Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Pep Boys - Manny, Moe & Jack (PBY - Snapshot Report), on October 12th, announced the completion of the amended and restated term loan facility worth $200 million at LIBOR (with a floor of 1.25%) plus 3.75%, due October 11, 2018. The facility has been secured by 142 stores owned by the company. Pep Boys also swapped the interest rate on $100 million of this term loan facility to a fixed rate of 1.855% from the variable LIBOR portion of the interest payment.

The company will utilize the proceeds from the increased facility along with the cash in hand for the payment of $148 million of 7.5% senior subordinated notes due 2014. The remaining amount will be utilized to settle the outstanding interest rate swap of around $8 million.

The company reduced its long-term debt by $95 million, thus achieving its targeted long-term debt reduction of roughly $100 million. The company also reduced its annual interest expense by $11 million.

Pep Boys, in the second quarter of 2012 (ended July 28, 2012), recorded a significant increase in its profit (excluding merger termination fees and severance costs) to $76.7 million or $1.43 per share from $11.9 million or 22 cents in the prior-year comparable quarter. The results surpassed the Zacks Consensus Estimate of $1.28 per share.

Total revenues inched up 0.6% to $525.7 million from $522.6 million in the year-ago quarter, matching the Zacks Consensus Estimate. The growth was mainly driven by the improvement in the company’s service business.

Pep Boys, based in Philadelphia, supplies tires, batteries, new and remanufactured parts for vehicles, chemicals and maintenance items, fashion, electronic, and performance accessories. It also provides non-automotive merchandise such as generators, power tools and personal transportation products.

The company, which competes with O’Reilly Automotive Inc. (ORLY - Analyst Report), AutoZone Inc. (AZO - Analyst Report) and CarMax Inc. (KMX - Analyst Report), currently retains a Zacks #3 Rank, which translates to a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%