PHILADELPHIA -- Pep Boys has announced results for the second quarter and first half, ended July 31.
 
Sales for the 13 weeks ended July 31 increased by $15.9 million, or 3.3 percent, to $504.9 million from $488.9 million for the 13 weeks ended Aug. 1, 2009. Net earnings for the second quarter increased to $10.6 million (20 cents per share) from $7.7 million (15 cents per share) recorded in the same period last year.

The company said second quarter 2010 results reflect increased sales and improved total gross profit margin rates and include, on a pre-tax basis, a $2.4 million gain from the disposition of assets and a $1 million reversal of an inventory related accrual, partially offset by a $1 million asset impairment charge.

Sales for the 26 weeks ended July 31 were $1,014.9 million, as compared to $985.4 million for the 26 ended Aug. 1, 2009. Net earnings for the first half of 2010 increased to $22.5 million (43 cents per share) from the $18.6 million (36 cents per share) recorded in the same period last year.

The first half 2010 results reflect increased sales and improved total gross profit margin rates and include, on a pre-tax basis, a $2.5 million gain from the disposition of assets and a $1 million reversal of an inventory related accrual, partially offset by a $1 million asset impairment charge. The first half 2009 results included, on a pre-tax basis, a $6.2 million gain resulting from bond repurchases.

“Our results mark the sixth consecutive quarter of improved profitability,” said President and CEO Mike Odell. “We continue to earn the trust of our customers every day by delivering an experience that is based on speed, expertise, respect and value.”

CFO Ray Arthur added, “Disciplines are the key to our improved profitability allowing us to convert modest sales growth into large profit gains and positive cash flow. We ended the quarter with $92.4 million in cash, no drawings on our line of credit and the liquidity to continue expansion of our Service & Tire Center network. We anticipate opening a total of approximately 35 new locations, consisting of Service & Tire Centers and Supercenters, this year.”

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