EX-99.2 3 a05-20124_1ex99d2.htm EXHIBIT 99.2

Exhibit 99.2

 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

CONSOLIDATED STATEMENTS
OF OPERATIONS

 

 

 

 

 

(dollar amounts in thousands, except per share amounts)

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 29, 2005

 

October 30, 2004

 

October 29, 2005

 

October 30, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Merchandise Sales

 

$

451,784

 

82.9

 

$

456,220

 

81.7

 

$

1,395,045

 

82.8

 

$

1,404,594

 

81.8

 

Service Revenue

 

93,422

 

17.1

 

102,245

 

18.3

 

290,364

 

17.2

 

311,940

 

18.2

 

Total Revenues

 

545,206

 

100.0

 

558,465

 

100.0

 

1,685,409

 

100.0

 

1,716,534

 

100.0

 

Costs of Merchandise Sales

 

337,815

 

74.8

 

329,059

 

72.1

 

1,026,406

 

73.6

 

1,000,885

 

71.3

 

Costs of Service Revenue

 

89,055

 

95.3

 

79,452

 

77.7

 

259,608

 

89.4

 

238,513

 

76.5

 

Total Costs of Revenues

 

426,870

 

78.3

 

408,511

 

73.1

 

1,286,014

 

76.3

 

1,239,398

 

72.2

 

Gross Profit from Merchandise Sales

 

113,969

 

25.2

 

127,161

 

27.9

 

368,639

 

26.4

 

403,709

 

28.7

 

Gross Profit from Service Revenue

 

4,367

 

4.7

 

22,793

 

22.3

 

30,756

 

10.6

 

73,427

 

23.5

 

Total Gross Profit

 

118,336

 

21.7

 

149,954

 

26.9

 

399,395

 

23.7

 

477,136

 

27.8

 

Selling, General and Administrative Expenses

 

126,934

 

23.3

 

132,402

 

23.7

 

395,144

 

23.4

 

398,332

 

23.2

 

Operating (Loss) Profit

 

(8,598

)

(1.6

)

17,552

 

3.1

 

4,251

 

0.3

 

78,804

 

4.6

 

Non-operating Income

 

527

 

0.1

 

1,089

 

0.2

 

2,748

 

0.2

 

2,151

 

0.1

 

Interest Expense

 

9,205

 

1.7

 

8,056

 

1.5

 

27,354

 

1.6

 

25,154

 

1.4

 

(Loss) Earnings From Continuing Operations Before Income Taxes

 

(17,276

)

(3.2

)

10,585

 

1.9

 

(20,355

)

(1.2

)

55,801

 

3.3

 

Income Tax (Benefit) Expense

 

(5,866

)

34.0

(1) 

3,916

 

37.0

(1) 

(7,285

35.8

(1) 

20,646

 

37.0

(1) 

Net (Loss) Earnings From Continuing Operations

 

(11,410

)

(2.1

)

6,669

 

1.2

 

(13,070

)

(0.8

)

35,155

 

2.0

 

Discontinued Operations, Net of Tax

 

214

 

0.0

 

(169

)

(0.0

)

143

 

0.0

 

(1,441

)

(0.1

)

Net (Loss) Earnings

 

(11,196

)

(2.1

)

6,500

 

1.2

 

(12,927

)

(0.8

)

33,714

 

2.0

 

Retained Earnings, beginning of period

 

525,703

 

 

 

549,133

 

 

 

536,780

 

 

 

531,933

 

 

 

Cash Dividends

 

(3,664

)

 

 

(3,925

)

 

 

(10,984

 

 

(11,738

 

 

Effect of Stock Options

 

(257

)

 

 

(389

)

 

 

(2,231

 

 

(2,590

 

 

Dividend Reinvestment Plan

 

(54

)

 

 

(72

)

 

 

(106

 

 

(72

 

 

Retained Earnings, end of period

 

$

510,532

 

 

 

$

551,247

 

 

 

$

510,532

 

 

 

$

551,247

 

 

 

Basic (Loss) Earnings per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Earnings From Continuing Operations

 

$

(0.21

)

 

 

$

0.12

 

 

 

$

(0.24

 

 

$

0.62

 

 

 

Discontinued Operations, Net of Tax

 

0.01

 

 

 

(0.01

 

 

 

 

 

(0.03

 

 

Basic (Loss) Earnings per Share

 

$

(0.20

)

 

 

$

0.11

 

 

 

