The Pep Boys - Manny, Moe & Jack (NYSE:PBY), the nation's
leading automotive aftermarket retail and service chain, announced
the following results for the fourteen weeks (fourth quarter) and
fifty-three weeks (fiscal year) ended February 3, 2007. Operating
Results Fourth Quarter Sales Sales for the fourteen weeks ended
February 3, 2007 were $586,146,000, as compared to the $550,481,000
recorded for the thirteen weeks ended January 28, 2006. Excluding
the fourteenth week of Q4 2006, comparable merchandise sales
decreased 1.5% and comparable service revenue increased 2.0%. In
accordance with GAAP, merchandise sales includes merchandise sold
through both our retail and service center lines of business and
service revenue is limited to labor sales. Excluding the fourteenth
week of Q4 2006, recategorizing Sales into the respective lines of
business from which they are generated, comparable Retail Sales
(DIY and Commercial) decreased 2.2% and comparable Service Center
Revenue (labor plus installed merchandise and tires) increased
1.0%. Earnings Net Earnings (Loss) from Continuing Operations
Before Cumulative Effect of Change in Accounting Principle
increased from a Net Loss of $22,869,000, (($0.42) per share -
basic and diluted) to Net Earnings of $8,110,000 ($0.15 per share -
basic and diluted). Fiscal Year Sales Sales for the fiscal year
ended February 3, 2007 were $2,272,161,000, as compared to the
$2,238,029,000 recorded last year. Excluding the fifty-third week
of 2006, comparable merchandise sales decreased 0.5% and comparable
service revenue increased 1.3%. Excluding the fifty-third week of
2006 and recategorizing Sales (see above), comparable Retail Sales
decreased 1.9% and comparable Service Center Revenue increased
2.4%. Earnings Net Loss from Continuing Operations Before
Cumulative Effect of Change in Accounting Principle decreased from
a Net Loss of $35,799,000 (($0.65) per share - basic and diluted)
to a Net Loss of $2,000,000 (($0.04) per share � basic and
diluted). Commentary William Leonard, Interim CEO, said, �During
Q4, our team made significant progress in improving our operating
margins, through reduced discounting, improved labor sales and
reduced operating costs. Following a substantially improved last
half of the year, I am very pleased to hand over responsibility to
our new President & CEO, Jeff Rachor. �Pep Boys is well
positioned to deliver on its immediate priorities: post positive
comparable store sales in our service center operations; make
continued progress on our retail margins; and continue to reduce
our cost structure to help support overall results. I believe the
Company�s best days remain in front of it, and look forward to the
results of Jeff�s leadership.� Harry Yanowitz, Chief Financial
Officer, said, �We had a strong finish to the year. Efforts to
improve performance in our service business, including offering
fewer discounts, have started to take hold - yielding improved
margins without reducing comparative store sales. As we noted last
quarter, our retail margins reflect the substantial efforts our
merchants have made to improve mix and reduce acquisition costs. In
addition, we believe substantial opportunities to improve
efficiencies and reduce our operating costs still remain for Fiscal
2007. �Q4 Operating (Loss) Profit improved by $33.8 million from a
loss of $15.7 million to a profit of $18.1 million. Excluding (i)
Net Gains on the Sales of Assets (realized as part of our program
of opportunistically monetizing appreciated real estate) of
approximately $1.8 million in Q4 2005 and approximately $9.1
million in Q4 2006 and (ii) a $4.2 million charge to S,G&A due
to the write-off of certain information system assets in Q4 2005,
Operating (Loss) Profit improved by $22.3 million from a loss of
$13.3 million to a profit of $9.0 million. �EBITDA, a non-GAAP
indicator of levels of our financial performance that includes the
Net Gains on the Sale of Assets and impairment charge noted above,
improved in Q4 2006 by $41.9 million to $45.3 million, as compared
to Q4 2005. �Improving operating performance continues to support
our balance sheet. For the full Fiscal 2006, Net Cash Provided by
Operating Activities improved by $128.4 million and Capital
Expenditures were $37.9 million less than last year. During Q4, we
repurchased 494,800 shares of common stock at an average price of
$14.77. Subsequent to year-end, we re-priced our $320 million real
estate backed term loan from LIBOR+275 to LIBOR + 200, for the
remaining term to 2013, the date of our first significant funded
debt maturity. �In addition, please note that Q4 2006 was a 14 week
quarter, during our seasonally slow winter period. While it is
difficult to precisely carve out a week from an overall reporting
period, we estimate that the 14th week did not have a material
affect on results, representing approximately $39.2 million of
sales and improving operating profit by $0.5 million.� Accounting
Matters Co-op Advertising During fiscal 2005, a portion of our
vendor support funds were provided in support of specific
advertising costs, or �co-op,� which, in accordance with EITF No.
