |
) | ||
|
Other |
|
(63 |
) |
(72 |
) | ||
|
Changes in assets and liabilities, net of the effects of acquisitions: |
|
|
|
|
| ||
|
Decrease in accounts receivable, prepaid expenses and other |
|
7,406 |
|
10,581 |
| ||
|
Increase in merchandise inventories |
|
(13,323 |
) |
(2,233 |
) | ||
|
Increase in accounts payable |
|
21,223 |
|
15,498 |
| ||
|
(Decrease) increase in accrued expenses |
|
(8,242 |
) |
3,231 |
| ||
|
(Decrease) increase in other long-term liabilities |
|
(2,458 |
) |
603 |
| ||
|
Net cash provided by continuing operations |
|
38,696 |
|
59,078 |
| ||
|
Net cash used in discontinued operations |
|
(66 |
) |
(324 |
) | ||
|
Net cash provided by operating activities |
|
38,630 |
|
58,754 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Capital expenditures |
|
(18,123 |
) |
(12,511 |
) | ||
|
Proceeds from dispositions of assets |
|
89 |
|
3,143 |
| ||
|
Premiums paid on life insurance policies |
|
(741 |
) |
(500 |
) | ||
|
Collateral investment |
|
(4,763 |
) |
500 |
| ||
|
Other |
|
(144 |
) |
(144 |
) | ||
|
Net cash used in continuing operations |
|
(23,682 |
) |
(9,512 |
) | ||
|
Net cash provided by discontinued operations |
|
— |
|
569 |
| ||
|
Net cash used in investing activities |
|
(23,682 |
) |
(8,943 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Borrowings under line of credit agreements |
|
1,067 |
|
1,029 |
| ||
|
Payments under line of credit agreements |
|
(1,067 |
) |
(1,029 |
) | ||
|
Borrowings on trade payable program liability |
|
24,589 |
|
23,027 |
| ||
|
Payments on trade payable program liability |
|
(27,816 |
) |
(22,853 |
) | ||
|
Debt payments |
|
(270 |
) |
(270 |
) | ||
|
Dividends paid |
|
(1,585 |
) |
(1,579 |
) | ||
|
Other |
|
268 |
|
344 |
| ||
|
Net cash used in financing activities |
|
(4,814 |
) |
(1,331 |
) | ||
|
Net increase in cash and cash equivalents |
|
10,134 |
|
48,480 |
| ||
|
Cash and cash equivalents at beginning of period |
|
90,240 |
|
39,326 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
100,374 |
|
$ |
87,806 |
|
|
|
|
|
|
|
| ||
|
Supplemental cash flow information: |
|
|
|
|
| ||
|
Cash paid for income taxes |
|
$ |
57 |
|
$ |
70 |
|
|
Cash paid for interest |
|
$ |
2,885 |
|
$ |
2,616 |
|
|
Accrued purchases of property and equipment |
|
$ |
993 |
|
$ |
1,302 |
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
|
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE |
|
(in thousands, except per share data) |
|
Thirteen weeks ended |
|
April 30, 2011 |
|
May 1, 2010 |
| |||
|
|
|
|
|
|
| |||
|
(a) |
Earnings from continuing operations |
|
$ |
12,405 |
|
$ |
12,160 |
|
|
|
Loss from discontinued operations, net of tax |
|
(37 |
) |
(210 |
) | ||
|
|
|
|
|
|
|
| ||
|
|
Net earnings |
|
$ |
12,368 |
|
$ |
11,950 |
|
|
|
|
|
|
|
|
| ||
|
(b) |
Basic average number of common shares outstanding during period |
|
52,881 |
|
52,526 |
| ||
|
|
|
|
|
|
|
| ||
|
|
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price |
