<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 10-Q
(Mark One)
(x) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended October 29, 1994
OR
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period
from to
----------- ----------
Commission File No. 1-3381
------
The Pep Boys - Manny, Moe & Jack
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-0962915
------------------------------- ---------------------------
(State or other jurisdiction of (I.R.S. Employer ID number)
incorporation or organization)
3111 W. Allegheny Ave. Philadelphia, PA 19132
---------------------------------------- ----------
(Address of principal executive offices) (Zip code)
215-229-9000
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports); and (2) has been subject
to such filing requirements for the past 90 days. Yes ( x ) No ( )
As of October 29, 1994 there were 61,434,814 shares of the registrant's
Common Stock outstanding.
<PAGE>
<PAGE>2
- -------------------------------------------------------------------
Index Page
- -------------------------------------------------------------------
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Condensed Consolidated
Financial Statements (Unaudited)
Consolidated Balance Sheets -
October 29, 1994 and January 29, 1994 3
Consolidated Statements of Earnings -
Thirteen and Thirty-nine weeks ended
October 29, 1994 and October 30, 1993 4
Condensed Consolidated Statements of
Cash Flows - Thirty-nine weeks ended
October 29, 1994 and October 30, 1993 5
Notes to Condensed Consolidated
Financial Statements 6
Management's Discussion and Analysis
of Financial Condition and Results of
Operations 7-11
PART II - OTHER INFORMATION 12
- ---------------------------
SIGNATURE 13
- -------------------------------------------------------------------
<PAGE>
<PAGE>3
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands, except per share amounts)
<CAPTION>
Oct. 29, 1994 Jan. 29, 1994*
------------- --------------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash....................................................... $ 14,390 $ 12,050
Accounts receivable, net................................... 3,390 1,525
Merchandise inventories.................................... 381,608 305,872
Deferred income taxes...................................... 10,176 9,100
Other...................................................... 9,749 13,161
------------- --------------
Total Current Assets.................................... 419,313 341,708
Property and Equipment-at cost:
Land....................................................... 210,059 183,601
Building and improvements.................................. 549,871 500,467
Furniture, fixtures and equipment.......................... 250,241 229,730
Construction in progress................................... 35,895 9,364
------------- --------------
1,046,066 923,162
Less accumulated depreciation and amortization............. 231,443 199,710
------------- --------------
Total Property and Equipment............................ 814,623 723,452
Other........................................................ 16,664 13,358
------------- --------------
Total Assets.................................................. $1,250,600 $1,078,518
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Checks outstanding......................................... $ 31,935 $ 22,193
Accounts payable........................................... 97,448 104,248
Accrued expenses........................................... 73,856 59,574
Short-term borrowings...................................... 62,800 54,500
Income taxes payable....................................... 5,305 1,278
Current maturities of long-term debt....................... 12,579 7,397
------------- --------------
Total Current Liabilities............................... 283,923 249,190
Long-Term Debt, less current maturities...................... 281,757 253,000
Deferred Income Taxes........................................ 28,569 28,569
Convertible Subordinated Notes............................... 86,250 -
Commitments
Stockholders' Equity:
Common Stock, par value $1 per share:
Authorized 500,000,000 shares - Issued and
outstanding 61,434,814 and 61,060,055..................... 61,435 61,060
Additional paid-in capital................................. 127,647 122,977
Retained earnings.......................................... 438,514 388,653
------------- --------------
627,596 572,690
Less:
Treasury Stock - 948,200 shares at cost........ - 24,931
Shares held in benefits trust - 2,137,500 shares at cost. 57,495 -
------------- --------------
Total Stockholders' Equity.............................. 570,101 547,759
------------- --------------
Total Liabilities and Stockholders' Equity.................... $1,250,600 $1,078,518
============= ==============
<FN>
See notes to condensed consolidated financial statements.
*Taken from the audited financial statements at Jan. 29, 1994.
