Pep Boys Manny Moe & Jack (PBY) 8-K Pep Boys Reports First Quarter 2009 Results

Exhibit 99.2

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES	(UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS	(dollar amounts in thousands, except per share amounts)

	May 2, 2009					May 3, 2008
				%					%
Thirteen weeks ended	Amount			Sales		Amount			Sales
Merchandise Sales	$	398,177		80.2		$	403,334		81.0
Service Revenue	98,311			19.8		94,709			19.0
Total Revenues	496,488			100.0		498,043			100.0
Costs of Merchandise Sales	281,035			70.6		285,923			70.9
Costs of Service Revenue	85,852			87.3		84,154			88.9
Total Costs of Revenues	366,887			73.9		370,077			74.3
Gross Profit from Merchandise Sales	117,142			29.4		117,411			29.1
Gross Profit from Service Revenue	12,459			12.7		10,555			11.1
Total Gross Profit	129,601			26.1		127,966			25.7
Selling, General and Administrative Expenses	108,053			21.8		119,015			23.9
Net Gain from Dispositions of Assets	3			—		5,531			1.1
Operating Profit	21,551			4.3		14,482			2.9
Non-operating Income	403			0.1		330			0.1
Interest Expense	1,936			0.4		5,427			1.1
Earnings From Continuing Operations Before Income Taxes	20,018			4.0		9,385			1.9
Income Tax Expense	8,955			44.7	(1)	4,094			43.6	(1)
Net Earnings From Continuing Operations	11,063			2.2		5,291			1.1
Discontinued Operations, Net of Tax	(154		)	—		(619		)	(0.1	)
Net Earnings	10,909			2.2		4,672			0.9
Retained Earnings, beginning of period	358,670					406,819
Cumulative effect adjustment for adoption of EITF 06-10, net of tax	—					(1,165		)
Cash Dividends	(1,575		)			(3,495		)
Effect of Stock Options	—					(12		)
Dividend Reinvestment Plan	(122		)			—
Retained Earnings, end of period	$	367,882				$	406,819
Basic and Diluted Earnings per Share:
Net Earnings From Continuing Operations	$	0.21				$	0.10
Discontinued Operations, Net of Tax	—					(0.01		)
Earnings per Share	$	0.21				$	0.09
Cash Dividends per Share	$	0.0300				$	0.0675

(1) As a percentage of earnings from continuing operations before income taxes and cumulative effect of change in accounting principle.

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES	(UNAUDITED)
CONSOLIDATED BALANCE SHEETS	(dollar amounts in thousands, except per share amounts)

	May 2, 2009			January 31, 2009			May 3, 2008
Assets
Current Assets:
Cash and cash equivalents	$	21,313		$	21,332		$	87,277
Accounts receivable, less allowance for uncollectible accounts of $1,701; $1,912 and $2,299	22,680			28,831			30,726
Merchandise inventories	556,564			564,931			561,439
Prepaid expenses	21,661			25,390			39,601
Other	58,757			62,421			65,411
Assets held for disposal	11,004			12,653			16,592
Total Current Assets	691,979			715,558			801,046
Property and Equipment - net	724,698			740,331			705,557
Deferred income taxes	77,606			77,708			27,332
Other	17,477			18,792			30,756
Total Assets	$	1,511,760		$	1,552,389		$	1,564,691
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	193,894		$	212,340		$	230,185
Trade payable program liability	28,464			31,930			19,020
Accrued expenses	244,764			254,754			282,322
Deferred income taxes	38,540			35,848			—
Current maturities of long-term debt and obligations under capital leases	1,150			1,453			2,278
Total Current Liabilities	506,812			536,325			533,805
Long-term debt and obligations under capital leases, less current maturities	332,848			352,382			341,317
Other long-term liabilities	70,745			70,322			70,032
Deferred gain from asset sales	167,984			170,204			146,062
Commitments and Contingencies
Stockholders’ Equity:
Common Stock, par value $1 per share:
Authorized 500,000,000 shares; Issued 68,557,041 shares	68,557			68,557			68,557
Additional paid-in capital	292,434			292,728			296,715
Retained earnings	367,882			358,670			406,819
Accumulated other comprehensive loss	(17,823		)	(18,075		)	(12,486		)
Less cost of shares in treasury – 14,059,333 shares, 14,124,021 shares and 14,582,741 shares	218,415			219,460			226,866
Less cost of shares in benefits trust – 2,195,270 shares	59,264			59,264			59,264
Total Stockholders’ Equity	433,371			423,156			473,475
Total Liabilities and Stockholders’ Equity	$	1,511,760		$	1,552,389		$	1,564,691

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES	(UNAUDITED)
CONSOLIDATED STATEMENTS OF CASH FLOWS	(dollar amounts in thousands)

