The Pep Boys – Manny, Moe & Jack (NYSE: “PBY”), the nation’s leading automotive aftermarket service and retail chain, announced the following results for the thirteen (second quarter) and twenty-six (six months) weeks ended August 3, 2013.
Second Quarter Sales
Sales for the thirteen weeks ended August 3, 2013 increased by $1.9 million, or 0.4%, to $527.6 million from $525.7 million for the thirteen weeks ended July 28, 2012. Comparable sales decreased 1.3%, consisting of an increase of 0.2% in comparable service revenue and a decrease of 1.7% in comparable merchandise sales. In accordance with GAAP, service revenue is limited to labor sales, while merchandise sales include merchandise sold through both our service center and retail lines of business. Re-categorizing sales into the respective lines of business from which they are generated, comparable service center revenue decreased 0.1%, while comparable retail sales decreased 2.6%.
EarningsAdjusted operating profit for the second quarter of fiscal 2013 was $19.4 million as compared to $15.5 million for the second quarter of fiscal 2012. On a GAAP basis including a $1.7 million asset impairment charge in fiscal 2013, and a $0.7 severance charge and the reclassification of $1.5 million of merger related costs in fiscal 2012, operating profit for the second quarter of fiscal 2013 was $17.7 million as compared to $16.3 million for the second quarter of fiscal 2012. Net earnings for the second quarter of fiscal 2013 were $5.4 million ($0.10 per share) as compared to $33.0 million ($0.61 per share) for the second quarter of fiscal 2012. In addition to the above-referenced items, the 2013 net earnings reflect a $2.5 million tax burden primarily due to state tax law changes, while the 2012 net earnings included, on a pre-tax basis, $43.0 million of merger termination fees, net of related expenses.