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: December 9, 2013
Date of Earliest Event Reported: December 9, 2013
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
(Registrants 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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-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 December 9, 2013, The Pep Boys Manny, Moe & Jack issued a press release announcing its earnings for the fiscal quarter ended November 2, 2013.
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 December 9, 2013.
Exhibit No. 99.2 Unaudited supplemental financial data.
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/ DAVID R. STERN |
|
|
David R. Stern |
|
|
Executive Vice President and Chief Financial Officer |
|
|
(Principal Financial Officer) |
|
|
|
Date: December 9, 2013 |
|
|
Exhibit 99.1
FOR IMMEDIATE RELEASE
Pep Boys Reports Third Quarter 2013 Results
-Continues to Grow its Footprint and New Road Ahead Format-
PHILADELPHIA December 9, 2013 The Pep Boys Manny, Moe & Jack (NYSE: PBY), the nations leading automotive aftermarket service and retail chain, announced the following results for the thirteen (third quarter) and thirty-nine (nine months) weeks ended November 2, 2013.
Third Quarter
Sales
Sales for the thirteen weeks ended November 2, 2013 decreased by $2.6 million, or 0.5%, to $507.0 million from $509.6 million for the thirteen weeks ended October 27, 2012. Comparable sales decreased 2.8%, consisting of a 0.5% comparable service revenue increase and a 3.6% 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 decreased 2.5%, while comparable retail sales decreased 3.1%.
Earnings
Net earnings for the third quarter of fiscal 2013 were $1.0 million ($0.02 per share) as compared to a net loss of $6.8 million ($0.13 per share) for the third quarter of fiscal 2012. On a pre-tax basis, the 2013 results included a $2.0 million asset impairment charge and a $0.6 million severance charge, while the 2012 results included $11.2 million in debt refinancing expense and an $8.8 million asset impairment charge, partially offset by the reversal of $0.9 million of compensation expense.
Nine Months
Sales
Sales for the thirty-nine weeks ended November 2, 2013 increased by $11.0 million, or 0.7%, to $1,570.8 million from $1,559.9 million for the thirty-nine weeks ended October 27, 2012. Comparable sales decreased 1.0%, consisting of a 1.6% comparable service revenue increase and a 1.7% comparable merchandise sales decrease. Re-categorizing sales (see above), comparable service center revenue increased 0.4%, while comparable retail sales decreased 2.6%.
Earnings
Net earnings for the first nine months of 2013 were $10.2 million ($0.19 per share) as compared to $27.4 million ($0.51 per share) for the first nine months of fiscal 2012. On a pre-tax basis, the 2013 results included a $4.9 million asset impairment charge and a $0.6 million severance charge, while the 2012 results included $42.8 million of merger
termination fees (net of related expenses), $11.2 million in debt refinancing expense, an $8.8 million asset impairment charge and a $0.7 million severance charge, partially offset by the reversal of $0.9 million of compensation expense.
Commentary
Our strategically important maintenance and repair service business grew in sales for the sixth consecutive quarter, said President and CEO, Mike Odell. As the weather has turned colder, tire sales have started to improve, with mid-level price points and branded tires leading the way. Competitive pressures, however, continue to challenge sales of lower price point tires.
Mike added, Our Road Ahead format is expanding with the 18 recently acquired Service & Tire Centers in Southern California being converted and the grand reopening of six Supercenters and five Service & Tire Centers in Tampa, Florida. The performance out of the gate of the nine new Service & Tire Centers previously opened this year in the Road Ahead format has been ahead of original projections. And while it has only been a few weeks, we are very encouraged by Tampas results. While monitoring results, we have begun plans to convert three additional smaller markets (20 Supercenters) in the first half of 2014.
About Pep Boys
Since 1921, Pep Boys has been the nations leading automotive aftermarket chain. With approximately 7,500 service bays in more than 750 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 www.pepboys.com.
