-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AIXTIF4Sudf03OdJWIBnuE/nPjD+d93VV/ME30I64VejAE7AkCMusErQeedQjCBH pzRba37uI7fq5t0xFR54qw== 0000077449-03-000016.txt : 20030814 0000077449-03-000016.hdr.sgml : 20030814 20030813213637 ACCESSION NUMBER: 0000077449-03-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030802 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEP BOYS MANNY MOE & JACK CENTRAL INDEX KEY: 0000077449 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO & HOME SUPPLY STORES [5531] IRS NUMBER: 230962915 STATE OF INCORPORATION: PA FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03381 FILM NUMBER: 03843208 BUSINESS ADDRESS: STREET 1: 3111 W ALLEGHENY AVE CITY: PHILADELPHIA STATE: PA ZIP: 19132 BUSINESS PHONE: 2152299000 8-K 1 r8kpress.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------------------- FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: August 13, 2003 Date of Earliest Event Reported: August 13, 2003 The Pep Boys - Manny, Moe & Jack ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 1-3381 23-0962915 ------------------------------- ----------- --------------------------- (State or other jurisdiction of (Commission (I.R.S. Employer ID number) incorporation or organization) File No.) 3111 W. Allegheny Ave. Philadelphia, PA 19132 ---------------------------------------- ---------- (Address of principal executive offices) (Zip code) 215-430-9000 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable -------------- (Former name or former address, if changed from last report) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits. The following exhibits are filed with this report: Exhibit No. 99.1 Press Release issued by the Company dated August 13, 2003 Exhibit No. 99.2 Unaudited Supplemental Financial Information Item 12. Results of Operations and Financial Condition The information contained in this report is being furnished pursuant to Item 12 of Form 8-K, "Results of Operations and Financial Condition." On August 13, 2003, the Company issued a press release announcing its earnings for the fiscal quarter ended August 2, 2003. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE PEP BOYS - MANNY, MOE & JACK By: /s/ George Babich, Jr. -------------------------------------- George Babich, Jr. President and Chief Financial Officer Date: August 13, 2003 EX-99 3 ex9901.txt Exhibit 99.1 Press Release issued by the Company dated August 13, 2003 Pep Boys Announces Second Quarter Results - -- Reports Comparable Net Earnings of $.31 Per Share - -- Reaffirms Impact of Restructuring PHILADELPHIA - August 13, 2003 - The Pep Boys - Manny, Moe & Jack (NYSE: "PBY"), the nation's leading full-service automotive aftermarket chain, announced the following financial results for the thirteen weeks ended August 2, 2003, which includes the impact of its corporate restructuring and other actions that were announced on July 31, 2003. Pep Boys Chief Executive Officer, Larry Stevenson, commented, "I am pleased that our comparable store sales performance has improved versus the first quarter, but we still have a long way to go." Operating Results Second Quarter Sales Sales for the quarter ended August 2, 2003 (excluding 33 closed stores) were $556,030,000, 1.7% less than the $565,631,000 recorded last year. Comparable store sales decreased 1.6%, including a decline of 1.0% in service revenue (including labor, installed merchandise and tires) and a decline of 2.0% in retail merchandise sales. Earnings Comparable net earnings, excluding the $53,232,000 of after tax charges associated with the previously announced corporate restructuring and other actions, of $16,851,000 ($.33 per share - basic and $.31 per share - diluted) are comparable to the $16,865,000 ($.33 per share - basic and $.31 per share - diluted) recorded last year. The Company believes that reporting comparable net earnings is a more accurate representation of its operating results. GAAP net earnings, which include the $53,232,000 of after tax charges associated with the previously announced corporate restructuring and other actions, declined from the $16,554,000 ($.32 per share - basic and $.30 per share - diluted) recorded last year to a net loss of $36,381,000 ($.70 per share - basic and diluted). - more - Six Months Sales Sales for the six months ended August 2, 2003 (excluding 33 closed stores) were $1,066,940,000, 3.5% less than the $1,105,286,000 recorded last year. Comparable store sales decreased 