Pep Boys 2013 Annual Report Download - page 93

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For fiscal 2013 and beyond, we focused our efforts on ensuring that Pep Boys is the best place to
shop and care for your car and have moved our entire business model towards a more focused
customer centered strategy. See ‘‘ITEM 1 BUSINESS—BUSINESS STRATEGY.’’
RESULTS OF OPERATIONS
The following discussion explains the material changes in our results of operations for the years
ended February 1, 2014, February 2, 2013 and January 28, 2012.
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 changes are
reflected as favorable or (unfavorable).
Percentage of Total Revenues Percentage Change
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Fiscal 2013 vs. Fiscal 2012 vs.
Year ended (Fiscal 2013) (Fiscal 2012) (Fiscal 2011) Fiscal 2012 Fiscal 2011
Merchandise sales ............. 77.8% 78.6% 79.6% (2.1)% 0.1%
Service revenue(1) ............. 22.2 21.4 20.4 2.5 6.2
Total revenues ............... 100.0 100.0 100.0 (1.2) 1.3
Costs of merchandise sales(2) ..... 68.9(3) 70.6(3) 70.3(3) 4.5 (0.5)
Costs of service revenue(2) ....... 102.8(3) 98.3(3) 95.0(3) (7.2) (9.9)
Total costs of revenues ......... 76.4 76.5 75.3 1.3 (2.9)
Gross profit from merchandise
sales ..................... 31.1(3) 29.4(3) 29.7(3) 3.4 (0.9)
Gross (loss) profit from service
revenue ................... (2.8)(3) 1.7(3) 5.0(3) (271.8) (64.2)
Total gross profit .............. 23.6 23.5 24.7 (0.8) (3.5)
Selling, general and administrative
expenses .................. 22.5 22.2 21.5 (0.3) (4.4)
Pension settlement expense ...... — 0.9 — 100.0 (100.0)
Net (loss) gain from disposition of
assets .................... — 0.1 — (117.2) 4772.6
Operating profit .............. 1.1 0.6 3.2 91.3 (82.2)
Merger termination fees, net ..... — 2.1 — (100.0) 100.0
Non-operating income .......... 0.1 0.1 0.1 (11.1) (13.5)
Interest expense .............. 0.7 1.6 1.3 56.5 (29.2)
Earnings from continuing
operations before income taxes . . 0.5 1.1 2.0 (58.7) (45.9)
Income tax expense ............ 24.1(4) 41.5(4) 30.0(4) 76.1 (25.0)
Earnings from continuing
operations ................. 0.3 0.6 1.4 (46.4) (54.8)
Discontinued operations, net of tax — — — 45.5 53.0
Net earnings ................. 0.3 0.6 1.4 (46.4) (55.7)
(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.
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