Exhibit 99.2 Unaudited Supplemental Financial Information
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share amounts)
UNAUDITED
Thirteen weeks ended
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April 30, 2005 May 1, 2004
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Amount % Sales Amount % Sales
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Merchandise Sales $ 463,848 82.2 $ 460,881 80.5
Service Revenue 100,378 17.8 105,252 19.5
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Total Revenues 564,226 100.0 566,133 100.0
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Costs of Merchandise Sales 341,691 73.7 325,374 70.6
Costs of Service Revenue 83,914 83.6 78,551 74.9
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Total Costs of Revenues 425,605 75.4 403,925 71.5
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Gross Profit from Merchandise Sales 122,157 26.3 135,507 29.4
Gross Profit from Service Revenue 16,464 16.4 26,701 25.1
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Total Gross Profit 138,621 24.6 162,208 28.5
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Selling, General and Administrative Expenses 135,262 24.0 129,562 28.9
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Operating Profit (Loss) 3,359 0.6 32,646 (0.4)
Non-operating Income 1,738 0.3 592 0.2
Interest Expense 8,915 1.6 9,298 2.1
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(Loss) Earnings From Continuing Operations
Before Income Taxes (3,818) (0.7) 23,940 (2.3)
Income Tax (Benefit) Expense (1,432) 37.5 8,858 37.0
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Net (Loss) Earnings From Continuing Operations (2,386) (0.4) 15,082 (1.4)
Discontinued Operations, Net of Tax (388) (0.1) (531) 0.1
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Net (Loss) Earnings (2,774) (0.5) 14,551 (1.8)
Retained Earnings, beginning of period 536,780 531,933
Cash Dividends (3,562) (3,898)
Effect of Stock Options (1,257) (1,383)
Dividend Reinvestment Plan (10) -
- -------------------------------------------------------------------------------------------------------------
Retained Earnings, end of period $ 529,177 $ 541,203
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Basic (Loss) Earnings Per Share:
Net (Loss) Earnings From Continuing Operations $ (0.04) $ 0.27
Discontinued Operations, Net of tax (0.01) (0.01)
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Basic (Loss) Earnings Per Share $ (0.05) $ 0.26
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Diluted (Loss) Earnings Per Share:
Net (Loss) Earnings From Continuing Operations $ (0.04) $ 0.25
Discontinued Operations, Net of tax (0.01) (0.01)
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Diluted (Loss) Earnings Per Share $ (0.05) $ 0.24
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Cash Dividends Per Share $ .0675 $ .0675
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands, except per share amounts)
UNAUDITED
April 30, 2005 Jan. 29, 2005 May 1, 2004
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ASSETS
Current Assets:
Cash and cash equivalents $ 84,258 $ 82,758 $ 98,766
Accounts receivable, net 30,514 30,994 33,989
Merchandise inventories 619,712 602,760 601,415
Prepaid expenses 40,499 45,349 38,277
Deferred income taxes - - 11,175
Other 88,083 96,065 79,950
Assets held for disposal 2,569 665 10,350
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Total Current Assets 865,635 858,591 873,922
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Property and Equipment-at cost:
Land 260,758 261,985 263,199
Buildings and improvements 913,697 916,099 900,159
Furniture, fixtures and equipment 618,466 633,098 592,218
Construction in progress 26,152 40,426 11,641
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1,819,073 1,851,608 1,767,217
Less accumulated depreciation and amortization 873,193 906,577 856,994
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Property and Equipment - Net 945,880 945,031 910,223
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Other 65,041 63,401 52,286
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Total Assets $1,876,556 $1,867,023 $1,836,431
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 333,424 $ 310,981 $ 366,360
Trade payable program liability 3,643 - 4,505
Accrued expenses 284,784 306,671 244,549
Deferred income taxes 20,084 19,406 -
Current maturities of long-term debt and obligations
under capital leases 83,865 40,882 51,023
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Total Current Liabilities 725,800 677,940 666,437
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Long-term debt and obligations under capital leases,
less current maturities 301,331 352,682 244,552
Convertible long-term debt 119,000 119,000 150,000
Other long-term liabilities 51,428 37,977 42,656
Deferred income taxes 27,911 25,968 35,309
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 68,557
Additional paid-in capital 285,631 284,966 283,912
Retained earnings 529,177 536,780 541,203
Common stock subscriptions receivable (987) (167) -
Accumulated other comprehensive (loss) income (3,936) (4,852) 1,045
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878,442 885,284 894,717
Less cost of shares in treasury - 11,027,159 shares,
11,305,130 shares and 8,545,885 shares 168,092 172,564 137,976
Less cost of shares in benefits trust - 2,195,270 shares 59,264 59,264 59,264
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Total Stockholders' Equity 651,086 653,456 697,477
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Total Liabilities and Stockholders' Equity $1,876,556 $1,867,023 $1,836,431
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
UNAUDITED
Thirteen Weeks Ended April 30, 2005 May 1, 2004
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Cash Flows from Operating Activities:
Net (loss) earnings $ (2,774) $ 14,551
Net loss from discontinued operations (388) (531)
