-----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, R9i/F28mttw3pC4zMml194LQD+ghacFTsBNNcaoiuBcfP4iLP2MlgKzELfrvhY3O nZTd8K+DfQPFvSuEgWlhiQ== 0000077449-03-000022.txt : 20031113 0000077449-03-000022.hdr.sgml : 20031113 20031112180302 ACCESSION NUMBER: 0000077449-03-000022 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031112 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031113 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: 03995237 BUSINESS ADDRESS: STREET 1: 3111 W ALLEGHENY AVE CITY: PHILADELPHIA STATE: PA ZIP: 19132 BUSINESS PHONE: 2152299000 8-K 1 r8k.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: November 12, 2003 Date of Earliest Event Reported: November 12, 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) 1 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 November 12, 2003 Exhibit No. 99.2 Unaudited Supplemental Financial Information Item 12. Results of Operations and Financial Condition On November 12, 2003, the Company issued a press release announcing its earnings for the fiscal quarter ended November 1, 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. 2 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: November 12, 2003 3 EX-99 3 exh9901.txt Exhibit 99.1 Press Release issued by the Company dated November 12, 2003 Pep Boys Announces $.26 Third Quarter EPS Comparable Sales Increase 2.2% PHILADELPHIA - November 12, 2003 - The Pep Boys - Manny, Moe and Jack (NYSE "PBY"), the nation's leading full-service automotive aftermarket chain, announced the following results for the thirteen weeks ended November 1, 2003. Pep Boys Chief Executive Officer, Larry Stevenson, commented, "This was our first positive comp sales quarter in some time and we are pleased that we have built some momentum on the top line. Much remains to be done, but the combination of exciting new products and aggressive advertising will help us build on the positive sales trend." Operating Results Third Quarter Sales Sales for the quarter ended November 1, 2003, were $537,691,000, 2.2% more than the $526,298,000 recorded last year. Comparable sales increased 2.2%, including an increase of 2.5% in comparable store merchandise sales (retail and commercial) and an increase of 1.7% in comparable service bay revenues (service labor, installed merchandise and tires). Earnings Net earnings, including earnings from discontinued operations, of $14,700,000 ($.28 per share - basic and $.26 per share - diluted), declined from the $15,515,000 ($.30 per share - basic and $.28 per share - diluted) recorded last year. Nine Months Sales Sales for the nine months ended November 1, 2003, were $1,604,631,000, 1.7% less than the $1,631,584,000 recorded last year. Comparable sales declined 1.7% including a decline of 2.0% in comparable store merchandise sales (retail and commercial) and a decline of 1.4% in comparable service bay revenues (service labor, installed merchandise and tires). Earnings Net earnings, including earnings from discontinued operations and cumulative effect of change in accounting principles, declined from the $45,634,000 ($.89 per share - basic and $.84 per share - diluted) to a loss of $30,898,000 ($.59 per share - basic and diluted), which includes the impact of its corporate restructuring and other actions that were announced on July 31, 2003. - more -
PAGE 2 Pep Boys Financial Highlights Thirteen Thirteen Weeks Ended Weeks Ended November 1, 2003 November 2, 2002 ---------------- ---------------- Total Revenues $ 537,691,000 $ 526,298,000 Net Earnings From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 13,406,000 $ 15,419,000 Net Earnings $ 14,700.000 $ 15,515,000 Average Shares - Diluted 60,410,000 59,084,000 Basic Earnings Per Share From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.26 $ 0.30 Diluted Earnings Per Share From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.24 $ 0.28 Basic Earnings Per Share $ 0.28 $ 0.30 Diluted Earnings Per Share $ 0.26 $ 0.28
