Monro Muffler Brake, Inc. Announces Record Q2 Sales And Earnings
ROCHESTER, N.Y.--Oct. 1, 20036, 2003--| Comparable Store Sales Increase 6.6%; Net Income Increases 20% Generating a Record $0.61 Diluted Earnings Per Share |
Monro Muffler Brake, Inc. today announced record sales and earnings for the second quarter and six months ended September 27, 2003.
Sales for the second quarter increased 9.0% to $74.1 million compared to $68.0 million for the comparable quarter last year. Same store sales increased 6.6% for the second quarter, versus last year's increase of 1.5%. These top line gains reflect consistent store traffic increases, a strong repeat customer business and continued growth of additional products and services that have translated into strength across nearly all of the Company's major product and service lines. During the second quarter, the Company's exhaust business was up approximately 8%, brakes increased approximately 10%, miscellaneous services grew approximately 11%, including a 6.5% increase in scheduled maintenance service and the commercial business posted an approximate 16% gain.
Gross profit for the quarter increased to $31.5 million, or 42.4% of sales, from $28.6 million, or 42.1% of sales, last year.
Net income for the second quarter increased 20.2% to a record $5.9 million, or $0.61 per diluted share, compared to $4.9 million, or $0.52 per share last year. The Company opened one store during the quarter, bringing the total store count at the end of the second quarter of 2003 to 562.
Robert G. Gross, President and Chief Executive Officer stated, "We achieved another record quarter by consistently executing our strategy to drive store traffic with oil changes and to win repeat customers through our industry-leading customer service, our wide range of services and our targeted direct-to-consumer marketing. We believe our strong 10% increase in the high-margin brake category provides evidence that we have been successful in gaining the trust of our customers to complete significant repair and maintenance work on their automobiles. In addition, we were able to achieve these strong results in spite of the negative impact the September hurricane had on our Southern-based stores, which we estimate negatively affected our comparable store sales results by approximately 0.5% for the quarter."
Sales for the six-month period increased 8.7% to $147.7 million from $135.9 million for the comparable period last year. Net income for the six months increased 33.3% to $11.8 million, or $1.22 per diluted share, compared to $8.9 million, or $0.94 per diluted share, in the year-ago period.
Mr. Gross continued, "With five consecutive quarters of comparable store sales increases, our strategy to drive organic growth remains on target. In addition, we continue to actively pursue opportunities to increase our store base and anticipate further expansion during the balance of the year. As previously discussed, we seek to add high-quality stores that will strengthen our geographic presence and/or diversify our product mix while being accretive in a timely fashion."
Mr. Gross concluded, "Our inclusion in the recently released Forbes 200 Best Small Companies list is a testament to the solid foundation we have built and the value we have delivered to our shareholders. Looking to the second half of the year, we will continue to build on our strong fundamentals and the traction we have gained in the marketplace. Currently, we are confident our strong performance will continue and expect diluted earnings per share for the third quarter to be in the range of $0.30 to $0.32 before accounting for the recently announced three-for-two stock split. In addition, we remain comfortable with our full year estimate of diluted earnings per share in the range of $1.74 to $1.80 pre-split."
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, Speedy Auto Service by Monro, Kimmel Tires - Auto Service and Tread Quarters Discount Tires. The Company currently operates 563 stores and has 18 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 exhaust systems, brake systems, steering and suspension systems and many vehicle maintenance services.
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended Fiscal September
------------------------------
2003 2002 % Change
-------- -------- --------
Restated
Sales $ 74,107 $ 68,003 9.0%
Cost of sales, including
distribution and occupancy
costs 42,653 39,392 8.3
-------- --------
Gross profit 31,454 28,611 9.9
Operating, selling, general
and administrative expenses 21,095 20,026 5.3
-------- --------
Operating income 10,359 8,585 20.7
Interest expense, net 889 642 38.5
Other (income) expense, net (44) 31
-------- --------
Income before provision for
income taxes 9,514 7,912 20.3
Provision for income taxes 3,618 3,007 20.3
-------- --------
Net income $ 5,896 $ 4,905 20.2
======== ========
Diluted earnings per common
share $ 0.61 $ 0.52 17.3%
======== ========
Weighted average number of
diluted shares outstanding 9,721 9,375
Number of stores open
(at end of quarter) 562 550
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Six Months Ended Fiscal September
---------------------------------
2003 2002 % Change
-------- -------- --------
Restated
Sales $ 147,750 $ 135,912 8.7%
Cost of sales, including
distribution and
occupancy costs 84,061 77,406 8.6
-------- --------
Gross profit 63,689 58,506 8.9
Operating, selling,
general and
administrative expenses 43,146 42,925 0.5
-------- --------
Operating income 20,543 15,581 31.8
Interest expense, net 1,482 1,409 5.2
Other (income) expense,
net - (120)
-------- --------
Income before provision
for income taxes 19,061 14,292 33.4
Provision for income
taxes 7,246 5,431 33.4
-------- --------
Net income $ 11,815 $ 8,861 33.3
======== ========
Diluted earnings per
share $ 1.22 $ 0.94 29.8%
======== ========
Weighted average number
of diluted shares
outstanding 9,661 9,393
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
September 27, March 29,
2003 2003
------------- ---------
Assets
Current assets
Cash $ 888 $ 69
Inventories 52,195 51,256
Other current assets 13,689 12,552
------------- ---------
Total current assets 66,772 63,877
Property, plant and
equipment, net 159,934 132,148
Other noncurrent assets 10,728 11,175
------------- ---------
Total assets $ 237,434 $ 207,200
============= =========
Liabilities and Shareholders'
Equity
Current liabilities $ 43,363 $ 41,997
Long-term debt 51,198 36,183
Other long-term liabilities 5,161 4,628
------------- ---------
Total liabilities 99,722 82,808
Total shareholders' equity 137,712 124,392
------------- ---------
Total liabilities and
shareholders' equity $ 237,434 $ 207,200
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