/TABLE
<PAGE>
<PAGE>4
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(dollar amounts in thousands, except per share amounts)
UNAUDITED
<CAPTION>
Thirteen weeks ended Thirty-nine weeks ended
--------------------------------- ---------------------------------
Oct. 29, 1994 Oct. 30, 1993 Oct. 29, 1994 Oct. 30, 1993
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Merchandise Sales.................................... $ 314,194 $274,276 $ 924,795 $820,450
Service Revenue...................................... 49,035 41,739 146,529 123,858
------------- ------------- ------------- -------------
Total Revenues....................................... 363,229 316,015 1,071,324 944,308
Costs of Merchandise Sales........................... 221,998 196,756 656,861 594,912
Costs of Service Revenue............................. 41,036 34,767 120,856 102,363
------------- ------------- ------------- -------------
Total Costs of Revenues.............................. 263,034 231,523 777,717 697,275
Gross Profit from Merchandise Sales.................. 92,196 77,520 267,934 225,538
Gross Profit from Service Revenue.................... 7,999 6,972 25,673 21,495
------------- ------------- ------------- -------------
Total Gross Profit................................... 100,195 84,492 293,607 247,033
Selling, General and Administrative Expenses......... 61,884 52,538 180,247 155,760
------------- ------------- ------------- -------------
Operating Profit..................................... 38,311 31,954 113,360 91,273
Nonoperating Income.................................. 839 1,100 3,024 3,131
Interest Expense..................................... 6,257 4,961 18,033 15,060
------------- ------------- ------------- ------------
Earnings Before Income Taxes and Cumulative
Effect of Change in Accounting Principle............ 32,893 28,093 98,351 79,344
Income Taxes......................................... 12,253 10,650 36,636 29,357
------------- ------------- ------------- ------------
Earnings Before Cumulative Effect of Change in
Accounting Principle................................ 20,640 17,443 61,715 49,987
Cumulative Effect of Change in Accounting Principle.. - - (4,300) -
------------ ------------- ------------- -------------
Net Earnings......................................... 20,640 17,443 57,415 49,987
Retained Earnings, beginning of period............... 420,309 360,246 388,653 332,261
Cash Dividends....................................... 2,435 2,287 7,554 6,846
------------ ------------- ------------- -------------
Retained Earnings, end of period..................... $ 438,514 $375,402 $ 438,514 $375,402
============ ============= ============= =============
Earnings per Share Before Cumulative Effect
of Change in Accounting Principle................... $ .34 $ .28 $ 1.02 $ .81
Cumulative Effect of Change in Accounting Principle.. - - (.07) -
------------ ------------- ------------- -------------
Net Earnings per Share............................... $ .34 $ .28 $ .95 $ .81
============ ============= ============= =============
Cash Dividends per Share............................. $ .0425 $ .0375 $ .1275 $ .1125
============ ============= ============= =============
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>5
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
UNAUDITED
<CAPTION>
Thirty-nine weeks ended
---------------------------------
Oct. 29, 1994 Oct. 30, 1993
------------- -------------
<S> <C> <C>
Net Cash Provided by Operating Activities....................... $ 34,076 $13,511
Cash Flows from Investing Activities:
Capital expenditures............................................ (122,601) (80,468)
Proceeds from sales of assets................................... 303 111
Other, net...................................................... _ 54
------------ ------------
Net Cash Used in Investing Activities........................... (122,298) (80,303)
Cash Flows from Financing Activities:
Net proceeds from issuance of convertible subordinated notes.... 85,387 -
Net borrowings under line of credit agreements.................. 58,300 27,900
Reduction of long-term debt..................................... (17,261) (30,761)
Dividends paid.................................................. (7,554) (6,846)
Common shares purchased for employee benefits trust............. (33,476) -
Proceeds from exercise of stock options
and dividend reinvestment plan................................ 5,166 3,730
Net proceeds from sale of 6 5/8% notes.......................... - 73,892
------------ -----------
Net Cash Provided by Financing Activities....................... 90,562 67,915
------------ -----------
Net Increase in Cash................................................. 2,340 1,123
Cash at Beginning of Year............................................ 12,050 11,644
------------ -----------
Cash at End of Period................................................ $ 14,390 $ 12,767
============ ===========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>6
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. Condensed Consolidated Financial Statements
The consolidated balance sheet as of October 29, 1994, the consolidated
statements of earnings for the thirteen and thirty-nine week periods ended
October 29, 1994 and October 30, 1993 and the condensed consolidated
statements of cash flows for the thirty-nine week periods ended October 29,
1994 and October 30, 1993 have been prepared by the Company without audit.