$

(0.24

 

 

$

0.59

 

 

 

Diluted Earnings (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Earnings From Continuing Operations

 

$

(0.21

)

 

 

$

0.11

 

 

 

$

(0.24

 

 

$

0.59

 

 

 

Discontinued Operations, Net of Tax

 

0.01

 

 

 

 

 

 

 

 

 

(0.02

 

 

Diluted (Loss) Earnings per Share

 

$

(0.20

)

 

 

$

0.11

 

 

 

$

(0.24

 

 

$

0.57

 

 

 

Cash Dividends per Share

 

$

0.0675

 

 

 

$

0.0675

 

 

 

$

0.2025

 

 

 

$

0.2025

 

 

 

 


(1) As a percentage of (loss) earnings before income taxes.

 

 



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

CONSOLIDATED BALANCE SHEETS

 

(dollar amounts in thousands, except per share amounts)

 

 

 

October 29, 2005

 

January 29, 2005

 

October 30, 2004

 

Assets

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

36,534

 

$

82,758

 

$

35,185

 

Accounts receivable, net

 

34,473

 

30,994

 

40,827

 

Merchandise inventories

 

648,368

 

602,760

 

611,645

 

Prepaid expenses

 

26,511

 

45,349

 

25,049

 

Other

 

63,123

 

96,065

 

118,331

 

Assets held for disposal

 

652

 

665

 

2,185

 

Total Current Assets

 

809,661

 

858,591

 

833,222

 

Property and Equipment - at cost:

 

 

 

 

 

 

 

Land

 

258,124

 

261,985

 

263,201

 

Buildings and improvements

 

909,872

 

916,099

 

909,752

 

Furniture, fixtures and equipment

 

668,960

 

633,098

 

606,183

 

Construction in progress

 

18,266

 

40,426

 

31,101

 

 

 

1,855,222

 

1,851,608

 

1,810,237

 

Less accumulated depreciation and amortization

 

908,181

 

906,577

 

892,075

 

Property and Equipment - net

 

947,041

 

945,031

 

918,162

 

Other

 

66,125

 

63,401

 

51,769

 

Total Assets

 

$

1,822,827

 

$

1,867,023

 

$

1,803,153

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

304,120

 

$

310,981

 

$

307,921

 

Trade payable program liability

 

11,212

 

 

 

Accrued expenses

 

265,331

 

306,671

 

246,707

 

Deferred income taxes

 

19,238

 

19,406

 

20,164

 

Current maturities of long-term debt and obligations under capital leases

 

144,164

 

40,882

 

147,171

 

Total Current Liabilities

 

744,065

 

677,940

 

721,963

 

 

 

 

 

 

 

 

 

Long-term debt and obligations under capital leases, less current maturities

 

270,868

 

352,682

 

180,253

 

Convertible long-term debt

 

119,000

 

119,000

 

150,000

 

Other long-term liabilities

 

52,895

 

37,977

 

38,069

 

Deferred income taxes

 

14,096

 

25,968

 

40,972

 

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

 

287,184

 

284,966

 

284,660

 

Retained earnings

 

510,532

 

536,780

 

551,247

 

Accumulated other comprehensive loss

 

(3,004

)

(4,852

)

(284

)

 

 

863,269

 

885,451

 

904,180

 

Less cost of shares in treasury -12,210,647 shares 11,305,130 shares and 11,319,985 shares

 

182,102

 

172,731

 

173,020

 

Less cost of shares in benefits trust - 2,195,270 shares

 

59,264

 

59,264

 

59,264

 

Total Stockholders’ Equity

 

621,903

 

653,456

 

671,896

 

Total Liabilities and Stockholders’ Equity

 

$

1,822,827

 

$

1,867,023

 

$

1,803,153

 

 

 

 

2



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(dollar amounts in thousands)

 

 

 

 

 

 

 

Thirty-nine Weeks Ended

 

October 29, 2005

 

October 30, 2004

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net (loss) earnings

 

$

(12,927

)

$

33,714

 

Net income (loss) from discontinued operations

 

143

 

(1,441

)

Net (loss) earnings from continuing operations

 

$

(13,070

)

$

35,155

 

Adjustment to Reconcile Net (Loss) Earnings from Continuing

 

 

 

 

 

Operations to Net Cash Provided by Continuing Operations:

 

 

 

 

 

Depreciation and amortization

 

59,283

 

56,473

 

Accretion of asset disposal obligation

 

