Monro Muffler Brake, Inc. Provides Business Update for Second Quarter 2008
- Revises Second Quarter 2008 Earnings Estimate to $.41 to $.43 -
ROCHESTER, N.Y., Sept. 20 -- Monro Muffler Brake, Inc. , a leading provider of automotive undercar repair and tire services, today announced that it currently anticipates second quarter 2008 diluted earnings per share to be in the range of $.41 to $.43. This compares with the Company's previous expected range of $.53 to $.56 per diluted share as stated in its first quarter earnings release. The second quarter 2008 expected range compares to earnings of $.37 per diluted share for the comparable prior year period, which included an after-tax impairment charge of $.11 related to the Company's Strauss Discount Auto equity investment. The revised range includes the effects of the recently announced Craven and Valley Forge acquisitions, which are performing in line with expectations.
The Company expects 1% comparable store sales growth for the second quarter of fiscal 2008. For the full year, the Company has revised its expected range for comparable store sales growth to 2% to 4%, which compares with its previous expected range of 3% to 5%, as stated in its first quarter 2008 earnings release.
As previously indicated, Monro's comparable store sales for July were flat. August comparable store sales growth rebounded to 4% due to increases in certain product categories including brakes and alignments. However, comparable store sales for September have been weaker than expected and are currently projected to decrease by 1% for the month. The weaker than expected results for September are largely due to a challenging economic environment and softness in consumer spending. These conditions have led to reductions in store traffic and in the purchases of larger ticket products and services.
The challenging business conditions have impacted the entire chain, including the ProCare business. As a result, the Company's updated earnings estimate includes the expectation that the ProCare business will break-even for the second quarter versus a previously expected contribution of $.03 per share.
"Our business has been pressured by challenges in the macro economic environment and weakening consumer confidence. As is sometimes the case with our business, challenging conditions cause our loyal consumers to temporarily delay big ticket purchases until they feel more confident in the economy," said Robert G. Gross, President and Chief Executive Officer. "While we are disappointed with our performance in the second quarter, we remain confident in the long-term strength of our businesses model and our strong position in the market. We are pleased with the on-track performance of the recently acquired Craven and Valley Forge businesses, and going forward we will continue to seek growth through reasonably priced acquisitions especially as tough economic conditions create additional opportunities."
As previously announced, the Company will be participating in the RBC Capital Markets Consumer Conference on September 20, 2007 and the Thomas Weisel Partners Consumer Conference on September 25, 2007. The Company also intends to participate in the Wachovia Consumer Growth Conference on October 18, 2007 at 9:00 a.m. ET in New York City. The presentation and/or webcasts for the aforementioned conferences can be accessed via the Company's website on www.monro.com under the Investor Information link.
As previously announced, the Board of Directors declared a three-for-two stock split of the Company's common stock in the form of a 50% stock dividend, payable on October 1, 2007, to shareholders of record at the close of business on September 21, 2007.
The Company plans to release its second quarter 2008 results and revised fiscal year 2008 guidance on October 23, 2007.
About Monro Muffler Brake
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, Mr. Tire and Tread Quarters Discount Tires. The Company currently operates 714 stores and has 14 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, tires and many vehicle maintenance services.