EX-99 4 eexh9902.txt Exhibit 99.2 Unaudited Supplemental Financial Information
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share amounts) May 3, 2003 Feb. 1, 2003* May 4, 2002 ------------------------------------------------------------------------------------------------------------------------ (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 81,189 $ 42,770 $ 23,241 Accounts receivable, net 19,275 17,916 19,315 Merchandise inventories 521,957 488,882 529,666 Prepaid expenses 38,098 43,746 27,314 Deferred income taxes 16,170 13,723 15,510 Other 56,254 56,687 47,304 Assets held for disposal - 1,146 12,492 ------------------------------------------------------------------------------------------------------------------------ Total Current Assets 732,943 664,870 674,842 ------------------------------------------------------------------------------------------------------------------------ Property and Equipment-at cost: Land 279,109 279,109 276,908 Buildings and improvements 937,854 936,770 923,002 Furniture, fixtures and equipment 611,956 604,531 586,245 Construction in progress 22,059 19,450 11,493 ------------------------------------------------------------------------------------------------------------------------ 1,850,978 1,839,860 1,797,648 Less accumulated depreciation and amortization 772,416 751,823 696,736 ------------------------------------------------------------------------------------------------------------------------ Total Property and Equipment - Net 1,078,562 1,088,037 1,100,912 ------------------------------------------------------------------------------------------------------------------------ Other 46,187 47,003 15,980 ------------------------------------------------------------------------------------------------------------------------ Total Assets $1,857,692 $1,799,910 $1,791,734 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 244,844 $ 200,053 $ 212,431 Accrued expenses 257,367 232,255 222,612 Current maturities of long-term debt and obligations under capital leases 151,317 101,882 124,568 ------------------------------------------------------------------------------------------------------------------------ Total Current Liabilities 653,528 534,190 559,611 ------------------------------------------------------------------------------------------------------------------------ Long-term debt and obligations under capital leases, less current maturities 326,158 375,577 510,909 Convertible long-term debt 150,000 150,000 - Other long-term liabilities 25,427 25,156 23,948 Deferred income taxes 60,601 60,663 64,311 Deferred gain on sale leaseback 4,329 4,332 4,418 Commitments and Contingencies Stockholders' Equity: Common Stock, par value $1 per share: Authorized 500,000,000 shares; Issued 63,910,577 shares 63,911 63,911 63,911 Additional paid-in capital 177,244 177,244 177,292 Retained earnings 617,798 630,847 611,871 Accumulated other comprehensive loss (151) (151) - ------------------------------------------------------------------------------------------------------------------------ 858,802 871,851 853,074 Less cost of shares in treasury - 10,027,422 shares, 10,070,729 shares and 10,236,626 shares 161,889 162,595 165,273 Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 59,264 ------------------------------------------------------------------------------------------------------------------------ Total Stockholders' Equity 637,649 649,992 628,537 ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $1,857,692 $1,799,910 $1,791,734 ------------------------------------------------------------------------------------------------------------------------ * Taken from the audited financial statements at February 1, 2003.
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollar amounts in thousands, except per share amounts) UNAUDITED Thirteen weeks ended ---------------------------------------------------- May 3, 2003 May 4, 2002 ---------------------- ----------------------- Amount % Sales Amount % Sales ------------------------------------------------------------------------------------------------------------- Merchandise Sales $ 425,515 80.4 $ 453,771 81.2 Service Revenue 103,700 19.6 105,202 18.8 ------------------------------------------------------------------------------------------------------------- Total Revenues 529,215 100.0 558,973 100.0 ------------------------------------------------------------------------------------------------------------- Costs of Merchandise Sales 300,349 70.6 318,763 70.2 Costs of Service Revenue 78,061 75.3 78,275 74.4 ------------------------------------------------------------------------------------------------------------- Total Costs of Revenues 378,410 71.5 397,038 71.0 ------------------------------------------------------------------------------------------------------------- Gross Profit from Merchandise Sales 125,166 29.4 135,008 29.8 Gross Profit from Service Revenue 25,639 24.7 26,927 25.6 ------------------------------------------------------------------------------------------------------------- Total Gross Profit 150,805 28.5 161,935 29.0 ------------------------------------------------------------------------------------------------------------- Selling, General and Administrative Expenses 151,842 28.7 129,782 23.2 ------------------------------------------------------------------------------------------------------------- Operating (Loss) Profit (1,037) (0.2) 32,153 5.8 Non-operating Income 1,050 0.2 823 0.1 Interest Expense 10,701 2.0 11,781 2.1 ------------------------------------------------------------------------------------------------------------- (Loss) Earnings Before Income Taxes and Cumulative Effect of Change in Accounting Principle (10,688) (2.0) 21,195 3.8 Income Tax (Benefit) Expense (3,955) 37.0 7,630 36.0 ------------------------------------------------------------------------------------------------------------- (Loss) Earnings Before Cumulative Effect of Change in Accounting Principle (6,733) (1.3) 13,565 2.4 Cumulative Effect of Change in Accounting Principle (2,484) (0.4) - 0.0 ------------------------------------------------------------------------------------------------------------- Net (Loss) Earnings (9,217) (1.7) 13,565 2.4 Retained Earnings, beginning of period 630,847 601,944 Cash Dividends 3,487 3,473 Dividend Reinvestment Plan 274 - Effect of Stock Options 71 165 ------------------------------------------------------------------------------------------------------------- Retained Earnings, end of period $ 617,798 $ 611,871 ------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings Per Share: Before Cumulative Effect of Change in Accounting Principle $ (.13) $ .26 Cumulative Effect of Change in Accounting Principle (.05) - ------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings Per Share $ (.18) $ .26 ------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings Per Share: Before Cumulative Effect of Change in Accounting Principle $ (.13) $ .26 Cumulative Effect of Change in Accounting Principle (.05) - ------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings Per Share $ (.18) $ .26 ------------------------------------------------------------------------------------------------------------- Cash Dividends Per Share $ .0675 $ .0675 -------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) UNAUDITED Thirteen Weeks Ended May 3, 2003 May 4, 2002 --------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities: Net (Loss) Earnings $ (9,217) $ 13,565 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation and amortization 18,716 20,383 Cumulative effect of change in accounting principle, net of tax 2,484 - Accretion of asset disposal obligation 53 - Deferred income taxes (2,508) 594 Deferred gain on sale leaseback (3) (26) Loss on assets held for disposal 16 1,312 (Gain) Loss from sale of assets (725) 160 Changes in Operating Assets and Liabilities: Decrease in accounts receivable, prepaid expenses and other 5,538 17,972 Increase in merchandise inventories (33,075) (10,193) Increase (Decrease) in accounts payable 44,791 (3,654) Increase in accrued expenses 21,862 5,219 Increase in other long-term liabilities 271 68 --------------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 48,203 45,400 --------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities: Capital expenditures (8,565) (4,706) Proceeds from sales of assets 1,891 2,940 --------------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (6,674) (1,766) --------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Net borrowings (payments) under line of credit agreements 10,631 (25,620) Payments on capital lease obligations (112) - Reduction of long-term debt (10,503) (7,936) Dividends paid (3,487) (3,473) Proceeds from exercise of stock options 39 319 Proceeds from dividend reinvestment plan 322 336 --------------------------------------------------------------------------------------------------------------- Net Cash Used in Financing Activities (3,110) (36,374) --------------------------------------------------------------------------------------------------------------- Net Increase in Cash 38,419 7,260 Cash and Cash Equivalents at Beginning of Period 42,770 15,981 --------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 81,189 $ 23,241 ---------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (in thousands, except per share data) UNAUDITED Thirteen weeks ended ----------------------------------- May 3, 2003 May 4, 2002 -------------- --------------- (a) Net (loss) earnings before cumulative effect $ (6,733) $ 13,565 of change in accounting principle Adjustment for interest on convertible senior notes, net of income tax effect - - ------------------------------------------------------------------------------------------- (b) Adjusted net (loss) earnings before cumulative effect of change in accounting principle $ (6,733) $ 13,565 ------------------------------------------------------------------------------------------- (c) Average number of common shares outstanding during period 51,652 51,445 Common shares assumed issued upon conversion of convertible senior notes - - Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price - 1,163 ------------------------------------------------------------------------------------------- (d) Average number of common shares assumed outstanding during period 51,652 52,608 ------------------------------------------------------------------------------------------- Basic (loss) earnings per share: Before cumulative effect of change in accounting principle (a/c) $ (.13) $ .26 Cumulative effect of change in accounting principle (.05) - ------------------------------------------------------------------------------------------- Basic (loss) earnings per share $ (.18) $ .26 ------------------------------------------------------------------------------------------- Diluted (loss) earnings per share: Before cumulative effect of change in accounting principle (b/d) $ (.13) $ .26 Cumulative effect of change in accounting principle (.05) - ------------------------------------------------------------------------------------------- Diluted (loss) earnings per share $ (.18) $ .26 -------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES ADDITIONAL INFORMATION (dollar amounts in thousands) UNAUDITED Thirteen weeks ended ------------------------------------ May 3, 2003 May 4, 2002 --------------- --------------- Capital expenditures $ 8,565 $ 4,706 Depreciation and amortization $ 18,716 $ 20,383 Non-operating income: Net rental revenue $ 872 $ 689 Investment income 138 136 Other income (expense) 40 (2) -------------- -------------- Total $ 1,050 $ 823 ============== ============== Comparable store sales percentages: Merchandise (6.3)% 2.4% Service (1.6) (3.2) Total (5.4) 1.3 Total square feet of retail space (including service centers) 12,866,929 12,841,277 Pretax charges relating to the Profit Enhancement/Expense Reduction Plan are included in : Costs of merchandise sales $ 650 $ 1,180 Costs of service revenue 198 (51) Selling, general & administrative expenses 16 10 -------------- -------------- Total pretax charges 864 1,139 Income tax expense (320) (410) -------------- -------------- Total charges, net of tax $ 544 $ 729 ============== ==============