Certain statements contained herein constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The words guidance, expect, anticipate, estimates, targets, forecasts and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include managements 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 Companys 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 Companys stores, competitive pricing, the location and number of competitors stores, product and labor costs and the additional factors described in the Companys 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 Companys quarterly conference calls discussing its results and related matters. The call for the third quarter will be broadcast live on Tuesday, December 10 at 8:30 a.m. EST over the Internet at the Vcall website, located at 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 Tuesday, December 10 on Pep Boys website at www.pepboys.com. In addition, Pep Boys investor presentation, also available at www.pepboys.com, will be updated to reflect the Companys year-to-date results.
###
Investor Contact:
Sanjay Sood
(215) 430-9105
Email: investorrelations@pepboys.com
Pep Boys Financial Highlights
Thirteen weeks ended |
|
November 2, 2013 |
|
October 27, 2012 |
| ||
|
|
|
|
|
| ||
Total revenues |
|
$ |
507,042,000 |
|
$ |
509,608,000 |
|
|
|
|
|
|
| ||
Net earnings (loss) |
|
$ |
964,000 |
|
$ |
(6,759,000 |
) |
|
|
|
|
|
| ||
Basic earnings (loss) per share: |
|
|
|
|
| ||
Average shares |
|
53,315,000 |
|
53,304,000 |
| ||
|
|
|
|
|
| ||
Basic earnings (loss) per share: |
|
$ |
0.02 |
|
$ |
(0.13 |
) |
|
|
|
|
|
| ||
Diluted earnings (loss) per share: |
|
|
|
|
| ||
Average shares |
|
53,930,000 |
|
53,304,000 |
| ||
|
|
|
|
|
| ||
Diluted earnings (loss) per share: |
|
$ |
0.02 |
|
$ |
(0.13 |
) |
Thirty-nine weeks ended |
|
November 2, 2013 |
|
October 27, 2012 |
| ||
|
|
|
|
|
| ||
Total revenues |
|
$ |
1,570,835,000 |
|
$ |
1,559,883,000 |
|
|
|
|
|
|
| ||
Net earnings |
|
$ |
10,196,000 |
|
$ |
27,351,000 |
|
|
|
|
|
|
| ||
Basic earnings per share: |
|
|
|
|
| ||
Average shares |
|
53,363,000 |
|
53,175,000 |
| ||
|
|
|
|
|
| ||
Basic earnings per share: |
|
$ |
0.19 |
|
$ |
0.51 |
|
|
|
|
|
|
| ||
Diluted earnings per share: |
|
|
|
|
| ||
Average shares |
|
53,962,000 |
|
53,943,000 |
| ||
|
|
|
|
|
| ||
Diluted earnings per share: |
|
$ |
0.19 |
|
$ |
0.51 |
|
Exhibit 99.2
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
(UNAUDITED) |
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
|
|
November 2, 2013 |
|
February 2, 2013 |
|
October 27, 2012 |
| |||
Assets |
|
|
|
|
|
|
| |||
Current assets: |
|
|
|
|
|
|
| |||
Cash and cash equivalents |
|
$ |
55,798 |
|
$ |
59,186 |
|
$ |
78,667 |
|
Accounts receivable, less allowance for uncollectible accounts of $1,310; $1,302; and $1,424 |
|
24,942 |
|
23,897 |
|
25,225 |
| |||
Merchandise inventories |
|
664,901 |
|
641,208 |
|
634,252 |
| |||
Prepaid expenses |
|
16,801 |
|
28,908 |
|
15,086 |
| |||
Other current assets |
|
52,249 |
|
60,438 |
|
49,543 |
| |||
Assets held for disposal |
|
500 |
|
|
|
|
| |||
Total current assets |
|
815,191 |
|
813,637 |
|
802,773 |
| |||
