Monro Muffler Brake Inc. (MNRO, Financial) filed Quarterly Report for the period ended 2008-12-27.
Monro Muffler/Brake Inc. is a chain of company-operated and dealer-operated stores providing automotive undercar repair services in the United States. Monro's stores provide a full range of services for exhaust systems brake systems steering and suspension systems and many other vehicle maintenance services. The company's stores typically are situated in high-visibility locations in suburban areas and small towns as well as in major metropolitan areas. Monro Muffler Brake Inc. has a market cap of $436.06 million; its shares were traded at around $24.87 with a P/E ratio of 20.4 and P/S ratio of 0.99. The dividend yield of Monro Muffler Brake Inc. stocks is 1.02%. Monro Muffler Brake Inc. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated Monro Muffler Brake Inc. the business predictability rank of 4-star.
Sales for the nine months ended December 27, 2008 were $359.0 million compared with $332.2 million for the comparable period in the prior year. The sales increase of $26.8 million or 8.1% is due to a comparable store sales increase of 5.3%. Additionally, there was an increase of $13.8 million related to new stores, of which $11.6 million came from the former Craven, Valley Forge and Broad Elm stores acquired in fiscal 2008. The total sales for these acquired stores were $20.6 million in the first nine months of fiscal 2009 as compared to $9.0 million in the first nine months of the prior year. Partially offsetting this was a decrease in sales related to closed stores amounting to $3.0 million.
The ProCare stores acquired on April 29, 2006 were purchased out of bankruptcy. These stores suffered significant declines in recent years and did not perform at a profitable level in fiscal 2007 and 2008. The Acquired ProCare stores lost approximately $.04 per share in fiscal 2008. However, sales have improved and continue to improve since the acquisition, and efforts continue which focus on increasing sales volumes, reducing costs and improving margins. These stores made approximately $.01 per share in the quarter ended December 27, 2008, as compared to a loss of approximately $.01 per share in the quarter ended December 29, 2007. Comparable store sales for the Acquired ProCare stores for the quarter ended December 27, 2008 increased 9.3%. In the quarter ended December 27, 2008, gross profit improved by 40 basis points and operating income improved by $.6 million to $.9 million as compared to the same period in the prior year. Additionally, pre-tax income increased by $.8 million to a pre-tax profit of $.4 million, as compared to a pre-tax loss of $.4 million in the quarter ended December 29, 2007. Year-to-date, on a pre-tax basis, the Acquired ProCare stores have improved $1.9 million over last year, with pre-tax income of $1.3 million.
Operating expenses for the quarter ended December 27, 2008 were $35.3 million or 29.7% of sales compared with $33.5 million or 29.8% of sales for the quarter ended December 29, 2007. Within operating expenses, selling, general and administrative (SG&A) expenses for the quarter ended December 27, 2008 increased by $1.3 million to $35.7 million from the quarter ended December 29, 2007, and were 30.1% of sales as compared to 30.6% in the prior year quarter. The decrease in SG&A expense as a percentage of sales is due to a number of factors. First, there is a decrease in expense related to the Chief Executive Officers stock options awarded in the prior year (October 2007) in connection with the renewal of his contract. The contract included a tranche of options that vested immediately with the signing of the contract, and the related expense of $.9 million had to be recognized. Second, the Company recorded a credit of approximately $.3 million in the third quarter of this fiscal year related to a decrease in environmental reserves that had been previously provided for some of the Companys older acquired stores. The Company has been able to settle some of these liabilities for lesser amounts than originally estimated. Utilities expense also decreased as a percentage of sales as compared to the prior year quarter. Additionally, in the third quarter of fiscal 2009, the Company gained leverage on expenses in connection with the larger increase in comparable store sales.
Gain on disposal of assets for the nine months ended December 27, 2008 decreased $.1 million from a gain of $.9 million for the nine months ended December 29, 2007, to a gain of $.8 million for the nine months ended December 27, 2008, increasing Operating Expenses by .1 as a percentage of sales.
In June 2008, the Credit Facility was amended again to increase the committed sum by $38.3 million to $163.3 million, thereby reducing the accordion to $36.7 million from $75 million. Additionally, a sixth bank agreed to be added as a lender to the Credit Agreement. Approximately $60.5 million was outstanding under the Facility at December 27, 2008.
