Attached files
file | filename |
---|---|
8-K - 8-K - PEP BOYS MANNY MOE & JACK | a14-25666_18k.htm |
EX-99.1 - EX-99.1 - PEP BOYS MANNY MOE & JACK | a14-25666_1ex99d1.htm |
Exhibit 99.2
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES |
(UNAUDITED) |
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
|
|
November 1, 2014 |
|
February 1, 2014 |
|
November 2, 2013 |
| |||
Assets |
|
|
|
|
|
|
| |||
Current assets: |
|
|
|
|
|
|
| |||
Cash and cash equivalents |
|
$ |
36,430 |
|
$ |
33,431 |
|
$ |
55,798 |
|
Accounts receivable, less allowance for uncollectible accounts of $1,616, $1,320 and $1,310 |
|
31,622 |
|
25,152 |
|
24,942 |
| |||
Merchandise inventories |
|
667,438 |
|
672,354 |
|
664,901 |
| |||
Prepaid expenses |
|
15,314 |
|
29,282 |
|
16,801 |
| |||
Other current assets |
|
51,470 |
|
63,405 |
|
52,249 |
| |||
Assets held for disposal |
|
4,636 |
|
2,013 |
|
500 |
| |||
Total current assets |
|
806,910 |
|
825,637 |
|
815,191 |
| |||
Property and equipment, net of accumulated depreciation of $1,257,988 $1,227,121 and $1,214,802 |
|
614,326 |
|
625,525 |
|
631,639 |
| |||
Goodwill |
|
56,794 |
|
56,794 |
|
56,841 |
| |||
Deferred income taxes |
|
57,070 |
|
57,686 |
|
48,311 |
| |||
Other long-term assets |
|
37,301 |
|
39,839 |
|
37,265 |
| |||
Total assets |
|
$ |
1,572,401 |
|
$ |
1,605,481 |
|
$ |
1,589,247 |
|
|
|
|
|
|
|
|
| |||
Liabilities and stockholders equity |
|
|
|
|
|
|
| |||
Current liabilities: |
|
|
|
|
|
|
| |||
Accounts payable |
|
$ |
217,066 |
|
$ |
256,031 |
|
$ |
253,818 |
|
Trade payable program liability |
|
145,105 |
|
129,801 |
|
134,703 |
| |||
Accrued expenses |
|
209,524 |
|
237,403 |
|
225,249 |
| |||
Deferred income taxes |
|
68,556 |
|
69,373 |
|
59,455 |
| |||
Current maturities of long-term debt |
|
2,000 |
|
2,000 |
|
2,000 |
| |||
Total current liabilities |
|
642,251 |
|
694,608 |
|
675,225 |
| |||
|
|
|
|
|
|
|
| |||
Long-term debt less current maturities |
|
229,500 |
|
199,500 |
|
196,500 |
| |||
Other long-term liabilities |
|
45,843 |
|
48,485 |
|
49,618 |
| |||
Deferred gain from asset sales |
|
105,370 |
|
114,823 |
|
117,974 |
| |||
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 |
|
297,313 |
|
297,009 |
|
296,578 |
| |||
Retained earnings |
|
428,845 |
|
432,332 |
|
436,933 |
| |||
Accumulated other comprehensive income |
|
43 |
|
379 |
|
339 |
| |||
Treasury stock, at cost - 15,177,705 shares; 15,358,872 shares and 15,442,779 shares |
|
(245,321 |
) |
(250,212 |
) |
(252,477 |
) | |||
Total stockholders equity |
|
549,437 |
|
548,065 |
|
549,930 |
| |||
Total liabilities and stockholders equity |
|
$ |
1,572,401 |
|
$ |
1,605,481 |
|
$ |
1,589,247 |
|
|
|
|
|
|
|
|
| |||
Supplemental balance sheet information: |
|
|
|
|
|
|
| |||
Working capital |
|
$ |
164,659 |
|
$ |
131,029 |
|
$ |
139,966 |
|
Current ratio |
|
1.26 |
|
1.19 |
|
1.21 |
| |||
Accounts payable to inventory ratio |
|
54.3 |
% |
57.4 |
% |
58.4 |
% | |||
Total debt as a percent of total capitalization |
|
29.6 |
% |
26.9 |
% |
26.5 |
% | |||
Debt as a percent of total capitalization, net |
|
26.2 |
% |
23.5 |
% |
20.6 |
% |
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(dollar amounts in thousands, except per share amounts)