Property and equipment, net of accumulated depreciation of $1,214,802; $1,162,909; and $1,158,656 |
|
631,639 |
|
657,270 |
|
665,529 |
| |||
Goodwill |
|
56,841 |
|
46,917 |
|
46,917 |
| |||
Deferred income taxes |
|
48,311 |
|
47,691 |
|
53,011 |
| |||
Other long-term assets |
|
37,265 |
|
38,434 |
|
35,547 |
| |||
Total assets |
|
$ |
1,589,247 |
|
$ |
1,603,949 |
|
$ |
1,603,777 |
|
|
|
|
|
|
|
|
| |||
Liabilities and stockholders equity |
|
|
|
|
|
|
| |||
Current liabilities: |
|
|
|
|
|
|
| |||
Accounts payable |
|
$ |
253,818 |
|
$ |
244,696 |
|
$ |
258,222 |
|
Trade payable program liability |
|
134,703 |
|
149,718 |
|
125,718 |
| |||
Accrued expenses |
|
225,249 |
|
232,277 |
|
218,167 |
| |||
Deferred income taxes |
|
59,455 |
|
58,441 |
|
65,429 |
| |||
Current maturities of long-term debt |
|
2,000 |
|
2,000 |
|
2,000 |
| |||
Total current liabilities |
|
675,225 |
|
687,132 |
|
669,536 |
| |||
|
|
|
|
|
|
|
| |||
Long-term debt less current maturities |
|
196,500 |
|
198,000 |
|
198,000 |
| |||
Other long-term liabilities |
|
49,618 |
|
53,818 |
|
63,536 |
| |||
Deferred gain from asset sales |
|
117,974 |
|
127,427 |
|
130,820 |
| |||
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 |
|
296,578 |
|
295,679 |
|
295,086 |
| |||
Retained earnings |
|
436,933 |
|
430,148 |
|
445,503 |
| |||
Accumulated other comprehensive income (loss) |
|
339 |
|
(980 |
) |
(10,050 |
) | |||
Treasury stock, at cost - 15,442,779 shares; 15,431,298 shares; and 15,460,049 shares |
|
(252,477 |
) |
(255,832 |
) |
(257,211 |
) | |||
Total stockholders equity |
|
549,930 |
|
537,572 |
|
541,885 |
| |||
Total liabilities and stockholders equity |
|
$ |
1,589,247 |
|
$ |
1,603,949 |
|
$ |
1,603,777 |
|
|
|
|
|
|
|
|
| |||
Supplemental balance sheet information: |
|
|
|
|
|
|
| |||
Working capital |
|
$ |
139,966 |
|
$ |
126,505 |
|
$ |
133,237 |
|
Current ratio |
|
1.21 |
|
1.18 |
|
1.20 |
| |||
Accounts payable to inventory ratio |
|
58.4 |
% |
61.5 |
% |
60.5 |
% | |||
Total debt as a percent of total capitalization |
|
26.5 |
% |
27.1 |
% |
27.0 |
% | |||
Debt as a percent of total capitalization, net |
|
20.6 |
% |
20.8 |
% |
18.3 |
% |
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
(UNAUDITED) |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(dollar amounts in thousands, except per share amounts)
|
|
Thirteen weeks ended |
|
Thirty-nine weeks ended |
| ||||||||||||||||
|
|
November 2, 2013 |
|
October 27, 2012 |
|
November 2, 2013 |
|
October 27, 2012 |
| ||||||||||||
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
| ||||
|
|
Amount |
|
Sales |
|
Amount |
|
Sales |
|
Amount |
|
Sales |
|
Amount |
|
Sales |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Merchandise sales |
|
$ |
394,346 |
|
77.8 |
|
$ |
401,146 |
|
78.7 |
|
$ |
1,223,813 |
|
77.9 |
|
$ |
1,226,858 |
|
78.7 |
|
Service revenue |
|
112,696 |
|
22.2 |
|
108,462 |
|
21.3 |
|
347,022 |
|
22.1 |
|
333,025 |
|
21.3 |
| ||||
Total revenues |
|
507,042 |
|
100.0 |
|
509,608 |
|
100.0 |
|
1,570,835 |
|
100.0 |
|
1,559,883 |
|
100.0 |
| ||||
Costs of merchandise sales |
|
267,489 |
|
67.8 |
|
284,626 |
|
71.0 |
|
838,126 |
|
68.5 |
|
863,533 |
|
70.4 |
| ||||
Costs of service revenue |
|
116,741 |
|
103.6 |
|