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Monro Muffler/Brake Inc. is a chain of company-operated and dealer-operated stores providing automotive undercar repair services in the United States. Monro's stores provide a full range of services for exhaust systems brake systems steering and suspension systems and many other vehicle maintenance services. The company's stores typically are situated in high-visibility locations in suburban areas and small towns as well as in major metropolitan areas. Monro Muffler Brake Inc. has a market cap of $436.06 million; its shares were traded at around $24.87 with a P/E ratio of 20.4 and P/S ratio of 0.99. The dividend yield of Monro Muffler Brake Inc. stocks is 1.02%. Monro Muffler Brake Inc. had an annual average earning growth of 8.4% over the past 10 years. GuruFocus rated Monro Muffler Brake Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
Sales were $118.7 million for the quarter ended December 27, 2008 as compared with $112.5 million in the quarter ended December 29, 2007. The sales increase of $6.2 million or 5.5% was partially due to a comparable store sales increase of 5.9%. The former ProCare stores acquired in April 2006 are now included in comparable store sales numbers. Additionally, there was an increase of $2.4 million related to new stores. The 19 former Craven, Valley Forge and Broad Elm stores acquired in fiscal 2008 contributed $1.7 million of the increase. The total sales for these acquired stores were $7.2 million in the third quarter of fiscal 2009 as compared to $5.5 million in the third quarter of the prior year. Partially offsetting this was a decrease in sales from closed stores amounting to $1.2 million.Sales for the nine months ended December 27, 2008 were $359.0 million compared with $332.2 million for the comparable period in the prior year. The sales increase of $26.8 million or 8.1% is due to a comparable store sales increase of 5.3%. Additionally, there was an increase of $13.8 million related to new stores, of which $11.6 million came from the former Craven, Valley Forge and Broad Elm stores acquired in fiscal 2008. The total sales for these acquired stores were $20.6 million in the first nine months of fiscal 2009 as compared to $9.0 million in the first nine months of the prior year. Partially offsetting this was a decrease in sales related to closed stores amounting to $3.0 million.
The ProCare stores acquired on April 29, 2006 were purchased out of bankruptcy. These stores suffered significant declines in recent years and did not perform at a profitable level in fiscal 2007 and 2008. The Acquired ProCare stores lost approximately $.04 per share in fiscal 2008. However, sales have improved and continue to improve since the acquisition, and efforts continue which focus on increasing sales volumes, reducing costs and improving margins. These stores made approximately $.01 per share in the quarter ended December 27, 2008, as compared to a loss of approximately $.01 per share in the quarter ended December 29, 2007. Comparable store sales for the Acquired ProCare stores for the quarter ended December 27, 2008 increased 9.3%. In the quarter ended December 27, 2008, gross profit improved by 40 basis points and operating income improved by $.6 million to $.9 million as compared to the same period in the prior year. Additionally, pre-tax income increased by $.8 million to a pre-tax profit of $.4 million, as compared to a pre-tax loss of $.4 million in the quarter ended December 29, 2007. Year-to-date, on a pre-tax basis, the Acquired ProCare stores have improved $1.9 million over last year, with pre-tax income of $1.3 million.
Operating expenses for the quarter ended December 27, 2008 were $35.3 million or 29.7% of sales compared with $33.5 million or 29.8% of sales for the quarter ended December 29, 2007. Within operating expenses, selling, general and administrative (SG&A) expenses for the quarter ended December 27, 2008 increased by $1.3 million to $35.7 million from the quarter ended December 29, 2007, and were 30.1% of sales as compared to 30.6% in the prior year quarter. The decrease in SG&A expense as a percentage of sales is due to a number of factors. First, there is a decrease in expense related to the Chief Executive Officers stock options awarded in the prior year (October 2007) in connection with the renewal of his contract. The contract included a tranche of options that vested immediately with the signing of the contract, and the related expense of $.9 million had to be recognized. Second, the Company recorded a credit of approximately $.3 million in the third quarter of this fiscal year related to a decrease in environmental reserves that had been previously provided for some of the Companys older acquired stores. The Company has been able to settle some of these liabilities for lesser amounts than originally estimated. Utilities expense also decreased as a percentage of sales as compared to the prior year quarter. Additionally, in the third quarter of fiscal 2009, the Company gained leverage on expenses in connection with the larger increase in comparable store sales.
Gain on disposal of assets for the nine months ended December 27, 2008 decreased $.1 million from a gain of $.9 million for the nine months ended December 29, 2007, to a gain of $.8 million for the nine months ended December 27, 2008, increasing Operating Expenses by .1 as a percentage of sales.
In June 2008, the Credit Facility was amended again to increase the committed sum by $38.3 million to $163.3 million, thereby reducing the accordion to $36.7 million from $75 million. Additionally, a sixth bank agreed to be added as a lender to the Credit Agreement. Approximately $60.5 million was outstanding under the Facility at December 27, 2008.
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