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Monro Muffler Brake Inc. Reports Operating Results (10-Q)

February 03, 2011 | About:
10qk

10qk

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Monro Muffler Brake Inc. (MNRO) filed Quarterly Report for the period ended 2010-12-25.

Monro Muffler has a market cap of $996.7 million; its shares were traded at around $33 with a P/E ratio of 23.8 and P/S ratio of 1.8. The dividend yield of Monro Muffler stocks is 1%. Monro Muffler had an annual average earning growth of 4.5% over the past 10 years.Mutual Fund and Other Gurus that owns MNRO: Chuck Royce of Royce& Associates, Pioneer Investments, Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Sales were $165.5 million for the quarter ended December 25, 2010 as compared with $152.7 million in the quarter ended December 26, 2009. The sales increase of $12.8 million or 8.4%, was partially due to a comparable store sales increase of 5.4%. Additionally, there was an increase of $6.9 million related to new stores, of which $6.0 million came from the fiscal year 2010 and

Sales were $485.9 million for the nine months ended December 25, 2010 as compared with $417.4 million in the nine months ended December 26, 2009. The sales increase of $68.5 million or 16.4%, was partially due to a comparable store sales increase of 5.7%. Additionally, there was an increase of $50.0 million related to new stores, of which $47.3 million came from the fiscal year 2010 and 2011 acquisitions. Partially offsetting this sales increase was a decrease in sales from closed stores amounting to $2.9 million.

Gross profit for the quarter ended December 25, 2010 was $64.7 million or 39.1% of sales as compared with $58.6 million or 38.3% of sales for the quarter ended December 26, 2009. The increase in gross profit for the quarter ended December 25, 2010, as a percentage of sales, is due to several factors.

Operating expenses for the quarter ended December 25, 2010 were $46.1 million or 27.8% of sales as compared with $44.3 million or 29.0% of sales for the quarter ended December 26, 2009. Within operating expenses, selling, general and administrative (SG&A) expenses for the quarter ended December 25, 2010 increased by $1.8 million to $45.4 million from the quarter ended December 26, 2009, and decreased as a percentage of sales from 28.5% to 27.4%. 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.

The Company paid dividends of $6.2 million during the nine months ended December 25, 2010. In April 2010, the Companys Board of Directors declared its intention to pay a regular quarterly cash dividend of $.06, retroactively adjusted for the stock split in December 2010, per common share or common share equivalent beginning with the first quarter of fiscal year 2011. In November 2010, the Companys Board of Directors declared its intention to pay a regular quarterly cash dividend during the remainder of fiscal year 2011 of $.08 per common share or common share equivalent, retroactively restated for the stock split in December 2010, beginning with the third quarter of fiscal 2011.

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 $28.1 million was outstanding at December 25, 2010, including $16.8 million of outstanding letters of credit. The Company is currently in negotiations to renew the facility.

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