Thirty-nine Thirty-nine Weeks Ended Weeks Ended November 1, 2003 November 2, 2002 ---------------- ---------------- Total Revenues $ 1,604,631,000 $ 1,631,584,000 Net (Loss) Earnings From Continuing Operations Before Cumulative Effect Of Change in Accounting Principle $ (7,500,000) $ 44,618,000 Net (Loss) Earnings $ (30,898,000) $ 45,634,000 Average Shares - Diluted 52,002,000 56,587,000 Basic (Loss) Earnings Per Share From Continuing Operations Before Cumulative Effect of Change In Accounting Principle $ (0.14) $ 0.87 Diluted (Loss) Earnings Per Share From Continuing Operations Before Cumulative Effect of Change In Accounting Principle $ (0.14) $ 0.82 Basic (Loss) Earnings Per Share $ (0.59) $ 0.89 Diluted (Loss) Earnings Per Share $ (0.59) $ 0.84 ###
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 STATEMENTS OF OPERATIONS (dollar amounts in thousands, except per share amounts) UNAUDITED Thirteen weeks ended Thirty-nine weeks Ended ---------------------------------------- ----------------------------------------- Nov. 1, 2003 Nov. 2, 2002 Nov. 1, 2003 Nov. 2, 2002 ------------------ ------------------- ------------------- ------------------- % % % % Amount Sales Amount Sales Amount Sales Amount Sales - --------------------------------------------------------------------------------------------------------------------------------- Merchandise Sales $ 435,055 80.9 $ 425,015 80.8 $1,297,472 80.9 $1,325,358 81.2 Service Revenue 102,636 19.1 101,283 19.2 307,159 19.1 306,226 18.8 - --------------------------------------------------------------------------------------------------------------------------------- Total Revenues 537,691 100.0 526,298 100.0 1,604,631 100.0 1,631,584 100.0 - --------------------------------------------------------------------------------------------------------------------------------- Costs of Merchandise Sales 301,871 69.4 293,097 69.0 937,114 72.2 921,220 69.5 Costs of Service Revenue 76,333 74.4 74,444 73.5 231,986 75.5 227,936 74.4 - --------------------------------------------------------------------------------------------------------------------------------- Total Costs of Revenues 378,204 70.3 367,541 69.8 1,169,100 72.9 1,149,156 70.4 - --------------------------------------------------------------------------------------------------------------------------------- Gross Profit from Merchandise Sales 133,184 30.6 131,918 31.0 360,358 27.8 404,138 30.5 Gross Profit from Service Revenue 26,303 25.6 26,839 26.5 75,173 24.5 78,290 25.6 - --------------------------------------------------------------------------------------------------------------------------------- Total Gross Profit 159,487 29.7 158,757 30.2 435,531 27.1 482,428 29.6 - --------------------------------------------------------------------------------------------------------------------------------- Selling, General and Administrative Expenses 130,034 24.2 123,690 23.5 420,860 26.2 378,428 23.2 - --------------------------------------------------------------------------------------------------------------------------------- Operating Profit 29,453 5.5 35,067 6.7 14,671 0.9 104,000 6.4 Non-operating Income 786 0.1 878 0.2 2,687 0.2 2,698 0.1 Interest Expense 8,959 1.6 11,471 2.2 29,263 1.8 35,876 2.2 - --------------------------------------------------------------------------------------------------------------------------------- Net Earnings (Loss)from Continuing Operations Before Income Taxes and Cumulative Effect of Change in Accounting Principle 21,280 4.0 24,474 4.7 (11,905) (0.7) 70,822 4.3 Income Tax Expense (Benefit) 7,874 37.0 9,055 37.0 (4,405) 37.0 26,204 37.0 - --------------------------------------------------------------------------------------------------------------------------------- Net Earnings (Loss) from Continuing Operations Before Cumulative Effect of Change in Accounting Principle 13,406 2.5 15,419 2.9 (7,500) (0.5) 44,618 2.7 Net Earnings (Loss) from Discontinued Operations, Net of Tax 1,294 0.2 96 0.0 (20,914) (1.3) 1,016 0.0 Cumulative Effect of Change in Accounting Principle, Net of Tax - 0.0 - 0.0 (2,484) (0.1) - 0.0 - --------------------------------------------------------------------------------------------------------------------------------- Net Earnings (Loss) 14,700 2.7 15,515 2.9 (30,898) (1.9) 45,634 2.7 Retained Earnings, beginning of period 571,403 624,894 630,847 601,944 Cash Dividends 3,550 3,479 10,528 10,427 Effect of Stock Options 2,035 204 8,583 353 Dividend Reinvestment Plan - 117 320 189 - --------------------------------------------------------------------------------------------------------------------------------- Retained Earnings, end of period $ 580,518 $ 636,609 $ 