84

 

105

 

Stock compensation expense

 

2,001

 

996

 

Deferred income taxes

 

(12,337

)

52,572

 

(Gain) loss from sales of assets

 

(2,977

)

358

 

Changes in Operating Assets and Liabilities:

 

 

 

 

 

Decrease (increase) in accounts receivable, prepaid expenses and other

 

48,726

 

(31,133

)

Increase in merchandise inventories

 

(45,608

)

(58,083

)

Decrease in accounts payable

 

(6,861

)

(27,447

)

Decrease in accrued expenses

 

(44,075

)

(21,347

)

Increase (decrease) in other long-term liabilities

 

14,918

 

(1,310

)

Net cash provided by continuing operations

 

84

 

6,339

 

Net cash used in discontinued operations

 

(119

)

(2,064

)

Net Cash (Used in) Provided by Operating Activities

 

(35

)

4,275

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Capital expenditures

 

(65,197

)

(52,631

)

Proceeds from sales of assets

 

1,724

 

1,472

 

Proceeds from sales of assets held for disposal

 

6,913

 

11,859

 

Net cash used in continuing operations

 

(56,560

)

(39,300

)

Net cash provided by discontinued operations

 

916

 

 

Net Cash Used in Investing Activities

 

(55,644

)

(39,300

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Net borrowings under line of credit agreements

 

62,163

 

35,669

 

Net borrowings (payments) on trade payable program liability

 

11,212

 

(7,216

)

Reduction of long-term debt

 

(40,456

)

(84,431

)

Payments on capital lease obligations

 

(363

)

(306

)

Dividends paid

 

(10,984

)

(11,738

)

Repurchase of common stock

 

(15,562

)

(38,900

)

Proceeds from issuance of common stock

 

 

108,854

 

Proceeds from exercise of stock options

 

2,711

 

6,385

 

Proceeds from dividend reinvestment plan

 

734

 

909

 

Net Cash Provided by Financing Activities

 

9,455

 

9,226

 

Net Decrease in Cash

 

(46,224

)

(25,799

)

Cash and Cash Equivalents at Beginning of Period

 

82,758

 

60,984

 

Cash and Cash Equivalents at End of Period

 

$

36,534

 

$

35,185

 

 

 

 

 

 

 

Cash paid for interest

 

$

19,491

 

$

19,500

 

Cash received from income tax refunds

 

$

8,605

 

$

 

Cash paid for income taxes

 

$

 

$

4,602

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

Accrued purchases of property and equipment

 

$

2,182

 

$

49

 

Non-cash financing activities:

 

 

 

 

 

Equipment Capital Lease

 

$

124

 

$

1,413

 

 

 

3



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE

 

 

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

 

 

 

 

 

 

 

 

 

 

 

October 29,
2005

 

October 30,
2004

 

October 29,
2005

 

October 30,
2004

 

 

 

 

 

 

 

 

 

 

 

(a) Net (loss) earnings from continuing operations

 

$

(11,410

)

$

6,669

 

$

(13,070

)

$

35,155

 

Adjustment for interest on convertible senior notes, net of income tax effect

 

 

 

 

3,004

 

(b) Adjusted net (loss) earnings from continuing operations

 

$

(11,410

)

$

6,669

 

$

(13,070

)

$

38,159

 

(c) Average number of common shares outstanding during period

 

54,774

 

57,574

 

55,288

 

56,798

 

Common shares assumed issued upon conversion of convertible senior notes

 

 

 

 

6,697

 

Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price

 

 

752

 

 

1,482

 

(d) Average number of common shares assumed outstanding during period

 

54,774

 

58,326

 

55,288

 

64,977

 

Basic (Loss) Earnings per Share:

 

 

 

 

 

 

 

 

 

Net (Loss) Earnings From Continuing Operations (a/c)

 

$

(0.21

)

$

0.12

 

$

(0.24

)

$

0.62

 

Discontinued Operations, Net of Tax

 

0.01

 

(0.01

)

 

(0.03

)

Basic (Loss) Earnings per Share

 

$

(0.20

)

$

0.11

 

$

(0.24

)

$

0.59

 

Diluted (Loss) Earnings per Share:

 

 

 

 

 

 

 

 

 

Net (Loss) Earnings From Continuing Operations (b/d)

 

$

(0.21

)

$

0.11

 

$

(0.24

)

$

0.59

 

Discontinued Operations, Net of Tax

 

