Pep Boys Manny Moe & Jack (PBY) 8-K Pep Boys Reports Fourth Quarter and Fiscal 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)

	Thirteen Weeks Ended										Fifty-Two Weeks Ended
	January 30, 2010					January 31, 2009					January 30, 2010					January 31, 2009
				%					%					%					%
	Amount			Sales		Amount			Sales		Amount			Sales		Amount			Sales
Merchandise sales	$	364,511		80.5		$	379,792		81.6		$	1,533,619		80.3		1,569,664			81.4
Service revenue	88,385			19.5		85,744			18.4		377,319			19.7		358,124			18.6
Total revenues	452,896			100.0		465,536			100.0		1,910,938			100.0		1,927,788			100.0
Costs of merchandise sales	258,375			70.9		290,588			76.5		1,084,804			70.7		1,129,162			71.9
Costs of service revenue	84,474			95.6		82,760			96.5		340,027			90.1		333,194			93.0
Total costs of revenues	342,849			75.7		373,348			80.2		1,424,831			74.6		1,462,356			75.9
Gross profit from merchandise sales	106,136			29.1		89,204			23.5		448,815			29.3		440,502			28.1
Gross profit from service revenue	3,911			4.4		2,984			3.5		37,292			9.9		24,930			7.0
Total gross profit	110,047			24.3		92,188			19.8		486,107			25.4		465,432			24.1
Selling, general and administrative expenses	103,181			22.8		123,599			26.5		430,261			22.5		485,044			25.2
Net (loss) gain from dispositions of assets	(106		)	—		161			—		1,213			0.1		9,716			0.5
Operating profit (loss)	6,760			1.5		(31,250		)	(6.7	)	57,059			3.0		(9,896		)	(0.5	)
Non-operating income	595			0.1		170			—		2,261			0.1		1,967			0.1
Interest expense	6,380			1.4		8,071			1.7		21,704			1.1		27,048			1.4
Earnings (loss) from continuing operations before income taxes	975			0.2		(39,151		)	(8.4	)	37,616			2.0		(34,977		)	(1.8	)
Income tax (benefit) expense	(1,860		)	(190.8	)(1)	(6,324		)	16.2	(1)	13,503			35.9	(1)	(6,139		)	17.6	(1)
Earnings (loss) from continuing operations	2,835			0.6		(32,827		)	(7.1	)	24,113			1.3		(28,838		)	(1.5	)
Discontinued operations, net of tax	(567		)	(0.1	)	(440		)	(0.1	)	(1,077		)	(0.1	)	(1,591		)	(0.1	)
Net earnings (loss)	2,268			0.5		(33,267		)	(7.1	)	23,036			1.2		(30,429		)	(1.6	)
Retained earnings, beginning of period	374,461					396,697					358,670					406,819
Cumulative effect of change in method of accounting for split dollar life insurance, net of tax	—					—					—					(1,165		)
Cash dividends	(1,577		)			(3,560		)			(6,286		)			(14,111		)
Dividend reinvested and other	(316		)			(1,200		)			(584		)			(2,444		)
Retained earnings, end of period	$	374,836				$	358,670				$	374,836				$	358,670
Basic earnings (loss) per share:
Earnings (loss) from continuing operations	$	0.05				$	(0.63	)			$	0.46				$	(0.55	)
Discontinued operations, net of tax	(0.01		)			—					(0.02		)			(0.03		)
Basic earnings (loss) per share	$	0.04				$	(0.63	)			$	0.44				$	(0.58	)
Diluted earnings (loss) per share:
Earnings (loss) from continuing operations	$	0.06				$	(0.63	)			$	0.46				$	(0.55	)
Discontinued operations, net of tax	(0.02		)			—					(0.02		)			(0.03		)
Diluted earnings (loss) per share	$	0.04				$	(0.63	)			$	0.44				$	(0.58	)
Cash dividends per share	$	0.0300				$	0.0675				$	0.1200				$	0.2700

(1)As a percentage of earnings from continuing operations before income taxes.