3.5%, including a decrease of 3.1% in service revenue (including labor, installed merchandise and tires) and a decline of 3.8% in retail merchandise sales. Earnings Comparable net earnings, excluding the $72,093,000 of after tax charges associated with the previously announced corporate restructuring and other actions, as well as the charges taken in the first quarter for legal reserves, the former CEO's pension obligation and the adoption of SFAS No.143, Accounting for Asset Retirement Obligations, of $26,495,000 ($.51 per share - basic and $.49 per share - diluted) are 15.0% lower than the $31,159,000 ($.60 per share - basic and $.57 per share - diluted) recorded last year. The Company believes that reporting comparable net earnings is a more accurate representation of its operating results. GAAP net earnings, which include the $72,093,000 of after tax charges associated with the previously announced corporate restructuring and other actions, as well as the charges taken in the first quarter for legal reserves, the former CEO's pension obligation and the adoption of SFAS No.143, Accounting for Asset Retirement Obligations, declined from the $30,119,000 ($.59 per share - basic and $.56 per share - diluted) recorded last year to a net loss of $45,598,000 ($.88 per share - basic and diluted). Corporate Restructuring And Other Actions Building upon the "Profit Enhancement Plan" launched in October 2000, the Company conducted a comprehensive review of its operations including individual store performance, the entire management infrastructure and its merchandise and service offerings. On July 31, 2003, the Company implemented several initiatives to drive profitability in the near term and build a solid foundation for long term growth, which includes the: - Closure of 33 under-performing stores on July 31, 2003 (listed below) - Discontinuation of certain merchandise offerings - Closure of two small warehouses by October 1, 2003 - Reduction of 160 Store Support Center and Field managers In conjunction with these actions, the Company believes that it will achieve an annual after tax operating expense reduction of approximately $6,930,000 and expects to receive approximately $29,700,000 in proceeds from the sale of assets. The Company recorded an after tax charge to earnings in the second quarter of $44,048,000 related to these actions and estimates the cash impact to be approximately $8,509,000. - more - In addition, after tax earnings also include a $9,184,000 charge for increases to legal and self insurance reserves, asset impairments, the write off of unamortized financing charges and other expenses. The Company estimates the cash impact of this charge to be approximately $12,188,000. The following is a complete list of stores (by state) that were closed on July 31, 2003: ARIZONA 1 Camelback (Phoenix) CALIFORNIA 11 El Cerrito; Fairfield; Fremont; Greenback (Citrus Heights); La Verne; Napa; Pittsburg; South Chula Vista; Vacaville; Van Nuys; and Yuba City FLORIDA 4 Clearwater; Lauderdale Lakes (Lauderdale); Melbourne; and Tyrone Blvd.(St. Petersburg) GEORGIA 1 Decatur ILLINOIS 1 Des Plaines MASSACHUSETTS 1 Worchester West NEW JERSEY 1 Watchung NEW YORK 2 East Meadow; and South Huntington (Huntington Station) NORTH CAROLINA 1 Freedom Drive (Charlotte) OHIO 1 Colerain (Cincinnati) PENNSYLVANIA 3 Selinsgrove; Upper Darby; and Williamsport (Loyalsock) TEXAS 5 Commerce (San Antonio); Dairy Ashford (Houston); East Lancaster (Fort Worth); Mesa (El Paso); and West Oaks Mall (Houston) VIRGINIA 1 Harrisonburg (more)
Pep Boys Financial Highlights Thirteen Thirteen Weeks Ended Weeks Ended August 2, 2003 August 3, 2002 -------------- -------------- Total Revenues $ 556,030,000 $ 565,631,000 Net (Loss) Earnings $ (36,381,000) $ 16,554,000 Add (Net of Tax): Non-recurring Charge (a) $ 44,048,000 $ 311,000 Other Charges (b) $ 9,184,000 $ - -------------- ------------- Comparable Net Earnings $ 16,851,000 $ 16,865,000 ============== ============= Average Shares - Basic 51,816,000 51,489,000 Average Shares - Diluted 51,816,000 58,068,000 Basic (Loss) Earnings Per Share $ (.70) $ .32 Diluted (Loss) Earnings Per Share $ (.70) $ .30 Comparable Basic Earnings Per Share $ .33 $ .33 Comparable Diluted Earnings Per Share $ .31 $ .31 (a) Expense related to the Corporate Restructuring. (b) Expense related to the other charges for legal and self insurance reserves, asset impairments, unamortized financing fees and other expenses.