In the opinion of management, all adjustments (which included only normal
recurring adjustments as well as the accounting change referred to in Note 3
below) necessary to present fairly the financial position, results of
operations and cash flows at October 29, 1994 and for all periods presented
have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
condensed consolidated financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's January 29,
1994 annual report to shareholders. The results of operations for the
thirteen and thirty-nine week periods ended October 29, 1994 are not
necessarily indicative of the operating results for the full year.
NOTE 2. Merchandise Inventories
Merchandise inventories are valued at the lower of cost (last-in, first-out)
or market. If the first-in, first-out method of valuing inventories had been
used by the Company, inventories would have been approximately $17,852,000
and $15,452,000 higher at October 29, 1994 and January 29, 1994,
respectively.
NOTE 3. Postemployment Benefits
On January 30, 1994, the Company adopted SFAS No. 112, "Employers' Accounting
for Postemployment Benefits." This statement establishes accrual accounting
standards for employer-provided benefits which cover former or inactive
employees after employment, but before retirement. Adoption of this
accounting standard on January 30, 1994 resulted in a one-time charge to
earnings of $4,300,000 (net of income tax benefit of $2,552,000) or $.07 per
share recognized as a cumulative effect of a change in accounting principle.
NOTE 4. Employee Benefits Trust
On April 29, 1994, the Company established a flexible employee benefits trust
to fund a portion of its obligations arising from various employee
compensation and benefit plans. The Company has authorization to purchase
Common Stock having a value of up to $75,000,000 for sale to the trust. As
of October 29, 1994, the Company sold 2,137,500 shares of Common Stock, which
it had repurchased in the open market, with a cost of $57,495,000 to the
trust in exchange for a promissory note payable to the Company.
NOTE 5. Convertible Subordinated Notes
On August 24, 1994 the Company sold $86,250,000 of 4% convertible
subordinated notes due September 1, 1999. These notes are convertible into
the common stock of the Company any time on or before September 1, 1999,
unless previously redeemed, at a conversion price of $41 per share, subject
to adjustment in certain events. The notes will be redeemable, in whole or
in part, at the option of the Company at any time on or after September 15,
1997, at the redemption price of 101% of their principal amount and at par on
or after September 1, 1998. Proceeds were used to repay portions of the
Company's variable rate debt. <PAGE>
<PAGE>
<PAGE>7
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THIRTEEN WEEKS ENDED OCTOBER 29, 1994
Results of Operations -
The following table presents for the periods indicated certain items in the consolidated statements of earnings as a
percentage of total revenues (except as otherwise provided) and the percentage change in dollar amounts of such items
compared to the indicated prior period.
<CAPTION>
Percentage of Total Revenues Percentage Change
- ------------------------------------------------------ ---------------------------------- -----------------
Thirteen weeks ended Oct. 29, 1994 Oct. 30, 1993 Fiscal 1994 vs.
(Fiscal 1994) (Fiscal 1993) Fiscal 1993
- ------------------------------------------------------ -------------- ------------- -----------------
<S> <C> <C> <C>
Merchandise Sales..................................... 86.5% 86.8% 14.6%
Service Revenue (1)................................... 13.5 13.2 17.5
------ ------ ------
Total Revenues........................................ 100.0 100.0 14.9
Costs of Merchandise Sales (2)........................ 70.7 (3) 71.7 (3) 12.8
Costs of Service Revenue (2).......................... 83.7 (3) 83.3 (3) 18.0
------ ------ ------
Total Costs of Revenues............................... 72.4 73.3 13.6
Gross Profit from Merchandise Sales................... 29.3 (3) 28.3 (3) 18.9
Gross Profit from Service Revenue..................... 16.3 (3) 16.7 (3) 14.7
------ ------ ------
Total Gross Profit.................................... 27.6 26.7 18.6
Selling, General and Administrative Expenses.......... 17.1 16.6 17.8
------ ------ ------
Operating Profit...................................... 10.5 10.1 19.9
Nonoperating Income................................... .3 .3 (23.7)
Interest Expense...................................... 1.7 1.6 26.1
------ ------ ------
Earnings Before Income Taxes ......................... 9.1 8.8 17.1
Income Taxes.......................................... 37.3 (4) 37.9 (4) 15.1
------ ------ ------
Net Earnings.......................................... 5.7 5.5 18.3
====== ====== ======
<FN>
(1) Service revenue consists of the labor charge for installing merchandise or maintaining or repairing vehicles, excluding the sale
of any installed parts or materials.
