8-K

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: April 6, 2011

Date of Earliest Event Reported: April 6, 2011

The Pep Boys - Manny, Moe & Jack

(Exact name of registrant as specified in 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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition

On April 6, 2011, The Pep Boys — Manny, Moe & Jack issued a press release announcing its earnings for the fiscal quarter and year ended January 29, 2011.

The information in Items 2.02 and 9.01 (including the Exhibits filed herewith) of 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 Items 2.02 and 9.01 (including the Exhibits filed herewith) of 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.

Item 9.01  Financial Statements and Exhibits

(d) Exhibits. The following exhibits are filed with this report:

Exhibit No. 99.1  Press release dated April 6, 2011.

Exhibit No. 99.2  Unaudited supplemental financial data.

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/ Raymond L. Arthur
		Raymond L. Arthur
		Executive Vice President and
		Chief Financial Officer
Date: April 6, 2011

3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Pep Boys Reports Fourth Quarter and Fiscal 2010 Results

– Comparable Store Sales, Net Earnings and Store Growth Accelerate –

PHILADELPHIA — April 6, 2011 — The Pep Boys — Manny, Moe & Jack (NYSE: “PBY”), the nation’s leading automotive aftermarket service and retail chain, today announced results for the thirteen (fourth quarter) and fifty-two weeks (fiscal year) ended January 29, 2011.

Fourth Quarter

Sales

Sales for the fourth quarter of fiscal 2010 increased by $24.5 million, or 5.4%, to $477.4 million from $452.9 million for the fourth quarter of fiscal 2009. Comparable store sales increased 4.3%, consisting of a 3.4% comparable store service revenue increase and a 4.6% comparable store merchandise sales increase. In accordance with GAAP, service revenue is limited to labor sales, while merchandise sales include merchandise sold through both our service center and retail lines of business. Re-categorizing sales into the respective lines of business from which they are generated, comparable store service center revenue (labor plus installed merchandise and tires) increased 5.8%, while comparable store retail sales (DIY and commercial) increased 3.1%.

Earnings

Net earnings for the fourth quarter of fiscal 2010 more than tripled to $8.4 million ($0.16 per share) from the $2.3 million ($0.04 per share) recorded in the same period last year. Net earnings for the fourth quarter of fiscal 2010 include a $1.0 million tax benefit, while the same period last year included a $1.2 million tax benefit. Earnings from continuing operations before taxes for the fourth quarter of fiscal 2010 increased to $11.5 million from the $1.0 million recorded in the same period last year. The 2010 fourth quarter results include a $4.6 million reduction in the reserve for excess inventory, while the 2009 fourth quarter results included a $1.0 million reduction in inventory-related accruals.

Fiscal Year

Sales

Sales for fiscal year 2010 were $1,988.6 million, as compared to $1,910.9 million for fiscal 2009. Fiscal year 2010 comparable store sales increased 2.7%, consisting of increases of 1.1% in comparable store service revenue and 3.1% in comparable store merchandise sales. Re-categorizing sales (see above), comparable service center revenue increased 2.4%, while comparable retail sales increased 3.0%.

Earnings

Net earnings for fiscal year 2010 increased to $36.6 million ($0.69 per share) from the $23.0 million ($0.44 per share) recorded in fiscal year 2009. The 2010 results included a $2.1 million tax benefit, while the 2009 results included a $1.2 million tax benefit. Earnings from continuing operations before taxes for fiscal year 2010 increased 55% to $58.4 million from the $37.6 million recorded in

the prior year. The fiscal 2010 results include a net benefit of $8.4 million comprised of a $5.9 million reduction in the reserve for excess inventory, a $2.5 million gain from the disposition of assets and a $1.0 million reversal of an inventory related accrual, partially offset by a $1.0 million asset impairment charge. The fiscal 2009 results included a net benefit of $7.0 million, consisting of a $6.2 million gain from bond repurchases, a $1.2 million gain from sale leaseback transactions, a $2.0 million reduction in inventory-related accruals and a $0.7 million gain from an insurance settlement, partially offset by a $3.1 million asset impairment charge.

Commentary

“For the past three years, we have focused on earning the trust of our customers, becoming the preferred employer in the automotive aftermarket and building a profitable and sustainable business model,” said President & CEO Mike Odell. “This fourth quarter caps off a successful 2010, as evidenced by our comparable store sales growth, expanding operating margins and new store growth. We expect to continue this trend in 2011, despite the uncertain macro-environment. Every day we wake up charged to execute our vision to be the automotive solutions provider of choice for the value-oriented customer.”

