Monro Muffler Brake, Inc. Reports First Quarter Earnings
21 July 1997
Monro Muffler Brake, Inc. Reports First Quarter Earnings Company On Target With 11 New Store Openings
ROCHESTER, N.Y., July 21 -- Monro Muffler Brake, Inc.
, today announced sales and earnings for its first quarter ended
June 30, 1997 in line with its earlier announcement.
Sales for the quarter ended June 30, 1997 were $40,773,000, compared to
$37,745,000 for the corresponding quarter ended June 30, 1996. Monro
attributed the increase in sales of 8.0% to an increase of approximately
$3,469,000 from stores opened since April 1, 1996, partially offset by a
decrease in comparable store sales of 1.0%.
Monro's net income for its fiscal 1998 first quarter was $3,417,000,
or $.40 per share, compared to $3,379,000, or $.40 per share, for the same
period of fiscal 1997, after giving retroactive effect to the 5% stock
dividend payable August 4, 1997 to shareholders of record as of June 20, 1997.
Before giving effect to the dividend, earnings per share for both respective
periods were $.42 per share.
Lawrence C. Day, President and Chief Executive Officer, commented, "While
we are disappointed with the decline in comparable store sales, resulting
primarily from the cold, wet weather during the months of April and May and
the aftermath of a relatively mild winter which have created a softness in the
industry, we remain optimistic that the long-term fundamentals of the "Do-It-
For-Me" sector of the automotive aftermarket are sound. "
Mr. Day continued, "Accordingly, we remain committed to our store
expansion plans and opened 11 new stores during the quarter ended
June 30, 1997. Additionally, we are continuing with co-branding initiatives
in order to accelerate the consumers' awareness of Monro, particularly in
lower awareness, newer markets. In that regard, I am pleased to announce that
we recently opened four Q-Lube facilities and we are looking forward to
working with our joint venture partner on additional openings this year."
The Company plans to continue its expansion strategy by opening a
total of 40-50 stores in fiscal 1998.
Monro Muffler Brake operates a chain of stores providing automotive
undercar repair services in the United States. The Company currently operates
324 stores in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West
Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North
Carolina, South Carolina and Indiana. 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 and the weather); 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, 1997.
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended June 30,
1997 1996 % Change
Sales $40,773 $37,745 8.0%
Cost of sales, including
distribution and occupancy costs 22,631 20,666 9.5
Gross profit 18,142 17,079 6.2
Operating, selling, general and
administrative expenses 11,492 10,645 8.0
Operating income 6,650 6,434 3.4
Interest expense, net 868 814 6.5
Other expense, net 85 16
Income before provision for
income taxes 5,697 5,604 1.7
Provision for income taxes 2,280 2,225 2.4
Net income $ 3,417 $ 3,379 1.1
Earnings per share (a) $ .40 $ .40 0%
Weighted average number of
shares of common stock
outstanding (including common
stock equivalents) (000) (a) 8,605 8,540
Number of stores open
(at end of quarter) 324 284
(a) All share data has been restated to reflect the 5% stock dividend
payable to shareholders of record as of June 20, 1997.
MONRO MUFFLER BRAKE, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
June 30, 1997 March 31, 1997
Assets
Current Assets:
Cash $ 8,022 $ 6,438
Inventories, at LIFO cost 21,533 20,010
Other Current Assets 5,358 6,149
Total current assets 34,913 32,597
Property, plant and equipment 113,450 109,683
Other noncurrent assets 3,876 3,987
Total assets $152,239 $146,267
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,128 $ 3,128
Other current liabilities 23,247 19,890
Total current liabilities 26,375 23,018
Long-term debt 54,010 54,864
Deferred income tax liability 1,760 1,760
Total liabilities 82,145 79,642
Commitments
Total shareholders' equity 70,094 66,625
Total liabilities and
shareholders' equity $152,239 $146,267
SOURCE Monro Muffler Brake, Inc.