Monro Muffler Brake, Inc. Reports Fourth Quarter and Year End Results
ROCHESTER, N.Y.--May 17, 2001--Monro Muffler Brake, Inc. , today announced results for its fourth quarter and year ended March 31, 2001, reporting a 22% increase in net income for the fourth quarter over the prior year period.Sales for the fiscal 2001 fourth quarter were $50.1 million, compared to $50.0 million for the corresponding quarter ended March 31, 2000. Comparable store sales decreased 2.4%, offset by an increase in sales from new stores of $0.8 million.
Net income for the fourth quarter of fiscal 2001 increased 22.3% to $1.4 million, or $0.16 per diluted share, as compared to $1.2 million, or $0.13 per diluted share, in the prior year period.
Sales for the twelve months ended March 31, 2001 decreased 0.3% to $223.0 million as compared to $223.6 million in the prior year. Net income for the twelve months ended March 31, 2001 increased 18.1% to $9.7 million, or $1.09 per diluted share, versus $8.2 million, or $0.92 per diluted share, for fiscal 2000. During the year, the Company opened four stores, and closed one Speedy and four Monro stores which were redundant or underperforming. The Company plans to open approximately five stores in fiscal 2002.
"In the fourth quarter, we continued our strong track record of year-on-year earnings growth with a 22.3% increase in our bottom-line performance," commented Robert G. Gross, President and Chief Executive Officer. "While comparable store sales and store traffic in the fourth quarter were adversely impacted by extreme winter conditions, traffic for the full year was up in both Monro and Speedy stores. We were also very encouraged that ticket average for the fourth quarter increased by approximately 3% over the prior year fourth quarter. Over the past several quarters, we have significantly reduced our cost structure while implementing new initiatives focused on driving sales, increasing market share and improving customer satisfaction. The early success of our efforts is beginning to be reflected in these positive trends in store traffic and ticket average in spite of weak industry conditions."
Mr. Gross continued, "In order to effectively improve sales, we are employing innovative retail strategies new to the undercar repair/maintenance market. For example, our recent marketing initiative targeting non-customers who live within one mile of a Monro store received an excellent 4.0% response rate, consistent with our strategy to turn new visitors into loyal customers. We continue to reward our top-performing store managers with special bonuses and stock option plans, furthering the Company's mission to provide customers superior service at a fair price, while retaining and incentivizing motivated employees.
"Additionally, in this first quarter of fiscal 2002, we are beginning to see an increase in repeat business, notably in scheduled maintenance. We believe this success stems from the steady increase in oil change traffic during the past year, which introduced many first-time customers to Monro. The new, fully implemented point-of-sale system, now shared by all Monro and Speedy stores, also helps employees promote scheduled maintenance to customers, and will contribute to our operating performance going forward."
"Looking ahead, we are very optimistic about our near-term prospects and long-term opportunity," concluded Mr. Gross. "As a result of our outlined efforts to drive store traffic, increase customer spending through improved service, and implement price increases while still maintaining our price advantage versus the competition, we are confident that we will see positive growth in comparable stores sales in the first quarter. Also, as a result of current sales trends and improved margins, combined with favorable interest rates and a reduction in our tax rate, we now anticipate first quarter earnings to be in the range of $0.44 to $0.46 per diluted share, versus the previously forecasted $0.43 to $0.44 range."
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended March 31,
2001 2000 % Change
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Sales $ 50,072 $ 50,036 .1%
Cost of sales, including
distribution and occupancy costs 31,145 31,277 (0.4)
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Gross profit 18,927 18,759 .9
Operating, selling, general and
administrative expenses 14,946 14,273 4.7
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Operating income 3,981 4,486 (11.3)
Interest expense, net 1,244 1,733 (28.2)
Other expense, net 395 852 (53.6)
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Income before provision for
income taxes 2,342 1,901 23.2
Provision for income taxes 933 749 24.6
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Net income $ 1,409 $ 1,152 22.3
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Diluted earnings per share $ 0.16 $ 0.13 23.1%
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Weighted average number of
diluted shares outstanding 8,865 8,930
Number of stores open
(at end of quarter) 511 512
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands, except per share amounts)
Year Ended March 31,
2001 2000 % Change
------------ ------------ ----------
Sales $ 222,955 $ 223,605 (0.3)%
Cost of sales, including
distribution and occupancy costs 133,196 134,169 (0.7)
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Gross profit 89,759 89,436 0.4
Operating, selling, general and
administrative expenses 66,988 66,889 .1
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Operating income 22,771 22,547 1.0
Interest expense, net 5,768 6,831 (15.6)
Other expense, net 896 2,091 (57.1)
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Income before provision for
income taxes 16,107 13,625 18.2
Provision for income taxes 6,411 5,418 18.3
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Net income $ 9,696 $ 8,207 18.1
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Diluted earnings per share $ 1.09 $ 0.92 18.5%
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Weighted average number of
diluted shares outstanding 8,891 8,964
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands)
March 31, March 31,
2001 2000
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Assets
Current assets
Cash $ 751 $ 507
Inventories 41,071 39,698
Other current assets 7,945 7,932
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Total current assets 49,767 48,137
Property, plant and equipment, net 131,486 133,875
Other noncurrent assets 12,586 14,013
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Total assets $ 193,839 $ 196,025
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Liabilities and Shareholders' Equity
Current liabilities $ 36,569 $ 36,261
Long-term debt 50,857 63,639
Other long term liabilities 8,603 7,350
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Total liabilities 96,029 107,250
Total shareholders' equity 97,810 88,775
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Total liabilities and
shareholders' equity $ 193,839 $ 196,025
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