Pep Boys Manny Moe & Jack (PBY) 8-K Pep Boys Reports First Quarter 2011 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)

	April 30, 2011					May 1, 2010
				%					%
Thirteen weeks ended	Amount			Sales		Amount			Sales
Merchandise sales	$	408,627		79.6		$	409,189		80.2
Service revenue	104,913			20.4		100,844			19.8
Total revenues	513,540			100.0		510,033			100.0
Costs of merchandise sales	285,329			69.8		283,796			69.4
Costs of service revenue	93,089			88.7		88,642			87.9
Total costs of revenues	378,418			73.7		372,438			73.0
Gross profit from merchandise sales	123,298			30.2		125,393			30.6
Gross profit from service revenue	11,824			11.3		12,202			12.1
Total gross profit	135,122			26.3		137,595			27.0
Selling, general and administrative expenses	108,900			21.2		111,632			21.9
Net gain from dispositions of assets	89			—		45			—
Operating profit	26,311			5.1		26,008			5.1
Non-operating income	587			0.1		584			0.1
Interest expense	6,497			1.3		6,608			1.3
Earnings from continuing operations before income taxes	20,401			4.0		19,984			3.9
Income tax expense	7,996			39.2	(1)	7,824			39.2	(1)
Earnings from continuing operations	12,405			2.4		12,160			2.4
Loss from discontinued operations, net of tax	(37		)	—		(210		)	—
Net earnings	12,368			2.4		11,950			2.3
Retained earnings, beginning of period	402,600					374,836
Cash dividends	(1,585		)			(1,579		)
Shares issued and other	(667		)			(756		)
Retained earnings, end of period	$	412,716				$	384,451
Basic earnings per share:
Earnings from continuing operations	$	0.23				$	0.23
Discontinued operations, net of tax	—					—
Basic earnings per share	$	0.23				$	0.23
Diluted earnings per share:
Earnings from continuing operations	$	0.23				$	0.23
Discontinued operations, net of tax	—					—
Diluted earnings per share	$	0.23				$	0.23
Cash dividends per share	$	0.03				$	0.03

(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)

	April 30, 2011			January 29, 2011			May 1, 2010
Assets
Current assets:
Cash and cash equivalents	$	100,374		$	90,240		$	87,806
Accounts receivable, less allowance for uncollectible accounts of $1,385; $1,551 and $1,752	19,460			19,540			20,277
Merchandise inventories	578,272			564,402			561,351
Prepaid expenses	26,225			28,542			24,510
Other current assets	56,598			60,812			61,277
Total current assets	780,929			763,536			755,221
Property and equipment - net	696,090			700,981			699,439
Deferred income taxes	62,851			66,019			57,440
Other long-term assets	32,642			26,136			17,541
Total assets	$	1,572,512		$	1,556,672		$	1,529,641
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	231,663		$	210,440		$	218,472
Trade payable program liability	53,060			56,287			34,273
Accrued expenses	225,891			236,028			245,242
Deferred income taxes	58,066			56,335			33,082
Current maturities of long-term debt	1,079			1,079			1,079
Total current liabilities	569,759			560,169			532,148
Long-term debt less current maturities	294,852			295,122			305,931
Other long-term liabilities	67,338			70,046			74,250
Deferred gain from asset sales	149,732			152,875			162,328
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	294,984			295,361			293,363
Retained earnings	412,716			402,600			384,451
Accumulated other comprehensive loss	(16,293		)	(17,028		)	(17,223		)
Treasury stock, at cost - 15,901,648 shares and 15,971,910 shares and 16,088,014 shares	(269,133		)	(271,030		)	(274,164		)
Total stockholders’ equity	490,831			478,460			454,984
Total liabilities and stockholders’ equity	$	1,572,512		$	1,556,672		$	1,529,641

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES (UNAUDITED)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