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Twenty-six Twenty-six Weeks Ended Weeks Ended August 2, 2003 August 3, 2002 --------------- --------------- Total Revenues $ 1,066,940,000 $ 1,105,286,000 Net (Loss) Earnings $ (45,598,000) $ 30,119,000 Add (Net of Tax): Non-recurring Charge (a) $ 44,592,000 $ 1,040,000 Other Charges (b) $ 27,501,000 $ - -------------- --------------- Comparable Net Earnings $ 26,495,000 $ 31,159,000 ============== =============== Average Shares - Basic 51,733,000 51,467,000 Average Shares - Diluted 51,733,000 55,338,000 Basic (Loss) Earnings Per Share $ (.88) $ .59 Diluted (Loss) Earnings Per Share $ (.88) $ .56 Comparable Basic Earnings Per Share $ .51 $ .60 Comparable Diluted Earnings Per Share $ .49 $ .57 (a) Expense related to the Corporate Restructuring. (b) Expense related to the other charges for legal and self insurance reserves, asset impairments, unamortized financing fees and other expenses.
About Pep Boys: Pep Boys has 596 stores and over 6000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities,the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com. ### Certain statements contained herein constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The word "guidance," "expect," "anticipate," "estimates," "forecasts" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include management's expectations regarding future financial performance, automotive aftermarket trends, levels of competition, business development activities, future capital expenditures, financing sources and availability and the effects of regulation and litigation. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies, retail and commercial consumers' ability to spend, the health of the various sectors of the automotive aftermarket, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, the location and number of competitors' stores, product and labor costs and the additional factors described in the Company's filings with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Investor Contact: George Babich, President & CFO (215) 430-9720 Media Contact: Bill Furtkevic (215) 430-9676 Pep Boys 3111 West Allegheny Avenue Philadelphia, PA 19132 Internet:http://www.pepboys.com EX-99 4 exh9902.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) UNAUDITED Aug. 2, 2003 Feb. 1, 2003* Aug. 3, 2002 - ------------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 68,095 $ 42,770 $ 86,865 Accounts receivable, net 24,405 17,916 20,125 Merchandise inventories 506,510 488,882 522,355 Prepaid expenses 29,430 43,746 27,581 Deferred income taxes 32,623 13,723 14,917 Other 51,505 56,687 41,571 Assets held for disposal 21,900 1,146 5,972 - ------------------------------------------------------------------------------------------------------------------------ Total Current Assets 734,468 664,870 719,386 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment-at cost: Land 264,121 279,109 278,236 Buildings and improvements 892,927 936,770 927,350 Furniture, fixtures and equipment 592,213 604,531 590,068 Construction in progress 26,886 19,450 12,820 - ------------------------------------------------------------------------------------------------------------------------ 1,776,147 1,839,860 1,808,474 Less accumulated depreciation and amortization 761,687 751,823 715,027 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment - Net 1,014,460 1,088,037 1,093,447 - ------------------------------------------------------------------------------------------------------------------------ Other 56,913 47,003 40,526 - ------------------------------------------------------------------------------------------------------------------------ Total Assets $1,805,841 $1,799,910 $1,853,359 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 319,223 $ 200,053 $ 219,892 Accrued expenses 267,356 232,255 240,490 Current maturities of long-term debt and obligations under capital leases 72,362 101,882 148,400 - ------------------------------------------------------------------------------------------------------------------------ Total Current Liabilities 658,941 534,190 608,782 - ------------------------------------------------------------------------------------------------------------------------ Long-term debt and obligations under capital leases, less current maturities 314,711 375,577 385,318 Convertible long-term debt, less current maturities 150,000 150,000 150,000 Other long-term