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 2, 2012

Date of Earliest Event Reported: April 2, 2012

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 2, 2012, The Pep Boys — Manny, Moe & Jack issued a press release announcing its earnings for the fiscal quarter and year ended January 28, 2012.

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 2, 2012.

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 2, 2012

3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Pep Boys Reports Fiscal 2011 Results

PHILADELPHIA — April 2, 2012 — The Pep Boys — Manny, Moe & Jack (NYSE: “PBY”), the nation’s leading automotive aftermarket service and retail chain, today announced results for the fifty-two (fiscal year) and thirteen weeks (fourth quarter) ended January 28, 2012.

Fiscal Year

Sales

Sales for fiscal year 2011 increased by $75.0 million, or 3.8%, to $2,063.6 million from $1,988.6 million for fiscal 2010. Comparable sales decreased 0.6%, consisting of a 0.6% comparable service revenue increase offset by a 0.9% comparable merchandise sales decrease. 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 service center revenue (labor plus installed merchandise and tires) increased 1.3%, while comparable retail sales (DIY and Commercial) decreased 2.3%.

Earnings

Net earnings for fiscal year 2011 were $28.9 million ($0.54 per share), a $7.7 million decrease from the $36.6 million ($0.69 per share) recorded in fiscal 2010. The fiscal 2011 results included a $3.5 million tax benefit, while the 2010 results included a $2.1 million tax benefit.  The fiscal 2011 results also include, on a pre-tax basis, a net charge of $2.8 million comprised of a $1.6 million asset impairment charge, $1.5 million of acquisition and transition expenses related to our purchase of Big 10 Tires, and $0.8 million of merger and other transaction related costs, partially offset by a $1.1 million reduction in our reserve for excess inventory. 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.

Fourth Quarter

Sales

Sales for the thirteen weeks ended January 28, 2012 increased by $27.9 million, or 5.9%, to $505.3 million from $477.4 million for the thirteen weeks ended January 29, 2011. Comparable sales increased 0.8%, consisting of a decrease of 0.1% in comparable service revenue and an increase of 1.0% in comparable merchandise sales. Re-categorizing sales (see above), comparable service center revenue increased 4.6%, while comparable retail sales decreased 2.7%.

Earnings

Net loss for the fourth quarter of fiscal 2011 was $4.4 million ($0.08 loss per share) compared to net earnings of $8.4 million ($0.16 per share) recorded in the same period last year. Net loss for the fourth quarter of fiscal 2011 includes, on a pre-tax basis, a net charge of $0.9 million comprised of a $1.2 million asset impairment charge and $0.8 million of merger and other transaction related costs, mostly offset by a $1.1 million reduction in our reserve for excess inventory.  The fourth quarter fiscal 2010 results include, on a pre-tax basis, a $4.6 million reduction in the reserve for excess inventory.  The fourth quarter fiscal 2010 results also included a $1.0 million tax benefit.

Since 1921, Pep Boys has been the nation’s leading automotive aftermarket chain. With more than 7,000 service bays in more than 730 locations in 35 states and Puerto Rico, Pep Boys offers name-brand tires; automotive maintenance and repair; parts and expert advice for the Do-It-Yourselfer; commercial auto parts delivery; and fleet maintenance and repair. Customers can find the nearest location by calling 1-800-PEP-BOYS (1-800-737-2697) or by visiting http://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.

###

Investor Contact:	Media Contact:
Mike Melia	Regina M. Tracy
(215) 430-9459	(215) 430-9081
Email: investorrelations@pepboys.com	Email: mediarelations@pepboys.com

Pep Boys Financial Highlights

Thirteen Weeks Ended	January 28, 2012			January 29, 2011
Total revenues	$	505,318,000		$	477,389,000
Net earnings	$	(4,420,000	)	$	8,365,000
Basic earnings per share:
Average shares	53,032,000			52,778,000
Basic earnings per share:	$	(0.08	)	$	0.16
Diluted earnings per share:
Average shares	53,743,000			53,416,000
Diluted earnings per share:	$	(0.08	)	$	0.16

Fifty-two weeks ended	January 28, 2012		January 29, 2011
Total revenues	$	2,063,627,000	$	1,988,641,000
Net earnings	$	28,903,000	$	36,631,000
Basic earnings per share:
Average shares	52,958,000		52,677,000
Basic earnings per share:	$	0.54	$	0.70
Diluted earnings per share:
Average shares	53,631,000		53,162,000
Diluted earnings per share:	$	0.54	$	0.69

