-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N4Y8zM7bI4YhbzdLzx2IAUPi58v6/s1pYVUMR0OyM2CC9SG+8rC5lU/WOJr4rBrL bsuxzPcxuiV+AQkKmC/HEQ== 0001239124-04-000002.txt : 20040513 0001239124-04-000002.hdr.sgml : 20040513 20040512191203 ACCESSION NUMBER: 0001239124-04-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040501 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEP BOYS MANNY MOE & JACK CENTRAL INDEX KEY: 0000077449 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO & HOME SUPPLY STORES [5531] IRS NUMBER: 230962915 STATE OF INCORPORATION: PA FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03381 FILM NUMBER: 04800637 BUSINESS ADDRESS: STREET 1: 3111 W ALLEGHENY AVE CITY: PHILADELPHIA STATE: PA ZIP: 19132 BUSINESS PHONE: 2152299000 8-K 1 r8k.txt 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: May 12, 2004 Date of Earliest Event Reported: May 12, 2004 The Pep Boys - Manny, Moe & Jack ------------------------------------------------------ (Exact name of registrant as specified in its 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) 1 Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits. The following exhibits are filed with this report: Exhibit No. 99.1 Press Release issued by the Company dated May 12, 2004 Exhibit No. 99.2 Unaudited Supplemental Financial Information Item 12. Results of Operations and Financial Condition On May 12, 2004, the Company issued a press release announcing its earnings for the fiscal quarter ended May 1, 2004. The information in 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 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. 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/ George Babich, Jr. -------------------------------------- George Babich, Jr. President and Chief Financial Officer Date: May 12, 2004 3 EX-99 2 exh9901.txt Exhibit 99.1 Press Release issued by the Company dated May 12, 2004 Pep Boys Reports 11% Comp Sales Increase - - Diluted EPS From Continuing Operations of $.27 - PHILADELPHIA - May 12, 2004 - The Pep Boys - Manny, Moe & Jack (NYSE: "PBY"), the nation's leading automotive aftermarket retail and service chain, announced the following results for the first quarter ended May 1, 2004. Operating Results First Quarter Sales Sales for the thirteen weeks ended May 1, 2004, were $566,133,000, 10.8% higher than the $510,910,000 recorded last year. Comparable sales increased 11.0%, comparable merchandise sales increased 12.3% and comparable service revenue increased 5.6%. Earnings Net Earnings from Continuing Operations Before Cumulative Effect of Change in Accounting Principle improved from a Net Loss of $7,327,000 ($.14 per share - basic and diluted) to Net Earnings of $16,191,000 ($.29 per share - basic and $.27 per share diluted). Pep Boys' Chief Executive Officer, Larry Stevenson, commented that "While we are very pleased with our first quarter results, I remind you that we are in the early stages of our retail renewal and we will be facing tougher comparisons throughout the balance of the year." - more - Page 2
Pep Boys Financial Highlights Thirteen Thirteen Weeks Ended Weeks Ended May 1, 2004 May 3, 2003 ------------- ------------- Total Revenues $ 566,133,000 $ 510,910,000 Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 16,191,000 $ (7,327,000) Average Shares - Diluted 63,587,000 51,652,000 Basic Earnings (Loss) Per Share from Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.29 $ (0.14) Diluted Earnings (Loss) Per Share from Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.27 $ (0.14)
Pep Boys has 595 stores and more than 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance 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 1-800 - PEP-BOYS or by visiting 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 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: George Babich, President & CFO (215) 430-9720 Media Contact: Bill Furtkevic (215) 430-9676 Pep Boys 3111 West Allegheny Avenue Philadelphia, PA 19132 Internet:http://www.pepboys.com EX-99 3 exh9902.txt Exhibit 99.2 Unaudited Supplemental Financial Information