liabilities 28,924 25,156 - Deferred income taxes 42,894 60,663 62,747 Deferred gain on sale leaseback 4,324 4,332 4,399 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 177,244 177,244 177,244 Retained earnings 571,403 630,847 624,894 Accumulated other comprehensive loss 3,749 (151) - - ------------------------------------------------------------------------------------------------------------------------ 816,307 871,851 866,049 Less cost of shares in treasury - 9,352,311 shares 10,070,729 shares and 10,199,363 shares 150,996 162,595 164,672 Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 59,264 - ------------------------------------------------------------------------------------------------------------------------ Total Stockholders' Equity 606,047 649,992 642,113 - ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $1,805,841 $1,799,910 $1,853,359 - ------------------------------------------------------------------------------------------------------------------------ * 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 Twenty-six weeks Ended ---------------------------------------- ----------------------------------------- Aug. 2, 2003 Aug. 3, 2002 Aug. 2, 2003 Aug. 3, 2002 ------------------ ------------------ ------------------- ------------------ Amount % Sales Amount % Sales Amount % Sales Amount % Sales - --------------------------------------------------------------------------------------------------------------------------------- Merchandise Sales $ 451,285 81.2 $ 461,886 81.7 $ 862,417 80.8 $ 900,343 81.5 Service Revenue 104,745 18.8 103,745 18.3 204,523 19.2 204,943 18.5 - --------------------------------------------------------------------------------------------------------------------------------- Total Revenues 556,030 100.0 565,631 100.0 1,066,940 100.0 1,105,286 100.0 - --------------------------------------------------------------------------------------------------------------------------------- Costs of Merchandise Sales 344,903 76.4 320,485 69.4 635,243 73.7 628,123 69.8 Costs of Service Revenue 80,881 77.2 78,572 75.7 155,653 76.1 153,492 74.9 - --------------------------------------------------------------------------------------------------------------------------------- Total Costs of Revenues 425,784 76.6 399,057 70.6 790,896 74.1 781,615 70.7 - --------------------------------------------------------------------------------------------------------------------------------- Gross Profit from Merchandise Sales 106,382 23.6 141,401 30.6 227,174 26.3 272,220 30.2 Gross Profit from Service Revenue 23,864 22.8 25,173 24.3 48,870 23.9 51,451 25.1 - --------------------------------------------------------------------------------------------------------------------------------- Total Gross Profit 130,246 23.4 166,574 29.4 276,044 25.9 323,671 29.3 - --------------------------------------------------------------------------------------------------------------------------------- Selling, General and Administrative Expenses 143,049 25.7 129,048 22.8 290,826 27.3 254,738 23.0 - --------------------------------------------------------------------------------------------------------------------------------- Operating (Loss) Profit (12,803) (2.3) 37,526 6.6 (14,782) (1.4) 68,933 6.3 Non-operating Income 851 0.1 997 0.2 1,901 0.2 1,820 0.1 Interest Expense 9,603 1.7 12,624 2.2 20,304 1.9 24,405 2.2 - --------------------------------------------------------------------------------------------------------------------------------- (Loss) Income from Continuing Operations Before Income Taxes and Cumulative Effect of Change in Accounting Principle (21,555) (3.9) 25,899 4.6 (33,185) (3.1) 46,348 4.2 Income Tax (Benefit) Expense (7,976) 37.0 9,789 37.8 (12,279) 37.0 17,149 37.0 - --------------------------------------------------------------------------------------------------------------------------------- Net (Loss) Income form Continuing Operations and Cumulative Effect of Change in Accounting Principle (13,579) (2.4) 16,110 2.8 (20,906) (2.0) 29,199 2.6 Discontinued Operations, Net of Tax (22,802) (4.1) 444 0.1 (22,208) (2.1) 920 0.1 Cumulative Effect of Change in Accounting Principle, Net of Tax - 0.0 - 0.0 (2,484) (0.2) - 0.0 Net (Loss) Earnings (36,381) (6.5) 16,554 2.9 (45,598) (4.3) 30,119 2.7 - --------------------------------------------------------------------------------------------------------------------------------- Retained