Sales for the thirteen weeks ended October 31, 2015 decreased by $9.4 million, or 1.8%, to
$508.1 million from $517.6 million for the thirteen weeks ended November 1, 2014. Comparable sales decreased 1.8%, consisting of a decrease of 2.5% in comparable service revenue and a decrease of 1.6% 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 1.5%, while comparable retail sales decreased 2.2%.
Net earnings for the third quarter of fiscal 2015 were $1.3 million or $0.02 per share as compared to a net loss of $2.0 million or ($0.03 per share) recorded in the third quarter of fiscal 2014. The 2015 results included, on a pre-tax basis, a $6.0 million gain from the sale of two locations offset by a $0.8 million asset impairment charge, $2.9 million in merger and acquisition expense, $1.0 million in legal expense and $0.9 million in severance charges. The 2014 results included, on a pre-tax basis, a $1.4 million asset impairment charge and $1.4 million in severance charges.
Sales for the thirty-nine weeks ended October 31, 2015 decreased by $5.2 million, or 0.3%, to
$1,576.9 million from $1,582.2 million for the thirty-nine weeks ended November 1, 2014. Comparable sales decreased 0.2%, consisting of a 0.5% comparable service revenue decrease and a 0.1% comparable merchandise sales decrease. Re-categorizing sales (see above), comparable service center revenue increased 0.3%, while comparable retail sales decreased 0.9%.
Net earnings for the first nine months of 2015 were $18.0 million or $0.33 per share as compared to net a loss of $0.6 million or ($0.01 per share) for the first nine months of fiscal 2014. The
2015 results included, on a pre-tax basis, a $10.0 million sale of a leasehold interest and a gain of
$6.5 million from the sale of five locations offset by a $3.3 million asset impairment charge, $3.4 million in expenses related to our annual meeting and strategic alternatives review and a $1.7 million severance charge. The 2014 results included, on a pre-tax basis, a $5.2 million asset impairment charge, a $4.0 million litigation charge and $2.4 million in severance charges. In addition, the 2014 results included a $0.9 million tax expense related to valuation allowances.
###
David Stern (215) 430-9727
Email: investorrelations@pepboys.com
Pep Boys Financial Highlights | ||||
Thirteen weeks ended | October 31, 2015 | November 1, 2014 | ||
Total revenues | $ | 508,136,000 | $ | 517,584,000 |
Net earnings (loss) | $ | 1,266,000 | $ | (1,964,000) |
Basic earnings (loss) per share: | ||||
Average shares | 54,326,000 | 53,590,000 | ||
Basic earnings (loss) per share: | $ | 0.02 | $ | (0.03) |
Diluted earnings (loss) per share: | ||||
Average shares | 54,605,000 | 53,590,000 | ||
Diluted earnings (loss) per share: | $ | 0.02 | $ | (0.03) |
Thirty-nine weeks ended | October 31, 2015 | November 1, 2014 | ||
Total revenues | $ | 1,576,943,000 | $ | 1,582,179,000 |
Net earnings (loss) | $ | 17,970,000 | $ | (625,000) |
Basic earnings (loss) per share: | ||||
Average shares | 54,214,000 | 53,533,000 | ||
Basic earnings (loss) per share: | $ | 0.33 | $ | (0.01) |
Diluted earnings (loss) per share: | ||||
Average shares | 54,401,000 | 53,533,000 | ||
Diluted earnings (loss) per share: | $ | 0.33 | $ | (0.01) |
(UNAUDITED) | |||
CONSOLIDATED BALANCE SHEETS | |||
(dollar amounts in thousands) | |||
October 31, 2015 | January 31, 2015 | November 1, 2014 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 71,332 | $ 38,044 | $ 36,430 |
Accounts receivable, less allowance for | |||
uncollectible accounts of $1887, $1,604 and $1,616 | 31,743 | 31,013 | 31,622 |
Merchandise inventories | 630,608 | 656,957 | 667,438 |
Prepaid expenses | 15,079 | 27,952 | 15,314 |
Other current assets | 48,219 | 55,986 | 51,470 |
Assets held for disposal | 500 | 2,648 | 4,636 |
Total current assets | 797,481 | 812,600 | 806,910 |
Property and equipment, net of accumulated depreciation | |||
of $1,287,150, $1,251,797 and $1,257,988 | 579,300 | 604,380 | 614,326 |
Goodwill | 32,869 | 32,869 | 56,794 |
Deferred income taxes | 49,103 | 56,571 | 57,070 |
Other long-term assets | 33,602 | 35,321 | 37,301 |
Total assets | $ 1,492,355 | $ 1,541,741 | $ 1,572,401 |
Current liabilities:
Accounts payable | $ 219,903 | $ 227,132 | $ 217,066 |
Trade payable program liability | 127,765 | 140,904 | 145,105 |
Accrued expenses | 198,535 | 226,176 | 209,524 |
Deferred income taxes | 65,615 | 61,216 | 68,556 |
Current maturities of long-term debt | 2,000 | 2,000 | 2,000 |
Total current liabilities | 613,818 | 657,428 | 642,251 |
Long-term debt less current maturities | 192,500 | 211,000 | 229,500 |
Other long-term liabilities | 42,047 | 45,567 | 45,843 |
Deferred gain from asset sales | 96,298 | 103,596 | 105,370 |
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 | 297,560 | 298,299 | 297,313 |
Retained earnings | 407,854 | 397,890 | 428,845 |
Accumulated other comprehensive income | (519) | (391) | 43 |
Treasury stock, at cost - 14,453,129 shares; 14,988,205 shares and | |||
15,177,705 shares | (225,760) | (240,205) | (245,321) |
Total stockholders' equity | 547,692 | 524,150 | 549,437 |
Total liabilities and stockholders' equity | $ 1,492,355 | $ 1,541,741 | $ 1,572,401 |
Supplemental balance sheet information:
Working capital | $ 183,663 | $ 155,172 | $ 164,659 |
Current ratio | 1.30 | 1.24 | 1.26 |
Accounts payable to inventory ratio | 55.1% | 56.0% | 54.3% |
Total debt as a percent of total capitalization | 26.2% | 28.9% | 29.6% |
Debt as a percent of total capitalization, net | 18.4% | 25.0% | 26.2% |
distributed by |