“We opened 35 new locations in 2010 — 28 Service & Tire Centers and seven Supercenters,” Mike continued. “That’s on top of 25 new stores in 2009. Our growth will continue to accelerate in 2011, as we have targeted opening 50 new Service & Tire Centers and five Supercenters.”

“We continued to build cash in 2010, ending the year with over $90 million, which is $50 million more than last year,” added CFO Ray Arthur. “Our greatly improved operating results are providing the funding for our growth strategy.”

Pep Boys has more than 6,200 service bays within over 620 stores located in 35 states and Puerto Rico. Along with its full-service vehicle maintenance and repair 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 (800) PEP-BOYS or by visiting www.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 implementation of its long-term strategic plan, 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.

Investors have an opportunity to listen to the Company’s quarterly conference calls discussing its results and related matters. The call for the fourth quarter will be broadcast live on Thursday, April 7 at 8:30 a.m. ET over the Internet at the Vcall website, located at http://www.investorcalendar.com. To listen to the call live, please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. Supplemental financial information will be available the morning of April 7 on Pep Boys’ website at www.pepboys.com.

###

Contact:

Pep Boys, Philadelphia

Investor Contact: Mike Melia, (215) 430-9459

Media Contact: Alex Spooner, (215) 430-9588
Internet: http://www.pepboys.com

Pep Boys Financial Highlights

Thirteen weeks ended	January 29, 2011		January 30, 2010
Total revenues:	$	477,389,000	$	452,896,000
Net earnings:	$	8,365,000	$	2,268,000
Basic earnings per share:
Average shares	52,778,000		52,452,000
Basic earnings per share:	$	0.16	$	0.04
Diluted earnings per share:
Average shares	53,416,000		52,808,000
Diluted earnings per share:	$	0.16	$	0.04

Fifty-two weeks ended	January 29, 2011		January 30, 2010
Total revenues:	$	1,988,641,000	$	1,910,938,000
Net earnings:	$	36,631,000	$	23,036,000
Basic earnings per share:
Average shares	52,677,000		52,397,000
Basic earnings per share:	$	0.70	$	0.44
Diluted earnings per share:
Average shares	53,162,000		52,667,000
Diluted earnings per share:	$	0.69	$	0.44

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										Fifty-two weeks ended
	January 29, 2011					January 30, 2010					January 29, 2011					January 30, 2010
				%					%					%					%
	Amount			Sales		Amount			Sales		Amount			Sales		Amount			Sales
Merchandise sales	$	384,432		80.5		$	364,511		80.5		$	1,598,168		80.4		$	1,533,619		80.3
Service revenue	92,957			19.5		88,385			19.5		390,473			19.6		377,319			19.7
Total revenues	477,389			100.0		452,896			100.0		1,988,641			100.0		1,910,938			100.0
Costs of merchandise sales	264,532			68.8		258,375			70.9		1,110,380			69.5		1,084,804			70.7
Costs of service revenue	88,457			95.2		84,474			95.6		355,909			91.1		340,027			90.1
Total costs of revenues	352,989			73.9		342,849			75.7		1,466,289			73.7		1,424,831			74.6
Gross profit from merchandise sales	119,900			31.2		106,136			29.1		487,788			30.5		448,815			29.3
Gross profit from service revenue	4,500			4.8		3,911			4.4		34,564			8.9		37,292			9.9
Total gross profit	124,400			26.1		110,047			24.3		522,352			26.3		486,107			25.4
Selling, general and administrative expenses	106,659			22.3		103,181			22.8		442,239			22.2		430,261			22.5
Net (loss) gain from dispositions of assets	(136		)	—		(106		)	—		2,467			0.1		1,213			0.1
Operating profit	17,605			3.7		6,760			1.5		82,580			4.2		57,059			3.0
Non-operating income	754			0.2		595			0.1		2,609			0.1		2,261			0.1
Interest expense	6,864			1.4		6,380			1.4		26,745			1.3		21,704			1.1
Earnings from continuing operations before income taxes	11,495			2.4		975			0.2		58,444			2.9		37,616			2.0
Income tax expense (benefit)	2,957			25.7	(1)	(1,860		)	(190.8	)(1)	21,273			36.4	(1)	13,503			35.9	(1)
Earnings from continuing operations	8,538			1.8		2,835			0.6		37,171			1.9		24,113			1.3
Loss from discontinued operations, net of tax	(173		)	—		(567		)	(0.1	)	(540		)	—		(1,077		)	(0.1	)
Net earnings	8,365			1.8		2,268			0.5		36,631			1.8		23,036			1.2
Retained earnings, beginning of period	397,100					374,461					374,836					358,670
Cash dividends	(1,582		)			(1,577		)			(6,323		)			(6,286		)
Shares issued and other	(1,283		)			(316		)			(2,544		)			(584		)
Retained earnings, end of period	$	402,600				$	374,836				$	402,600				$	374,836
Basic earnings per share:
Earnings from continuing operations	$	0.16				$	0.05				$	0.71				$	0.46
Discontinued operations, net of tax	—					(0.01		)			(0.01		)			(0.02		)
Basic earnings per share	$	0.16				$	0.04				$	0.70				$	0.44
Diluted earnings per share:
Earnings from continuing operations	$	0.16				$	0.06				$	0.70				$	0.46
Discontinued operations, net of tax	—					(0.02		)			(0.01		)			(0.02		)
Diluted earnings per share	$	0.16				$	0.04				$	0.69				$	0.44
Cash dividends per share	$	0.03				$	0.03				$	0.12				$	0.12