580,518 $ 636,609 - --------------------------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) per Share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.26 $ 0.30 $ (0.14) $ 0.87 Net Earnings (Loss) From Discontinued Operations, Net of Tax 0.02 - (0.40) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) per Share $ 0.28 $ 0.30 $ (0.59) $ 0.89 - --------------------------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per Share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.24 $ 0.28 $ (0.14) $ 0.82 Net Earnings (Loss) From Discontinued Operations, Net of Tax 0.02 - (0.40) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per Share $ 0.26 $ 0.28 $ (0.59) $ 0.84 - --------------------------------------------------------------------------------------------------------------------------------- Cash Dividends Per Share $ 0.0675 $ 0.0675 $ .2025 $ .2025 - ---------------------------------------------------------------------------------------------------------------------------------
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share amounts) UNAUDITED Nov. 1, 2003 Feb. 1, 2003* Nov. 2, 2002 - ------------------------------------------------------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $ 33,837 $ 42,770 $ 26,928 Accounts receivable, net 28,734 17,916 18,889 Merchandise inventories 532,876 488,882 528,445 Prepaid expenses 21,474 43,746 18,065 Deferred income taxes 31,659 13,723 19,877 Other 48,985 56,687 36,649 Assets held for disposal 26,949 1,146 4,332 - ------------------------------------------------------------------------------------------------------------------------ Total Current Assets 724,514 664,870 653,185 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment-at cost: Land 264,121 264,101 263,233 Buildings and improvements 896,337 890,898 886,603 Furniture, fixtures and equipment 593,199 580,746 572,265 Construction in progress 24,858 19,450 14,573 - ------------------------------------------------------------------------------------------------------------------------ 1,778,515 1,755,195 1,736,674 Less accumulated depreciation and amortization 772,123 724,709 707,784 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment - net 1,006,392 1,030,486 1,028,890 - ------------------------------------------------------------------------------------------------------------------------ Other 52,310 47,003 40,420 Assets from Discontinued Operations - 57,551 57,917 - ------------------------------------------------------------------------------------------------------------------------ Total Assets $1,783,216 $1,799,910 $1,780,412 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 298,438 $ 200,053 $ 193,573 Accrued expenses 254,910 232,255 228,941 Current maturities of long-term debt and obligations under capital leases 72,185 101,882 99,685 - ------------------------------------------------------------------------------------------------------------------------ Total Current Liabilities 625,533 534,190 522,199 - ------------------------------------------------------------------------------------------------------------------------ Long-term debt and obligations under capital leases, less current maturities 311,906 375,577 382,813 Convertible long-term debt 150,000 150,000 150,000 Other long-term liabilities 28,902 25,156 - Deferred income taxes 43,801 60,663 66,432 Deferred gain on sale leaseback 4,300 4,332 4,389 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 580,518 630,847 636,609 Accumulated other comprehensive income (loss) 2,139 (151) - - ------------------------------------------------------------------------------------------------------------------------ 823,812 871,851 877,764 Less cost of shares in treasury - 9,028,897 shares 10,070,729 shares and 10,152,878 shares 145,774 162,595 163,921 Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 59,264 - ------------------------------------------------------------------------------------------------------------------------ Total Stockholders' Equity 618,774 649,992 654,579 - ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $1,783,216 $1,799,910 $1,780,412 - ------------------------------------------------------------------------------------------------------------------------ * Taken from the audited financial statements at February 1, 2003.
