Pep Boys Manny Moe & Jack (PBY) 8-K Pep Boys Reports Fiscal 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										Fifty-two weeks ended
	January 28, 2012					January 29, 2011					January 28, 2012					January 29, 2011
				%					%					%					%
	Amount			Sales		Amount			Sales		Amount			Sales		Amount			Sales
Merchandise sales	$	404,332		80.0		$	384,432		80.5		$	1,642,757		79.6		$	1,598,168		80.4
Service revenue	100,986			20.0		92,957			19.5		420,870			20.4		390,473			19.6
Total revenues	505,318			100.0		477,389			100.0		2,063,627			100.0		1,988,641			100.0
Costs of merchandise sales	288,875			71.5		264,532			68.8		1,154,322			70.3		1,110,380			69.5
Costs of service revenue	104,170			103.2		88,457			95.2		399,776			95.0		355,909			91.1
Total costs of revenues	393,045			77.8		352,989			73.9		1,554,098			75.3		1,466,289			73.7
Gross profit from merchandise sales	115,457			28.6		119,900			31.2		488,435			29.7		487,788			30.5
Gross (loss) profit from service revenue	(3,184		)	(3.2	)	4,500			4.8		21,094			5.0		34,564			8.9
Total gross profit	112,273			22.2		124,400			26.1		509,529			24.7		522,352			26.3
Selling, general and administrative expenses	112,268			22.2		106,659			22.3		443,986			21.5		442,239			22.2
Net (loss) gain from dispositions of assets	(34		)	—		(136		)	—		27			—		2,467			0.1
Operating (loss) profit	(29		)	—		17,605			3.7		65,570			3.2		82,580			4.2
Non-operating income	541			0.1		754			0.2		2,324			0.1		2,609			0.1
Interest expense	6,475			1.3		6,864			1.4		26,306			1.3		26,745			1.3
(Loss) earnings from continuing operations before income taxes	(5,963		)	(1.2	)	11,495			2.4		41,588			2.0		58,444			2.9
Income tax (benefit) expense	(1,772		)	29.7	(1)	2,957			25.7	(1)	12,460			30.0	(1)	21,273			36.4	(1)
(Loss) earnings from continuing operations	(4,191		)	(0.8	)	8,538			1.8		29,128			1.4		37,171			1.9
Loss from discontinued operations, net of tax	(229		)	—		(173		)	—		(225		)	—		(540		)	—
Net (loss) earnings	(4,420		)	(0.9	)	8,365			1.8		28,903			1.4		36,631			1.8
Retained earnings, beginning of period	429,935					397,100					402,600					374,836
Cash dividends	(1,589		)			(1,582		)			(6,344		)			(6,323		)
Shares issued and other	(489		)			(1,283		)			(1,722		)			(2,544		)
Retained earnings, end of period	$	423,437				$	402,600				$	423,437				$	402,600
Basic earnings per share:
(Loss) earnings from continuing operations	$	(0.08	)			$	0.16				$	0.55				$	0.71
Discontinued operations, net of tax	—					—					(0.01		)			(0.01		)
Basic earnings per share	$	(0.08	)			$	0.16				$	0.54				$	0.70
Diluted earnings per share:
(Loss) earnings from continuing operations	$	(0.08	)			$	0.16				$	0.54				$	0.70
Discontinued operations, net of tax	—					—					—					(0.01		)
Diluted earnings per share	$	(0.08	)			$	0.16				$	0.54				$	0.69
Cash dividends per share	$	0.03				$	0.03				$	0.12				$	0.12

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

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollar amounts in thousands)

	January 28, 2012			January 29, 2011
Assets
Current assets:
Cash and cash equivalents	$	58,244		$	90,240
Accounts receivable, less allowance for uncollectible accounts of $1,303 and $1,551	25,792			19,540
Merchandise inventories	614,136			564,402
Prepaid expenses	26,394			28,542
Other current assets	59,979			60,812
Total current assets	784,545			763,536
Property and equipment - net	696,339			700,981
Goodwill	46,917			2,549
Deferred income taxes	72,870			66,019
Other long-term assets	33,108			23,587
Total assets	$	1,633,779		$	1,556,672
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	243,712		$	210,440
Trade payable program liability	85,214			56,287
Accrued expenses	221,705			236,028
Deferred income taxes	66,208			56,335
Current maturities of long-term debt	1,079			1,079
Total current liabilities	617,918			560,169
Long-term debt less current maturities	294,043			295,122
Other long-term liabilities	77,216			70,046
Deferred gain from asset sales	140,273			152,875
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	296,462			295,361
Retained earnings	423,437			402,600
Accumulated other comprehensive loss	(17,649		)	(17,028		)
Treasury stock, at cost - 15,803,322 shares and 15,971,910 shares	(266,478		)	(271,030		)
Total stockholders’ equity	504,329			478,460
Total liabilities and stockholders’ equity	$	1,633,779		$	1,556,672