Earnings, beginning of period 617,798 611,871 630,847 601,944 Cash Dividends 3,491 3,475 6,978 6,948 Effect of Stock Options 6,477 (16) 6,548 149 Dividend Reinvestment Plan 46 72 320 72 - --------------------------------------------------------------------------------------------------------------------------------- Retained Earnings, end of period $ 571,403 $ 624,894 $ 571,403 $ 624,894 - --------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings Per Share: (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ (0.26) $ 0.31 $ (0.40) $ 0.57 Discontinued Operations,net of tax (0.44) 0.01 (0.43) 0.02 Cumulative Effect of Change in Accounting Principle, net of tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings Per Share $ (0.70) $ 0.32 $ (0.88) $ 0.59 - --------------------------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings Per Share: (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ (0.26) $ 0.29 $ (0.40) $ 0.54 Discontinued Operations, net of tax (0.44) 0.01 (0.43) 0.02 Cumulative Effect of Change in Accounting Principle, net of tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings Per Share $ (0.70) $ 0.30 $ (0.88) $ 0.56 - --------------------------------------------------------------------------------------------------------------------------------- Cash Dividends Per Share $ .0675 $ .00675 $ .1350 $ .1350 - ---------------------------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) UNAUDITED Twenty-six Weeks Ended Aug. 2, 2003 Aug, 3, 2002 - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities: Net (Loss) Earnings $ (45,598) $ 30,119 (Loss) income from discontinued operations (22,208) 920 - ---------------------------------------------------------------------------------------------------------------- (Loss) income from continuing operations (23,390) 29,199 Adjustments to Reconcile Net Earnings to Net Cash Net Cash Provided by Operating Activities: Depreciation and amortization 35,271 38,706 Cumulative effect of change in accounting principle 2,484 - Accretion of asset disposal obligation 90 - Deferred income taxes (38,959) (377) Deferred gain on sale lease back (8) (45) Loss on asset impairment 2,121 - Loss on assets held for disposal - 1,360 Loss from sale of assets 34 179 Changes in Operating Assets and Liabilities: Decrease in accounts receivable, prepaid expenses and other 9,289 22,518 Increase in merchandise inventories (17,628) (2,882) Increase in accounts payable 119,170 3,807 Increase (decrease) in accrued expenses 40,593 (1,764) Increase in other long-term liabilities 3,768 440 - ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by Continuing Operations 132,835 91,141 Net Cash Provided by Discontinued Operations 4,591 3,290 - ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 137,426 94,431 - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities: Capital expenditures (21,420) (11,951) Proceeds from sales of assets 1,952 5,252 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (19,468) (6,699) - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Net borrowings (payments) under line of credit agreements 1,441 (70,539) Repayment of life insurance policy loan - (20,686) Capital lease obligations (400) (308) Reduction of long-term debt (91,427) (65,769) Net proceeds from iussuance of notes - 146,250 Dividends paid (6,978) (6,948) Proceeds from exercise of stock options 4,085 475 Proceeds from dividend reinvestment plan 646 677 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Financing Activities (92,633) (16,848) - ---------------------------------------------------------------------------------------------------------------- Net Increase in Cash 25,325 70,884 - ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of Period 42,770 15,981 - ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 68,095 $ 86,865 - ---------------------------------------------------------------------------------------------------------------- Non-cash financing activities: Equipment Capital Leases $ - $ 1,301 - ----------------------------------------------------------------------------------------------------------------