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollar amounts in thousands, except per share amounts) UNAUDITED Thirteen weeks ended ---------------------------------------------------- May 1, 2004 May 3, 2003 ---------------------- ----------------------- Amount % Sales Amount % Sales - ------------------------------------------------------------------------------------------------------------- Merchandise Sales $ 460,881 81.4 $ 411,132 80.5 Service Revenue 105,252 18.6 99,778 19.5 - ------------------------------------------------------------------------------------------------------------- Total Revenues 566,133 100.0 510,910 100.0 - ------------------------------------------------------------------------------------------------------------- Costs of Merchandise Sales 324,054 70.3 290,340 70.6 Costs of Service Revenue 78,111 74.2 74,772 74.9 - ------------------------------------------------------------------------------------------------------------- Total Costs of Revenues 402,165 71.0 365,112 71.5 - ------------------------------------------------------------------------------------------------------------- Gross Profit from Merchandise Sales 136,827 29.7 120,792 29.4 Gross Profit from Service Revenue 27,141 25.8 25,006 25.1 - ------------------------------------------------------------------------------------------------------------- Total Gross Profit 163,968 29.0 145,798 28.5 - ------------------------------------------------------------------------------------------------------------- Selling, General and Administrative Expenses 129,562 23.0 147,777 28.9 - ------------------------------------------------------------------------------------------------------------- Operating Profit (Loss) 34,406 6.0 (1,979) (0.4) Non-operating Income 592 0.1 1,050 0.2 Interest Expense 9,298 1.6 10,701 2.1 - ------------------------------------------------------------------------------------------------------------- Earnings (Loss) Before Income Taxes and Cumulative Effect of Change in Accounting Principle 25,700 4.5 (11,630) (2.3) Income Tax Expense (Benefit) 9,509 37.0 (4,303) 37.0 - ------------------------------------------------------------------------------------------------------------- Net Earnings (Loss) Before Cumulative Effect of Change in Accounting Principle 16,191 2.9 (7,327) (1.4) (Loss) Earnings from Discontinued Operations, Net of Tax (531) (0.1) 594 0.1 Cumulative Effect of Change in Accounting Principle, Net of Tax - 0.0 (2,484) (0.5) - ------------------------------------------------------------------------------------------------------------- Net Earnings (Loss) 15,660 2.8 (9,217) (1.8) Retained Earnings, beginning of period 577,793 630,847 Cash Dividends (3,898) (3,487) Effect of Stock Options (1,383) (71) Dividend Reinvestment Plan - (274) - ------------------------------------------------------------------------------------------------------------- Retained Earnings, end of period $ 588,172 $ 617,798 - ------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) Per Share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.29 $ (0.14) (Loss) Earnings From Discontinued Operations, Net of tax (0.01) 0.01 Cumulative Effect of Change in Accounting Principle, Net of Tax - (0.05) - ------------------------------------------------------------------------------------------------------------- Basic Earnings (Loss) Per Share $ 0.28 $ (0.18) - ------------------------------------------------------------------------------------------------------------- Diluted Earnings(Loss) Per Share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ 0.27 $ (0.14) (Loss) Earnings From Discontinued Operations, Net of tax (0.01) 0.01 Cumulative Effect of Change in Accounting Principle, Net of Tax - (0.05) - ------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) Per Share $ 0.26 $ (0.18) - ------------------------------------------------------------------------------------------------------------- Cash Dividends Per Share $ .0675 $ .0675 - -------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share amounts) UNAUDITED May 1, 2004 Jan. 31, 2004* May 3, 2003 - ------------------------------------------------------------------------------------------------------------------------ ASSETS Current Assets: Cash and cash equivalents $ 98,766 $ 60,984 $ 81,189 Accounts receivable, net 33,989 30,562 19,275 Merchandise inventories 601,415 553,562 521,957 Prepaid expenses 38,277 39,480 38,098 Deferred income taxes 11,175 20,826 16,170 Other 79,298 81,096 56,254 Assets held for disposal 10,350 16,929 - - ------------------------------------------------------------------------------------------------------------------------ Total Current Assets 873,270 803,439 732,943 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment-at cost: Land 263,199 263,907 264,101 Buildings and improvements 900,159 899,114 891,974 Furniture, fixtures and equipment 592,218 586,607 587,950 Construction in progress 11,641 12,800 22,059 - ------------------------------------------------------------------------------------------------------------------------ 1,767,217 1,762,428 1,766,084 Less accumulated depreciation and amortization 792,022 776,242 744,402 - ------------------------------------------------------------------------------------------------------------------------ Property and Equipment - Net 975,195 986,186 1,021,682 - ------------------------------------------------------------------------------------------------------------------------ Other 52,286 51,398 46,187 Assets from discontinued operations - - 56,880 - ------------------------------------------------------------------------------------------------------------------------ Total Assets $1,900,751 $1,841,023 $1,857,692 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 366,360 $ 342,584 $ 244,844 Accrued expenses 245,247 267,565 257,367 Short-term borrowings 4,505 - - Current maturities of long-term debt and obligations under capital leases 51,023 117,063 151,317 - ------------------------------------------------------------------------------------------------------------------------ Total Current Liabilities 667,135 727,212 653,528 - ------------------------------------------------------------------------------------------------------------------------ Long-term debt and obligations under capital leases, less current maturities 244,552 258,016 326,158 Convertible long-term debt 150,000 150,000 150,000 Other long-term liabilities 28,686 28,802 25,427 Deferred income taxes 62,825 57,492 60,601 Deferred gain on sale leaseback 3,805 3,907 4,329 Commitments and Contingencies Stockholders' Equity: Common Stock, par value $1 per share: Authorized 500,000,000 shares; Issued 68,557,041 shares, Issued 63,910,577 and Issued 63,910,577 68,557 63,911 63,911 Additional paid-in capital 283,214 177,317 177,244 Retained earnings 588,172 577,793 617,798 Accumulated other comprehensive income(loss) 1,045 (15) (151) - ------------------------------------------------------------------------------------------------------------------------ 940,988 819,006 858,802 Less cost of shares in treasury - 8,545,885 shares, 8,928,159 shares and 10,027,422 shares 137,976 144,148 161,889 Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 59,264 - ------------------------------------------------------------------------------------------------------------------------ Total Stockholders' Equity 743,748 615,594 637,649 - ------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $1,900,751 $1,841,023 $1,857,692 - ------------------------------------------------------------------------------------------------------------------------ * Taken from the audited financial statements at January 31, 2004.
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) UNAUDITED Thirteen Weeks Ended May 1, 2004 May 3, 2003 - --------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities: Net earnings (Loss) $ 15,660 $ (9,217) Net (loss) earnings from discontinued operations (531) 594 - --------------------------------------------------------------------------------------------------------------- Net earnings (loss) from continuing operations 16,191 (9,811) Adjustments to Reconcile Net Earnings (Loss) From Continuing Operations to Net Cash Provided by Continuing Operations: Depreciation and amortization 16,775 17,838 Cumulative effect of change in accounting principle, net of tax - 2,484 Accretion of asset disposal obligation 35 49 Deferred income taxes 13,848 (2,508) Deferred gain on sale leaseback (102) (3) Loss on assets held for disposal - 16 Loss (Gain) from sale of assets 417 (725) Changes in Operating Assets and Liabilities: Decrease in accounts receivable, prepaid expenses and other 1,952 5,538 Increase in merchandise inventories (47,853) (33,075) Increase in accounts payable 30,689 44,792 (Decrease) increase in accrued expenses (21,823) 21,512 (Decrease) Increase in other long-term liabilities (116) 271 - --------------------------------------------------------------------------------------------------------------- Net Cash provided by continuing operations 10,013 46,378 Net cash (used in) provided by discontinued operations (776) 1,825 - --------------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 9,237 48,203 - --------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities: Capital expenditures (7,683) (8,565) Proceeds from sales of assets 1,411 745 Proceeds from sales of assets held for disposal 6,879 1,146 - --------------------------------------------------------------------------------------------------------------- Net