0.01

 

 

 

(0.02

)

Diluted (Loss) Earnings per Share

 

$

(0.20

)

$

0.11

 

$

(0.24

)

$

0.57

 

 

 

4



 

THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

ADDITIONAL INFORMATION

 

 

 

 

 

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

 

 

 

 

 

 

 

 

 

 

 

October 29,
2005

 

October 30,
2004

 

October 29,
2005

 

October 30,
2004

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

22,771

 

$

23,801

 

$

67,382

 

$

52,631

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

20,628

 

$

18,706

 

$

59,283

 

$

56,473

 

 

 

 

 

 

 

 

 

 

 

Non-operating income:

 

 

 

 

 

 

 

 

 

Net rental revenue

 

$

355

 

$

1,007

 

$

1,069

 

$

1,855

 

Investment income

 

272

 

127

 

777

 

475

 

Other (expense) income

 

(100

)

(45

)

902

 

(179

)

Total

 

$

527

 

$

1,089

 

$

2,748

 

$

2,151

 

 

 

 

 

 

 

 

 

 

 

Comparable sales percentages:

 

 

 

 

 

 

 

 

 

Merchandise

 

-0.6

%

5.1

%

-0.5

%

8.5

%

Service

 

-8.2

%

-0.2

%

-6.7

%

1.8

%

Total

 

-2.0

%

4.1

%

-1.6

%

7.2

%

 

 

 

 

 

 

 

 

 

 

Total square feet of retail space (including service centers)

 

 

 

 

 

12,167,089

 

12,206,785

 

 

 

 

 

 

 

 

 

 

 

Total Store Count

 

 

 

 

 

593

 

595

 

 

 

 

 

 

 

 

 

 

 

Sales and Gross Profit by Line of Business (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Sales

 

$

328,194

 

$

322,909

 

$

1,022,241

 

$

1,018,819

 

Service Center Revenue

 

217,012

 

235,556

 

663,168

 

697,715

 

Total Revenues

 

$

545,206

 

$

558,465

 

$

1,685,409

 

$

1,716,534

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

82,347

 

$

85,707

 

$

265,443

 

$

287,830

 

Gross Profit from Service Center Revenue

 

35,989

 

64,247

 

133,952

 

189,306

 

Total Gross Profit

 

$

118,336

 

$

149,954

 

$

399,395

 

$

477,136

 

 

 

 

 

 

 

 

 

 

 

Comparable Sales Percentages (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Sales

 

2.1

%

10.3

%

0.6

%

15.0

%

Service Center Revenue

 

-7.6

%

-3.4

%

-4.8

%

-2.5

%

Total Revenues

 

-2.0

%

4.1

%

-1.6

%

7.2

%

 

 

 

 

 

 

 

 

 

 

Gross Profit Percentage by Line of Business (A):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit Percentage from Retail Sales

 

25.1

%

26.5

%

26.0

%

28.3

%

Gross Profit Percentage from Service Center Revenue

 

16.6

%

27.3

%

20.2

%

27.1

%

Total Gross Profit Percentage

 

21.7

%

26.9

%

23.7

%

27.8

%

 

 

 

 

 

 

 

 

 

 

 


(A) Retail Sales include DIY and Commercial sales.  Service Center Revenue includes revenue from labor and installed parts and tires.

 

 

5



THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES

 

(UNAUDITED)

 

 

(dollar amounts in thousands)

 

Service Labor Reallocation

 

Effective January 30, 2005, the Company restructured its field operations into separate retail and service teams.  In connection with this restructuring, certain retail personnel, who were previously utilized in merchandising roles supporting the service business, were reassigned to purely service-related responsibilities.  The labor and benefit costs related to these associates, which were previously recognized in Selling, General and Administrative Expenses, are now recognized in Costs of Service Revenue.  Please see the table below illustrating the pro forma effect of this change on both the thirteen and thirty-nine weeks ended October 30, 2004 (presented in GAAP and line of business formats), assuming that such associates had been reassigned from retail to service during such period.