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Net (loss) earnings from continuing operations (2,386) 15,082
Adjustments to Reconcile Net (Loss) Earnings From Continuing
Operations to Net Cash Provided by Continuing Operations:
Depreciation and amortization 18,785 18,796
Accretion of asset disposal obligation - 35
Stock compensation expense 788 698
Deferred income taxes 3,046 13,848
Loss from sales of assets 893 391
Changes in Operating Assets and Liabilities:
Decrease in accounts receivable, prepaid expenses and other 13,240 2,126
Increase in merchandise inventories (16,952) (47,853)
Increase in accounts payable 22,443 30,689
Decrease in accrued expenses (25,484) (23,491)
Increase (Decrease) in other long-term liabilities 13,451 (452)
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Net Cash provided by continuing operations 27,824 9,869
Net cash used in discontinued operations (707) (776)
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Net Cash Provided by Operating Activities 27,117 9,093
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Cash Flows from Investing Activities:
Capital expenditures (19,413) (7,539)
Proceeds from sales of assets 68 1,411
Proceeds from sales of assets held for disposal - 6,879
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Net Cash (Used in) Provided by Investing Activities (19,345) 751
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Cash Flows from Financing Activities:
Net payments under line of credit agreements (8,346) (40)
Net borrowings (payments) on trade payable program 3,643 (2,408)
Reduction of long-term debt (4) (79,423)
Payments on capital lease obligations (18) (41)
Dividends paid (3,562) (3,898)
Proceeds from issuance of common stock - 108,909
Proceeds from exercise of stock options 2,025 4,561
Proceeds from dividend reinvestment plan (10) 278
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Net Cash (Used in) Provided by Financing Activities (6,272) 27,938
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Net Increase in Cash 1,500 37,782
Cash and Cash Equivalents at Beginning of Period 82,758 60,984
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Cash and Cash Equivalents at End of Period $ 84,258 $ 98,766
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Supplemental Disclosure of Cash Flow Information:
Non-cash operating activities:
Accrued employee payroll tax withheld related to conversions
of restricted stock units $ 178 $ -
Non-cash investing activities:
Accrued purchases of property and equipment $ 3,079 $ 144
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE
(in thousands, except per share data)
UNAUDITED
Thirteen weeks ended
------------------------------------
April 30, 2005 May 1, 2004
--------------- ---------------
(a) Net (loss) earnings from continuing operations $ (2,386) $ 15,082
Adjustment for interest on convertible senior
notes, net of income tax effect - 1,001
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(b) Adjusted net (loss) earnings from continuing
operations $ (2,386) $ 16,083
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(c) Average number of common shares outstanding
during period 55,185 54,945
Common shares assumed issued upon conversion of
convertible senior notes - 6,697
Common shares assumed issued upon exercise
of dilutive stock options, net of assumed
repurchase, at the average market price - 1,945
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(d) Average number of common shares assumed
outstanding during period 55,185 63,587
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Basic (Loss) Earnings per share:
Net (Loss) Earnings From Continuing
Operations (a/c) $ (0.04) $ 0.27
Discontinued Operations, Net of Tax (0.01) (0.01)
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Basic (Loss) Earnings per share $ (0.05) $ 0.26
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Diluted (Loss) Earnings per share:
Net (LOss) Earnings From Continuing
Operations (a/c) $ (0.04) $ 0.25
Discontinued Operations, Net of Tax (0.01) (0.01)
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Diluted (Loss) Earnings per share $ (0.05) $ 0.24
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THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
ADDITIONAL INFORMATION
(dollar amounts in thousands)
UNAUDITED
Thirteen weeks ended
------------------------------------
April 30, 2005 May 1, 2004
--------------- ---------------
Capital expenditures $ 22,492 $ 7,683
Depreciation and amortization $ 18,785 $ 18,796
Non-operating income:
Net rental revenue $ 365 $ 374
Investment income 295 237
Other income (expense) 1,078 (19)
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Total $ 1,738 $ 592
============== ==============
Comparable store sales percentages:
Merchandise 0.7% 12.3%
Service -4.6 5.6
Total -0.3 11.4
Total square feet of retail space
(including service centers) 12,184,574 12,206,785
Total Store Count 594 595
Sales and Gross Profit by Line of Business (A):
Retail Sales $ 339,696 $ 335,299
Service Center Revenues 224,530 230,834
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Total Revenues $ 564,226 $ 566,133
============== ==============
Gross Profit from Retail Sales $ 86,279 $ 97,240
Gross Profit from Service
Center Revenue 52,342 64,968
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Total Gross Profit $ 138,621 $ 162,208
============== ==============
Comparable Sales Percentages (A):
Retail Sales 1.0%
Service Center Revenue -2.1
Total Revenues -0.3
Gross Profit Percentage by Line of Business (A):
Gross Profit Percentage from Retail Sales 25.4% 29.0%
Gross Profit Percentage from Service Center Revenue 23.3% 28.1%
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Total Gross Profit Percentage 24.6% 28.7%
========== ==========
(A) Retail Revenues include revenues from DIY and Commercial sales. Service Center
Revenues include revenues from labor and installed parts and tires.
