EX-99.2 3 a05-14705_1ex99d2.htm EX-99.2

Exhibit 99.2

 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(dollar amounts in thousands, except per share amounts)

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

 

July 30, 2005

 

July 31, 2004

 

July 30, 2005

 

July 31, 2004

 

 

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise Sales

 

$

480,608

 

83.2

 

$

488,716

 

82.4

 

$

944,456

 

82.7

 

$

949,597

 

81.9

 

Service Revenue

 

96,810

 

16.8

 

104,710

 

17.6

 

197,188

 

17.3

 

209,962

 

18.1

 

Total Revenues

 

577,418

 

100.0

 

593,426

 

100.0

 

1,141,644

 

100.0

 

1,159,559

 

100.0

 

Costs of Merchandise Sales

 

347,725

 

72.4

 

347,249

 

71.1

 

689,416

 

73.0

 

672,623

 

70.8

 

Costs of Service Revenue

 

86,834

 

89.7

 

80,701

 

77.1

 

170,748

 

86.6

 

159,252

 

75.8

 

Total Costs of Revenues

 

434,559

 

75.3

 

427,950

 

72.1

 

860,164

 

75.3

 

831,875

 

71.7

 

Gross Profit from Merchandise Sales

 

132,883

 

27.6

 

141,467

 

28.9

 

255,040

 

27.0

 

276,974

 

29.2

 

Gross Profit from Service Revenue

 

9,976

 

10.3

 

24,009

 

22.9

 

26,440

 

13.4

 

50,710

 

24.2

 

Total Gross Profit

 

142,859

 

24.7

 

165,476

 

27.9

 

281,480

 

24.7

 

327,684

 

28.3

 

Selling, General and
Administrative Expenses

 

133,200

 

23.0

 

136,694

 

23.0

 

268,462

 

23.5

 

266,256

 

23.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

9,659

 

1.7

 

28,782

 

4.9

 

13,018

 

1.2

 

61,428

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Income

 

483

 

0.1

 

470

 

0.1

 

2,221

 

0.2

 

1,062

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

9,234

 

1.6

 

7,800

 

1.3

 

18,149

 

1.6

 

17,098

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) From Continuing Operations Before Income Taxes

 

908

 

0.2

 

21,452

 

3.7

 

(2,910

)

(0.2

)

45,392

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

76

 

8.4

(1)

7,937

 

37.0

(1)

(1,356

)

(46.6

)(1)

16,795

 

37.0

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) From Continuing Operations

 

832

 

0.1

 

13,515

 

2.2

 

(1,554

)

(0.1

)

28,597

 

2.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, Net of Tax

 

210

 

0.1

 

(852

)

(0.1

)

(178

)

(0.0

)

(1,383

)

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss)

 

1,042

 

0.2

 

12,663

 

2.1

 

(1,732

)

(0.1

)

27,214

 

2.3

 

Retained Earnings, beginning of period

 

529,177

 

 

 

541,203

 

 

 

536,780

 

 

 

531,933

 

 

 

Cash Dividends

 

(3,758

)

 

 

(3,915

)

 

 

(7,320

)

 

 

(7,813

)

 

 

Effect of Stock Options

 

(717

)

 

 

(818

)

 

 

(1,974

)

 

 

(2,201

)

 

 

Dividend Reinvestment Plan

 

(41

)

 

 

 

 

 

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained Earnings, end of period

 

$

525,703

 

 

 

$

549,133

 

 

 

$

525,703

 

 

 

$

549,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) From Continuing Operations

 

$

0.01

 

 

 

$

0.23

 

 

 

$

(0.03

)

 

 

$

0.51

 

 

 

Discontinued Operations, Net of Tax

 

0.01

 

 

 

(0.01

)

 

 

 

 

 

(0.03

)

 

 

Basic Earnings (Loss) per Share

 

$

0.02

 

 

 

$

0.22

 

 

 

$

(0.03

)

 

 

$

0.48

 

 

 

Diluted Earnings (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) From Continuing Operations

 

$

0.01

 

 

 

$

0.22

 

 

 

$

(0.03

)

 

 

$

0.47

 

 

 

Discontinued Operations, Net of Tax

 

0.01

 

 

 

(0.01

)

 

 

 

 

 

(0.02

)

 

 

Diluted Earnings (Loss) per Share

 

$

0.02

 

 

 

$

0.21

 

 

 

$

(0.03

)

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Dividends per Share

 

$

0.0675

 

 

 

$

0.0675

 

 

 

$

0.1350

 

 

 

$

0.1350

 

 

 

 


(1) As a percentage of earnings (loss) before income taxes.

