Pep Boys Manny Moe & Jack (PBY) 10-K 2005 FY Annual report

Exhibit 12—Statement Regarding Computation
of Ratios of Earnings to Fixed Charges

THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES

(in thousands, except ratios)
Fiscal year	January 29, 2005			January 31, 2004			February 1, 2003			February 2, 2002			February 3, 2001
Interest	$	35,965		$	38,255		$	47,237		$	53,709		$	59,718
Interest factor in rental expense		20,313			21,269			20,427			21,066			23,162
Capitalized interest		659			—			44			1			489
(a)  Fixed charges, as defined	$	56,937		$	59,524		$	67,708		$	74,776		$	83,369
(Loss) Earnings from continuing operations before income taxes and cumulative effect of change in accounting principle	$	40,981		$	(23,961	)	$	61,663		$	46,734		$	(83,456	)
Fixed charges		56,937			59,524			67,708			74,776			83,369
Capitalized interest		(659	)		—			(44	)		(1	)		(489	)
(b)  Earnings, as defined	$	97,259		$	35,563		$	129,327		$	121,509		$	(576	)
(c)  Ratio of earnings to fixed charges (b/a)		1.7	x		—			1.9	x		1.6	x		—

 

The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. “Earnings” consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $24.0 and $83.9 million for fiscal years ended January 31, 2004 and February 3, 2001, respectively.