Monro Muffler Brake, Inc. Reports First Quarter Earnings
21 July 1997Monro 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.