 



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

 

CONSOLIDATED BALANCE SHEETS

 

(dollar amounts in thousands, except per share amounts)

 

 

 

July 30, 2005

 

January 29, 2005

 

July 31, 2004

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,670

 

$

82,758

 

$

83,893

 

Accounts receivable, net

 

35,093

 

30,994

 

40,355

 

Merchandise inventories

 

634,352

 

602,760

 

596,451

 

Prepaid expenses

 

34,250

 

45,349

 

32,714

 

Deferred income taxes

 

 

 

10,645

 

Other

 

77,893

 

96,065

 

77,430

 

Assets held for disposal

 

 

665

 

3,118

 

Total Current Assets

 

823,258

 

858,591

 

844,606

 

Property and Equipment - at cost:

 

 

 

 

 

 

 

Land

 

259,239

 

261,985

 

263,199

 

Buildings and improvements

 

913,324

 

916,099

 

908,139

 

Furniture, fixtures and equipment

 

644,224

 

633,098

 

596,497

 

Construction in progress

 

20,712

 

40,426

 

19,255

 

 

 

1,837,499

 

1,851,608

 

1,787,090

 

Less accumulated depreciation and amortization

 

890,859

 

906,577

 

873,873

 

Property and Equipment - net

 

946,640

 

945,031

 

913,217

 

Other

 

66,663

 

63,401

 

52,526

 

Total Assets

 

$

1,836,561

 

$

1,867,023

 

$

1,810,349

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

333,303

 

$

310,981

 

$

335,890

 

Trade payable program liability

 

12,071

 

 

 

Accrued expenses

 

263,610

 

306,671

 

244,831

 

Deferred income taxes

 

18,383

 

19,406

 

 

Current maturities of long-term debt and obligations under capital leases

 

144,461

 

40,882

 

147,258

 

Total Current Liabilities

 

771,828

 

677,940

 

727,979

 

 

 

 

 

 

 

 

 

Long-term debt and obligations under capital leases, less current maturities

 

215,534

 

352,682

 

144,727

 

Convertible long-term debt

 

119,000

 

119,000

 

150,000

 

Other long-term liabilities

 

52,172

 

37,977

 

38,481

 

Deferred income taxes

 

27,333

 

25,968

 

40,497

 

Commitments and Contingencies

 

 

 

 

 

 

 

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

 

286,617

 

284,966

 

284,465

 

Retained earnings

 

525,703

 

536,780

 

549,133

 

Common stock subscriptions receivable

 

(39

)

(167

)

(144

)

Accumulated other comprehensive (loss) income

 

(3,524

)

(4,852

)

1,098

 

 

 

877,314

 

885,284

 

903,109

 

Less cost of shares in treasury - 10,981,577 shares 11,305,130 shares and 8,372,727 shares

 

167,356

 

172,564

 

135,180

 

Less cost of shares in benefits trust - 2,195,270 shares

 

59,264

 

59,264

 

59,264

 

Total Stockholders’ Equity

 

650,694

 

653,456

 

708,665

 

Total Liabilities and Stockholders’ Equity

 

$

1,836,561

 

$

1,867,023

 

$

1,810,349

 

 



 

 

 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(dollar amounts in thousands)

 

Twenty-six Weeks Ended

 

July 30, 2005

 

July 31, 2004

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

  Net (loss) earnings

 

$

(1,732

)

$

27,214

 

  Net loss from discontinued operations

 

(178

)

(1,383

)

  Net (loss) earnings from continuing operations

 

$

(1,554

)

$

28,597

 

Adjustments to Reconcile Net (Loss) Earnings from Continuing
Operations to Net Cash Provided by Continuing Operations:

 

 

 

 

 

Depreciation and amortization

 

38,655

 

37,767

 

Accretion of asset disposal obligation

 

56

 

71

 

Stock compensation expense

 

1,403

 

847

 

Deferred income taxes

 

(239

)

20,553

 

(Gain) loss from sales of assets

 

(3,606

)

360

 

Changes in Operating Assets and Liabilities:

 

 

 

 

 

Decrease in accounts receivable, prepaid expenses and other

 

24,421

 

3,711

 

Increase in merchandise inventories

 

(31,592

)

(42,889

)

Increase (decrease) in accounts payable

 

22,322

 

(3,493

)

Decrease in accrued expenses

 

(45,060

)

(22,554

)

Increase (decrease) in other long-term liabilities

 

14,195

 

(898

)

Net cash provided by continuing operations

 

19,001

 

22,072

 

Net cash used in discontinued operations

 

(734

)

(1,728

)

Net Cash Provided by Operating Activities

 

18,267

 

20,344

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Capital expenditures

 

(42,463

)

(28,830

)

Proceeds from sales of assets

 

8,174

 

1,453

 

Proceeds from sales of assets held for disposal

 

932

 

10,532

 

Net Cash Used in Investing Activities

 

(33,357

)

(16,845

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Net borrowings under line of credit agreements

 

6,815

 

137

 

Net borrowings (payments) on trade payable program liability

 

12,071

 

(7,216

)

Reduction of long-term debt

 

(40,452

)

(84,425

)

Other

 

(53

)

3,283

 

Dividends paid

 

(7,320

)

(7,813

)

Proceeds from issuance of common stock

 

 

108,854

 

Proceeds from exercise of stock options

 

2,451

 

6,049

 

Proceeds from dividend reinvestment plan

 

490

 

541

 

Net Cash (Used in) Provided by Financing Activities

 

(25,998

)

19,410

 

Net (Decrease) Increase in Cash

 

(41,088

)

22,909

 

Cash and Cash Equivalents at Beginning of Period

 

82,758

 

60,984

 

Cash and Cash Equivalents at End of Period

 

$

41,670

 

$

83,893

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

Non-cash operating activities:

 

 

 

 

 

Accrued employee payroll tax withheld related to conversions of restricted stock units

 

$

178

 

$

 

Non-cash investing activities:

 

 

 

 

 

Accrued purchases of property and equipment

 

$

2,148

 

$

 

Non-cash financing activities:

 

 

 

 

 

Equipment Capital Lease

 

$

124

 

$

1,413

 

 



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

 

 COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE

 

(in thousands, except per share data)

 

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

 

 

July 30, 2005

 

July 31, 2004

 

July 30, 2005

 

July 31, 2004

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Net earnings (loss from continuing operations)

 

$

832

 

$

13,515

 

$

(1,554

)

$

28,597

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment for interest on convertible senior
notes, net of income tax effect

 

 

1,001

 

 

2,003

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Adjusted net earnings (loss from continuing operations)

 

$

832

 

$

14,516

 

$

(1,554

)

$

30,600

 

 

 

 

 

 

 

 

 

 

 

 

(c)

Average number of common shares outstanding
during period

 

55,683

 

57,875

 

55,597

 

56,410

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares assumed issued upon conversion of
convertible senior notes

 

 

6,697

 

 

6,697

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares assumed issued upon exercise
of dilutive stock options, net of assumed
repurchase, at the average market price

 

449

 

1,749

 

 

1,847

 

 

 

 

 

 

 

 

 

 

 

 

(d)

Average number of common shares assumed
outstanding during period

 

56,132

 

66,321

 

55,597

 

64,954

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) From Continuing Operations (a/c)

 

$

0.01

 

$

0.23

 

$

(0.03

)

$

0.51

 

 

Discontinued Operations, Net of Tax

 

0.01

 

(0.01

)

 

(0.03

)

 

Basic Earnings (Loss) per Share

 

$

0.02

 

$

0.22

 

$

(0.03

)

$

0.48

 

 

Diluted Earnings (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) From Continuing Operations (b/d)

