Pep Boys Manny Moe & Jack (PBY) 8-K Pep Boys Reports Second 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)

	Thirteen Weeks Ended										Twenty-Six weeks ended
	July 30, 2011					July 31, 2010					July 30, 2011					July 31, 2010
				%					%					%					%
	Amount			Sales		Amount			Sales		Amount			Sales		Amount			Sales
Merchandise sales	$	415,267		79.5		$	406,179		80.5		$	823,894		79.5		$	815,368		80.3
Service revenue	107,327			20.5		98,676			19.5		212,240			20.5		199,520			19.7
Total revenues	522,594			100.0		504,855			100.0		1,036,134			100.0		1,014,888			100.0
Costs of merchandise sales	287,721			69.3		282,362			69.5		573,050			69.6		566,158			69.4
Costs of service revenue	99,663			92.9		87,992			89.2		192,752			90.8		176,634			88.5
Total costs of revenues	387,384			74.1		370,354			73.4		765,802			73.9		742,792			73.2
Gross profit from merchandise sales	127,546			30.7		123,817			30.5		250,844			30.5		249,210			30.6
Gross profit from service revenue	7,664			7.1		10,684			10.8		19,488			9.2		22,886			11.5
Total gross profit	135,210			25.9		134,501			26.6		270,332			26.1		272,096			26.8
Selling, general and administrative expenses	113,268			21.7		113,108			22.4		222,168			21.4		224,740			22.1
Net (loss) gain from dispositions of assets	(3		)	—		2,449			0.5		86			—		2,494			0.2
Operating profit	21,939			4.2		23,842			4.7		48,250			4.7		49,850			4.9
Non-operating income	569			0.1		621			0.1		1,156			0.1		1,205			0.1
Interest expense	6,444			1.2		6,643			1.3		12,941			1.3		13,251			1.3
Earnings from continuing operations before income taxes	16,064			3.1		17,820			3.5		36,465			3.5		37,804			3.7
Income tax expense	2,173			13.5	(1)	7,021			39.4	(1)	10,169			27.9	(1)	14,845			39.3	(1)
Earnings from continuing operations	13,891			2.7		10,799			2.1		26,296			2.5		22,959			2.3
Income (loss) from discontinued operations, net of tax	52			—		(201		)	—		15			—		(411		)	—
Net earnings	13,943			2.7		10,598			2.1		26,311			2.5		22,548			2.2
Retained earnings, beginning of period	412,716					384,451					402,600					374,836
Cash dividends	(1,586		)			(1,581		)			(3,171		)			(3,160		)
Shares issued and other	(150		)			(223		)			(817		)			(979		)
Retained earnings, end of period	$	424,923				$	393,245				$	424,923				$	393,245
Basic earnings per share:
Earnings from continuing operations	$	0.26				$	0.21				$	0.49				$	0.44
Discontinued operations, net of tax	—					(0.01		)			—					(0.01		)
Basic earnings per share	$	0.26				$	0.20				$	0.49				$	0.43
Diluted earnings per share:
Earnings from continuing operations	$	0.26				$	0.20				$	0.49				$	0.43
Discontinued operations, net of tax	—					—					—					—
Diluted earnings per share	$	0.26				$	0.20				$	0.49				$	0.43
Cash dividends per share	$	0.03				$	0.03				$	0.06				$	0.06

(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)

	July 30, 2011			January 29, 2011			July 31, 2010
Assets
Current assets:
Cash and cash equivalents	$	61,977		$	90,240		$	92,363
Accounts receivable, less allowance for uncollectible accounts of $1,191; $1,551 and $1,703	21,731			19,540			24,204
Merchandise inventories	584,297			564,402			558,932
Prepaid expenses	19,694			28,542			20,816
Other current assets	50,891			60,812			53,376
Total current assets	738,590			763,536			749,691
Property and equipment - net	693,742			700,981			694,262
Goodwill	48,584			2,549			2,549
Deferred income taxes	67,988			66,019			58,968
Other long-term assets	31,700			23,587			14,815
Total assets	$	1,580,604		$	1,556,672		$	1,520,285
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	230,884		$	210,440		$	196,676
Trade payable program liability	61,440			56,287			55,280
Accrued expenses	206,627			236,028			226,505
Deferred income taxes	58,825			56,335			35,750
Current maturities of long-term debt	1,079			1,079			1,079
Total current liabilities	558,855			560,169			515,290
Long-term debt less current maturities	294,583			295,122			305,661
Other long-term liabilities	75,688			70,046			76,325
Deferred gain from asset sales	146,573			152,875			159,177
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	295,934			295,361			294,535
Retained earnings	424,923			402,600			393,245
Accumulated other comprehensive loss	(15,870		)	(17,028		)	(18,758		)
Treasury stock, at cost - 15,883,352 shares and 15,971,910 shares and 16,072,557 shares	(268,639		)	(271,030		)	(273,747		)
Total stockholders’ equity	504,905			478,460			463,832
Total liabilities and stockholders’ equity	$	1,580,604		$	1,556,672		$	1,520,285

