PHILADELPHIA (Sept. 10, 2004) — Pep Boys—Manny, Moe & Jack authorized a plan to repurchase up to $100 million of its outstanding common stock.
The new repurchase program replaces one previously authorized in March 2003 under which no shares were repurchased.
“We remain excited about the opportunities we have to grow the company and are committed to reinvesting in the business, primarily through our store remodel program and future store expansion,” said CFO Harry Yanowitz. “In the future, should this inherent value not be reflected in our stock price, we now have the flexibility to buy back shares.”
CEO Larry Stevenson in a statement acknowledged the automotive service chain expects sales and earnings to fluctuate during the next few quarters as the company has previously announced. Initiatives aimed at the service side of the business—including tire sales—are not expected to gain speed until next year.
“Nonetheless, I remain confident in our ability to realize the company's potential over the next few years,” he said.
Pep Boys' board also approved a quarterly dividend of 6.75 cents per share, payable Oct. 25 to shareholders of record on Oct. 11.
Pep Boys operates 595 stores in 36 states and Puerto Rico.