108,942 |
|
100.4 |
|
349,348 |
|
100.7 |
|
322,057 |
|
96.7 |
| ||||
Total costs of revenues |
|
384,230 |
|
75.8 |
|
393,568 |
|
77.2 |
|
1,187,474 |
|
75.6 |
|
1,185,590 |
|
76.0 |
| ||||
Gross profit from merchandise sales |
|
126,857 |
|
32.2 |
|
116,520 |
|
29.0 |
|
385,687 |
|
31.5 |
|
363,325 |
|
29.6 |
| ||||
Gross (loss) profit from service revenue |
|
(4,045 |
) |
(3.6 |
) |
(480 |
) |
(0.3 |
) |
(2,326 |
) |
(0.7 |
) |
10,968 |
|
3.3 |
| ||||
Total gross profit |
|
122,812 |
|
24.2 |
|
116,040 |
|
22.8 |
|
383,361 |
|
24.4 |
|
374,293 |
|
24.0 |
| ||||
Selling, general and administrative expenses |
|
115,104 |
|
22.7 |
|
112,028 |
|
22.0 |
|
354,236 |
|
22.6 |
|
346,015 |
|
22.2 |
| ||||
Net loss from dispositions of assets |
|
(67 |
) |
|
|
(221 |
) |
|
|
(213 |
) |
|
|
(232 |
) |
|
| ||||
Operating profit |
|
7,641 |
|
1.5 |
|
3,791 |
|
0.7 |
|
28,912 |
|
1.8 |
|
28,046 |
|
1.8 |
| ||||
Merger termination fees, net |
|
|
|
|
|
(139 |
) |
|
|
|
|
|
|
42,816 |
|
2.7 |
| ||||
Other income |
|
524 |
|
0.1 |
|
655 |
|
0.1 |
|
1,367 |
|
0.1 |
|
1,646 |
|
0.1 |
| ||||
Interest expense |
|
3,643 |
|
0.7 |
|
17,057 |
|
3.3 |
|
10,885 |
|
0.7 |
|
30,000 |
|
1.9 |
| ||||
Earnings (loss) from continuing operations before income taxes and discontinued operations |
|
4,522 |
|
0.9 |
|
(12,750 |
) |
(2.5 |
) |
19,394 |
|
1.2 |
|
42,508 |
|
2.7 |
| ||||
Income tax expense (benefit) |
|
3,509 |
|
77.6 |
(1) |
(6,055 |
) |
47.5 |
(1) |
9,074 |
|
46.8 |
(1) |
15,035 |
|
35.4 |
(1) | ||||
Earnings (loss) from continuing operations before discontinued operations |
|
1,013 |
|
0.2 |
|
(6,695 |
) |
(1.3 |
) |
10,320 |
|
0.7 |
|
27,473 |
|
1.8 |
| ||||
Loss from discontinued operations, net of tax |
|
(49 |
) |
|
|
(64 |
) |
|
|
(124 |
) |
|
|
(122 |
) |
|
| ||||
Net earnings (loss) |
|
964 |
|
0.2 |
|
(6,759 |
) |
(1.3 |
) |
10,196 |
|
0.7 |
|
27,351 |
|
1.8 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings (loss) from continuing operations before discontinued operations |
|
$ |
0.02 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.19 |
|
|
|
$ |
0.51 |
|
|
|
Discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings (loss) per share |
|
$ |
0.02 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.19 |
|
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings (loss) from continuing operations before discontinued operations |
|
$ |
0.02 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.19 |
|
|
|
$ |
0.51 |
|
|
|
Discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted earnings (loss) per share |
|
$ |
0.02 |
|
|
|
$ |
(0.13 |
) |
|
|
$ |
0.19 |
|
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Defined benefit plan adjustment, net of tax |
|
|
|
|
|
354 |
|
|
|
|
|
|
|
1,062 |
|
|
| ||||
Derivative financial instruments adjustment, net of tax |
|
(372 |
) |
|
|
4,607 |
|
|
|
1,319 |
|
|
|
6,537 |
|
|
| ||||
Other comprehensive (loss) income |
|
(372 |
) |
|
|
4,961 |
|
|
|
1,319 |
|
|
|
7,599 |
|
|
| ||||
Comprehensive income (loss) |
|
$ |
592 |
|
|
|
$ |
(1,798 |
) |
|
|
$ |
11,515 |
|
|
|
$ |
34,950 |
|
|
|
(1) As a percentage of earnings (loss) from continuing operations before income taxes and discontinued operations.