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
ADDITIONAL INFORMATION
(dollar amounts in thousands)
UNAUDITED
Service Labor Reallocation
Effective January 30, 2005, the Company restructured its field operations into
separate retail and service teams. In connection with this restructuring,
certain retail personnel, who were previously utilized in merchandising roles
supporting the service business, werereassigned to purely service-related
responsibilities. The labor costs related to these associates, which were
previously recognized in Selling, General and Administrative Expenses, are now
recognized in Costs of Service Revenue. Please see the table below
illustrating the pro forma effect of this change on the thirteen weeks ended
May 1, 2004 (presented in GAAP and line of business formats), assuming that
such associates had been reassigned from retail to service during such period.
GAAP Format
PRO FORMA STATEMENTS OF OPERATIONS
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Thirteen weeks ended Thirteen weeks ended Thirteen weeks ended
May 1, 2004 PRO FORMA May 1, 2004 April 30, 2005
ACTUAL ADJUSTMENTS (A) PRO FORMA ACTUAL
-------------------- ---------------- -------------------- --------------------
% % % %
Amount Sales Amount Sales Amount Sales Amount Sales
-------------------- ---------------- -------------------- --------------------
Gross Profit from Merchandise Sales $ 135,507 29.4 $ - 0.0 $ 135,507 29.4 $ 122,157 26.3
Gross Profit from Service Revenue 26,701 25.4 (4,725) (4.5) 21,976 20.9 16,464 16.4
-------------------- ---------------- -------------------- --------------------
Total Gross Profit 162,208 28.7 (4,725) (0.8) 157,483 27.8 138,621 24.6
Selling, General and
Administrative Expenses 129,562 22.9 (4,725) (0.8) 124,837 22.1 135,262 24.0
-------------------- ---------------- -------------------- --------------------
Operating (Loss) Profit $ 32,646 5.8 $ - 0.0 $ 32,646 5.8 $ 3,359 0.6
==================== ================ ==================== ====================
(A) $4,725 due to reallocation of service labor and related benefits
Line of Business Format
Thirteen weeks ended Thirteen weeks ended Thirteen weeks ended
May 1, 2004 PRO FORMA May 1, 2004 April 30, 2005
ACTUAL ADJUSTMENTS (A) PRO FORMA ACTUAL
-------------------- ---------------- -------------------- --------------------
% % % %
Amount Sales Amount Sales Amount Sales Amount Sales
-------------------- ---------------- -------------------- --------------------
Gross Profit from Merchandise Sales $ 97,240 29.0 $ - 0.0 $ 97,240 29.0 $ 86,279 25.4
Gross Profit from Service Revenue 64,968 28.1 (4,725) (2.0) 60,243 26.1 52,342 23.3
-------------------- ---------------- -------------------- --------------------
Total Gross Profit 162,208 28.7 (4,725) (0.8) 157,483 27.8 138,621 24.6
Selling, General and
Administrative Expenses 129,562 22.9 (4,725) (0.8) 124,837 22.1 135,262 24.0
-------------------- ---------------- -------------------- --------------------
Operating (Loss) Profit $ 32,646 5.8 $ - 0.0 $ 32,646 5.8 $ 3,359 0.6
==================== ================ ==================== ====================
(A) $4,725 due to reallocation of service labor and related benefits