EX-12 2 ex-12.htm

Exhibit 12—Statement Regarding Computation
of Ratios of Earnings to Fixed Charges

THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES

(in thousands, except ratios)
Fiscal year
   
 January 29,
2005
    
 January 31,
2004
    
 February 1,
2003
    
 February 2,
2002
    
 February 3,
2001
Interest
                  $ 35,965           $ 38,255           $ 47,237           $ 53,709           $ 59,718   
Interest factor in rental expense
                     20,313              21,269              20,427              21,066              23,162   
Capitalized interest
                     659               —               44               1               489    
(a)  Fixed charges, as defined
                  $ 56,937           $ 59,524           $ 67,708           $ 74,776           $ 83,369   
(Loss) Earnings from continuing operations before income taxes and cumulative effect of change in
accounting principle
                  $ 40,981           $ (23,961 )          $ 61,663           $ 46,734           $ (83,456 )  
Fixed charges
                     56,937              59,524              67,708              74,776              83,369   
Capitalized interest
                     (659 )             —               (44 )             (1 )             (489 )  
(b)  Earnings, as defined
                  $ 97,259           $ 35,563           $ 129,327           $ 121,509           $ (576 )  
(c)  Ratio of earnings to fixed charges (b/a)
                     1.7 x             —               1.9 x             1.6 x             —    
 

The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. “Earnings” consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $24.0 and $83.9 million for fiscal years ended January 31, 2004 and February 3, 2001, respectively.