Cash Provided by (Used in) Investing Activities 607 (6,674) - --------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Net (payments) borrowings under line of credit agreements (40) 10,631 Repayments of short-term borrowings (2,408) - Payments on capital lease obligations (41) (112) Reduction of long-term debt (79,423) (10,503) Dividends paid (3,898) (3,487) Net proceeds from sale of common stock 108,909 - Proceeds from exercise of stock options 4,561 39 Proceeds from dividend reinvestment plan 278 322 - --------------------------------------------------------------------------------------------------------------- Net Cash Provided by (Used in) Financing Activities 27,938 (3,110) - --------------------------------------------------------------------------------------------------------------- Net Increase in Cash 37,782 38,419 Cash and Cash Equivalents at Beginning of Period 60,984 42,770 - --------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 98,766 $ 81,189 - ---------------------------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (in thousands, except per share data) UNAUDITED Thirteen weeks ended ----------------------------------- May 1, 2004 May 3, 2003 -------------- --------------- (a) Net earnings (loss) from continuing operations before cumulative effect of change in accounting principle $ 16,191 $ (7,327) Adjustment for interest on convertible senior notes, net of income tax effect 1,001 - - ------------------------------------------------------------------------------------------- (b) Adjusted net earnings (loss) from continuing operations before cumulative effect of change in accounting principle $ 17,192 $ (7,327) - ------------------------------------------------------------------------------------------- (c) Average number of common shares outstanding during period 54,945 51,652 Common shares assumed issued upon conversion of convertible senior notes 6,697 - Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price 1,945 - - ------------------------------------------------------------------------------------------- (d) Average number of common shares assumed outstanding during period 63,587 51,652 - ------------------------------------------------------------------------------------------- Basic (Loss) Earnings per share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle (a/c) $ 0.29 $ (0.14) (Loss) Earnings From Discontinued Operations, Net of Tax (0.01) 0.01 Cumulative Effect of Change in Accounting Principle, Net of Tax - (0.05) - ------------------------------------------------------------------------------------------- Basic Earnings (Loss) per share $ 0.28 $ (0.18) - ------------------------------------------------------------------------------------------- Diluted Earnings (Loss) Earnings per share: Net Earnings (Loss) From Continuing Operations Before Cumulative Effect of Change in Accounting Principle (a/c) $ 0.27 $ (0.14) (Loss) Earnings From Discontinued Operations, Net of Tax (0.01) 0.01 Cumulative Effect of Change in Accounting Principle, Net of Tax - (0.05) - ------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per share $ 0.26 $ (0.18) - -------------------------------------------------------------------------------------------
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES ADDITIONAL INFORMATION (dollar amounts in thousands) UNAUDITED Thirteen weeks ended ------------------------------------ May 1, 2004 May 3, 2003 --------------- --------------- Capital expenditures $ 7,683 $ 8,565 Depreciation and amortization $ 16,775 $ 17,838 Non-operating income: Net rental revenue $ 374 $ 872 Investment income 237 138 Other income (expense) (19) 40 -------------- -------------- Total $ 592 $ 1,050 ============== ============== Comparable store sales percentages: Merchandise 12.3% (6.3)% Service 5.6 (1.6) Total 11.0 (5.4) Total square feet of retail space (including service centers) 12,206,785 12,866,929 Revenues and Gross Profit by Line of Business (A): Retail Revenues $ 337,049 $ 286,353 Service Center Revenues 229,084 224,556 -------------- -------------- Total Revenues $ 566,133 $ 510,909 ============== ============== Gross Profit from Retail Revenues $ 98,500 $ 77,308 Gross Profit from Service Center Revenues 65,468 68,489 -------------- -------------- Total Gross Profit $ 163,968 $ 145,797 ============== ============== (A) Retail Revenues include revenues from DIY and Commercial sales. Service Center Revenues include revenues from labor and installed parts and tires.
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