Monro Muffler Brake Inc. has a market cap of $820.23 million; its shares were traded at around $41.04 with a P/E ratio of 22.93 and P/S ratio of 1.45. The dividend yield of Monro Muffler Brake Inc. stocks is 0.88%. Monro Muffler Brake Inc. had an annual average earning growth of 10.1% over the past 10 years. GuruFocus rated Monro Muffler Brake Inc. the business predictability rank of 4-star.MNRO is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Sales were $158.2 million for the quarter ended June 26, 2010 as compared with $128.0 million in the quarter ended June 27, 2009. The sales increase of $30.2 million or 23.6%, was partially due to a comparable store sales increase of 5.1%. Additionally, there was an increase of $24.6 million related to new stores, of which $21.7 million came from the FY 2010 Acquisitions. Partially offsetting this was a decrease in sales from closed stores amounting to $1.2 million. There were 90 selling days in the quarter ended June 26, 2010 and in the quarter ended June 27, 2009.
Gross profit for the quarter ended June 26, 2010 was $66.0 million or 41.7% of sales as compared with $56.4 million or 44.1% of sales for the quarter ended June 27, 2009. The decrease in gross profit for the quarter ended June 26, 2010, as a percentage of sales, is due to several factors.
Operating expenses for the quarter ended June 26, 2010 were $43.4 million or 27.4% of sales as compared with $39.4 million or 30.8% of sales for the quarter ended June 27, 2009. Within operating expenses, selling, general and administrative (SG&A) expenses for the quarter ended June 26, 2010 increased by $3.9 million to $43.1 million from the quarter ended June 27, 2009, and decreased as a percentage of sales from 30.6% to 27.2%. The increase in dollars is directly attributed to the acquired stores operating expenses. The decrease in percentage of sales is due to improved sales which have allowed the Company to leverage largely fixed costs, as well as a continued focus on cost control.
Operating income for the quarter ended June 26, 2010 of approximately $22.6 million increased by 33.2% as compared to operating income of approximately $17.0 million for the quarter ended June 27, 2009, and increased as a percentage of sales from 13.3% to 14.3%.
Net interest expense for the quarter ended June 26, 2010 decreased by approximately $.4 million as compared to the same period in the prior year, and decreased from 1.5% to .9% as a percentage of sales for the same periods. The weighted average debt outstanding for the quarter ended June 26, 2010 decreased by approximately $10.6 million as compared to the quarter ended June 27, 2009, primarily related to repayments made on the Companys Revolving Credit Facility agreement. In addition, the weighted average interest rate decreased by approximately 100 basis points from the prior year.
In July 2005, the Company entered into a five-year, $125 million Revolving Credit Facility agreement with five banks. A sixth bank was added in June 2008. Interest only is payable monthly throughout the Credit Facilitys term. The facility included a provision allowing the Company to expand the amount of the overall facility to $160 million. Amendments in January 2007 and June 2008 were made to these amounts which increased the overall facility to $200 million and extended the expiration to January 2012. Currently, the committed sum is $163.3 million and the accordian feature is $36.7 million. Approximately $59.2 million was outstanding at June 26, 2010, including $16.8 million of outstanding letters of credit.
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