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 Fifty-two weeks ended ---------------------------------------- ----------------------------------------- Jan. 29, 2005 Jan. 31, 2004 Jan. 29, 2005 Jan. 31, 2004 ------------------ ------------------- ------------------- ------------------- % % % % Amount Sales Amount Sales Amount Sales Amount Sales --------------------------------------------------------------------------------------------------------------------------------- Merchandise Sales $ 456,604 82.4 $ 430,914 81.4 $1,863,015 82.0 $1,728,386 81.0 Service Revenue 97,535 17.6 98,725 18.6 409,881 18.0 405,884 19.0 --------------------------------------------------------------------------------------------------------------------------------- Total Revenues 554,139 100.0 529,639 100.0 2,272,896 100.0 2,134,270 100.0 --------------------------------------------------------------------------------------------------------------------------------- Costs of Merchandise Sales 331,215 72.5 302,365 70.2 1,333,296 71.6 1,242,360 71.9 Costs of Service Revenue 78,333 80.3 77,834 78.8 317,142 77.4 311,122 76.7 --------------------------------------------------------------------------------------------------------------------------------- Total Costs of Revenues 409,548 73.9 380,199 71.8 1,650,438 72.6 1,553,482 72.8 --------------------------------------------------------------------------------------------------------------------------------- Gross Profit from Merchandise Sales 125,389 27.5 128,549 29.8 529,719 28.4 486,026 28.1 Gross Profit from Service Revenue 19,202 19.7 20,891 21.2 92,739 22.6 94,762 23.3 --------------------------------------------------------------------------------------------------------------------------------- Total Gross Profit 144,591 26.1 149,440 28.2 622,458 27.4 580,788 27.2 --------------------------------------------------------------------------------------------------------------------------------- Selling, General and Administrative Expenses 148,556 26.8 148,974 28.1 547,336 24.1 569,834 26.7 --------------------------------------------------------------------------------------------------------------------------------- Operating (Loss) Profit (3,965) (0.7) 466 0.1 75,122 3.3 10,954 0.5 Non-operating Income (327) (0.0) 653 0.1 1,824 0.0 3,340 0.2 Interest Expense 10,811 2.0 8,992 1.7 35,965 1.6 38,255 1.8 --------------------------------------------------------------------------------------------------------------------------------- (Loss) Earnings from Continuing Operations Before Income Taxes and Cumulative Effect of Change in Accounting Principle (15,103) (2.7) (7,873) (1.5) 40,981 1.8 (23,961) (1.1) Income Tax (Benefit) Expense (5,436) 36.0 (2,858) 36.3 15,315 37.4 (8,816) 36.8 --------------------------------------------------------------------------------------------------------------------------------- Net (Loss) Earnings from Continuing Operations Before Cumulative Effect of Change in Accounting Principle (9,667) (1.7) (5,015) (0.9) 25,666 1.1 (15,145) (0.7) Discontinued Operations, Net of Tax (468) (0.1) 2,660 0.5 (2,087) (0.1) (16,265) (0.8) Cumulative Effect of Change in Accounting Principle, Net of Tax - 0.0 - 0.0 - 0.0 (2,484) (0.1) --------------------------------------------------------------------------------------------------------------------------------- Net (Loss) Earnings (10,135) (1.8) (2,355) (0.4) 23,579 1.0 (33,894) (1.6) Retained Earnings, beginning of period 551,247 535,765 531,933 586,735 Cash Dividends (3,938) (3,561) (15,676) (14,089) Effect of Stock Options and Related Tax Benefits (394) 2,084 (2,984) (6,499) Dividend Reinvestment Plan - - (72) (320) --------------------------------------------------------------------------------------------------------------------------------- Retained Earnings, end of period $ 536,780 $ 531,933 $ 536,780 $ 531,933 --------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings per Share: Net (Loss) Earnings From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ (0.17) $ (0.09) $ 0.46 $ (0.29) Discontinued Operations, Net of Tax (0.01) 0.05 (0.04) (0.31) Cumulative Effect of Change in Accounting Principle, Net of Tax - - - (0.05) --------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings per Share $ (0.18) $ (0.04) $ 0.42 $ (0.65) --------------------------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings per Share: Net (Loss) Earnings From Continuing Operations Before Cumulative Effect of Change in Accounting Principle $ (0.17) $ (0.09) $ 0.45 $ (0.29) Discontinued Operations, Net of Tax (0.01) 0.05 (0.04) (0.31) Cumulative Effect of Change in Accounting Principle, Net of Tax - - - (0.05) --------------------------------------------------------------------------------------------------------------------------------- Diluted Earnings (Loss) per Share $ (0.18) $ (0.04) $ 0.41 $ (0.65) --------------------------------------------------------------------------------------------------------------------------------- Cash Dividends Per Share $ 0.0675 $ 0.0675 $ .2700 $ .2700 ---------------------------------------------------------------------------------------------------------------------------------