(2) Costs of merchandise sales include the cost of products sold, buying, warehousing and store occupancy costs. Costs of service
revenue include service center payroll and related employee benefits and service center occupancy costs. Occupancy costs include
utilities, rents, real estate and property taxes, repairs and maintenance and depreciation and amortization expenses.
(3) As a percentage of related sales or revenue, as applicable.
(4) As a percentage of earnings before income taxes.
</TABLE>
<PAGE>
<PAGE>8
Thirteen Weeks Ended October 29, 1994 vs. Thirteen Weeks Ended October 30,
1993
- ------------------------------------------------------------------------
Total revenues for the third quarter increased 15% due to a higher store
count (408 at October 29, 1994 compared with 367 at October 30, 1993) coupled
with a 6% increase in comparable store revenues (revenues generated by stores
in operation during the same months of each period). Comparable store
merchandise sales and comparable service revenue both increased 6%.
Gross profit from merchandise sales increased, as a percentage of merchandise
sales, due primarily to higher merchandise margins.
Gross profit from service revenue decreased, as a percentage of service
revenue, due primarily to an increase in service center personnel costs
offset, in part, by lower service center employee benefits costs.
Selling, general and administrative expenses increased, as a percentage of
total revenues, due primarily to increases in store expenses and media
costs.
<TABLE>
Nonoperating income consisted of the following:
(in thousands)
<CAPTION>
1994 1993
------ ------
<S> <C> <C>
Rental revenue $ 306 $ 322
Investment income 34 19
Other income 499 759
------ ------
Total $ 839 $1,100
====== ======
</TABLE>
The Company's effective income tax rate decreased from 37.9% in 1993 to 37.3%
in 1994.
The 18% increase in net earnings in 1994 as compared with 1993, was due
primarily to a 6% comparable store sales increase coupled with an increase in
gross profit from merchandise sales, as a percentage of merchandise sales
offset, in part, by an increase in selling, general and administrative
expenses.
<PAGE>
<PAGE>9
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THIRTY-NINE WEEKS ENDED OCTOBER 29, 1994
Results of Operations -
The following table presents for the periods indicated certain items in the consolidated statements of earnings as a
percentage of total revenues (except as otherwise provided) and the percentage change in dollar amounts of such items
compared to the indicated prior period.
<CAPTION>
Percentage of Total Revenues Percentage Change
- ------------------------------------------------------ ---------------------------------- -----------------
Thirty-nine weeks ended Oct. 29, 1994 Oct. 30, 1993 Fiscal 1994 vs.
(Fiscal 1994) (Fiscal 1993) Fiscal 1993
- ------------------------------------------------------ -------------- ------------- -----------------
<S> <C> <C> <C>
Merchandise Sales..................................... 86.3% 86.9% 12.7%
Service Revenue (1)................................... 13.7 13.1 18.3
------ ------ ------
Total Revenues........................................ 100.0 100.0 13.5
Costs of Merchandise Sales (2)........................ 71.0 (3) 72.5 (3) 10.4
Costs of Service Revenue (2).......................... 82.5 (3) 82.6 (3) 18.1
------ ------ ------
Total Costs of Revenues............................... 72.6 73.8 11.5
Gross Profit from Merchandise Sales................... 29.0 (3) 27.5 (3) 18.8
Gross Profit from Service Revenue..................... 17.5 (3) 17.4 (3) 19.4
------ ------ ------
Total Gross Profit.................................... 27.4 26.2 18.9
Selling, General and Administrative Expenses.......... 16.8 16.5 15.7
------ ------ ------
Operating Profit...................................... 10.6 9.7 24.2
Nonoperating Income................................... .3 .3 (3.4)
Interest Expense...................................... 1.7 1.6 19.7
------ ------ ------
Earnings Before Income Taxes and Cumulative Effect
of Change in Accounting Principle.................... 9.2 8.4 24.0
Income Taxes.......................................... 37.3 (4) 37.0 (4) 24.8
------ ------ ------
Earnings Before Cumulative Effect
of Change in Accounting Principle.................... 5.8 5.3 23.5
Cumulative Effect of Change in Accounting Principle... (.4) - -
------ ------ ------
Net Earnings.......................................... 5.4 5.3 14.9
====== ====== ======
<FN>
(1) Service revenue consists of the labor charge for installing merchandise or maintaining or repairing vehicles, excluding the sale
of any installed parts or materials.
