Q3 2006 Earnings Release
PHILADELPHIA-November 29, 2006
Pep Boys Reaches Legal Settlement; Records $0.06 Per Share One-Time Charge
The Pep - Manny, Moe & Jack (NYSE: "PBY"), the nation's leading automotive aftermarket retail and service chain, announced today that it had reached a settlement, subject to court approval, of three pending actions (the earliest of which was filed in 2002) involving various wage and hour claims for an aggregate amount of $4,550,000.
The charge will be recorded in the Company's third quarter, which ended October 28, 2006, and will revise the recently announced third quarter results by $2,992,000 ($0.06 per share - basic and diluted) to a Net Loss from Continuing Operations Before Cumulative Effect of Change in Accounting Principle of $10,713,000 ($0.20 per share - basic and diluted). The charge will also change the previously announced Operating Profit to an Operating Loss of $1,349,000 and EBITDA to $20,594,000.
Pep Boys has 593 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.
- Pep Boys, Philadelphia
- Investor Contact: Harry Yanowitz, 215-430-9720
- Media Contact: Marie Gehret, (215) 430-9224
- Internet: http://www.pepboys.com
- THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES (UNAUDITED)
- CONSOLIDATED STATEMENTS OF OPERATIONS (dollar amounts in thousands, except per share amounts)
- Thirteen weeks ended Thirty-nine weeks ended
- October 29, 2005 October 28, 2006 October 29, 2005