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share amounts) UNAUDITED Jan. 29, 2005 Jan. 31, 2004 ----------------------------------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $ 82,758 $ 60,984 Accounts receivable, net 30,994 30,562 Merchandise inventories 602,760 553,562 Prepaid expenses 45,349 39,480 Deferred income taxes - 20,826 Other 96,065 81,096 Assets held for disposal 665 16,929 ----------------------------------------------------------------------------------------------------- Total Current Assets 858,591 803,439 ----------------------------------------------------------------------------------------------------- Property and Equipment-at cost: Land 261,985 263,907 Buildings and improvements 916,099 899,114 Furniture, fixtures and equipment 633,098 586,607 Construction in progress 40,426 12,800 ----------------------------------------------------------------------------------------------------- 1,851,608 1,762,428 Less accumulated depreciation and amortization 906,577 839,219 ----------------------------------------------------------------------------------------------------- Property and Equipment - net 945,031 923,209 ----------------------------------------------------------------------------------------------------- Other 63,401 51,398 ----------------------------------------------------------------------------------------------------- Total Assets $1,867,023 $1,778,046 ----------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 310,981 $ 342,584 Accrued expenses 306,671 267,565 Deferred income taxes 19,638 - Current maturities of long-term debt and obligations under capital leases 40,882 117,063 ----------------------------------------------------------------------------------------------------- Total Current Liabilities 678,172 727,212 ----------------------------------------------------------------------------------------------------- Long-term debt and obligations under capital leases, less current maturities 352,682 258,016 Convertible long-term debt 119,000 150,000 Other long-term liabilities 37,929 39,201 Deferred income taxes 25,736 29,976 Deferred gain on sale leaseback 48 3,907 Commitments and Contingencies Stockholders' Equity: Common Stock, par value $1 per share: Authorized 500,000,000 shares; Issued 68,557,041 and 63,910,577 shares 68,557 63,911 Additional paid-in capital 284,966 177,317 Retained earnings 536,780 531,933 Common stock subscriptions receivable (167) - Accumulated other comprehensive loss (4,852) (15) ----------------------------------------------------------------------------------------------------- 885,284 773,146 Less cost of shares in treasury - 11,305,130 shares and 8,928,159 shares 172,564 144,148 Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 ----------------------------------------------------------------------------------------------------- Total Stockholders' Equity 653,456 569,734 ----------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $1,867,023 $1,778,046 -----------------------------------------------------------------------------------------------------
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) UNAUDITED Fifty-two Weeks Ended Jan. 29, 2005 Jan. 31, 2004 ---------------------------------------------------------------------------------------------------------------- Cash Flows from Operating Activities: Net earnings (loss) $ 23,579 $ (33,894) Net loss from discontinued operations (2,087) (16,265) ---------------------------------------------------------------------------------------------------------------- Net earnings (loss) from continuing operations 25,666 (17,629) Adjustments to Reconcile Net Earnings (Loss) From Continuing Operations to Net Cash Provided by Continuing Operations: Depreciation and amortization 76,620 78,275 Cumulative effect of change in accounting principle, net of tax - 2,484 Accretion of asset disposal obligation 135 163 Stock compensation expense 1,184 - Deferred income taxes 19,184 (1,402) Deferred gain on sale lease back (130) (425) Loss on asset impairments - 14,535 (Gain) Loss from sale of assets (11,848) 61 Changes in Operating Assets and Liabilities: Increase in accounts receivable, prepaid expenses and other (21,868) (33,197) Increase in merchandise inventories (49,198) (64,680) (Decrease) increase in accounts payable (24,387) 142,531 Increase in accrued expenses 32,321 27,180 (Decrease) increase in other long-term liabilities (1,272) 1,726 ---------------------------------------------------------------------------------------------------------------- Net Cash provided by continuing operations 46,407 149,622 Net Cash (used in) provided by discontinued operations (2,734) 2,448 ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 43,673 152,070 ---------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities: Capital expenditures (88,068) (43,262) Proceeds from sales of assets 18,021 3,316 Proceeds from sales of assets held for disposal 13,327 13,214 ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (56,720) (26,732) ---------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Net borrowings (payments) under line of credit agreements 8,102 (497) Payments for finance issuance costs - (2,356) Payments on short-term borrowings (7,216) - Net proceeds from issuance of notes 194,500 - Reduction of long-term debt (189,991) (101,183) Reduction of convertible debt (31,000) - Payments on capital lease obligations (1,040) (700) Dividends paid (15,676) (14,089) Repurchase of common stock (39,718) - Proceeds from issuance of common stock 108,854 - Proceeds from exercise of stock options 6,887 10,483 Proceeds from dividend reinvestment plan 1,119 1,218 ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by (Used in) Financing Activities 34,821 (107,124) ---------------------------------------------------------------------------------------------------------------- Net Increase in Cash 21,774 18,214 ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at Beginning of Period 60,984 42,770 ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 82,758 $ 60,984 ---------------------------------------------------------------------------------------------------------------- Supplemental Disclosure of Cash Flow Information: Cash paid during the year for: Income taxes $ (25,442) $ 6,553 Interest, net of amounts capitalized 28,596 35,048 Non-cash financing activities: Equipment Capital Leases $ 1,413 $ - ----------------------------------------------------------------------------------------------------------------