Thirteen weeks ended	April 30, 2011			May 1, 2010
Cash flows from operating activities:
Net earnings	$	12,368		$	11,950
Adjustments to reconcile net earnings to net cash provided by continuing operations:
Loss from discontinued operations, net of tax	37			210
Depreciation and amortization	19,884			18,214
Amortization of deferred gain from asset sales	(3,143		)	(3,148		)
Stock compensation expense	638			737
Deferred income taxes	4,458			3,552
Net gain from disposition of assets	(89		)	(45		)
Other	(63		)	(72		)
Changes in assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable, prepaid expenses and other	7,406			10,581
Increase in merchandise inventories	(13,323		)	(2,233		)
Increase in accounts payable	21,223			15,498
(Decrease) increase in accrued expenses	(8,242		)	3,231
(Decrease) increase in other long-term liabilities	(2,458		)	603
Net cash provided by continuing operations	38,696			59,078
Net cash used in discontinued operations	(66		)	(324		)
Net cash provided by operating activities	38,630			58,754
Cash flows from investing activities:
Capital expenditures	(18,123		)	(12,511		)
Proceeds from dispositions of assets	89			3,143
Premiums paid on life insurance policies	(741		)	(500		)
Collateral investment	(4,763		)	500
Other	(144		)	(144		)
Net cash used in continuing operations	(23,682		)	(9,512		)
Net cash provided by discontinued operations	—			569
Net cash used in investing activities	(23,682		)	(8,943		)
Cash flows from financing activities:
Borrowings under line of credit agreements	1,067			1,029
Payments under line of credit agreements	(1,067		)	(1,029		)
Borrowings on trade payable program liability	24,589			23,027
Payments on trade payable program liability	(27,816		)	(22,853		)
Debt payments	(270		)	(270		)
Dividends paid	(1,585		)	(1,579		)
Other	268			344
Net cash used in financing activities	(4,814		)	(1,331		)
Net increase in cash and cash equivalents	10,134			48,480
Cash and cash equivalents at beginning of period	90,240			39,326
Cash and cash equivalents at end of period	$	100,374		$	87,806
Supplemental cash flow information:
Cash paid for income taxes	$	57		$	70
Cash paid for interest	$	2,885		$	2,616
Accrued purchases of property and equipment	$	993		$	1,302

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (in thousands, except per share data)

Thirteen weeks ended			April 30, 2011			May 1, 2010
(a)	Earnings from continuing operations		$	12,405		$	12,160
	Loss from discontinued operations, net of tax		(37		)	(210		)
	Net earnings		$	12,368		$	11,950
(b)	Basic average number of common shares outstanding during period		52,881			52,526
	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price		685			407
(c)	Diluted average number of common shares assumed outstanding during period		53,566			52,933
	Basic earnings per share:
	Earnings from continuing operations	(a) / (b)	$	0.23		$	0.23
	Discontinued operations, net of tax		—			—
	Basic earnings per share		$	0.23		$	0.23
	Diluted earnings per share:
	Earnings from continuing operations	(a) / (c)	$	0.23		$	0.23
	Discontinued operations, net of tax		—			—
	Diluted earnings per share		$	0.23		$	0.23

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

ADDITIONAL INFORMATION (dollar amounts in thousands)

	April 30, 2011			May 1, 2010
Capital expenditures	$	18,123		$	12,511
Depreciation and amortization	$	19,884		$	18,214
Non-operating income:
Net rental revenue	$	494		$	517
Investment income	82			66
Other income	11			1
Total	$	587		$	584
Comparable sales percentages:
Service	1.6		%	0.1		%
Merchandise	-1.2		%	1.7		%
Total	-0.6		%	1.4		%
Total square feet of retail space (including service centers)	12,007,220			11,710,000
Store count
Supercenter	560			554
Service & Tire Center	62			27
Retail Only	8			9
Total	630			590
Sales and gross profit by line of business (A):
Service center revenue	$	247,330		240,326
Retail sales	266,210			269,707
Total revenues	$	513,540		$	510,033
Gross profit from service center revenue	$	58,962		57,841
Gross profit from retail sales	76,160			79,754
Total gross profit	$	135,122		$	137,595
Comparable sales percentages by line of business (A):
Service center revenue	0.3		%	0.9		%
Retail sales	-1.5		%	1.8		%
Total revenues	-0.6		%	1.4		%
Gross profit percentage by line of business (A):
Gross profit percentage from service center revenue	23.8		%	24.1		%
Gross profit percentage from retail sales	28.6		%	29.6		%
Total gross profit percentage	26.3		%	27.0		%

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