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) UNAUDITED Thirty-nine Weeks Ended Nov. 1, 2003 Nov. 2, 2002 - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities: Net (loss) earnings $ (30,898) $ 45,634 Net (loss) earnings from discontinued operations (20,914) 1,016 - ---------------------------------------------------------------------------------------------------------------- Net (loss) earnings from continuing operations (9,984) 44,618 Adjustments to Reconcile Net (Loss) Earnings From Continuing Operations to Net Cash Provided by Continuing Operations: Depreciation and amortization 52,558 57,549 Cumulative effect of change in accounting principle, net of tax 2,484 - Accretion of asset disposal obligation 140 - Deferred income taxes (36,144) (1,652) Deferred gain on sale lease back (32) - Loss on assets held for disposal - 1,590 Loss on asset impairments 2,121 - Loss from sale of assets 633 109 Changes in Operating Assets and Liabilities: Decrease in accounts receivable, prepaid expenses and other 17,485 38,299 Increase in merchandise inventories (43,994) (8,972) Increase (decrease) in accounts payable 98,385 (22,512) Increase (decrease) in accrued expenses 28,965 (14,465) Increase in other long-term liabilities 3,746 1,535 - ---------------------------------------------------------------------------------------------------------------- Net Cash provided by continuing operations 116,363 96,099 Net Cash (used in) provided by discontinued operations (1) 4,346 - ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 116,362 100,445 - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities: Capital expenditures from continuing operations (32,679) (22,869) Capital expenditures from discontinued operations - (1,829) Proceeds from sales of assets 3,362 6,317 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (29,317) (18,381) - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Net borrowings (payments) under line of credit agreements 140 (70,836) Repayment of life insurance policy loan - (20,686) Payments on capital lease obligations (578) (477) Reduction of long-term debt (92,930) (116,523) Net proceeds from issuance of notes - 146,250 Dividends paid (10,528) (10,427) Proceeds from exercise of stock options 7,011 578 Proceeds from dividend reinvestment plan 907 1,004 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Financing Activities (95,978) (71,117) - ---------------------------------------------------------------------------------------------------------------- Net (Decrease) Increase in Cash (8,933) 10,947 - ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of Period 42,770 15,981 - ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 33,837 $ 26,928 - ---------------------------------------------------------------------------------------------------------------- Non-cash financing activities: Equipment Capital Leases $ - $ 1,301 - ----------------------------------------------------------------------------------------------------------------
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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 Thirty-nine weeks ended ----------------------------------- ---------------------------------- Nov. 1, 2003 Nov. 2, 2002 Nov. 1, 2003 Nov. 2, 2002 -------------- --------------- -------------- ------------ (a) Net Earnings (Loss) from continuing operations before cumulative effect of change in accounting principle $ 13,406 $ 15,419 $ (7,500) $ 44,618 Adjustment for interest on convertible senior notes, net of income tax effect 1,001 977 - 1,803 - --------------------------------------------------------------------------------------------------------------------------------- (b) Adjusted net earnings (loss) from continuing operations before cumulative effect of change in accounting principle $ 14,407 $ 16,396 $ (7,500) $ 46,421 - --------------------------------------------------------------------------------------------------------------------------------- (c) Average number of common shares outstanding during period 52,537 51,534 52,002 51,490 Common shares assumed issued upon conversion of convertible senior notes 6,697 6,697 - 4,072 Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price 1,176 853 - 1,025 - --------------------------------------------------------------------------------------------------------------------------------- (d) Average number of common shares assumed outstanding during period 60,410 59,084 52,002 56,587 - --------------------------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) per Share: Net Earnings (Loss) From Continuing operations Before Cumulative Effect of Change in Accounting Principle (a/c) $ 0.26 $ 0.30 $ (0.14) $ 0.87 Net Earnings (Loss) From Discontinued Operations, Net of Tax 0.02 - (0.40) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) per Share $ 0.28 $ 0.30 $ (0.59) $ 0.89 - --------------------------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per Share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle (b/d) $ 0.24 $ 0.28 $ (0.14) $ 0.82 Net Earnings (Loss) From Discontinued Operations, Net of Tax 0.02 - (0.40) 0.02 Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.05) - - --------------------------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per Share $ 0.26 $ 0.28 $ (0.59) $ 0.84 - ---------------------------------------------------------------------------------------------------------------------------------
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES ADDITIONAL INFORMATION (dollar amounts in thousands) UNAUDITED Thirteen weeks ended Thirty-nine weeks ended ------------------------------------ ------------------------------------ Nov. 1, 2003 Nov. 2, 2002 Nov. 1, 2003 Nov. 2, 2002 --------------- --------------- --------------- --------------- Capital expenditures $ 11,259 $ 12,747 $ 32,679 $ 24,698 Depreciation and amortization $ 15,537 $ 17,014 $ 52,558 $ 57,549 Non-operating income: Net rental revenue $ 627 $ 624 $ 2,177 $ 1,934 Investment income 122 217 385 712 Other income 37 37 125 52 -------------- -------------- --------------- --------------- Total $ 786 $ 878 $ 2,687 $ 2,698 ============== ============== =============== =============== Comparable store sales percentages: Merchandise 2.4% (1.9)% (2.2)% 1.2% Service 1.2 1.0 0.2 (1.3) Total 2.2 (1.3) (1.7) 0.7 Total square feet of retail space (including service centers) 12,206,785 12,866,929
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