02-16, we accounted for as a reduction of SG&A. We have
completed the restructuring of substantially all of our vendor
agreements to provide flexibility in how we use vendor support
funds, to eliminate the administrative burden of tracking the
application of such funds and to ensure that we are receiving the
best possible pricing. In the fourth quarter of fiscal 2006, all of
the allowances received from vendors were accounted for as a
reduction of inventories and recognized as a reduction to cost of
sales as the related inventories are sold in accordance with EITF
No. 02-16. Assuming that all of our vendor agreements had been so
restructured as of October 29, 2005, both our SG&A and Gross
Profit for the fourth quarter of fiscal 2005 would have increased
by approximately $8.8 million, without materially impacting
inventory valuation or Net Loss from Continuing Operations Before
Cumulative Effect of Change in Accounting Principle. Pep Boys
Financial Highlights Fourteen weeksendedFebruary 3, 2007 Thirteen
weeksendedJanuary 28, 2006 � Total Revenues $ 586,146,000� $
550,481,000� � Net Earnings (Loss) From Continuing Operations
Before Cumulative Effect of Change in Accounting Principle $
8,110,000� $ (22,869,000) � Basic Earnings (Loss) Per Share:
Average Shares 54,274,000� 54,180,000� � Net Earnings (Loss) From
Continuing Operations Before Cumulative Effect of Change in
Accounting Principle $ 0.15� $ (0.42) � Diluted Earnings (Loss) Per
Share: Average Shares 54,595,000� 54,180,000� � Net Earnings (Loss)
From Continuing Operations Before Cumulative Effect of Change in
Accounting Principle $ 0.15� $ (0.42) � Fifty-three
weeksendedFebruary 3, 2007 Fifty-two weeksendedJanuary 28, 2006 �
Total Revenues $ 2,272,161,000� $ 2,238,029,000� � $ Net Loss From
Continuing Operations Before Cumulative Effect of Change in
Accounting Principle $ (2,000,000) (35,799,000) � Basic and Diluted
Loss Per Share: Average Shares 54,266,000� 54,794,000� � Net Loss
From Continuing Operations Before Cumulative Effect of Change in
Accounting Principle $ (0.04) $ (0.65) EBITDA Reconciliation EBITDA
is defined as Net Earnings (Loss) plus Interest Expense, Income Tax
Expense (Benefit), and Depreciation and Amortization. EBITDA is not
a measurement of financial performance under generally accepted
accounting principles and may not be compared to similarly
captioned information reported by other companies. In addition, it
does not replace net income or cash flow from operations as an
indicator of financial performance or liquidity. We believe EBITDA
provides a useful indicator of levels of our financial performance
and is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry.
A reconciliation of EBITDA for the fourteen and fifty-three weeks
ended February 3, 2007 and the thirteen and fifty-two weeks ended
January 28, 2006 to the most directly comparable GAAP measure in
accordance with SEC Regulation G follows: Fourteen
weeksendedFebruary 3, 2007 Thirteen weeksendedJanuary 28, 2006 �
Net Earnings (Loss) $ 7,716,000� $ (24,601,000) � Interest Expense
11,456,000� 21,686,000� � Income Tax Expense (Benefit) 148,000�
(14,351,000) � Depreciation and Amortization 25,930,000�
20,604,000� EBITDA $ 45,250,000� $ 3,338,000� � Fifty-three
weeksended Fifty-two weeksended February 3, 2007 January 28, 2006 �
Net Loss $ (2,549,000) $ (37,528,000) � Interest Expense
49,342,000� 49,040,000� � Income Tax Benefit (4,525,000)
(21,562,000) � Depreciation and Amortization 88,476,000�
79,887,000� EBITDA $ 130,744,000� $ 69,837,000� Pep Boys has 593
stores and more than 6,000 service bays in 36 states and Puerto
Rico. Along with its vehicle repair and maintenance capabilities,
the Company also serves the commercial auto parts delivery market
and is one of the leading sellers of replacement tires in the
United States. Customers can find the nearest location by calling
1-800 -PEP-BOYS or by visiting 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 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. Investors have an opportunity to listen to the Company�s
quarterly conference calls discussing its results and related
matters. The call for the fourth quarter will be broadcast live on
Thursday, March 15 at 8:30 a.m. ET over the Internet at Broadcast
Networks' Vcall website, located at
http://www.investorcalendar.com. To listen to the call live, please
go to the website at least 15 minutes early to register, download
and install any necessary audio software. For those who cannot
listen to the live broadcast, a replay will be available shortly
after the call. Supplemental financial information will be
available the morning of March 15th on Pep Boys' website at
www.pepboys.com
Prospect Capital Corpora... (NYSE:PBY)
Historical Stock Chart
From May 2024 to Jun 2024
Prospect Capital Corpora... (NYSE:PBY)
Historical Stock Chart
From Jun 2023 to Jun 2024