EX-12 7 a07-11517_1ex12.htm EX-12

Exhibit 12

THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES

Exhibit 12—Statement Regarding Computation of Ratios of Earnings to Fixed Charges

 

 

February 3,
2007

 

January 28,
2006

 

January 29,
2005

 

January 31,
2004

 

February 1,
2003

 

 

 

(in thousands, except ratios)

 

Fiscal year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

$

49,342

 

 

 

$

49,040

 

 

 

$

35,965

 

 

 

$

38,255

 

 

 

$

47,237

 

 

Interest factor in rental expense

 

 

19,984

 

 

 

22,534

 

 

 

20,314

 

 

 

21,269

 

 

 

20,424

 

 

Capitalized interest

 

 

799

 

 

 

867

 

 

 

659

 

 

 

 

 

 

44

 

 

(a)  Fixed charges, as defined

 

 

$

70,125

 

 

 

$

72,441

 

 

 

$

56,938

 

 

 

$

59,524

 

 

 

$

67,705

 

 

(Loss) Earnings from continuing operations before income taxes and cumulative effect of change in accounting principle

 

 

$

(6,297

)

 

 

$

(56,368

)

 

 

$

40,981

 

 

 

$

(23,961

)

 

 

$

61,267

 

 

Fixed charges

 

 

70,125

 

 

 

72,441

 

 

 

56,938

 

 

 

59,524

 

 

 

67,705

 

 

Capitalized interest

 

 

(799

)

 

 

(867

)

 

 

(659

)

 

 

 

 

 

(44

)

 

(b)  Earnings, as defined

 

 

$

63,029

 

 

 

$

15,206

 

 

 

$

97,260

 

 

 

$

35,563

 

 

 

$

128,928

 

 

(c)  Ratio of earnings to fixed charges (b÷a)

 

 

 

 

 

 

 

 

1.7

x

 

 

 

 

 

1.9

x

 

 

The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. “Earnings” consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $7.1, $57.2 and $24.0 million for fiscal years ended February 3, 2007, January 28, 2006 and January 31, 2004, respectively.