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 28, 2012					January 29, 2011					January 28, 2012					January 29, 2011
				%					%					%					%
	Amount			Sales		Amount			Sales		Amount			Sales		Amount			Sales
Merchandise sales	$	404,332		80.0		$	384,432		80.5		$	1,642,757		79.6		$	1,598,168		80.4
Service revenue	100,986			20.0		92,957			19.5		420,870			20.4		390,473			19.6
Total revenues	505,318			100.0		477,389			100.0		2,063,627			100.0		1,988,641			100.0
Costs of merchandise sales	288,875			71.5		264,532			68.8		1,154,322			70.3		1,110,380			69.5
Costs of service revenue	104,170			103.2		88,457			95.2		399,776			95.0		355,909			91.1
Total costs of revenues	393,045			77.8		352,989			73.9		1,554,098			75.3		1,466,289			73.7
Gross profit from merchandise sales	115,457			28.6		119,900			31.2		488,435			29.7		487,788			30.5
Gross (loss) profit from service revenue	(3,184		)	(3.2	)	4,500			4.8		21,094			5.0		34,564			8.9
Total gross profit	112,273			22.2		124,400			26.1		509,529			24.7		522,352			26.3
Selling, general and administrative expenses	112,268			22.2		106,659			22.3		443,986			21.5		442,239			22.2
Net (loss) gain from dispositions of assets	(34		)	—		(136		)	—		27			—		2,467			0.1
Operating (loss) profit	(29		)	—		17,605			3.7		65,570			3.2		82,580			4.2
Non-operating income	541			0.1		754			0.2		2,324			0.1		2,609			0.1
Interest expense	6,475			1.3		6,864			1.4		26,306			1.3		26,745			1.3
(Loss) earnings from continuing operations before income taxes	(5,963		)	(1.2	)	11,495			2.4		41,588			2.0		58,444			2.9
Income tax (benefit) expense	(1,772		)	29.7	(1)	2,957			25.7	(1)	12,460			30.0	(1)	21,273			36.4	(1)
(Loss) earnings from continuing operations	(4,191		)	(0.8	)	8,538			1.8		29,128			1.4		37,171			1.9
Loss from discontinued operations, net of tax	(229		)	—		(173		)	—		(225		)	—		(540		)	—
Net (loss) earnings	(4,420		)	(0.9	)	8,365			1.8		28,903			1.4		36,631			1.8
Retained earnings, beginning of period	429,935					397,100					402,600					374,836
Cash dividends	(1,589		)			(1,582		)			(6,344		)			(6,323		)
Shares issued and other	(489		)			(1,283		)			(1,722		)			(2,544		)
Retained earnings, end of period	$	423,437				$	402,600				$	423,437				$	402,600
Basic earnings per share:
(Loss) earnings from continuing operations	$	(0.08	)			$	0.16				$	0.55				$	0.71
Discontinued operations, net of tax	—					—					(0.01		)			(0.01		)
Basic earnings per share	$	(0.08	)			$	0.16				$	0.54				$	0.70
Diluted earnings per share:
(Loss) earnings from continuing operations	$	(0.08	)			$	0.16				$	0.54				$	0.70
Discontinued operations, net of tax	—					—					—					(0.01		)
Diluted earnings per share	$	(0.08	)			$	0.16				$	0.54				$	0.69
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 28, 2012			January 29, 2011
Assets
Current assets:
Cash and cash equivalents	$	58,244		$	90,240
Accounts receivable, less allowance for uncollectible accounts of $1,303 and $1,551	25,792			19,540
Merchandise inventories	614,136			564,402
Prepaid expenses	26,394			28,542
Other current assets	59,979			60,812
Total current assets	784,545			763,536
Property and equipment - net	696,339			700,981
Goodwill	46,917			2,549
Deferred income taxes	72,870			66,019
Other long-term assets	33,108			23,587
Total assets	$	1,633,779		$	1,556,672
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	243,712		$	210,440
Trade payable program liability	85,214			56,287
Accrued expenses	221,705			236,028
Deferred income taxes	66,208			56,335
Current maturities of long-term debt	1,079			1,079
Total current liabilities	617,918			560,169
Long-term debt less current maturities	294,043			295,122
Other long-term liabilities	77,216			70,046
Deferred gain from asset sales	140,273			152,875
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	296,462			295,361
Retained earnings	423,437			402,600
Accumulated other comprehensive loss	(17,649		)	(17,028		)
Treasury stock, at cost - 15,803,322 shares and 15,971,910 shares	(266,478		)	(271,030		)
Total stockholders’ equity	504,329			478,460
Total liabilities and stockholders’ equity	$	1,633,779		$	1,556,672