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

Fifty-two weeks ended	January 28, 2012			January 29, 2011
Cash flows from operating activities:
Net earnings	$	28,903		$	36,631
Adjustments to reconcile net earnings to net cash provided by continuing operations:
Net loss from discontinued operations	225			540
Depreciation and amortization	79,542			74,151
Amortization of deferred gain from asset sales	(12,602		)	(12,602		)
Stock compensation expense	3,237			3,497
Loss on debt retirement	—			200
Deferred income taxes	10,301			18,572
Net gain from disposition of assets	(27		)	(2,467		)
Loss from asset impairment	1,619			970
Other	(573		)	(479		)
Changes in assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable, prepaid expenses and other	2,391			7,060
Increase in merchandise inventories	(42,756		)	(5,284		)
Increase in accounts payable	24,871			7,466
Decrease in accrued expenses	(18,745		)	(8,394		)
Decrease in other long-term liabilities	(2,463		)	(1,200		)
Net cash provided by continuing operations	73,923			118,661
Net cash used in discontinued operations	(273		)	(1,466		)
Net cash provided by operating activities	73,650			117,195
Cash flows from investing activities:
Capital expenditures	(74,746		)	(70,252		)
Proceeds from dispositions of assets	515			7,515
Acquisitions, net of cash acquired	(42,901		)	(288		)
Collateral investment	(7,638		)	(9,638		)
Other	(837		)	—
Net cash used in continuing operations	(125,607		)	(72,663		)
Net cash provided by discontinued operations	—			569
Net cash used in investing activities	(125,607		)	(72,094		)
Cash flows from financing activities:
Borrowings under line of credit agreements	5,721			21,795
Payments under line of credit agreements	(5,721		)	(21,795		)
Borrowings on trade payable program liability	144,180			121,824
Payments on trade payable program liability	(115,253		)	(99,636		)
Payment for finance issuance cost	(2,441		)	—
Debt payments	(1,079		)	(11,279		)
Dividends paid	(6,344		)	(6,323		)
Other	898			1,227
Net cash provided by financing activities	19,961			5,813
Net (decrease) increase in cash and cash equivalents	(31,996		)	50,914
Cash and cash equivalents at beginning of period	90,240			39,326
Cash and cash equivalents at end of period	$	58,244		$	90,240
Supplemental cash flow information:
Cash paid for income taxes	$	1,150		$	890
Cash received from income tax refunds	$	479		$	195
Cash paid for interest	$	23,097		$	23,098
Accrued purchases of property and equipment	$	1,526		$	2,926

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						Fifty-two weeks ended
	January 28, 2012			January 29, 2011			January 28, 2012			January 29, 2011
(a)  (Loss) earnings from continuing operations	$	(4,191	)	$	8,538		$	29,128		$	37,171
Loss from discontinued operations, net of tax	(229		)	(173		)	(225		)	(540		)
Net (loss) earnings	$	(4,420	)	$	8,365		$	28,903		$	36,631
(b)  Basic average number of common shares outstanding        during period	53,032			52,778			52,958			52,677
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price	711			638			673			485
(c)  Diluted average number of common shares assumed outstanding during period	53,743			53,416			53,631			53,162
Basic earnings per share:
(Loss) earnings from continuing operations (a) / (b)	$	(0.08	)	$	0.16		$	0.55		$	0.71
Discontinued operations, net of tax	—			—			(0.01		)	(0.01		)
Basic earnings per share	$	(0.08	)	$	0.16		$	0.54		$	0.70
Diluted earnings per share:
(Loss) earnings from continuing operations (a) / (c)	$	(0.08	)	$	0.16		$	0.54		$	0.70
Discontinued operations, net of tax	—			—			—			(0.01		)
Diluted earnings per share	$	(0.08	)	$	0.16		$	0.54		$	0.69

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

ADDITIONAL INFORMATION (dollar amounts in thousands)

	Thirteen Weeks Ended						Fifty-two weeks ended
	January 28, 2012			January 29, 2011			January 28, 2012			January 29, 2011
Capital expenditures	$	23,827		$	27,276		$	74,746		$	70,252
Depreciation and amortization	$	19,763		$	18,891		$	79,542		$	74,151
Non-operating income:
Net rental revenue	$	479		$	569		$	2,071		$	2,218
Investment income	51			133			219			296
Other income	11			52			34			95
Total	$	541		$	754		$	2,324		$	2,609
Comparable sales percentages:
Service	-0.1		%	3.4		%	0.6		%	1.1		%
Merchandise	1.0		%	4.6		%	-0.9		%	3.1		%
Total	0.8		%	4.3		%	-0.6		%	2.7		%
Total square feet of retail space (including service centers)							12,643,000			11,932,000
Store count
Supercenter							562			560
Service & Tire Center							169			53
Retail Only							7			8
Total							738			621
Sales and gross profit by line of business (A):
Service center revenue	$	260,823		$	225,990		$	1,038,714		941,869
Retail sales	244,495			251,399			1,024,913			1,046,772
Total revenues	$	505,318		$	477,389		$	2,063,627		$	1,988,641
Gross profit from service center revenue	$	45,282		$	50,762		$	220,315		216,176
Gross profit from retail sales	66,991			73,638			289,214			306,176
Total gross profit	$	112,273		$	124,400		$	509,529		$	522,352
Comparable sales percentages by line of business (A):
Service center revenue	4.6		%	5.8		%	1.3		%	2.4		%
Retail sales	-2.7		%	3.1		%	-2.3		%	3.0		%
Total revenues	0.8		%	4.3		%	-0.6		%	2.7		%
Gross profit percentage by line of business (A):
Gross profit percentage from service center revenue	17.4		%	22.5		%	21.2		%	23.0		%
Gross profit percentage from retail sales	27.4		%	29.3		%	28.2		%	29.2		%
Total gross profit percentage	22.2		%	26.1		%	24.7		%	26.3		%

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