~ Total Sales Increase 11.8% to Record $120.4 Million ~ ~ Comparable Store Sales Increase 5.6% ~
ROCHESTER, N.Y., July 24 /PRNewswire/ -- Monro Muffler Brake, Inc.
(Nasdaq: MNRO), a leading provider of automotive undercar repair and tire
services, today announced record financial results for its fiscal 2009 first
quarter ended June 28, 2008.
First Quarter Results
Sales for the first quarter of fiscal 2009 increased 11.8% to a record
$120.4 million compared to $107.6 million for the first quarter of fiscal
2008. Sales were positively impacted by strong in-store execution, a 2.5%
comparable store traffic increase driven by effective advertising programs,
and additional price increases in certain product categories. Comparable
store sales increased 5.6%, on top of an increase of 6.2% for the first
quarter of fiscal 2008 and exceeded the Company's previously estimated range
of 3% to 5%. Comparable store sales for the first quarter of fiscal 2009
include a comparable store sales increase of 8.2% for the former ProCare
stores. For specific product categories, comparable store sales increased
approximately 5% for brakes, 6% for maintenance services, 12% for alignments
and 9% for tires.
The total sales for the quarter included an increase in sales from new
stores of $7.4 million. The new store sales increase included $6.6 million in
sales from the 19 former Craven and Valley Forge stores acquired in July 2007
and the seven former Broad Elm group stores acquired in January 2008.
Gross margin was 42.3% in the first quarter compared to 43.4% in the prior
year quarter due primarily to increased raw material costs, partially offset
by price increases implemented throughout the quarter. Total operating
expenses were $36.9 million, or 30.7% of sales, compared with 30.5% of sales
for the same period of the prior year. Total operating expenses for the first
quarters of fiscal 2009 and 2008 include amounts that were historically
included in Other Income and Expense, primarily related to gains and losses on
property disposals, and amortization expense.
Net income for the quarter was $7.8 million as compared to $8.2 million
for the prior year period. Diluted earnings per share for the quarter were a
record $.39 and were at the high-end of the Company's previously expected
range. This compares to diluted earnings per share of $.36 in the first
quarter of fiscal 2008.
Robert G. Gross, Chairman and Chief Executive Officer stated, "We are very
encouraged by our continued strong performance and the positive momentum that
our business has sustained over the past five months. We believe that our
unwavering commitment to providing consistent quality service to our loyal
customers, coupled with our solid marketing and advertising efforts, has
enabled us to increase our market share and drive store traffic in what has
been a difficult time for many of our competitors. Further, our reputation as
a trusted service provider has enabled us to raise our prices in order to
partially offset higher raw materials costs while maintaining strong
relationships with our customers."
The Company closed seven locations during the quarter, ending first
quarter fiscal 2009 with 713 stores.
Company Outlook
Based on year-to-date performance and current business trends, the Company
anticipates comparable store sales growth in the range of 3% to 5% for the
second quarter of fiscal 2009. The Company also expects diluted earnings per
share for the second quarter to be in the range of $.36 to $.38, compared to
$.29 for the second quarter of fiscal 2008.
For fiscal 2009, the Company now anticipates comparable store sales growth
of 3% to 4% and diluted earnings per share in the range of $1.10 to $1.18,
compared with previous expectations of 2% to 4% comparable store sales growth
and diluted earnings per share in the range of $1.08 to $1.18. The estimates
are based on 20.4 million weighted average shares outstanding and exclude the
impact of any potential acquisitions. The Company continues to expect total
fiscal 2009 sales in the range of $455 million to $465 million.
Mr. Gross concluded, "We are very pleased to see that our positive trends
have extended into our current quarter, with our July monthly comparable store
sales increasing approximately 8% as of last weekend. While we are cognizant
of the challenging macro environment, we are cautiously optimistic about our
outlook for the remainder of the year and expect that our Company-operated
stores and low cost business model will allow us to continue to produce solid
results. Moreover, we believe that our strong foundation will afford us the
stability and flexibility to capitalize on fairly-priced acquisitions, which
we anticipate may arise in this difficult environment."
Earnings Conference Call and Webcast
The Company will host a conference call and audio webcast, today, July 24,
2008, at 11:00 a.m. Eastern Time. The conference call may be accessed by
dialing 800-762-8795 and using the required pass code 3895948. A replay will
be available approximately one hour after the recording through Thursday, July
31, 2008, and can be accessed by dialing 800-406-7325. The live conference
call and replay can also be accessed via audio webcast at the Investor Info
section of the Company's website, located at www.monro.com. An archive will
be available at this website through July 31, 2008.
About Monro Muffler Brake
Monro Muffler Brake operates a chain of stores providing automotive
undercar repair and tire services in the United States, operating under the
brand names of Monro Muffler Brake and Service, Mr. Tire and Tread Quarters
Discount Tires. The Company currently operates 713 stores and has 14 dealer
locations in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West
Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North
Carolina, South Carolina, Indiana, Rhode Island, Delaware, Maine and Michigan.
Monro's stores provide a full range of services for brake systems, steering
and suspension systems, tires, exhaust systems and many vehicle maintenance
services.
The statements contained in this press release that are not historical
facts may contain statements of future expectations and other forward-looking
statements made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
subject to risks, uncertainties and other important factors that could cause
actual results to differ materially from those expressed. These factors
include, but are not necessarily limited to, product demand, dependence on and
competition within the primary markets in which the Company's stores are
located, the need for and costs associated with store renovations and other
capital expenditures, the effect of economic conditions, the impact of
competitive services and pricing, product development, parts supply restraints
or difficulties, industry regulation, risks relating to leverage and debt
service (including sensitivity to fluctuations in interest rates), continued
availability of capital resources and financing, risks relating to integration
of acquired businesses and other factors set forth elsewhere herein and in the
Company's Securities and Exchange Commission filings, including the report on
Form 10-K for the fiscal year ended March 29, 2008.
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)
Quarter Ended Fiscal June
2009 2008 % Change
Sales $120,369 $107,62211.8%
Cost of sales, including
distribution and occupancy costs69,48060,94514.0
Gross profit 50,88946,677 9.0
Operating, selling, general and
administrative expenses 36,85232,68412.8
Intangible amortization 123 123 -
(Gain) loss on disposal of assets (32) 53 -
Total operating expenses 36,94332,86012.4
Operating income 13,94613,817 .9
Interest expense, net 1,519 1,18927.8
Other income, net (72) (415) (82.6)
Income before provision for income taxes 12,49913,043(4.2)
Provision for income taxes4,705 4,861(3.2)
Net income $7,794$8,182(4.7)
Diluted earnings per share $.39 $.36 8.3%
Weighted average number of
diluted shares outstanding 20,10522,910
Number of stores open (at end of quarter) 713 696
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
June 28, March 29,
2008 2008
Current assets
Cash $2,217$2,108
Inventories69,33266,183
Other current assets 24,32224,582
Total current assets 95,87192,873
Property, plant and equipment, net 182,218 184,184
Other noncurrent assets 93,75393,412
Total assets $371,842 $370,469
Liabilities and Shareholders' Equity
Current liabilities $67,357 $58,311
Long-term debt 107,176 122,585
Other long term liabilities 14,65014,725
Total liabilities 189,183 195,621
Total shareholders' equity 182,659 174,848
Total liabilities and
shareholders' equity $371,842 $370,469
SOURCE Monro Muffler Brake, Inc.