|
|
Thirteen weeks ended |
|
Thirty-nine weeks ended |
| ||||||||||||||||
|
|
November 1, 2014 |
|
November 2, 2013 |
|
November 1, 2014 |
|
November 2, 2013 |
| ||||||||||||
|
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
| ||||
|
|
Amount |
|
Sales |
|
Amount |
|
Sales |
|
Amount |
|
Sales |
|
Amount |
|
Sales |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Merchandise sales |
|
$ |
395,941 |
|
76.5 |
|
$ |
394,346 |
|
77.8 |
|
$ |
1,208,778 |
|
76.4 |
|
$ |
1,223,813 |
|
77.9 |
|
Service revenue |
|
121,643 |
|
23.5 |
|
112,696 |
|
22.2 |
|
373,401 |
|
23.6 |
|
347,022 |
|
22.1 |
| ||||
Total revenues |
|
517,584 |
|
100.0 |
|
507,042 |
|
100.0 |
|
1,582,179 |
|
100.0 |
|
1,570,835 |
|
100.0 |
| ||||
Costs of merchandise sales |
|
278,800 |
|
70.4 |
|
267,489 |
|
67.8 |
|
843,946 |
|
69.8 |
|
838,126 |
|
68.5 |
| ||||
Costs of service revenue |
|
120,450 |
|
99.0 |
|
116,741 |
|
103.6 |
|
362,473 |
|
97.1 |
|
349,348 |
|
100.7 |
| ||||
Total costs of revenues |
|
399,250 |
|
77.1 |
|
384,230 |
|
75.8 |
|
1,206,419 |
|
76.3 |
|
1,187,474 |
|
75.6 |
| ||||
Gross profit from merchandise sales |
|
117,141 |
|
29.6 |
|
126,857 |
|
32.2 |
|
364,832 |
|
30.2 |
|
385,687 |
|
31.5 |
| ||||
Gross profit from service revenue |
|
1,193 |
|
1.0 |
|
(4,045 |
) |
(3.6 |
) |
10,928 |
|
2.9 |
|
(2,326 |
) |
(0.7 |
) | ||||
Total gross profit |
|
118,334 |
|
22.9 |
|
122,812 |
|
24.2 |
|
375,760 |
|
23.8 |
|
383,361 |
|
24.4 |
| ||||
Selling, general and administrative expenses |
|
117,651 |
|
22.7 |
|
115,104 |
|
22.7 |
|
365,345 |
|
23.1 |
|
354,236 |
|
22.6 |
| ||||
Net loss from dispositions of assets |
|
(109 |
) |
|
|
(67 |
) |
|
|
(519 |
) |
|
|
(213 |
) |
|
| ||||
Operating profit |
|
574 |
|
0.1 |
|
7,641 |
|
1.5 |
|
9,896 |
|
0.6 |
|
28,912 |
|
1.8 |
| ||||
Other income |
|
418 |
|
0.1 |
|
524 |
|
0.1 |
|
1,175 |
|
0.1 |
|
1,367 |
|
0.1 |
| ||||
Interest expense |
|
3,485 |
|
0.7 |
|
3,643 |
|
0.7 |
|
10,269 |
|
0.7 |
|
10,885 |
|
0.7 |
| ||||
(Loss) earnings from continuing operations before income taxes and discontinued operations |
|
(2,493 |
) |
(0.5 |
) |
4,522 |
|
0.9 |
|
802 |
|
0.1 |
|
19,394 |
|
1.2 |
| ||||
Income tax (benefit) expense |
|
(723 |
) |
29.0 |
(1) |
3,509 |
|
77.6 |
(1) |
1,108 |
|
138.2 |
(1) |
9,074 |
|
46.8 |
(1) | ||||
(Loss) earnings from continuing operations before discontinued operations |
|
(1,770 |
) |
(0.3 |
) |
1,013 |
|
0.2 |
|
(306 |
) |
|
|
10,320 |
|
0.7 |
| ||||
Loss from discontinued operations, net of tax |
|
(194 |
) |
|
|
(49 |
) |
|
|
(319 |
) |
|
|
(124 |
) |
|
| ||||
Net (loss) earnings |
|
(1,964 |
) |
(0.4 |
) |
964 |
|
0.2 |
|
(625 |
) |
(0.0 |
) |
10,196 |
|
0.7 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(Loss) earnings from continuing operations before discontinued operations |
|
$ |
(0.03 |
) |
|
|
$ |
0.02 |
|
|
|
$ |
|
|
|
|
$ |
0.19 |
|
|
|
(Loss) from discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
| ||||
Basic (loss) earnings per share |
|
$ |
(0.03 |
) |
|
|
$ |
0.02 |
|
|
|
$ |
(0.01 |
) |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(Loss) earnings from continuing operations before discontinued operations |
