Auto parts retailer Pep Boys — Manny, Moe & Jack (PBY), Monday reported a loss in the fourth quarter that widened from a year ago, due mainly to a charge related to pension settlement.
Philadelphia, Pennsylvania-based Pep Boys fourth-quarter loss widened to $14.5 million or $0.27 per share from $4.4 million or $0.08 per share last year.
On average, four analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the fourth quarter were impacted by a net charge of $18.0 million, including a $17.8 million pension settlement charge and a $1.8 million asset impairment charge, partially offset by a $1.6 million gain from the disposition of assets.
Pep Boys' revenues for the quarter increased 5.1 percent to $530.8 million from $505.3 million last year. Four analysts had a consensus revenue estimate of $507.08 million for the quarter.
Comparable sales decreased by 2.6 percent.
Chief Executive Mike Odell said, "Our strategically important service maintenance and repair categories remain a bright spot in what was a disappointing year from a sales and profit perspective."
Pep Boys' had been struggling with its bottom line in the last few quarters. The company relates the shortcoming to uncertain economy, slow consumer spending and some business strategy execution problems as the issues.
The dwindling results of the company caused private-equity firm Gores Group to withdraw its offer to buy-out Pep Boys in an $804 million deal last May
PBY closed Monday's trading at $11.25, down $0.43 or 3.68%, on the NYSE. The stock gained $0.15 or 1.33% in after hours trade.
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