 

PRO FORMA STATEMENTS OF OPERATIONS

 

GAAP Format

 

 

 

Thirteen weeks
ended

 

 

 

Thirteen weeks
ended

 

Thirteen weeks
ended

 

 

 

October 30, 2004

 

PRO FORMA

 

October 30, 2004

 

October 29, 2005

 

 

 

ACTUAL

 

ADJUSTMENTS

 

PRO FORMA

 

ACTUAL

 

 

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Merchandise Sales

 

$

127,161

 

27.9

 

$

 

0.0

 

$

127,161

 

27.9

 

$

113,969

 

25.2

 

Gross Profit from Service Revenue

 

22,793

 

22.3

 

(5,376

)

(5.3

)

17,417

 

17.0

 

4,367

 

4.7

 

Total Gross Profit

 

149,954

 

26.9

 

(5,376

)

(1.0

)

144,578

 

25.9

 

118,336

 

21.7

 

Selling, General and Administrative Expenses

 

132,402

 

23.7

 

(5,376

)

(1.0

)

127,026

 

22.7

 

126,934

 

23.3

 

Operating Profit (Loss)

 

$

17,552

 

3.1

 

$

 

0.0

 

$

17,552

 

3.1

 

$

(8,598

)

(1.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks
ended

 

 

 

Thirty-nine weeks
ended

 

Thirty-nine weeks
ended

 

 

 

October 30, 2004

 

PRO FORMA

 

October 30, 2004

 

October 29, 2005

 

 

 

ACTUAL

 

ADJUSTMENTS

 

PRO FORMA

 

ACTUAL

 

 

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Merchandise Sales

 

$

403,709

 

28.7

 

$

 

0.0

 

$

403,709

 

28.7

 

$

368,639

 

26.4

 

Gross Profit from Service Revenue

 

73,427

 

23.5

 

(15,260

)

(4.9

)

58,167

 

18.6

 

30,756

 

10.6

 

Total Gross Profit

 

477,136

 

27.8

 

(15,260

)

(0.9

)

461,876

 

26.9

 

399,395

 

23.7

 

Selling, General and Administrative Expenses

 

398,332

 

23.2

 

(15,260

)

(0.9

)

383,072

 

22.3

 

395,144

 

23.4

 

Operating Profit

 

$

78,804

 

4.6

 

$

 

0.0

 

$

78,804

 

4.6

 

$

4,251

 

0.3

 

 

Line of Business Format

 

 

 

Thirteen weeks
ended

 

 

 

Thirteen weeks
ended

 

Thirteen weeks
ended

 

 

 

October 30, 2004

 

PRO FORMA

 

October 30, 2004

 

October 29, 2005

 

 

 

ACTUAL

 

ADJUSTMENTS

 

PRO FORMA

 

ACTUAL

 

 

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

85,707

 

26.5

 

$

 

0.0

 

$

85,707

 

26.5

 

$

82,347

 

25.1

 

Gross Profit from Service Center Revenue

 

64,247

 

27.3

 

(5,376

)

(2.3

)

58,871

 

25.0

 

35,989

 

16.6

 

Total Gross Profit

 

149,954

 

26.9

 

(5,376

)

(1.0

)

144,578

 

25.9

 

118,336

 

21.7

 

Selling, General and Administrative Expenses

 

132,402

 

23.7

 

(5,376

)

(1.0

)

127,026

 

22.7

 

126,934

 

23.3

 

Operating Profit (Loss)

 

$

17,552

 

3.1

 

$

 

0.0

 

$

17,552

 

3.1

 

$

(8,598

)

(1.6

)

 

 

 

Thirty-nine weeks
ended

 

 

 

Thirty-nine weeks
ended

 

Thirty-nine weeks
ended

 

 

 

October 30, 2004

 

PRO FORMA

 

October 30, 2004

 

October 29, 2005

 

 

 

ACTUAL

 

ADJUSTMENTS

 

PRO FORMA

 

ACTUAL

 

 

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

%

 

 

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

Amount

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit from Retail Sales

 

$

287,830

 

28.3

 

$

 

0.0

 

$

287,830

 

28.3

 

$

265,443

 

26.0

 

Gross Profit from Service Center Revenue

 

189,306

 

27.1

 

(15,260

)

(2.2

)

174,046

 

24.9

 

133,952

 

20.2

 

Total Gross Profit

 

477,136

 

27.8

 

(15,260

)

(0.9

)

461,876

 

26.9

 

399,395

 

23.7

 

Selling, General and Administrative Expenses

 

398,332

 

23.2

 

(15,260

)

(0.9

)

383,072

 

22.3

 

395,144

 

23.4

 

Operating Profit

 

$

78,804

 

4.6

 

$

 

0.0

 

$

78,804

 

4.6

 

$

4,251

 

0.3

 

 

6