 

$

0.01

 

$

0.22

 

$

(0.03

)

$

0.47

 

 

Discontinued Operations, Net of Tax

 

0.01

 

(0.01

)

 

(0.02

)

 

Diluted Earnings (Loss) per Share

 

$

0.02

 

$

0.21

 

$

(0.03

)

$

0.45

 

 



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

 

ADDITIONAL INFORMATION

 

(dollar amounts in thousands)

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

 

July 30, 2005

 

July 31, 2004

 

July 30, 2005

 

July 31, 2004

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

22,119

 

$

21,147

 

$

44,611

 

$

28,830

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

19,870

 

$

18,971

 

$

38,655

 

$

37,767

 

 

 

 

 

 

 

 

 

 

 

Non-operating income:

 

 

 

 

 

 

 

 

 

Net rental revenue

 

$

349

 

$

474

 

$

714

 

$

848

 

Investment income

 

210

 

111

 

505

 

348

 

Other (expense) income

 

(76

)

(115

)

1,002

 

(134

)

Total

 

$

483

 

$

470

 

$

2,221

 

$

1,062

 

 

 

 

 

 

 

 

 

 

 

Comparable sales percentages:

 

 

 

 

 

 

 

 

 

Merchandise

 

-1.5

%

8.4

%

-0.4

%

10.3

%

Service

 

-7.4

%

0.0

%

-6.0

%

2.8

%

Total

 

-2.5

%

6.9

%

-1.4

%

8.8

%

 

 

 

 

 

 

 

 

 

 

Total square feet of retail space (including service centers)

 

 

 

 

 

12,167,089

 

12,206,785

 

 

 

 

 

 

 

 

 

 

 

Total Store Count

 

 

 

 

 

593

 

595

 

 

 

 

 

 

 

 

 

 

 

Sales and Gross Profit by Line of Business (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Sales

 

$

355,593

 

$

355,986

 

$

695,289

 

$

691,285

 

Service Center Revenue

 

221,825

 

237,440

 

446,355

 

468,274

 

Total Revenues

 

$

577,418

 

$

593,426

 

$

1,141,644

 

$

1,159,559

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

98,274

 

$

99,879

 

$

184,553

 

$

197,119

 

Gross Profit from Service Center Revenue

 

44,585

 

65,597

 

96,927

 

130,565

 

Total Gross Profit

 

$

142,859

 

$

165,476

 

$

281,480

 

$

327,684

 

 

 

 

 

 

 

 

 

 

 

Comparable Sales Percentages (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Sales

 

0.1

%

 

 

0.7

%

 

 

Service Center Revenue

 

-6.4

%

 

 

-4.5

%

 

 

Total Revenues

 

-2.5

%

 

 

-1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit Percentage by Line of Business (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit Percentage from Retail Sales

 

27.6

%

28.1

%

26.5

%

28.5

%

Gross Profit Percentage from Service Center Revenue

 

20.1

%

27.6

%

21.7

%

27.9

%

Total Gross Profit Percentage

 

24.7

%

27.9

%

24.7

%

28.3

%

 


(A) Retail Sales include DIY and Commercial sales.  Service Center Revenue includes revenue from labor and installed parts and tires.

 



 

Service Labor Reallocation

 

Effective January 30, 2005, the Company restructured its field operations into separate retail and service teams.  In connection with this restructuring, certain retail personnel, who were previously utilized in merchandising roles supporting the service business, were reassigned to purely service-related responsibilities.  The labor and benefit costs related to these associates, which were previously recognized in Selling, General and Administrative Expenses, are now recognized in Costs of Service Revenue.  Please see the table below illustrating the pro forma effect of this change on both the thirteen and twenty-six weeks ended July 31, 2004 (presented in GAAP and line of business formats), assuming that such associates had been reassigned from retail to service during such period.

