Monro Muffler Brake, Inc. Announces Record Fourth Quarter and Year End Results
ROCHESTER, N.Y.--May 16, 2002--Monro Muffler Brake, Inc. :Fiscal 2002 Net Income Improves 16%, EPS of $1.24
Monro Muffler Brake, Inc. today announced record results for its fourth quarter and year ended March 30, 2002, reporting a 35% and 16% increase in net income for the fourth quarter and year, respectively, year-over-year.
Sales for the fiscal 2002 fourth quarter were $50.5 million, compared with $50.1 million for the fourth quarter ended March 31, 2001. Comparable store sales increased 0.7%, and new store sales increased approximately $0.2 million. Net income for the fourth quarter of fiscal 2002 increased 35.3% to $1.9 million, or $0.21 per diluted share, as compared to $1.4 million, or $0.16 per diluted share, in the prior year period. During the quarter, the Company opened one new store to end the year with 514 company-operated stores.
"During the fourth quarter, we posted record sales, record net income and record earnings per share, in spite of a weak economic environment and conservative consumer spending," commented Robert G. Gross, President and Chief Executive Officer. "We continue to maintain our top-line, while driving store traffic through a variety of programs including a solid 22% increase in our oil change business, a strong 55% increase in scheduled maintenance services, as well as a 9% increase in our commercial/fleet business. All of this translated into an average per store traffic increase of approximately 9% for the quarter over last year's fourth quarter."
Sales for the twelve months ended March 30, 2002 increased 0.9% to $224.9 million as compared to $223.0 million in the prior year period. Comparable store sales increased 0.3% for the year and were up 0.6% when adjusted for days. Net income for the year increased 15.9% to $11.2 million, or $1.24 per diluted share, versus $9.7 million, or $1.09 per diluted share, for fiscal 2001.
Mr. Gross continued, "During fiscal 2002, we successfully executed several strategic initiatives aimed at fueling top-line growth including broadening our range of product and service offerings, employee incentive programs, differentiated marketing programs and advanced point-of-sale systems in all Monro and Speedy stores. We are very pleased with the results of these initiatives, as they enabled us to achieve record sales and earnings. Additionally, on the acquisition front, we are very encouraged by our April 1, 2002 acquisition of Kimmel Automotive. We have already begun to realize some of the synergies of this transaction, and continue to expect at least $0.05 per share accretion for fiscal 2003 from the acquisition."
Mr. Gross concluded, "Looking ahead, we remain optimistic about our near-term and long-term prospects. We are committed to pursuing other attractive acquisition candidates. Additionally, as a result of all the aforementioned initiatives, coupled with our acquisition of Kimmel Automotive, we are confident we will continue to experience positive earnings growth throughout fiscal 2003. While recent business conditions have been somewhat challenging, we expect first quarter earnings per share to be $0.34 to $0.36, after the final $0.11 charge for vested performance-based stock options awarded under my employment agreement with the Company. Before this one-time charge, we expect to grow earnings between 15 - 20% again this year. Including this charge, earnings per share for the year are projected to be $1.35 to $1.40."
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 550 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; risks relating to integration of the acquired business; 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 March
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2002 2001 % Change
----------- ----------- --------
Sales $ 50,540 $ 50,072 0.9%
Cost of sales, including
distribution and occupancy costs 31,307 31,145 0.5
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Gross profit 19,233 18,927 1.6
Operating, selling, general and
administrative expenses 14,925 14,946 (0.1)
----------- -----------
Operating income 4,308 3,981 8.2
Interest expense, net 778 1,244 (37.5)
Other expense, net 455 395 15.4
----------- -----------
Income before provision for
income taxes 3,075 2,342 31.3
Provision for income taxes 1,168 933 25.2
----------- -----------
Net income $ 1,907 $ 1,409 35.3
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Diluted earnings per share $ 0.21 $ 0.16 31.3%
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Weighted average number of
diluted shares outstanding 9,168 8,865
Number of stores open
(at end of quarter) 514 511
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands, except per share amounts)
Year Ended
Fiscal March
-----------------------
2002 2001 % Change
----------- ----------- --------
Sales $ 224,853 $ 222,955 0.9%
Cost of sales, including
distribution and occupancy costs 133,042 133,196 (0.1)
----------- -----------
Gross profit 91,811 89,759 2.3
Operating, selling, general and
administrative expenses 69,718 66,988 4.1
----------- -----------
Operating income 22,093 22,771 (3.0)
Interest expense, net 3,731 5,768 (35.3)
Other expense, net 833 896 (7.0)
----------- -----------
Income before provision for
income taxes 17,529 16,107 8.8
Provision for income taxes 6,295 6,411 (1.8)
----------- -----------
Net income $ 11,234 $ 9,696 15.9
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Diluted earnings per share $ 1.24 $ 1.09 13.8%
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Weighted average number of
diluted shares outstanding 9,055 8,891
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands)
March 30, March 31,
2002 2001
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Assets
Current assets
Cash $ 442 $ 751
Inventories 44,821 41,071
Other current assets 8,516 8,958
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Total current assets 53,779 50,780
Property, plant and equipment, net 127,211 131,486
Other noncurrent assets 11,618 12,586
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Total assets $ 192,608 $ 194,852
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Liabilities and Shareholders' Equity
Current liabilities $ 39,692 $ 37,582
Long-term debt 34,123 50,857
Other long term liabilities 9,058 8,603
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Total liabilities 82,873 97,042
Total shareholders' equity 109,735 97,810
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Total liabilities and shareholders' equity $ 192,608 $ 194,852
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