|
$ |
(0.03 |
) |
|
|
$ |
0.02 |
|
|
|
$ |
|
|
|
|
$ |
0.19 |
|
|
|
(Loss) from discontinued operations, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
| ||||
Diluted (loss) earnings per share |
|
$ |
(0.03 |
) |
|
|
$ |
0.02 |
|
|
|
$ |
(0.01 |
) |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Derivative financial instruments adjustment, net of tax |
|
(170 |
) |
|
|
(372 |
) |
|
|
(336 |
) |
|
|
1,319 |
|
|
| ||||
Other comprehensive (loss) income |
|
(170 |
) |
|
|
(372 |
) |
|
|
(336 |
) |
|
|
1,319 |
|
|
| ||||
Comprehensive (loss) income |
|
$ |
(2,134 |
) |
|
|
$ |
592 |
|
|
|
$ |
(961 |
) |
|
|
$ |
11,515 |
|
|
|
(1) As a percentage of earnings from continuing operations before income taxes and discontinued operations.
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
Thirty-nine weeks ended |
|
November 1, 2014 |
|
November 2, 2013 |
| ||
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net (loss) earnings |
|
$ |
(625 |
) |
$ |
10,196 |
|
Adjustments to reconcile net (loss) earnings to net cash provided by continuing operations: |
|
|
|
|
| ||
Net loss from discontinued operations |
|
319 |
|
124 |
| ||
Depreciation |
|
55,518 |
|
59,941 |
| ||
Amortization of deferred gain from asset sales |
|
(9,453 |
) |
(9,453 |
) | ||
Amortization of deferred financing costs |
|
1,937 |
|
1,952 |
| ||
Stock compensation expense |
|
1,533 |
|
2,451 |
| ||
Deferred income taxes |
|
(66 |
) |
(478 |
) | ||
Net loss from dispositions of assets |
|
519 |
|
213 |
| ||
Loss from asset impairment |
|
5,243 |
|
4,882 |
| ||
Other |
|
(238 |
) |
(322 |
) | ||
Changes in assets and liabilities, net of the effects of acquisitions: |
|
|
|
|
| ||
Decrease in accounts receivable, prepaid expenses and other |
|
19,644 |
|
18,431 |
| ||
Decrease (increase) in merchandise inventories |
|
4,916 |
|
(23,693 |
) | ||
(Decrease) increase in accounts payable |
|
(36,494 |
) |
7,746 |
| ||
Decrease in accrued expenses |
|
(28,363 |
) |
(6,589 |
) | ||
Decrease in other long-term liabilities |
|
(2,182 |
) |
(2,354 |
) | ||
Net cash provided by continuing operations |
|
12,208 |
|
63,047 |
| ||
Net cash used in discontinued operations |
|
(583 |
) |
(193 |
) | ||
Net cash provided by operating activities |
|
11,625 |
|
62,854 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Capital expenditures |
|
(54,975 |
) |
(38,334 |
) | ||
Proceeds from dispositions of assets |
|
56 |
|
19 |
| ||
Acquisitions, net of cash acquired |
|
|
|
(10,741 |
) | ||
Release of collateral investment |
|
|
|
1,000 |
| ||
Net cash used in investing activities |
|
(54,919 |
) |
(48,056 |
) | ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Borrowings under line of credit agreements |
|
479,438 |
|
1,926 |
| ||
Payments under line of credit agreements |
|
(447,938 |
) |
(1,926 |
) | ||
Borrowings on trade payable program liability |
|
143,614 |
|
114,804 |
| ||
Payments on trade payable program liability |
|
(128,310 |
) |
(129,819 |
) | ||
Debt payments |
|
(1,500 |
) |
(1,500 |
) | ||
Proceeds from stock issuance |
|
989 |
|
1,079 |
| ||
Repurchase of common stock |
|
|
|
(2,750 |
) | ||
Net cash provided by (used in) financing activities |
|
46,293 |