|
685 |
|
407 |
| ||
|
|
|
|
|
|
|
| ||
|
(c) |
Diluted average number of common shares assumed outstanding during period |
|
53,566 |
|
52,933 |
| ||
|
|
|
|
|
|
|
| ||
|
|
Basic earnings per share: |
|
|
|
|
| ||
|
|
Earnings from continuing operations |
(a) / (b) |
$ |
0.23 |
|
$ |
0.23 |
|
|
|
Discontinued operations, net of tax |
|
— |
|
— |
| ||
|
|
Basic earnings per share |
|
$ |
0.23 |
|
$ |
0.23 |
|
|
|
|
|
|
|
|
| ||
|
|
Diluted earnings per share: |
|
|
|
|
| ||
|
|
Earnings from continuing operations |
(a) / (c) |
$ |
0.23 |
|
$ |
0.23 |
|
|
|
Discontinued operations, net of tax |
|
— |
|
— |
| ||
|
|
Diluted earnings per share |
|
$ |
0.23 |
|
$ |
0.23 |
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
|
ADDITIONAL INFORMATION |
|
(dollar amounts in thousands) |
|
|
|
April 30, 2011 |
|
May 1, 2010 |
| ||
|
|
|
|
|
|
| ||
|
Capital expenditures |
|
$ |
18,123 |
|
$ |
12,511 |
|
|
|
|
|
|
|
| ||
|
Depreciation and amortization |
|
$ |
19,884 |
|
$ |
18,214 |
|
|
|
|
|
|
|
| ||
|
Non-operating income: |
|
|
|
|
| ||
|
Net rental revenue |
|
$ |
494 |
|
$ |
517 |
|
|
Investment income |
|
82 |
|
66 |
| ||
|
Other income |
|
11 |
|
1 |
| ||
|
|
|
|
|
|
| ||
|
Total |
|
$ |
587 |
|
$ |
584 |
|
|
|
|
|
|
|
| ||
|
Comparable sales percentages: |
|
|
|
|
| ||
|
Service |
|
1.6 |
% |
0.1 |
% | ||
|
Merchandise |
|
-1.2 |
% |
1.7 |
% | ||
|
Total |
|
-0.6 |
% |
1.4 |
% | ||
|
|
|
|
|
|
| ||
|
Total square feet of retail space (including service centers) |
|
12,007,220 |
|
11,710,000 |
| ||
|
|
|
|
|
|
| ||
|
Store count |
|
|
|
|
| ||
|
Supercenter |
|
560 |
|
554 |
| ||
|
Service & Tire Center |
|
62 |
|
27 |
| ||
|
Retail Only |
|
8 |
|
9 |
| ||
|
Total |
|
630 |
|
590 |
| ||
|
|
|
|
|
|
| ||
|
Sales and gross profit by line of business (A): |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Service center revenue |
|
$ |
247,330 |
|
240,326 |
| |
|
Retail sales |
|
266,210 |
|
269,707 |
| ||
|
Total revenues |
|
$ |
513,540 |
|
$ |
510,033 |
|
|
|
|
|
|
|
| ||
|
Gross profit from service center revenue |
|
$ |
58,962 |
|
57,841 |
| |
|
Gross profit from retail sales |
|
76,160 |
|
79,754 |
| ||
|
Total gross profit |
|
$ |
135,122 |
|
$ |
137,595 |
|
|
|
|
|
|
|
| ||
|
Comparable sales percentages by line of business (A): |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Service center revenue |
|
0.3 |
% |
0.9 |
% | ||
|
Retail sales |
|
-1.5 |
% |
1.8 |
% | ||
|
Total revenues |
|
-0.6 |
% |
1.4 |
% | ||
|
|
|
|
|
|
| ||
|
Gross profit percentage by line of business (A): |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Gross profit percentage from service center revenue |
|
23.8 |
% |
24.1 |
% | ||
|
Gross profit percentage from retail sales |
|
28.6 |
% |
29.6 |
% | ||
|
Total gross profit percentage |
|
26.3 |
% |
27.0 |
% | ||
(A) Retail sales include DIY and commercial sales. Service center revenue includes revenue from labor and installed parts and tires.