CONTACT: Robert Gross
President and Chief Executive Officer
(585) 647-6400
Catherine D’Amico
Executive Vice President – Finance
Chief Financial Officer
(585) 647-6400
Investor Relations:
Cara O’Brien/Melissa Myron
Media Contact:
Stephanie Sampiere
FD Morgen-Walke
(212) 850-5600
FOR
IMMEDIATE RELEASE
MONRO MUFFLER BRAKE, INC. ANNOUNCES RECORD Q1 SALES AND EARNINGS
~ Comparable Store Sales Increase 5.9% ~
~ Fully Diluted EPS Increases to $0.62 ~
ROCHESTER, N.Y. –
Sales increased 8.4% to $73.6 million from $67.9 million. The sales increase was driven in large part by a 5.9% increase in comparable store sales. Additionally, new stores added $1.9 million to the increase, including $1.5 million from the 10 Frasier Tire Stores acquired in February 2003. The comparable store sales increase resulted in part from a 36% increase in the Company’s commercial business, a 21% increase in the miscellaneous services category including an 11% increase in scheduled maintenance services, and an 8% increase in comparable store tire sales. Comparable store traffic was up approximately 4%.
Gross margin was 43.8% of sales compared to 44.0% of sales last year due primarily to increased tire sales which carry a lower gross margin.
Net income
was $5.9 million, or $0.62 per share, compared to $4.0 million, or $0.42 per
share, in last year’s first quarter. Diluted earnings per share for the
quarter ended
Robert G. Gross, President and Chief Executive Officer stated, “Our record results were driven by sustained positive momentum across all aspects of our business. The catalyst continues to be our focus on consistently delivering superior customer service, which allows us to build trust and drive store traffic. To fully capitalize on our strong customer loyalty and increasing store traffic, we continue to focus on diversifying our revenue stream. For example, we again experienced significant gains in our scheduled maintenance, tire and commercial businesses during the quarter, while achieving solid performance in our core business. Our strong results are also a testament to our company-owned business model. Not only do company-owned stores allow us to develop and promote our core company value of customer service, but also provide the economic benefits of centralized purchasing of key items such as parts, equipment and information technology.”
Mr. Gross continued, “We plan to continue to drive top and bottom line growth by increasing comparable stores sales and by acquiring businesses that are both accretive in a timely manner and complement our existing geographic footprint. Our two new BJ’s Wholesale Club locations are performing significantly ahead of our expectations and we expect to open more locations in the near future.”
“We are confident that the investments and strategic initiatives currently underway will contribute to short and long-term sustainable growth for Monro. In fact, we have seen our strong comparable store sales trend continue into July. As such, we are comfortable tightening our earnings per share guidance for the full year to $1.74 to $1.80, which compares to diluted earnings per share of $1.46 last fiscal year. It should be noted that, beginning in the second quarter, this year’s guidance includes increased depreciation expense, equivalent to $0.03 per share, resulting from the consolidation of the remaining properties under our synthetic lease. We anticipate diluted earnings per share for the second quarter will be in the range of $0.59 to $0.61.”
Monro Muffler Brake operates a chain of stores providing
automotive undercar repair and tire services in the
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
(Tables Follow)
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended Fiscal June
|
|
2003 |
2002 |
% Change |
|
|
|
|
|
|
Sales |
73,643 |
$67,908 |
8.4% |
|
|
|
|
|
|
Cost of sales, including |
|
|
|
|
distribution and occupancy costs |
41,408 |
38,013 |
8.9 |
|
|
|
|
|
|
Gross profit |
32,235 |
29,895 |
7.8 |
|
|
|
|
|
|
Operating, selling, general and |
|
|
|
|
administrative expenses |
22,051 |
22,900 |
(3.7) |
|
|
|
|
|
|
Operating income |
10,184 |
6,995 |
45.6 |
|
|
|
|
|
|
Interest expense, net |
593 |
766 |
(22.7) |
|
|
|
|
|
|
Other expense (income), net |
44 |
(151) |
|
|
|
|
|
|
|
Income before provision for |
|
|
|
|
income taxes |
9,547 |
6,380 |
49.6 |
|
|
|
|
|
|
Provision for income taxes |
3,628 |
2,424 |
49.7 |
|
|
|
|
|
|
Net income |
5,919 |
$3,956 |
49.6 |
|
|
|
|
|
|
Diluted earnings per common share |
0.62 |
$0.42 |
47.6% |
|
Number of stores open |
|
|
|
|
(at end of quarter) |
561 |
548 |
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
diluted shares outstanding |
9,587 |
9,389 |
|
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
|
|
June 28, |
March 29, |
|
|
2003 |
2003 |
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash |
$391 |
$69 |
|
|
|
|
|
Inventories |
$53,061 |
51,256 |
|
|
|
|
|
Other current assets |
13,124 |
12,552 |
|
|
|
|
|
Total current assets |
66,576 |
63,877 |
|
|
|
|
|
Property, plant and equipment, net |
159,396 |
132,148 |
|
|
|
|
|
Other noncurrent assets |
11,000 |
11,175 |
|
|
|
|
|
Total assets |
$236,972 |
$207,200 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
Current liabilities |
$45,428 |
$41,997 |
|
|
|
|
|
Long-term debt |
54,663 |
36,183 |
|
|
|
|
|
Other long-term liabilities |
5,414 |
4,628 |
|
|
|
|
|
Total liabilities |
105,505 |
82,808 |
|
|
|
|
|
Total shareholders’ equity |
131,467 |
124,392 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$236,972 |
$207,200 |
# # #