Good News-Monro Muffler Brake Results; Record Third Quarter Net Income
ROCHESTER, N.Y.--Jan. 17, 2002--Monro Muffler Brake, Inc. today reported results for the third quarter ended December 29, 2001.Sales for the fiscal 2002 third quarter increased 1.3% to $52.4 million, compared with $51.8 million for the third quarter ended December 31, 2000. Comparable store sales increased 0.6%, and new store sales increased approximately $0.5 million.
At December 29, 2001, the Company had 513 company-operated stores. No stores were opened or closed in the third quarter.
Net income for the third quarter of fiscal 2002 rose 30% to a record $1.8 million, or $0.20 per diluted share, as compared with $1.4 million, or $0.15 per diluted share, in the prior-year period.
Sales for the nine months ended December 29, 2001, increased to $174.3 million from $172.9 million in the comparable period last year. Net income for the first nine months of fiscal 2002 rose 13% to $9.3 million, or $1.03 per diluted share, as compared with $8.3 million, or $0.93 per diluted share, in the first nine months of the prior year.
"Despite weak consumer spending and a sluggish economy, we continued our positive comparable store sales momentum into the third quarter," commented Robert G. Gross, President and Chief Executive Officer. "We have been very effective in driving store traffic and building new long-term customer relationships through lower price-point services such as oil changes and other scheduled maintenance offerings. Oil changes for the period increased 19% and scheduled maintenance services were up 23%. These gains largely accounted for the quarter's 3.9% increase in average store traffic per day, with Speedy locations leading the way with a 10.7% increase.
"We are also pleased that prices and sales remained firm for our higher-margin services such as brakes and alignments. Our average sales ticket increased 1.9% for the period, excluding invoices which contained only an oil change or state inspection service. Additionally, sales in the commercial fleet division increased approximately 16%, keeping us on track to reach our stated goal of $9 million in sales for the year."
Mr. Gross concluded, "Clearly, our emphasis remains on growing our top line, and we are excited that the sales initiatives we have implemented over the past several quarters are translating into tangible gains. As we move into the final quarter of our fiscal year, we remain focused on increasing revenue by attracting new customers into our stores and by enhancing our product and service offerings for our existing customers. We will also continue to explore acquisition opportunities that will help drive the Company's financial performance and complement our internal growth strategies.
"For the fourth quarter, we are targeting positive comparable store sales growth despite current economic conditions, and we expect earnings in the range of approximately $0.18 to $0.19 per diluted share."
Monro Muffler Brake operates a chain of stores providing automotive undercar repair services in the United States. The Company currently operates 513 stores and has 19 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 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.
Certain statements made above may be forward-looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties include, but are not necessarily limited to, uncertainties affecting retail generally (such as consumer confidence and demand for auto repair); risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates); 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; and the risks described from time to time in the Company's SEC reports which include the report on Form 10K for the fiscal year ended March 31, 2001.
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended Fiscal December
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2001 2000 % Change
--------- --------- --------
Sales $ 52,443 $ 51,792 1.3%
Cost of sales, including
distribution and occupancy costs 32,589 31,952 2.0
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Gross profit 19,854 19,840 0.1
Operating, selling, general and
administrative expenses 16,068 15,930 0.9
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Operating income 3,786 3,910 (3.2)
Interest expense, net 835 1,399 (40.3)
Other expense, net 78 239 (67.2)
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Income before provision for
income taxes 2,873 2,272 26.4
Provision for income taxes 1,092 904 20.7
--------- ---------
Net income $ 1,781 $ 1,368 30.2
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Diluted earnings per share $ 0.20 $ 0.15 33.3%
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Number of stores open
(at end of quarter) 513 513
Weighted average number of
diluted shares outstanding 9,043 8,884
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Nine Months Ended Fiscal December
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2001 2000 % Change
--------- --------- --------
Sales $ 174,313 $ 172,883 0.8%
Cost of sales, including
distribution and occupancy costs 101,735 102,051 (0.3)
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Gross profit 72,578 70,832 2.5
Operating, selling, general and
administrative expenses 54,793 52,042 5.3
--------- ---------
Operating income 17,785 18,790 (5.3)
Interest expense, net 2,953 4,524 (34.7)
Other expense, net 378 501 (24.6)
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Income before provision for
income taxes 14,454 13,765 5.0
Provision for income taxes 5,127 5,478 (6.4)
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Net income $ 9,327 $ 8,287 12.5
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Diluted earnings per share $ 1.03 $ 0.93 10.8%
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Weighted average number of
diluted shares outstanding 9,020 8,899
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
December 29, March 31,
2001 2001
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Assets
Current assets
Cash $ 0 $ 751
Inventories 44,214 41,071
Other current assets 11,034 7,945
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Total current assets 55,248 49,767
Property, plant and equipment, net 128,298 131,486
Other noncurrent assets 11,842 12,586
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Total assets $ 195,388 $ 193,839
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Liabilities and Shareholders' Equity
Current liabilities $ 39,811 $ 36,569
Long-term debt 39,213 50,857
Other long term liabilities 8,939 8,603
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Total liabilities 87,963 96,029
Total shareholders' equity 107,425 97,810
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Total liabilities and shareholders'
equity $ 195,388 $ 193,839
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