|
(18,186 |
) | ||
Net increase (decrease) in cash and cash equivalents |
|
2,999 |
|
(3,388 |
) | ||
Cash and cash equivalents at beginning of period |
|
33,431 |
|
59,186 |
| ||
Cash and cash equivalents at end of period |
|
$ |
36,430 |
|
$ |
55,798 |
|
|
|
|
|
|
| ||
Supplemental cash flow information: |
|
|
|
|
| ||
Cash paid for income taxes |
|
$ |
845 |
|
$ |
4,322 |
|
Cash received from income tax refunds |
|
$ |
244 |
|
$ |
51 |
|
Cash paid for interest |
|
$ |
8,482 |
|
$ |
9,149 |
|
Accrued purchases of property and equipment |
|
$ |
1,350 |
|
$ |
2,369 |
|
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 |
|
Thirty-nine weeks ended |
| ||||||||
|
|
|
|
|
November 1, 2014 |
|
November 2, 2013 |
|
November 1, 2014 |
|
November 2, 2013 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(a) |
(Loss) earnings from continuing operations before discontinued operations |
|
|
|
$ |
(1,770 |
) |
$ |
1,013 |
|
$ |
(306 |
) |
$ |
10,320 |
|
|
Loss from discontinued operations, net of tax |
|
|
|
(194 |
) |
(49 |
) |
(319 |
) |
(124 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net (loss) earnings |
|
|
|
$ |
(1,964 |
) |
$ |
964 |
|
$ |
(625 |
) |
$ |
10,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(b) |
Basic average number of common shares outstanding during period |
|
|
|
53,590 |
|
53,315 |
|
53,533 |
|
53,363 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price |
|
|
|
|
|
615 |
|
|
|
599 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(c) |
Diluted average number of common shares assumed outstanding during period |
|
|
|
53,590 |
|
53,930 |
|
53,533 |
|
53,962 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
| ||||
|
(Loss) earnings from continuing operations before discontinued operations |
|
(a) / (b) |
|
$ |
(0.03 |
) |
$ |
0.02 |
|
$ |
|
|
$ |
0.19 |
|
|
(Loss) from discontinued operations, net of tax |
|
|
|
|
|
|
|
(0.01 |
) |
|
| ||||
|
Basic (loss) earnings per share |
|
|
|
$ |
(0.03 |
) |
$ |
0.02 |
|
$ |
(0.01 |
) |
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted (loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
| ||||
|
(Loss) earnings from continuing operations before discontinued operations |
|
(a) / (c) |
|
$ |
(0.03 |
) |
$ |
0.02 |
|
$ |
|
|
$ |
0.19 |
|
|
(Loss) from discontinued operations, net of tax |
|
|
|
|
|
|
|
(0.01 |
) |
|
| ||||
|
Diluted (loss) earnings per share |
|
|
|
$ |
(0.03 |
) |
$ |
0.02 |
|
$ |
(0.01 |
) |
$ |
0.19 |
|
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
ADDITIONAL INFORMATION |
(dollar amounts in thousands) |
|
|
Thirteen weeks ended |
|
Thirty-nine weeks ended |
| ||||||||
|
|
November 1, 2014 |
|
November 2, 2013 |
|
November 1, 2014 |
|
November 2, 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Capital expenditures |
|
$ |
15,965 |
|
$ |
13,832 |
|
$ |
54,975 |
|
$ |
38,334 |
|
Depreciation |
|
$ |
19,172 |
|
$ |
19,756 |
|
$ |
55,518 |
|
$ |
59,941 |
|
Non-operating income: |
|
|
|
|
|
|
|
|
| ||||
Net rental revenue |
|
$ |
358 |
|
$ |
432 |
|
$ |
1,040 |
|
$ |
1,032 |
|
Investment income |
|
59 |
|
42 |
|
152 |
|
132 |
| ||||
Other income |
|
1 |
|
50 |
|
(17 |
) |
203 |
| ||||
Total |
|
$ |
418 |
|
$ |