(2) Costs of merchandise sales include the cost of products sold, buying, warehousing and store occupancy costs. Costs of service
revenue include service center payroll and related employee benefits and service center occupancy costs. Occupancy costs include
utilities, rents, real estate and property taxes, repairs and maintenance and depreciation and amortization expenses.
(3) As a percentage of related sales or revenue, as applicable.
(4) As a percentage of earnings before income taxes.
</TABLE>
<PAGE>
<PAGE>10
Thirty-nine Weeks Ended October 29, 1994 vs. Thirty-nine Weeks Ended October
30, 1993
- -----------------------------------------------------------------------------
Total revenues increased 13% due to a higher store count (408 at October 29,
1994 compared with 367 at October 30, 1993) coupled with a 5% increase in
comparable store revenues . Comparable store merchandise sales increased 5%
while comparable service revenue increased 7%.
Gross profit from merchandise sales increased, as a percentage of merchandise
sales, due primarily to higher merchandise margins slightly offset by an
increase in store occupancy costs.
Gross profit from service revenue increased slightly, as a percentage of
service revenue, due primarily to decreases in service personnel employee
benefits costs and service center occupancy costs offset, in part, by an
increase in service center personnel costs.
Selling, general and administrative expenses increased, as a percentage of
total revenues, due primarily to an increases in store expenses and media
costs.
<TABLE>
Nonoperating income consisted of the following:
(in thousands)
<CAPTION>
1994 1993
------ ------
<S> <C> <C>
Rental revenue $ 953 $ 878
Investment income 734 61
Other income 1,337 1,849
Net gain on disposal of assets - 343
------ ------
Total $3,024 $3,131
====== ======
</TABLE>
The Company's effective income tax rate increased from 37.0% in 1993 to 37.3%
in 1994.
The 23% increase in earnings before the cumulative effect of a change in
accounting principle in 1994 as compared with 1993, was due primarily to a 5%
comparable store sales increase coupled with an increase in gross profit from
merchandise sales, as a percentage of merchandise sales, offset, in part, by
an increase in selling, general and administrative expenses, as a percentage
of total revenues.
On January 30, 1994, the Company adopted SFAS No. 112, "Employers' Accounting
for Postemployment Benefits." This statement establishes accrual accounting
standards for employer-provided benefits which cover former or inactive
employees after employment, but before retirement. Adoption of this
accounting standard on January 30, 1994 resulted in a one-time charge to
earnings of $4,300,000 (net of income tax benefit of $2,552,000) or $.07 per
share recognized as a cumulative effect of a change in accounting principle.
<PAGE>
<PAGE>11
LIQUIDITY AND CAPITAL RESOURCES - OCTOBER 29, 1994
- ----------------------------------------------
The Company's cash requirements arise principally from the need to finance
the acquisition, construction and equipping of new stores and the purchase of
inventory. During the first thirty-nine weeks of 1994, the Company invested
$123,801,000 in property and equipment while inventory increased $75,736,000.
Working capital increased from $92,518,000 at January 29, 1994 to
$135,390,000 at October 29, 1994. At October 29, 1994 the Company had
stockholders' equity of $570,101,000 and long-term debt of $368,007,000. The
Company's long-term debt was 39% of its total capitalization at October 29,
1994.
The Company plans to open approximately 27 new stores during the balance of
the current fiscal year. Management estimates that the cost of this
expansion, coupled with expenditures in existing stores, warehouses and
offices will be approximately $30,000,000. In addition, the Company has
authorization to purchase up to $75,000,000 of its Common Stock for sale to
an employee benefits trust, of which Common Stock having a cost of
$57,495,000 had been repurchased as of October 29, 1994. Funds required to
finance the store expansion including related inventory requirements and
stock repurchase are expected to come primarily from operating activities
with the remainder provided by unused lines of credit which totalled
$106,200,000 at October 29, 1994.