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

	January 30, 2010			January 31, 2009
Assets
Current assets:
Cash and cash equivalents	$	39,326		$	21,332
Accounts receivable, less allowance for uncollectible accounts of $1,488 and $1,912	22,983			28,831
Merchandise inventories	559,118			564,931
Prepaid expenses	24,784			25,390
Other current assets	65,428			62,421
Assets held for disposal	4,438			12,653
Total current assets	716,077			715,558
Property and equipment - net	706,450			740,331
Deferred income taxes	58,171			77,708
Other long-term assets	18,388			18,792
Total assets	$	1,499,086		$	1,552,389
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	202,974		$	212,340
Trade payable program liability	34,099			31,930
Accrued expenses	242,416			254,754
Deferred income taxes	29,984			35,848
Current maturities of long-term debt	1,079			1,453
Total current liabilities	510,552			536,325
Long-term debt, less current maturities	306,201			352,382
Other long-term liabilities	73,933			70,322
Deferred gain from asset sales	165,105			170,204
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
Additional paid-in capital	293,810			292,728
Retained earnings	374,836			358,670
Accumulated other comprehensive loss	(17,691		)	(18,075		)
Less cost of shares in treasury - 16,164,074 shares and 14,124,021 shares	276,217			219,460
Less cost of shares in benefits trust - 2,195,270 shares	—			59,264
Total stockholders’ equity	443,295			423,156
Total liabilities and stockholders’ equity	$	1,499,086		$	1,552,389

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

Fifty-Two Weeks Ended	January 30, 2010			January 31, 2009
Cash flows from operating activities:
Net earnings (loss)	$	23,036		$	(30,429	)
Adjustments to reconcile net earnings to net cash provided by (used in) continuing operations:
Discontinued operations	1,077			1,591
Depreciation and amortization	70,529			73,207
Amortization of deferred gain from asset sales	(12,325		)	(10,285		)
Stock compensation expense	2,575			2,743
Gain on debt retirement	(6,248		)	(3,460		)
Deferred income taxes	13,446			(6,258		)
Gain from dispositions of assets	(1,213		)	(9,716		)
Loss from asset impairment	2,884			3,427
Other	345			537
Changes in operating assets and liabilities:
Decrease in accounts receivable, prepaid expenses and other	7,175			23,904
Decrease (increase) in merchandise inventories	7,039			(3,779		)
Decrease in accounts payable	(9,640		)	(33,083		)
Decrease in accrued expenses	(13,238		)	(34,993		)
Increase (decrease) in other long-term liabilities	2,384			(11,992		)
Net cash provided by (used in) continuing operations	87,826			(38,586		)
Net cash used in discontinued operations	(603		)	(921		)
Net cash provided by (used in) operating activities	87,223			(39,507		)
Cash flows from investing activities:
Cash paid for master lease properties	—			(117,121		)
Cash paid for property and equipment	(43,214		)	(34,762		)
Proceeds from dispositions of assets	14,776			210,635
Life insurance proceeds received	—			15,588
Acquisition of Florida Tire, Inc.	(2,695		)	—
Other	(500		)	—
Net cash (used in) provided by continuing operations	(31,633		)	74,340
Net cash provided by discontinued operations	1,762			4,386
Net cash (used in) provided by investing activities	(29,871		)	78,726
Cash flows from financing activities:
Borrowings under line of credit agreements	249,704			205,162
Payments under line of credit agreements	(273,566		)	(223,345		)
Borrowings on trade payable program liability	192,324			196,680
Payments on trade payable program liability	(190,155		)	(179,004		)
Payment for finance issuance cost	—			(6,936		)
Proceeds from lease financing	—			8,661
Long-term debt and capital lease obligations payments	(11,990		)	(26,798		)
Dividends paid	(6,286		)	(14,111		)
Other	611			878
Net cash used in financing activities	(39,358		)	(38,813		)
Net increase in cash and cash equivalents	17,994			406
Cash and cash equivalents at beginning of period	21,332			20,926
Cash and cash equivalents at end of period	$	39,326		$	21,332
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	4,768		$	1,330
Cash paid for interest	$	24,509		$	26,548
Accrued purchases of property and equipment	$	1,738		$	1,214