(1) As a percentage of earnings from continuing operations before income taxes

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollar amounts in thousands)

	January 29, 2011			January 30, 2010
Assets
Current assets:
Cash and cash equivalents	$	90,240		$	39,326
Accounts receivable, less allowance for uncollectible accounts of $1,551 and $1,488	19,540			22,983
Merchandise inventories	564,402			559,118
Prepaid expenses	28,542			24,784
Other current assets	60,337			65,428
Assets held for disposal	475			4,438
Total current assets	763,536			716,077
Property and equipment - net	700,981			706,450
Deferred income taxes	66,019			58,171
Other long-term assets	26,136			18,388
Total assets	$	1,556,672		$	1,499,086
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	210,440		$	202,974
Trade payable program liability	56,287			34,099
Accrued expenses	236,028			242,416
Deferred income taxes	56,335			29,984
Current maturities of long-term debt	1,079			1,079
Total current liabilities	560,169			510,552
Long-term debt less current maturities	295,122			306,201
Other long-term liabilities	70,046			73,933
Deferred gain from asset sales	152,875			165,105
Stockholders’ equity:
Common stock, par value $1 per share:
Authorized 500,000,000 shares; issued 68,557,041 shares	68,557			68,557
Additional paid-in capital	295,361			293,810
Retained earnings	402,600			374,836
Accumulated other comprehensive loss	(17,028		)	(17,691		)
Treasury stock, at cost - 15,971,910 shares and 16,164,074 shares	(271,030		)	(276,217		)
Total stockholders’ equity	478,460			443,295
Total liabilities and stockholders’ equity	$	1,556,672		$	1,499,086

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES (UNAUDITED)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

Fifty-two weeks ended	January 29, 2011			January 30, 2010
Cash flows from operating activities:
Net earnings	$	36,631		$	23,036
Adjustments to reconcile net earnings to net cash provided by continuing operations:
Loss from discontinued operations, net of tax	540			1,077
Depreciation and amortization	74,151			70,529
Amortization of deferred gain from asset sales	(12,602		)	(12,325		)
Stock compensation expense	3,497			2,575
Loss (gain) on debt retirement	200			(6,248		)
Deferred income taxes	18,572			13,446
Net gain from disposition of assets	(2,467		)	(1,213		)
Loss from asset impairment	970			2,884
Other	(479		)	345
Changes in operating assets and liabilities:
Decrease in accounts receivable, prepaid expenses and other	7,060			7,175
(Increase) decrease in merchandise inventories	(5,284		)	7,039
Increase (decrease) in accounts payable	7,466			(9,640		)
Decrease in accrued expenses	(8,394		)	(13,238		)
(Decrease) increase in other long-term liabilities	(1,200		)	2,384
Net cash provided by continuing operations	118,661			87,826
Net cash used in discontinued operations	(1,466		)	(603		)
Net cash provided by operating activities	117,195			87,223
Cash flows from investing activities:
Cash paid for property and equipment	(70,252		)	(43,214		)
Proceeds from dispositions of assets	7,515			14,776
Acquisition of Florida Tire, Inc.	(288		)	(2,695		)
Collateral investment and other	(9,638		)	(500		)
Net cash used in continuing operations	(72,663		)	(31,633		)
Net cash provided by discontinued operations	569			1,762
Net cash used in investing activities	(72,094		)	(29,871		)
Cash flows from financing activities:
Borrowings under line of credit agreements	21,795			249,704
Payments under line of credit agreements	(21,795		)	(273,566		)
Borrowings on trade payable program liability	347,068			192,324
Payments on trade payable program liability	(324,880		)	(190,155		)
Debt payments	(11,279		)	(11,990		)
Dividends paid	(6,323		)	(6,286		)
Other	1,227			611
Net cash provided by (used in) financing activities	5,813			(39,358		)
Net increase in cash and cash equivalents	50,914			17,994
Cash and cash equivalents at beginning of period	39,326			21,332
Cash and cash equivalents at end of period	$	90,240		$	39,326
Supplemental cash flow information:
Cash paid for income taxes	$	890		$	4,768
Cash received from income tax refunds	$	195		$	921
Cash paid for interest	$	23,098		$	24,509
Accrued purchases of property and equipment	$	2,926		$	1,738