524 |
|
$ |
1,175 |
|
$ |
1,367 |
|
Comparable sales percentages: |
|
|
|
|
|
|
|
|
| ||||
Service |
|
6.1 |
% |
0.5 |
% |
4.9 |
% |
1.6 |
% | ||||
Merchandise |
|
-0.2 |
% |
-3.6 |
% |
-2.3 |
% |
-1.7 |
% | ||||
Total |
|
1.2 |
% |
-2.8 |
% |
-0.7 |
% |
-1.0 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total square feet of retail space (including service centers) |
|
|
|
|
|
12,922,000 |
|
12,924,000 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Store count |
|
|
|
|
|
|
|
|
| ||||
Supercenter |
|
|
|
|
|
563 |
|
572 |
| ||||
Service & Tire Center |
|
|
|
|
|
233 |
|
215 |
| ||||
Retail Only |
|
|
|
|
|
6 |
|
6 |
| ||||
Total |
|
|
|
|
|
802 |
|
793 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Sales and gross profit by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Service center revenue |
|
$ |
289,375 |
|
$ |
273,944 |
|
$ |
871,590 |
|
841,827 |
| |
Retail sales |
|
228,209 |
|
233,098 |
|
710,589 |
|
729,008 |
| ||||
Total revenues |
|
$ |
517,584 |
|
$ |
507,042 |
|
$ |
1,582,179 |
|
$ |
1,570,835 |
|
|
|
|
|
|
|
|
|
|
| ||||
Gross profit from service center revenue, prior to impairment charge |
|
$ |
58,817 |
|
$ |
55,169 |
|
$ |
185,616 |
|
171,244 |
| |
Service center revenue impairment charge |
|
(1,144 |
) |
(1,153 |
) |
(3,479 |
) |
(3,493 |
) | ||||
Gross profit from service center revenue |
|
$ |
57,673 |
|
$ |
54,016 |
|
$ |
182,137 |
|
$ |
167,751 |
|
|
|
|
|
|
|
|
|
|
| ||||
Gross profit from retail sales, prior to impairment charge |
|
$ |
60,922 |
|
$ |
69,676 |
|
$ |
195,387 |
|
217,000 |
| |
Retail sales impairment charge |
|
(261 |
) |
(880 |
) |
(1,764 |
) |
(1,390 |
) | ||||
Gross profit from retail sales |
|
$ |
60,661 |
|
$ |
68,796 |
|
$ |
193,623 |
|
$ |
215,610 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total gross profit |
|
$ |
118,334 |
|
$ |
122,812 |
|
$ |
375,760 |
|
$ |
383,361 |
|
|
|
|
|
|
|
|
|
|
| ||||
Comparable sales percentages by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Service center revenue |
|
3.7 |
% |
-2.5 |
% |
0.8 |
% |
0.4 |
% | ||||
Retail sales |
|
-1.8 |
% |
-3.1 |
% |
-2.4 |
% |
-2.6 |
% | ||||
Total revenues |
|
1.2 |
% |
-2.8 |
% |
-0.7 |
% |
-1.0 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage by line of business (A): |
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage from service center revenue, prior to impairment charge |
|
20.3 |
% |
20.1 |
% |
21.3 |
% |
20.3 |
% | ||||
Impairment charge |
|
(0.4 |
) |
(0.4 |
) |
(0.4 |
) |
(0.4 |
) | ||||
Gross profit percentage from service center revenue |
|
19.9 |
% |
19.7 |
% |
20.9 |
% |
19.9 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit percentage from retail sales, prior to impairment charge |
|
26.7 |
% |
29.9 |
% |
27.5 |
% |
29.8 |
% | ||||
Impairment charge |
|
(0.1 |
) |
(0.4 |
) |
(0.2 |
) |
(0.2 |
) | ||||
Gross profit percentage from retail sales |
|
26.6 |
% |
29.5 |
% |
27.2 |
% |
29.6 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total gross profit percentage |
|
22.9 |
% |
24.2 |
% |
23.7 |
% |
24.4 |
% |
(A) Retail sales include DIY and commercial sales. Service center revenue includes revenue from labor and installed parts and tires.