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

			Thirteen Weeks Ended						Fifty-Two Weeks Ended
			January 30, 2010			January 31, 2009			January 30, 2010			January 31, 2009
(a)	Earnings (loss) from continuing operations		$	2,835		$	(32,827	)	$	24,113		$	(28,838	)
	Discontinued operations, net of tax		(567		)	(440		)	(1,077		)	(1,591		)
	Net earnings (loss)		$	2,268		$	(33,267	)	$	23,036		$	(30,429	)
(b)	Basic average number of common shares outstanding during period		52,452			52,223			52,397			52,136
	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price		356			—			270			—
(c)	Diluted average number of common shares assumed outstanding during period		52,808			52,223			52,667			52,136
	Basic earnings (loss) per share:
	Earnings (loss) from continuing operations	(a) /(b)	$	0.05		$	(0.63	)	$	0.46		$	(0.55	)
	Discontinued operations, net of tax		(0.01		)	—			(0.02		)	(0.03		)
	Basic earnings (loss) per share		$	0.04		$	(0.63	)	$	0.44		$	(0.58	)
	Diluted earnings (loss) per share:
	Earnings (loss) from continuing operations	(a) /(c)	$	0.06		$	(0.63	)	$	0.46		$	(0.55	)
	Discontinued operations, net of tax		(0.02		)	—			(0.02		)	$	(0.03	)
	Diluted earnings (loss) per share		$	0.04		$	(0.63	)	$	0.44		$	(0.58	)

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

	Thirteen Weeks Ended						Fifty-Two Weeks Ended
	January 30, 2010			January 31, 2009			January 30, 2010			January 31, 2009
Capital expenditures (A)	$	15,439		$	12,109		$	43,214		$	151,883
Depreciation and amortization	$	17,281		$	18,098		$	70,529		$	73,207
Non-operating income:
Net rental revenue	$	522		$	123		$	1,774		$	1,193
Investment income	46			35			219			780
Other (expense) income	27			12			268			(6		)
Total	$	595		$	170		$	2,261		$	1,967
Comparable sales percentages:
Merchandise	-4.9		%	-9.1		%	-2.6		%	-8.4		%
Service	0.7		%	-5.5		%	4.7		%	-6.2		%
Total	-3.9		%	-8.5		%	-1.2		%	-8.0		%
Total square feet of retail space (including service centers)							11,687,000			11,514,000
Total store count							587			562
Sales and gross profit by line of business (B):
Retail sales	$	243,187		$	255,314		$	1,013,308		1,058,021
Service center revenue	209,709			210,222			897,630			869,767
Total revenues	$	452,896		$	465,536		$	1,910,938		$	1,927,788
Gross profit from retail sales	$	64,904		$	53,123		$	275,051		273,262
Gross profit from service center revenue	45,143			39,065			211,056			192,170
Total gross profit	$	110,047		$	92,188		$	486,107		$	465,432
Comparable sales percentages (B):
Retail sales	-5.1		%	-13.2		%	-4.3		%	-11.8		%
Service center revenue	-2.4		%	-1.9		%	2.5		%	-2.9		%
Total revenues	-3.9		%	-8.5		%	-1.2		%	-8.0		%
Gross profit percentage by line of business (B):
Gross profit percentage from retail sales	26.7		%	20.8		%	27.1		%	25.8		%
Gross profit percentage from service center revenue	21.5		%	18.6		%	23.5		%	22.1		%
Total gross profit percentage	24.3		%	19.8		%	25.4		%	24.1		%

(A) Fiscal 2008 capital expenditures includes $117.1 million for the purchase of master lease properties.

(B) Retail sales include DIY and commercial sales.  Service center revenue includes revenue from labor and installed parts and tires.