They missed revenues by 18 million dollars. I covered my short at 9.99.
Pep Boys Swings to Third-Quarter Loss on Charges, Weak Sales
Last Update: 12/3/2012 5:25:10 PM
By Kristin Jones
Pep Boys-Manny Moe & Jack (PBY) swung to a fiscal third-quarter loss as the
auto-care company recorded one-off charges, and its sales sank.
Shares fell 6.5% after hours to $9.99. Through the close, the stock was down 2.9%
so far this year.
Pep Boys' core profits have declined in recent quarters; the company blamed a
mild winter, a slowdown in consumer spending and business-execution problems. Pep
Boys has said it is making changes and expects to return to year-to-year profit
in the third and fourth quarters.
Chief Financial Officer David Stern said the company refinanced its debt in the
latest quarter, adding a one-time cost of $11.2 million. But he said the move
will reduce annual interest expenses by $11 million.
In May, private-equity firm Gores Group lLC dropped its bid to take the
auto-parts and services company private in an $804 million deal. The proposed
acquisition, which followed nearly two years of deliberations, soured after the
company's results began to deteriorate.
For the quarter ended Oct. 27, Pep Boys reported a profit of $6.8 million, or 13
cents a share, compared with a year-earlier profit of $7 million, or 13 cents a
share. The latest quarter included the debt-refinancing charge and an asset
write-down of $8.8 million.
Sales fell 2.4% to $509.6 million.
Analysts polled by Thomson Reuters recently predicted per-share earnings of 15
cents on revenue of $528 million.
Same-store sales fell 2.7%. Comparable service-center revenue edged up 0.2%,
while comparable retail sales were 3.5% lowe