"Positives for the quarter include a 3.4% increase in comparable service customer transactions and recovering tire margins,” said President and Chief Executive Officer Mike Odell. “The service customer increase was again driven by maintenance and repair services. Tire margins had declined significantly over the previous 19 months, but have now been recovering for the past three months."
Mike continued, "We also reached our next eCommerce milestone with the launch of Buy Online, Ship to Home. This complements our previously launched online capabilities of service appointment scheduling, TreadSmart (tires from information to installation) and Buy Online, Pick Up In Store. We are continuing to further integrate our complete automotive service offerings and automotive superstore with our emerging digital capabilities."
Executive Vice President and Chief Financial Officer David Stern added, “During the quarter, we refinanced our debt, reducing the principal by approximately $95 million and extending the maturity to 2018. While this refinancing activity resulted in a one-time charge to interest expense of $11.2 million, it also reduces our annual interest expense by approximately $11 million.”Since 1921, Pep Boys has been the nation’s leading automotive aftermarket chain. With approximately 7,200 service bays in more than 740 locations in 35 states and Puerto Rico, Pep Boys offers name-brand tires; automotive maintenance and repair; parts and expert advice for the Do-It-Yourselfer; commercial auto parts delivery; and fleet maintenance and repair. Customers can find the nearest location by calling (800) PEP-BOYS (800-737-2697) or by visiting http://www.pepboys.com. Certain statements contained herein constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The word “guidance,” “expect,” “anticipate,” “estimates,” “forecasts” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include management’s expectations regarding implementation of its long-term strategic plan, future financial performance, automotive aftermarket trends, levels of competition, business development activities, future capital expenditures, financing sources and availability and the effects of regulation and litigation. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The Company’s actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies, retail and commercial consumers’ ability to spend, the health of the various sectors of the automotive aftermarket, the weather in geographical regions with a high concentration of the Company’s stores, competitive pricing, the location and number of competitors’ stores, product and labor costs and the additional factors described in the Company’s filings with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.