Pep Boys 2012 Annual Report Download - page 60

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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
Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Fiscal 2012 vs. Fiscal 2011 vs.
Year ended (Fiscal 2012) (Fiscal 2011) (Fiscal 2010) Fiscal 2011 Fiscal 2010
Merchandise sales ............. 78.6% 79.6% 80.4% 0.1% 2.8%
Service revenue(1) ............. 21.4 20.4 19.6 6.2 7.8
Total revenues ............... 100.0 100.0 100.0 1.3 3.8
Costs of merchandise sales(2) ..... 70.6(3) 70.3(3) 69.5(3) (0.5) (4.0)
Costs of service revenue(2) ....... 98.3(3) 95.0(3) 91.1(3) (9.9) (12.3)
Total costs of revenues ......... 76.5 75.3 73.7 (2.9) (6.0)
Gross profit from merchandise
sales ..................... 29.4(3) 29.7(3) 30.5(3) (0.9) 0.1
Gross profit from service revenue . 1.7(3) 5.0(3) 8.9(3) (64.2) (39.0)
Total gross profit .............. 23.5 24.7 26.3 (3.5) (2.5)
Selling, general and administrative
expenses .................. 22.2 21.5 22.2 (4.4) (0.4)
Pension settlement expense ...... 0.9 — — (100.0) —
Net gain from disposition of assets . 0.1 — 0.1 4772.6 (98.9)
Operating profit .............. 0.6 3.2 4.2 (82.2) (20.6)
Merger termination fees, net ..... 2.1 — — 100.0 —
Non-operating income .......... 0.1 0.1 0.1 (13.5) (10.9)
Interest expense .............. 1.6 1.3 1.3 (29.2) 1.6
Earnings from continuing
operations before income taxes . . 1.1 2.0 2.9 (45.9) (28.8)
Income tax expense ............ 41.5(4) 30.0(4) 36.4(4) (25.0) 41.4
Earnings from continuing
operations ................. 0.6 1.4 1.9 (54.8) (21.6)
Discontinued operations, net of tax — — — 53.0 58.3
Net earnings ................. 0.6 1.4 1.8 (55.7) (21.1)
(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 from continuing operations before income taxes.
Fiscal 2012 vs. Fiscal 2011
Total revenue for fiscal 2012 increased by $27.1 million, or 1.3%, to $2,090.7 million from
$2,063.6 million for fiscal 2011. Excluding the fifty-third week in 2012, comparable sales decreased
2.0%, consisting of a 1.3% comparable service revenue increase offset by a 2.9% comparable
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