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

Fifty-two weeks ended	January 28, 2012			January 29, 2011
Cash flows from operating activities:
Net earnings	$	28,903		$	36,631
Adjustments to reconcile net earnings to net cash provided by continuing operations:
Net loss from discontinued operations	225			540
Depreciation and amortization	79,542			74,151
Amortization of deferred gain from asset sales	(12,602		)	(12,602		)
Stock compensation expense	3,237			3,497
Loss on debt retirement	—			200
Deferred income taxes	10,301			18,572
Net gain from disposition of assets	(27		)	(2,467		)
Loss from asset impairment	1,619			970
Other	(573		)	(479		)
Changes in assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable, prepaid expenses and other	2,391			7,060
Increase in merchandise inventories	(42,756		)	(5,284		)
Increase in accounts payable	24,871			7,466
Decrease in accrued expenses	(18,745		)	(8,394		)
Decrease in other long-term liabilities	(2,463		)	(1,200		)
Net cash provided by continuing operations	73,923			118,661
Net cash used in discontinued operations	(273		)	(1,466		)
Net cash provided by operating activities	73,650			117,195
Cash flows from investing activities:
Capital expenditures	(74,746		)	(70,252		)
Proceeds from dispositions of assets	515			7,515
Acquisitions, net of cash acquired	(42,901		)	(288		)
Collateral investment	(7,638		)	(9,638		)
Other	(837		)	—
Net cash used in continuing operations	(125,607		)	(72,663		)
Net cash provided by discontinued operations	—			569
Net cash used in investing activities	(125,607		)	(72,094		)
Cash flows from financing activities:
Borrowings under line of credit agreements	5,721			21,795
Payments under line of credit agreements	(5,721		)	(21,795		)
Borrowings on trade payable program liability	144,180			121,824
Payments on trade payable program liability	(115,253		)	(99,636		)
Payment for finance issuance cost	(2,441		)	—
Debt payments	(1,079		)	(11,279		)
Dividends paid	(6,344		)	(6,323		)
Other	898			1,227
Net cash provided by financing activities	19,961			5,813
Net (decrease) increase in cash and cash equivalents	(31,996		)	50,914
Cash and cash equivalents at beginning of period	90,240			39,326
Cash and cash equivalents at end of period	$	58,244		$	90,240
Supplemental cash flow information:
Cash paid for income taxes	$	1,150		$	890
Cash received from income tax refunds	$	479		$	195
Cash paid for interest	$	23,097		$	23,098
Accrued purchases of property and equipment	$	1,526		$	2,926

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 28, 2012			January 29, 2011			January 28, 2012			January 29, 2011
(a)  (Loss) earnings from continuing operations	$	(4,191	)	$	8,538		$	29,128		$	37,171
Loss from discontinued operations, net of tax	(229		)	(173		)	(225		)	(540		)
Net (loss) earnings	$	(4,420	)	$	8,365		$	28,903		$	36,631
(b)  Basic average number of common shares outstanding        during period	53,032			52,778			52,958			52,677
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price	711			638			673			485
(c)  Diluted average number of common shares assumed outstanding during period	53,743			53,416			53,631			53,162
Basic earnings per share:
(Loss) earnings from continuing operations (a) / (b)	$	(0.08	)	$	0.16		$	0.55		$	0.71
Discontinued operations, net of tax	—			—			(0.01		)	(0.01		)
Basic earnings per share	$	(0.08	)	$	0.16		$	0.54		$	0.70
Diluted earnings per share:
(Loss) earnings from continuing operations (a) / (c)	$	(0.08	)	$	0.16		$	0.54		$	0.70
Discontinued operations, net of tax	—			—			—			(0.01		)
Diluted earnings per share	$	(0.08	)	$	0.16		$	0.54		$	0.69

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

ADDITIONAL INFORMATION (dollar amounts in thousands)

	Thirteen Weeks Ended						Fifty-two weeks ended
	January 28, 2012			January 29, 2011			January 28, 2012			January 29, 2011
Capital expenditures	$	23,827		$	27,276		$	74,746		$	70,252
Depreciation and amortization	$	19,763		$	18,891		$	79,542		$	74,151
Non-operating income:
Net rental revenue	$	479		$	569		$	2,071		$	2,218
Investment income	51			133			219			296
Other income	11			52			34			95
Total	$	541		$	754		$	2,324		$	2,609
Comparable sales percentages:
Service	-0.1		%	3.4		%	0.6		%	1.1		%
Merchandise	1.0		%	4.6		%	-0.9		%	3.1		%
Total	0.8		%	4.3		%	-0.6		%	2.7		%
Total square feet of retail space (including service centers)							12,643,000			11,932,000
Store count
Supercenter							562			560
Service & Tire Center							169			53
Retail Only							7			8
Total							738			621
Sales and gross profit by line of business (A):
Service center revenue	$	260,823		$	225,990		$	1,038,714		941,869
Retail sales	244,495			251,399			1,024,913			1,046,772
Total revenues	$	505,318		$	477,389		$	2,063,627		$	1,988,641
Gross profit from service center revenue	$	45,282		$	50,762		$	220,315		216,176
Gross profit from retail sales	66,991			73,638			289,214			306,176
Total gross profit	$	112,273		$	124,400		$	509,529		$	522,352
Comparable sales percentages by line of business (A):
Service center revenue	4.6		%	5.8		%	1.3		%	2.4		%
Retail sales	-2.7		%	3.1		%	-2.3		%	3.0		%
Total revenues	0.8		%	4.3		%	-0.6		%	2.7		%
Gross profit percentage by line of business (A):
Gross profit percentage from service center revenue	17.4		%	22.5		%	21.2		%	23.0		%
Gross profit percentage from retail sales	27.4		%	29.3		%	28.2		%	29.2		%
Total gross profit percentage	22.2		%	26.1		%	24.7		%	26.3		%

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