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 Twenty-six weeks ended ----------------------------------- ---------------------------------- Aug. 2, 2003 Aug. 3, 2002 Aug. 2, 2003 Aug. 3, 2002 -------------- --------------- -------------- ------------ (a) (Loss) income from continuing operations before cumulative effect of change in accounting principle $ (13,579) $ 16,110 $ (20,906) $ 29,199 Adjustment for interest on convertible senior notes, net of income tax effect - 826 - 826 - --------------------------------------------------------------------------------------------------------------------------------- (b) Adjusted net (loss) income from continuing operations before cumulative effect of change in accounting principle $ (13,579) $ 16,936 $ (20,906) $ 30,025 - --------------------------------------------------------------------------------------------------------------------------------- (c) Average number of common shares outstanding during period 51,816 51,489 51,733 51,467 Common shares assumed issued upon conversion of convertible senior notes - 5,520 - 2,760 Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price - 1,059 - 1,111 - --------------------------------------------------------------------------------------------------------------------------------- (d) Average number of common shares assumed outstanding during period 51,816 58,068 51,733 55,338 - --------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings per share: (Loss) Income From Continuing operations Before Cumulative Effect of Change in Accounting Principle (a/c) $ (0.26) $ 0.31 $ (0.40) $ 0.57 Discontinued Operations, Net of Tax (0.44) 0.01 (0.43) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Basic (loss) Earnings Per Share $ (0.70) $ 0.32 $ (0.88) $ 0.59 - --------------------------------------------------------------------------------------------------------------------------------- Diluted (loss) earnings per share: (Loss) income from continuing operations before cumulative effect of change in accounting principle (b/d) $ (0.26) $ 0.29 $ (0.40) $ 0.54 Discontinued Operations, Net of Tax (0.44) 0.01 (0.43) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Diluted (loss) earnings per share $ (0.70) $ 0.30 $ (0.88) $ 0.56 - ---------------------------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES ADDITIONAL INFORMATION (dollar amounts in thousands) UNAUDITED Thirteen weeks ended Twenty-six weeks ended ------------------------------------ ------------------------------------ Aug, 2, 2003 Aug. 3, 2002 Aug. 2, 2003 Aug 3, 2002 --------------- --------------- --------------- --------------- Capital expenditures $ 12,855 $ 7,245 $ 21,420 $ 11,951 Depreciation and amortization $ 18,305 $ 20,152 $ 37,021 $ 40,535 Non-operating income: Net rental revenue $ 678 $ 621 $ 1,550 $ 1,310 Investment income 125 359 263 495 Other income (expense) 48 17 88 15 -------------- -------------- --------------- --------------- Total $ 851 $ 997 $ 1,901 $ 1,820 ============== ============== =============== =============== Comparable store sales percentages: Merchandise (2.1)% 2.9% (4.2)% 2.7% Service 0.8 (1.6) (0.4) (2.4) Total (1.6) 2.0 (3.5) 1.7 Total square feet of retail space (including service centers) 12,217,210 12,858,368 Charges relating to Corporate Restructuring are included in: Costs of merchandise sales $ 26,605 $ 390 $ 27,111 $ 1,570 Costs of service revenue 625 119 823 68 Selling, general & administrative expenses 5,974 3 6,134 13 -------------- -------------- --------------- --------------- Total pretax charges 33,204 512 34,068 1,651 Income tax expense (12,285) (201) (12,605) (611) -------------- -------------- --------------- --------------- Subtotal charges, net of tax $ 20,919 $ 311 $ 21,463 $ 1,040 Discontinued operations, net of tax 23,129 - 23,129 - -------------- -------------- --------------- --------------- Total charges, net of tax $ 44,048 $ 311 $ 44,592 $ 1,040 ============== ============== =============== =============== Charges relating to other charges are included in: Costs of merchandise sales $ 2,947 $ - $ 2,947 $ - Costs of service revenue 2,455 - 2,455 - Selling, general & administrative expenses 9,175 - 34,307 - -------------- -------------- --------------- --------------- Total pretax charges 14,577 - 39,709 - Income tax expense 5,393 - 14,692 - -------------- -------------- --------------- --------------- Subtotal charges, net of tax $ 9,184 $ - $ 25,017 $ - Cumulative effect of change in accounting principle, net of tax - - 2,484 - -------------- -------------- --------------- --------------- Total charges, net of tax $ 9,184 $ - $ 27,501 $ - ============== ============== =============== ===============
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