Pep Boys 2006 Annual Report Download - page 60

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21
During fiscal 2004, the Company sold assets held for disposal for proceeds of $13,327,000 resulting in
a loss of $91,000, which was recorded in discontinued operations on the consolidated statement of
operations.
Analysis of Statement of Operations
The following table presents, for the periods indicated, certain items in the consolidated statements of
operations 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.
Percentage of Total Revenues Percentage Change
Year ended
Feb 3, 2007
(fiscal 2006)
Jan. 28, 2006
(fiscal 2005)
Jan. 29, 2005
(fiscal 2004)
Fiscal 2006 vs.
Fiscal 2005
Fiscal 2005 vs.
Fiscal 2004
Merchandise Sales . . . . . . . . . . . . . . . 82.6% 82.9% 82.0% 1.2% (0.5)%
Service Revenue(1) . . . . . . . . . . . . . . 17.4 17.1 18.0 3.2 (6.4)
Total Revenues. . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 1.5 (1.5)
Costs of Merchandise Sales(2). . . . . 71.2(3) 74.3(3) 72.2(3) (3.0) 2.4
Costs of Service Revenue(2) . . . . . . 92.0(3) 92.1(3) 77.4(3) 3.1 11.4
Total Costs of Revenues . . . . . . . . . . 74.8 77.3 73.1 (1.8) 4.1
Gross Profit from Merchandise
Sales . . . . . . . . . . . . . . . . . . . . . . . . . 28.8(3) 25.7(3) 27.8(3) 13.2 (7.9)
Gross Profit from Service Revenue. 8.0(3) 7.9(3) 22.6(3) 4.6 (67.2)
TotalGrossProfit ............... 25.2 22.7 26.9 12.7 (16.9)
Selling, General and Administrative
Expenses . . . . . . . . . . . . . . . . . . . . . 24.3 23.4 24.1 5.3 (4.4)
Net Gain from Sales of Assets . . . . . 0.7 0.2 0.5 217.0 (59.3)
Operating (Loss) Profit. . . . . . . . . . . 1.6 (0.5) 3.3 420.9 (114.9)
Non-operatingIncome ........... 0.3 0.2 0.1 80.2 113.7
InterestExpense................. 2.2 2.2 1.6 0.6 36.4
(Loss) Earnings from Continuing
Operations Before Income Taxes
and Cumulative Effect of Change
in Accounting Principle. . . . . . . . . (0.3) (2.5) 1.8 88.8 (237.5)
Income Tax (Benefit) Expense . . . . (68.2)(4) (36.5)(4) 37.4(4) (79.1) 234.3
Net (Loss) Earnings from
Continuing Operations Before
Cumulative Effect of Change in
AccountingPrinciple........... (0.1) (1.6) 1.1 94.4 (239.5)
Discontinued Operations, Net of
Tax.......................... — — (0.1) (352.7) 114.0
Cumulative Effect of Change in
Accounting Principle, Net of
Tax . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.1) — 109.4 —
Net(Loss)Earnings.............. (0.01) (1.7) 1.0 93.2 (259.2)
(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