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
(UNAUDITED) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
Thirty-nine weeks ended |
|
November 2, 2013 |
|
October 27, 2012 |
| ||
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net earnings |
|
$ |
10,196 |
|
$ |
27,351 |
|
Adjustments to reconcile net earnings to net cash provided by continuing operations: |
|
|
|
|
| ||
Net loss from discontinued operations |
|
124 |
|
122 |
| ||
Depreciation |
|
59,941 |
|
59,279 |
| ||
Amortization of deferred gain from asset sales |
|
(9,453 |
) |
(9,453 |
) | ||
Amortization of deferred financing costs |
|
1,952 |
|
3,703 |
| ||
Stock compensation expense |
|
2,451 |
|
622 |
| ||
Deferred income taxes |
|
(478 |
) |
14,521 |
| ||
Net loss from disposition of assets |
|
213 |
|
232 |
| ||
Loss from asset impairment |
|
4,882 |
|
8,802 |
| ||
Other |
|
(322 |
) |
(62 |
) | ||
Changes in assets and liabilities: |
|
|
|
|
| ||
Decrease in accounts receivable, prepaid expenses and other |
|
18,431 |
|
22,510 |
| ||
Increase in merchandise inventories |
|
(23,693 |
) |
(20,116 |
) | ||
Increase in accounts payable |
|
7,746 |
|
14,510 |
| ||
Decrease in accrued expenses |
|
(6,589 |
) |
(4,208 |
) | ||
Decrease in other long-term liabilities |
|
(2,354 |
) |
(1,369 |
) | ||
Net cash provided by continuing operations |
|
63,047 |
|
116,444 |
| ||
Net cash used in discontinued operations |
|
(193 |
) |
(215 |
) | ||
Net cash provided by operating activities |
|
62,854 |
|
116,229 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Capital expenditures |
|
(38,334 |
) |
(36,760 |
) | ||
Proceeds from dispositions of assets |
|
19 |
|
15 |
| ||
Acquisitions, net of cash acquired |
|
(10,741 |
) |
|
| ||
Release of collateral investment |
|
1,000 |
|
|
| ||
Net cash used in investing activities |
|
(48,056 |
) |
(36,745 |
) | ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Borrowings under line of credit agreements |
|
1,926 |
|
1,780 |
| ||
Payments under line of credit agreements |
|
(1,926 |
) |
(1,780 |
) | ||
Borrowings on trade payable program liability |
|
114,804 |
|
123,408 |
| ||
Payments on trade payable program liability |
|
(129,819 |
) |
(82,904 |
) | ||
Payment for finance issuance cost |
|
|
|
(6,442 |
) | ||
Borrowings under new debt |
|
|
|
200,000 |
| ||
Debt payments |
|
(1,500 |
) |
(295,122 |
) | ||
Proceeds from stock issuance |
|
1,079 |
|
1,999 |
| ||
Repurchase of common stock |
|
(2,750 |
) |
|
| ||
Net cash used in financing activities |
|
(18,186 |
) |
(59,061 |
) | ||
Net (decrease) increase in cash and cash equivalents |
|
(3,388 |
) |
20,423 |
| ||
Cash and cash equivalents at beginning of period |
|
59,186 |
|
58,244 |
| ||
Cash and cash equivalents at end of period |
|
$ |
55,798 |
|
$ |
78,667 |
|
|
|
|
|
|
| ||
Supplemental cash flow information: |
|
|
|
|
| ||
Cash paid for income taxes |
|
$ |
4,322 |
|
$ |
2,635 |
|
