Pep Boys - Manny, Moe & Jack
) posted a broader loss of $14.5 million or 27 cents per share in
the fourth quarter of fiscal 2012 ended Feb 2 compared with $4.4
million or 8 cents in the corresponding quarter of prior year as
well as the Zacks Consensus Estimate of 5 cents.
The wider loss was mainly attributable to hefty pension-related
expenses in the quarter. The company recorded a $17.8 million
pension settlement charge during the quarter, partially offset by
a $1.6 million gain from the disposition of assets.
Revenues for the fourteen weeks ended Feb 2 went up 5.1% to
$530.8 million from $505.3 million for the thirteen weeks ended
Jan 28, 2012. It was higher than the Zacks Consensus Estimate of
$499 million. Excluding the fourteenth week of the quarter,
comparable store sales (sales for stores open at least once in a
year) dipped 2.6% due to weak merchandise sales. Comparable
service revenues increased of 3.2% while comparable merchandise
decreased 4.1% in the quarter.
For fiscal 2012, Pep Boys reported a profit of $12.8 million or
24 cents per share that was narrower than $28.9 million or 54
cents in fiscal 2011. Revenues in the year inched up 1.3% to
$2.09 billion. Excluding the fifty-third week of 2012, comparable
store sales declined 2.0% due to poor merchandise sales.
Comparable service revenues increased 1.3% while comparable
merchandise revenues fell 2.9% in the year.
Pep boys had cash and cash equivalents of $59.2 million as of Feb
2, 2013 compared with $58.2 million as of Jan 28, 2012. Long-term
debt stood at $200.0 million compared with $295.1 million as of
Jan 28, 2012. This translated into a long-term
debt-to-capitalization ratio of 27.1% as of Feb 2, 2013, down
from 36.9% as of Jan 28, 2012.
In fiscal 2012, Pep Boys' cash flow from operations enhanced to
$89.0 million from $73.9 million in the prior year despite a fall
in profits. The improvement was mainly attributable to a fall in
merchandise inventories and increase in accrued expenses.
However, capital expenditures decreased to $54.7 million from
$74.7 million in fiscal 2011.
Pep Boys, based in Philadelphia, Pennsylvania, supplies tires,
batteries, new and remanufactured parts for vehicles, chemicals
and maintenance items, fashion, electronic, and performance
accessories. It also provides non-automotive merchandise such as
generators, power tools and personal transportation products.
Pep Boys expects to grow its market share in the service business
through continued investment, given the fact that it has
completed refinancing and settled pension liabilities in 2012. It
currently retains a Zacks Rank #3 (Hold). Shares of the company
dipped 3.7% to $11.25 on Apr 15, after the disappointing earnings
While we remain on the sidelines about Pep Boys, other stocks
that are worth considering in the automotive parts retailer
O'Reilly Automotive Inc.
). Both of them carry a Zacks Rank #2 (Buy).
Recently, another retailer and distributor of automotive
) reported a 15.2% rise in earnings per share to $4.78 in fiscal
2013-second quarter (ended Feb 9, 2013) from $4.15 in the
year-ago quarter. The results surpassed the Zacks Consensus
Estimate by 4 cents.
AutoZone's revenues increased 2.8% to $1.86 billion in the
quarter, marginally missing the Zacks Consensus Estimate of $1.88
billion. Domestic same-store sales (sales for stores open at
least one year) decreased 1.8% in the quarter.
AUTOZONE INC (AZO): Free Stock Analysis
CARMAX GP (CC) (KMX): Free Stock Analysis
O REILLY AUTO (ORLY): Free Stock Analysis
PEP BOYS M M &J (PBY): Free Stock Analysis
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