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

Twenty-Six weeks ended	July 30, 2011			July 31, 2010
Cash flows from operating activities:
Net earnings	$	26,311		$	22,548
Adjustments to reconcile net earnings to net cash provided by continuing operations:
(Income) loss from discontinued operations, net of tax	(15		)	411
Depreciation and amortization	39,654			36,656
Amortization of deferred gain from asset sales	(6,302		)	(6,299		)
Stock compensation expense	1,908			1,998
Deferred income taxes	4,238			5,600
Net gain from disposition of assets	(86		)	(2,494		)
Loss from asset impairment	389			970
Other	272			179
Changes in assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable, prepaid expenses and other	21,816			19,673
(Increase) decrease in merchandise inventories	(12,917		)	186
Increase (decrease) in accounts payable	12,043			(6,298		)
Decrease in accrued expenses	(33,202		)	(14,917		)
(Decrease) increase in other long-term liabilities	(2,831		)	911
Net cash provided by continuing operations	51,278			59,124
Net cash used in discontinued operations	(44		)	(1,249		)
Net cash provided by operating activities	51,234			57,875
Cash flows from investing activities:
Capital expenditures	(30,636		)	(27,284		)
Proceeds from dispositions of assets	89			4,077
Premiums paid on life insurance policies	(795		)	(500		)
Acquisitions, net of cash acquired	(42,757		)	(144		)
Collateral investment	(4,763		)	500
Net cash used in continuing operations	(78,862		)	(23,351		)
Net cash provided by discontinued operations	—			569
Net cash used in investing activities	(78,862		)	(22,782		)
Cash flows from financing activities:
Borrowings under line of credit agreements	5,045			16,290
Payments under line of credit agreements	(5,045		)	(16,290		)
Borrowings on trade payable program liability	59,097			63,808
Payments on trade payable program liability	(53,944		)	(42,627		)
Payment for finance issuance cost	(2,441		)	—
Debt payments	(539		)	(540		)
Dividends paid	(3,171		)	(3,160		)
Other	363			463
Net cash (used in) provided by financing activities	(635		)	17,944
Net (decrease) increase in cash and cash equivalents	(28,263		)	53,037
Cash and cash equivalents at beginning of period	90,240			39,326
Cash and cash equivalents at end of period	$	61,977		$	92,363
Supplemental cash flow information:
Cash paid for income taxes	$	629		$	810
Cash paid for interest	$	11,523		$	11,452
Accrued purchases of property and equipment	$	1,416		$	662

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					Twenty-Six weeks ended
			July 30, 2011		July 31, 2010			July 30, 2011		July 31, 2010
(a)	Earnings from continuing operations		$	13,891	$	10,799		$	26,296	$	22,959
	Income (loss) from discontinued operations, net of tax		52		(201		)	15		(411		)
	Net earnings		$	13,943	$	10,598		$	26,311	$	22,548
(b)	Basic average number of common shares outstanding during period		52,952		52,682			52,901		52,609
	Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price		697		447			691		426
(c)	Diluted average number of common shares assumed outstanding during period		53,649		53,129			53,592		53,035
	Basic earnings per share:
	Earnings from continuing operations	(a) / (b)	$	0.26	$	0.21		$	0.49	$	0.44
	Discontinued operations, net of tax		—		(0.01		)	—		(0.01		)
	Basic earnings per share		$	0.26	$	0.20		$	0.49	$	0.43
	Diluted earnings per share:
	Earnings from continuing operations	(a) / (c)	$	0.26	$	0.20		$	0.49	$	0.43
	Discontinued operations, net of tax		—		—			—		—
	Diluted earnings per share		$	0.26	$	0.20		$	0.49	$	0.43

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

ADDITIONAL INFORMATION (dollar amounts in thousands)

	Thirteen Weeks Ended						Twenty-Six weeks ended
	July 30, 2011			July 31, 2010			July 30, 2011			July 31, 2010
Capital expenditures	$	12,513		$	14,773		$	30,636		$	27,284
Depreciation and amortization	$	19,770		$	18,442		$	39,654		$	36,656
Non-operating income:
Net rental revenue	$	523		$	570		$	1,017		$	1,087
Investment income	40			45			122			111
Other income	6			6			17			7
Total	$	569		$	621		$	1,156		$	1,205
Comparable sales percentages:
Service	0.3		%	-0.7		%	0.9		%	-0.3		%
Merchandise	-2.5		%	2.5		%	-1.8		%	2.1		%
Total	-2.0		%	1.8		%	-1.3		%	1.6		%
Total square feet of retail space (including service centers)							12,563,000			11,749,000
Store count
Supercenter							561			555
Service & Tire Center							156			30
Retail Only							8			9
Total							725			594
Sales and gross profit by line of business (A):
Service center revenue	$	260,835		$	236,051		$	508,165		476,377
Retail sales	261,759			268,804			527,969			538,511
Total revenues	$	522,594		$	504,855		$	1,036,134		$	1,014,888
Gross profit from service center revenue	$	60,669		$	55,671		$	119,631		113,512
Gross profit from retail sales	74,541			78,830			150,701			158,584
Total gross profit	$	135,210		$	134,501		$	270,332		$	272,096
Comparable sales percentages by line of business (A):
Service center revenue	-0.7		%	0.1		%	-0.2		%	0.5		%
Retail sales	-3.1		%	3.4		%	-2.3		%	2.6		%
Total revenues	-2.0		%	1.8		%	-1.3		%	1.6		%
Gross profit percentage by line of business (A):
Gross profit percentage from service center revenue	23.3		%	23.6		%	23.5		%	23.8		%
Gross profit percentage from retail sales	28.5		%	29.3		%	28.5		%	29.4		%
Total gross profit percentage	25.9		%	26.6		%	26.1		%	26.8		%

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