Cash received from income tax refunds |
|
$ |
51 |
|
$ |
|
|
Cash paid for interest |
|
$ |
9,149 |
|
$ |
28,554 |
|
Accrued purchases of property and equipment |
|
$ |
2,369 |
|
$ |
2,008 |
|
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 |
|
Thirty-nine weeks ended |
| |||||||||
|
|
|
|
November 2, 2013 |
|
October 27, 2012 |
|
November 2, 2013 |
|
October 27, 2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
(a) |
Earnings (loss) from continuing operations before discontinued operations |
|
|
|
$ |
1,013 |
|
$ |
(6,695 |
) |
$ |
10,320 |
|
$ |
27,473 |
|
|
Loss from discontinued operations, net of tax |
|
|
|
(49 |
) |
(64 |
) |
(124 |
) |
(122 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net earnings (loss) |
|
|
|
$ |
964 |
|
$ |
(6,759 |
) |
$ |
10,196 |
|
$ |
27,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(b) |
Basic average number of common shares outstanding during period |
|
|
|
53,315 |
|
53,304 |
|
53,363 |
|
53,175 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price |
|
|
|
615 |
|
|
|
599 |
|
768 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(c) |
Diluted average number of common shares assumed outstanding during period |
|
|
|
53,930 |
|
53,304 |
|
53,962 |
|
53,943 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings (loss) from continuing operations before discontinued operations |
|
(a) / (b) |
|
$ |
0.02 |
|
$ |
(0.13 |
) |
$ |
0.19 |
|
$ |
0.51 |
|
|
Discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings (loss) per share |
|
|
|
$ |
0.02 |
|
$ |
(0.13 |
) |
$ |
0.19 |
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings (loss) from continuing operations before discontinued operations |
|
(a) / (c) |
|
$ |
0.02 |
|
$ |
(0.13 |
) |
$ |
0.19 |
|
$ |
0.51 |
|
|
Discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted earnings (loss) per share |
|
|
|
$ |
0.02 |
|
$ |
(0.13 |
) |
$ |
0.19 |
|
$ |
0.51 |
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
(UNAUDITED) |
ADDITIONAL INFORMATION |
(dollar amounts in thousands) |
|
|
Thirteen weeks ended |
|
Thirty-nine weeks ended |
| ||||||||
|
|
November 2, 2013 |
|
October 27, 2012 |
|
November 2, 2013 |
|
October 27, 2012 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Capital expenditures |
|
$ |
13,832 |
|
$ |
10,413 |
|
$ |
38,334 |
|
$ |
36,760 |
|
Depreciation |
|
$ |
19,756 |
|
$ |
19,970 |
|
$ |
59,941 |
|
$ |
59,279 |
|
Non-operating income: |
|
|
|
|
|
|
|
|
| ||||
Net rental revenue |
|
$ |
432 |
|
$ |
487 |
|
$ |
1,032 |
|
$ |
1,302 |
|
Investment income |
|
42 |
|
39 |
|
132 |
|
133 |
| ||||
Merger termination fees, net |
|
|
|
(139 |
) |
|
|
42,816 |
| ||||
Other income |
|
50 |
|
129 |
|
203 |
|
211 |
| ||||
Total |
|
$ |
524 |
|
$ |
516 |
|
$ |
1,367 |
|
$ |
44,462 |
|
|
|
|
|
|
|
|
|
|
| ||||
Comparable sales percentages: |
|
|
|
|
|
|
|
|
| ||||
Service |
|
0.5 |
% |
0.2 |
% |
1.6 |
% |
0.7 |
% | ||||
Merchandise |
|
-3.6 |
% |
-3.5 |