Thirteen weeks ended	May 2, 2009			May 3, 2008
Cash Flows from Operating Activities:
Net Earnings	$	10,909		$	4,672
Adjustments to reconcile net earnings to net cash provided by continuing operations:
Discontinued operations	154			619
Depreciation and amortization	17,373			19,019
Amortization of deferred gain from asset sales	(3,049		)	(1,825		)
Deferred income taxes	2,646			1,437
Stock compensation expense	568			1,322
Gain from debt retirement	(6,248		)	(2,883		)
Gain from dispositions of assets	(3		)	(5,531		)
Other	181			1,511
Changes in Operating Assets and Liabilities:
Decrease in accounts receivable, prepaid expenses and other	14,603			7,586
Decrease (increase) in merchandise inventories	8,366			(287		)
Decrease in accounts payable	(18,446		)	(15,238		)
Decrease in accrued expenses	(9,442		)	(12,281		)
Increase (decrease) in other long-term liabilities	683			(2,394		)
Net cash provided by (used in) continuing operations	18,295			(4,273		)
Net cash used in discontinued operations	(318		)	(58		)
Net Cash Provided by (Used in) Operating Activities	17,977			(4,331		)
Cash Flows from Investing Activities:
Cash paid for property and equipment	(5,718		)	(6,942		)
Proceeds from dispositions of assets	10			132,090
Net cash (used in) provided by continuing operations	(5,708		)	125,148
Net cash provided by discontinued operations	1,758			—
Net Cash (Used in) Provided by Investing Activities	(3,950		)	125,148
Cash Flows from Financing Activities:
Borrowings under line of credit agreements	160,498			97,909
Payments under line of credit agreements	(158,522		)	(139,332		)
Borrowings on trade payable program liability	33,871			27,222
Payments on trade payable program liability	(37,337		)	(22,456		)
Payment for finance issuance cost	—			(93		)
Proceeds from lease financing	—			4,676
Long-term debt and capital lease obligations payments	(11,110		)	(18,905		)
Dividends paid	(1,575		)	(3,495		)
Other	129			8
Net Cash Used in Financing Activities	(14,046		)	(54,466		)
Net (Decrease) increase in Cash and Cash Equivalents	(19		)	66,351
Cash and Cash Equivalents at Beginning of Period	21,332			20,926
Cash and Cash Equivalents at End of Period	$	21,313		$	87,277
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	$	831		$	—
Cash paid for interest	$	3,830		$	3,994
Accrued purchases of property and equipment	$	599		$	3,689

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES	(UNAUDITED)
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE	(in thousands, except per share data)

		Thirteen weeks ended
		May 2, 2009			May 3, 2008
(a)
	Net Earnings From Continuing Operations	$	11,063		$	5,291
	Discontinued Operations, Net of Tax	(154		)	(619		)
	Net Earnings	$	10,909		$	4,672
(b)	Average number of common shares outstanding during period	52,333			52,063
	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price	43			107
(c)	Average number of common shares assumed outstanding during period	52,376			52,170
	Basic Earnings per Share:
	Net Earnings From Continuing Operations	$	0.21		$	0.10
	Discontinued Operations, Net of Tax	—			(0.01		)
	Basic Earnings per Share	$	0.21		$	0.09
	Diluted Earnings per Share:
	Net Earnings From Continuing Operations	$	0.21		$	0.10
	Discontinued Operations, Net of Tax	—			(0.01		)
	Diluted Earnings per Share	$	0.21		$	0.09

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES	(UNAUDITED)
ADDITIONAL INFORMATION	(dollar amounts in thousands)

	Thirteen weeks ended
	May 2, 2009			May 3, 2008
Capital expenditures	$	5,103		$	8,646
Depreciation and amortization	$	17,373		$	19,019
Non-operating income:
Net rental revenue	$	302		$	173
Investment income	70			167
Other (expense) income	31			(10		)
Total	$	403		$	330
Comparable sales percentages:
Merchandise	-1.3		%	-6.2		%
Service	3.8		%	-2.9		%
Total	-0.3		%	-5.6		%
Total square feet of retail space (including service centers)	11,520,000			11,514,000
Total Store Count	563			562
Sales and Gross Profit by Line of Business (A):
Retail Sales	$	264,411		$	273,325
Service Center Revenue	232,077			224,718
Total Revenues	$	496,488		$	498,043
Gross Profit from Retail Sales	$	73,555		$	73,404
Gross Profit from Service Center Revenue	56,046			54,562
Total Gross Profit	$	129,601		$	127,966
Comparable Sales Percentages (A):
Retail Sales	-3.3		%	-10.2		%
Service Center Revenue	3.3		%	0.6		%
Total Revenues	-0.3		%	-5.6		%
Gross Profit Percentage by Line of Business (A):
Gross Profit Percentage from Retail Sales	27.8		%	26.9		%
Gross Profit Percentage from Service Center Revenue	24.1		%	24.3		%
Total Gross Profit Percentage	26.1		%	25.7		%

(A) Retail Sales include DIY and Commercial sales. Service Center Revenue includes revenue from labor and installed parts and tires.