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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 Fifty-two weeks ended ----------------------------------- ----------------------------------- Jan. 29, 2005 Jan. 31, 2004 Jan. 29, 2005 Jan. 31, 2004 -------------- --------------- -------------- -------------- (a) Net (loss) earnings from continuing operations before cumulative effect of change in accounting principle $ (9,667) $ (5,015) $ 25,666 $ (15,145) Adjustment for interest on convertible senior notes, net of income tax effect _ - 3,941 - ---------------------------------------------------------------------------------------------------------------------------------- (b) Adjusted net (loss) earnings from continuing operations before cumulative effect of change in accounting principle $ (9,667) $ (5,015) $ 29,607 $ (15,145) ---------------------------------------------------------------------------------------------------------------------------------- (c) Average number of common shares outstanding during period 55,017 52,736 56,353 52,185 Common shares assumed issued upon conversion of convertible senior notes - - 6,629 - Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price - - 1,296 - ---------------------------------------------------------------------------------------------------------------------------------- (d) Average number of common shares assumed outstanding during period 55,017 52,736 64,278 52,185 ---------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings per Share: Net (Loss) Earnings From Continuing operations Before Cumulative Effect of Change in Accounting Principle (a/c) $ (0.17) $ (0.09) $ 0.46 $ (0.29) Discontinued Operations, Net of Tax (0.01) 0.05 (0.04) (0.31) Cumulative Effect of Change in Accounting Principle, Net of Tax - - - (0.05) ---------------------------------------------------------------------------------------------------------------------------------- Basic (Loss) Earnings per Share $ (0.18) $ (0.04) $ 0.42 $ (0.65) ---------------------------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings per Share: Net (Loss) Earnings From Continuing Operations Before Cumulative Effect of Change in Accounting Principle (b/d) $ (0.17) $ (0.09) $ 0.45 $ (0.29) Discontinued Operations, Net of Tax (0.01) 0.05 (0.04) (0.31) Cumulative Effect of Change in Accounting Principle, Net of Tax - - - (0.05) ---------------------------------------------------------------------------------------------------------------------------------- Diluted (Loss) Earnings per Share $ (0.18) $ (0.04) $ 0.41 $ (0.65) ----------------------------------------------------------------------------------------------------------------------------------
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES ADDITIONAL INFORMATION (dollar amounts in thousands) UNAUDITED Thirteen weeks ended Fifty-two weeks ended ------------------------------------ ------------------------------------ Jan. 29, 2005 Jan. 31, 2004 Jan. 29, 2005 Jan. 31, 2004 ---------------- --------------- --------------- --------------- Capital expenditures $ 51,135 $ 10,583 $ 103,766 $ 43,262 Depreciation and amortization $ 20,146 $ 21,342 $ 76,620 $ 78,275 Non-operating income: Net rental revenue $ 28 $ 553 $ 1,883 $ 2,730 Investment income 205 112 680 497 Other (Expense) Income (560) (12) (739) 113 ---------------- --------------- --------------- --------------- Total $ (327) $ 653 $ 1,824 $ 3,340 ================ =============== =============== =============== Comparable store sales percentages: Merchandise 6.0% 15.9% 7.9% 1.7% Service -1.2 5.1 1.1 1.3 Total 4.6 13.7 6.6 1.6 Total square feet of retail space (including service centers) 12,206,785 12,206,785 Total Store Count 595 595 Sales and Gross Profit by Line of Business (A): Retail Sales $ 332,631 $ 307,510 $ 1,352,695 $ 1,195,757 Service Center Revenue 221,508 222,129 920,201 938,513 --------------- --------------- --------------- ---------------- Total Revenues $ 554,139 $ 529,639 $ 2,272,896 $ 2,134,270 =============== =============== =============== ================ Gross Profit from Retail Sales $ 84,227 $ 86,749 $ 367,118 $ 309,751 Gross Profit from Service Center Revenue 60,364 62,691 255,340 271,037 --------------- --------------- --------------- ---------------- Total Gross Profit $ 144,591 $ 149,440 $ 622,458 $ 580,788 =============== =============== =============== ================ Comparable Sales Percentages (A): Retail Sales 8.2 % 13.2 % Service Center Revenue -0.3 -1.9 Total Revenues 4.6 6.6 Gross Profit Percentage by Line of Business (A): Gross Profit Percentage from Retail Sales 25.3 % 28.2 % 27.1 % 25.9 % Gross Profit Percentage from Service Center Revenue 27.3 % 28.2 % 27.7 % 28.9 % ---------- ---------- ----------- ----------- Total Gross Profit Percentage 26.1 % 28.2 % 27.4 % 27.2 % ========== ========== =========== =========== (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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