% |
-1.7 |
% |
-2.5 |
% | ||||
Total |
|
-2.8 |
% |
-2.7 |
% |
-1.0 |
% |
-1.8 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total square feet of retail space (including service centers) |
|
|
|
|
|
12,924,000 |
|
12,667,000 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Store count |
|
|
|
|
|
|
|
|
| ||||
Supercenter |
|
|
|
|
|
572 |
|
562 |
| ||||
Service & Tire Center |
|
|
|
|
|
215 |
|
175 |
| ||||
Retail Only |
|
|
|
|
|
6 |
|
7 |
| ||||
Total |
|
|
|
|
|
793 |
|
744 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Sales and gross profit by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Service center revenue |
|
$ |
273,944 |
|
$ |
271,370 |
|
$ |
841,827 |
|
$ |
816,730 |
|
Retail sales |
|
233,098 |
|
238,238 |
|
729,008 |
|
743,153 |
| ||||
Total revenues |
|
$ |
507,042 |
|
$ |
509,608 |
|
$ |
1,570,835 |
|
$ |
1,559,883 |
|
|
|
|
|
|
|
|
|
|
| ||||
Gross profit from service center revenue, prior to impairment charge |
|
$ |
55,169 |
|
$ |
56,592 |
|
$ |
171,244 |
|
$ |
166,347 |
|
Service center revenue impairment charge |
|
(1,153 |
) |
(4,618 |
) |
(3,493 |
) |
(4,618 |
) | ||||
Gross profit from service center revenue |
|
$ |
54,016 |
|
$ |
51,974 |
|
$ |
167,751 |
|
$ |
161,729 |
|
|
|
|
|
|
|
|
|
|
| ||||
Gross profit from retail sales, prior to impairment charge |
|
$ |
69,676 |
|
$ |
68,250 |
|
$ |
217,000 |
|
$ |
216,748 |
|
Retail sales impairment charge |
|
(880 |
) |
(4,184 |
) |
(1,390 |
) |
(4,184 |
) | ||||
Gross profit from retail sales |
|
$ |
68,796 |
|
$ |
64,066 |
|
$ |
215,610 |
|
$ |
212,564 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total gross profit |
|
$ |
122,812 |
|
$ |
116,040 |
|
$ |
383,361 |
|
$ |
374,293 |
|
|
|
|
|
|
|
|
|
|
| ||||
Comparable sales percentages by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Service center revenue |
|
-2.5 |
% |
-0.1 |
% |
0.4 |
% |
1.0 |
% | ||||
Retail sales |
|
-3.1 |
% |
-5.4 |
% |
-2.6 |
% |
-4.6 |
% | ||||
Total revenues |
|
-2.8 |
% |
-2.7 |
% |
-1.0 |
% |
-1.8 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage from service center revenue, prior to impairment charge |
|
20.1 |
% |
20.9 |
% |
20.3 |
% |
20.4 |
% | ||||
Impairment charge |
|
(0.4 |
) |
(1.7 |
) |
(0.4 |
) |
(0.6 |
) | ||||
Gross profit percentage from service center revenue |
|
19.7 |
% |
19.2 |
% |
19.9 |
% |
19.8 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage from retail sales, prior to impairment charge |
|
29.9 |
% |
28.6 |
% |
29.8 |
% |
29.2 |
% | ||||
Impairment charge |
|
(0.4 |
) |
(1.8 |
) |
(0.2 |
) |
(0.6 |
) | ||||
Gross profit percentage from retail sales |
|
29.5 |
% |
26.9 |
% |
29.6 |
% |
28.6 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total gross profit percentage |
|
24.2 |
% |
22.8 |
% |
24.4 |
% |
24.0 |
% |
(A) Retail sales include DIY and commercial sales. Service center revenue includes revenue from labor and installed parts and tires.