On August 24, 1994 the Company sold $86,250,000 of 4% convertible
subordinated notes due September 1, 1999. These notes are convertible into
the Common Stock of the Company any time on or before September 1, 1999,
unless previously redeemed, at a conversion price of $41 per share, subject
to adjustment in certain events. The notes will be redeemable, in whole or
in part, at the option of the Company at any time on or after September 15,
1997, at the redemption price of 101% of their principal amount and at par on
or after September 1, 1998. Proceeds were used to repay portions of the
Company's variable rate debt. <PAGE>
<PAGE>12
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(11) Statement Re: Computation of Earnings Per
Share
(27) Financial Data Schedules
(b) Reports on Form 8-K. No reports on Form 8-K have been filed
during the quarter for which this report is filed. <PAGE>
<PAGE>13
SIGNATURES
- ----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE PEP BOYS - MANNY, MOE & JACK
--------------------------------
(Registrant)
Date: December 13, 1994 By: \s\ Michael J. Holden
----------------------- -------------------------
Michael J. Holden
Senior Vice President &
Chief Financial Officer and Treasurer
<PAGE>
<PAGE>14
INDEX TO EXHIBITS
- -----------------
(11) Computations of Earnings Per Share
(27) Financial Data Schedule
<TABLE>
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES Exhibit 11
COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)
<CAPTION>
Thirteen weeks ended Thirty-nine weeks ended
---------------------------------- ---------------------------------
Oct. 29, 1994 Oct. 30, 1993 Oct. 29, 1994 Oct. 30, 1993
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
(a) Earnings Before Cumulative Effect
of Change in Accounting Principle.............. $20,640 $17,443 $61,715 $49,987
(b) Cumulative Effect of Change in
Accounting Principle........................... - - (4,300) _
------------- -------------- ------------- ------------
(c) Net Earnings..................................... $20,640 $17,443 $57,415 49,987
============= ============== ============= ============
Average number of Common Shares outstanding
during the period.............................. 59,236 60,942 59,249 60,834
Common Shares assumed issued upon exercise
of dilutive stock options, net of assumed
repurchase, at the average market price,
using the treasury stock method (1)............ 1,378 1,035 1,325 1,070
------------- ------------- ------------ ------------
(d) Average number of Common Shares assumed
outstanding during the period.................. 60,614 61,977 60,574 61,904
============= ============= ============ ============
Earnings per Share Before Cumulative Effect
of Change in Accounting Principle (a/d)........ $ .34 $ .28 $ 1.02 $ .81
Cumulative Effect of Change in Accounting
Principle (b/d)................................ - - (.07) -
------------ ------------- ----------- -----------
Net Earnings per Share (c/d)..................... $ .34 $ .28 $ .95 $ .81
============ ============= =========== ============
<FN>
(1) The number of Common Shares assumed issued upon exercise of dilutive stock options is essentially the same for fully diluted
earnings per share.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE
SHEET AS OF OCTOBER 29, 1994 AND THE CONSOLIDATED STATEMENT OF EARNINGS FOR THE THIRTY-NINE
WEEK PERIOD ENDED OCTOBER 29, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-28-1995
<PERIOD-END> OCT-29-1994
<CASH> 14,390
<SECURITIES> 0
<RECEIVABLES> 3,632
<ALLOWANCES> 242
<INVENTORY> 381,608
<CURRENT-ASSETS> 419,313
<PP&E> 1,046,066
<DEPRECIATION> 231,443
<TOTAL-ASSETS> 1,250,600
<CURRENT-LIABILITIES> 283,923
<BONDS> 368,007
0
0
<COMMON> 61,435
<OTHER-SE> 508,666
<TOTAL-LIABILITY-AND-EQUITY> 1,250,600
<SALES> 924,795
<TOTAL-REVENUES> 1,071,324
<CGS> 656,861
<TOTAL-COSTS> 777,717
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,033
<INCOME-PRETAX> 98,351
<INCOME-TAX> 36,636
<INCOME-CONTINUING> 61,715
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (4,300)
<NET-INCOME> 57,415
<EPS-PRIMARY> .95
<EPS-DILUTED> .95