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (in thousands, except per share data)

			Thirteen weeks ended						Fifty-two weeks ended
			January 29, 2011			January 30, 2010			January 29, 2011			January 30, 2010
(a)	Earnings from continuing operations		$	8,538		$	2,835		$	37,171		$	24,113
	Loss from discontinued operations, net of tax		(173		)	(567		)	(540		)	(1,077		)
	Net earnings		$	8,365		$	2,268		$	36,631		$	23,036
(b)	Basic average number of common shares outstanding during period		52,778			52,452			52,677			52,397
	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price		638			356			485			270
(c)	Diluted average number of common shares assumed outstanding during period		53,416			52,808			53,162			52,667
	Basic earnings per share:
	Earnings from continuing operations	(a) / (b)	$	0.16		$	0.05		$	0.71		$	0.46
	Discontinued operations, net of tax		—			(0.01		)	(0.01		)	(0.02		)
	Basic earnings per share		$	0.16		$	0.04		$	0.70		$	0.44
	Diluted earnings per share:
	Earnings from continuing operations	(a) / (c)	$	0.16		$	0.06		$	0.70		$	0.46
	Discontinued operations, net of tax		—			(0.02		)	(0.01		)	(0.02		)
	Diluted earnings per share		$	0.16		$	0.04		$	0.69		$	0.44

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

ADDITIONAL INFORMATION (dollar amounts in thousands)

	Thirteen weeks ended						Fifty-two weeks ended
	January 29, 2011			January 30, 2010			January 29, 2011			January 30, 2010
Capital expenditures	$	27,276		$	15,439		$	70,252		$	43,214
Depreciation and amortization	$	18,891		$	17,281		$	74,151		$	70,529
Non-operating income:
Net rental revenue	$	569		$	522		$	2,218		$	1,774
Investment income	133			46			296			219
Other income	52			27			95			268
Total	$	754		$	595		$	2,609		$	2,261
Comparable sales percentages:
Merchandise	4.6		%	-4.9		%	3.1		%	-2.6		%
Service	3.4		%	0.7		%	1.1		%	4.7		%
Total	4.3		%	-3.9		%	2.7		%	-1.2		%
Total square feet of retail space (including service centers)							11,932,000			11,687,000
Store count
Supercenter							560			553
Service & Tire Center							53			25
Retail Only							8			9
Total							621			587
Sales and gross profit by line of business (A):
Retail sales	$	251,399		$	243,187		$	1,046,772		1,013,308
Service center revenue	225,990			209,709			941,869			897,630
Total revenues	$	477,389		$	452,896		$	1,988,641		$	1,910,938
Gross profit from retail sales	$	73,638		$	64,904		$	306,176		275,051
Gross profit from service center revenue	50,762			45,143			216,176			211,056
Total gross profit	$	124,400		$	110,047		$	522,352		$	486,107
Comparable sales percentages (A):
Retail sales	3.1		%	-5.1		%	3.0		%	-4.3		%
Service center revenue	5.8		%	-2.4		%	2.4		%	2.5		%
Total revenues	4.3		%	-3.9		%	2.7		%	-1.2		%
Gross profit percentage by line of business (A):
Gross profit percentage from retail sales	29.3		%	26.7		%	29.2		%	27.1		%
Gross profit percentage from service center revenue	22.5		%	21.5		%	23.0		%	23.5		%
Total gross profit percentage	26.1		%	24.3		%	26.3		%	25.4		%

(A) Retail sales include DIY and commercial sales. Service center revenue includes revenue from labor and installed parts and tires.