PHILADELPHIA — December 5, 2011 — The Pep Boys — Manny, Moe & Jack, the nation’s leading automotive aftermarket service and retail chain, today announced results for the thirteen (third quarter) and thirty-nine (nine months) weeks ended October 29, 2011.
THIRD QUARTER
SALES
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 (labor plus installed merchandise and tires) increased 1.3%, while comparable retail sales (DIY and Commercial) decreased 2.0%.
EARNINGS
Net earnings for the third quarter of fiscal 2011 increased to $7.0 million ($0.13 per share) from $5.7 million ($0.11 per share) recorded in the same period last year.
NINE MONTHS
SALES
Sales for the thirty-nine weeks ended October 29, 2011 increased by $47.1 million, or 3.1%, to $1,558.3 million from $1,511.3 million for the thirty-nine weeks ended October 30, 2010. Comparable sales decreased 1.0%, consisting of a 0.8% comparable service revenue increase and a 1.4% comparable merchandise sales decrease. Re-categorizing sales (see above), comparable service center revenue increased 0.3%, while comparable retail sales decreased 2.2%.
EARNINGS
Net earnings for the first nine months of 2011 increased to $33.3 million ($0.62 per share) from the $28.3 million ($0.53 per share) recorded in the same period last year. The 2011 results include, on a pre-tax basis, a $0.4 million asset impairment charge and $1.5 million of acquisition related expenses and benefitted from the release of $3.6 million of state tax valuation allowances. The 2010 results included, on a pre-tax basis, a $2.6 million gain from the disposition of assets and a $1.0 million reversal of an inventory related accrual, partially offset by a $1.0 million asset impairment charge.
COMMENTARY
“Our ”˜surround sound’ marketing effort coupled with lower gas prices and pent-up demand drove strong tire sales in the last month of the quarter, which have continued into the fourth quarter. While our retail business remained soft in a challenging environment for consumers, our service business results and margin enhancement initiatives resulted in our 11th quarter of improved profitability, on a year-over-year basis.”
ABOUT PEP BOYS
Since 1921, Pep Boys has been the nation’s leading automotive aftermarket chain. With more than 7,000 service bays in more than 700 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 https://www.pepboys.com.
Forward-looking statements include management’s 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 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.
| Thirteen Weeks Ended | October 29, 2011 | October 30, 2010 |
|---|---|---|
| Total revenues | $522,173,000 | $496,364,000 |
| Net earnings | $7,011,000 | $5,718,000 |
| Basic earnings per share: | ||
| Average shares | 52,998,000 | 52,717,000 |
| Basic earnings per share: | $0.13 | $0.11 |
| Diluted earnings per share: | ||
| Average shares | 53,598,000 | 53,164,000 |
| Diluted earnings per share: | $0.13 | $0.11 |
| Thirty-Nine Weeks Ended | October 29, 2011 | October 30, 2010 |
|---|---|---|
| Total revenues | $1,558,308,000 | $1,511,252,000 |
| Net earnings | $33,322,000 | $28,266,000 |
| Basic earnings per share: | ||
| Average shares | 52,933,000 | 52,637,000 |
| Basic earnings per share: | $0.63 | $0.53 |
| Diluted earnings per share: | ||
| Average shares | 53,594,000 | 53,071,000 |
| Diluted earnings per share: | $0.62 | $0.53 |
Contact us
Pep Boys, Philadelphia
Investor ContactRay Arthur, 215-430-9720
Media ContactAlex Spooner, 215-430-9588