 

PRO FORMA STATEMENTS OF OPERATIONS

 

GAAP Format

 

 

 

Thirteen weeks ended
July 31, 2004
ACTUAL

 

PRO FORMA
ADJUSTMENTS

 

Thirteen weeks ended
July 31, 2004
PRO FORMA

 

Thirteen weeks ended
July 30, 2005
ACTUAL

 

 

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Merchandise Sales

 

$

141,467

 

28.9

 

$

 

0.0

 

$

141,467

 

28.9

 

$

132,883

 

27.6

 

Gross Profit from Service Revenue

 

24,009

 

22.9

 

(5,159

)

(4.9

)

18,850

 

18.0

 

9,976

 

10.3

 

Total Gross Profit

 

165,476

 

27.9

 

(5,159

)

(0.9

)

160,317

 

27.0

 

142,859

 

24.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and
Administrative Expenses

 

136,694

 

23.0

 

(5,159

)

(0.9

)

131,535

 

22.1

 

133,200

 

23.0

 

Operating Profit

 

$

28,782

 

4.9

 

$

 

0.0

 

$

28,782

 

4.9

 

$

9,659

 

1.7

 

 

 

 

Twenty-six weeks ended
July 31, 2004
ACTUAL

 

PRO FORMA
ADJUSTMENTS

 

Twenty-six weeks ended
July 31, 2004
PRO FORMA

 

Twenty-six weeks ended
July 30, 2005
ACTUAL

 

 

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Merchandise Sales

 

$

276,974

 

29.2

 

$

 

0.0

 

$

276,974

 

29.2

 

$

255,040

 

27.0

 

Gross Profit from Service Revenue

 

50,710

 

24.2

 

(9,884

)

(4.7

)

40,826

 

19.4

 

26,440

 

13.4

 

Total Gross Profit

 

327,684

 

28.3

 

(9,884

)

(0.9

)

317,800

 

27.4

 

281,480

 

24.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and
Administrative Expenses

 

266,256

 

23.0

 

(9,884

)

(0.9

)

256,372

 

22.1

 

268,462

 

23.5

 

Operating Profit

 

$

61,428

 

5.3

 

$

 

0.0

 

$

61,428

 

5.3

 

$

13,018

 

1.2

 

 

Line of Business Format

 

 

 

Thirteen weeks ended
July 31, 2004
ACTUAL

 

PRO FORMA
ADJUSTMENTS

 

Thirteen weeks ended
July 31, 2004
PRO FORMA

 

Thirteen weeks ended
July 30, 2005
ACTUAL

 

 

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

99,879

 

28.1

 

$

 

0.0

 

$

99,879

 

28.1

 

$

98,274

 

27.6

 

Gross Profit from Service Center Revenue

 

65,597

 

27.6

 

(5,159

)

(2.2

)

60,438

 

25.5

 

44,585

 

20.1

 

Total Gross Profit

 

165,476

 

27.9

 

(5,159

)

(2.2

)

160,317

 

27.0

 

142,859

 

24.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and
Administrative Expenses

 

136,694

 

23.0

 

(5,159

)

(0.9

)

131,535

 

22.2

 

133,200

 

23.0

 

Operating Profit

 

$

28,782

 

4.9

 

$

 

0.0

 

$

28,782

 

4.9

 

$

9,659

 

1.7

 

 

 

 

Twenty-six weeks ended
July 31, 2004
ACTUAL

 

PRO FORMA
ADJUSTMENTS

 

Twenty-six weeks ended
July 31, 2004
PRO FORMA

 

Twenty-six weeks ended
July 30, 2005
ACTUAL

 

 

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

Amount

 

%
Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

197,119

 

28.5

 

$

 

0.0

 

$

197,119

 

28.5

 

$

184,553

 

26.5

 

Gross Profit from Service Center Revenue

 

130,565

 

27.9

 

(9,884

)

(2.1

)

120,681

 

25.8

 

96,927

 

21.7

 

Total Gross Profit

 

327,684

 

28.3

 

(9,884

)

(0.9

)

317,800

 

27.4

 

281,480

 

24.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and
Administrative Expenses

 

266,256

 

23.0

 

(9,884

)

(0.9

)

256,372

 

22.1

 

268,462

 

23.5

 

Operating Profit

 

$

61,428

 

5.3

 

$

 

0.0

 

$

61,428

 

5.3

 

$

13,018

 

1.2