Monro Muffler Brake Inc. reported record sales and earnings for the third quarter and nine months ended Dec. 28, 2002, in large part because of the addition of business from the 34 Kimmel Tire stores it acquired in April.
Besides the boost from Kimmel, though, Monro reported tire sales by its existing 516 stores in the third quarter jumped 33 percent, reflecting the firm's efforts to leverage Kimmel's tire retailing expertise throughout its network.
Sales for the quarter increased 15.8 percent to $60.7 million, with Kimmel accounting for about three-fourths of the increase. Net income increased 35.5 percent over the prior year quarter to $2.4 million.
Comparable store sales were up 3.8 percent, the company said, with revenue from scheduled maintenance services up 29 percent.
``Our successful quarter was driven by our ongoing strategy to attract customers into our stores with discount oil changes and to transform those oil change customers into loyal, repeat customers...,'' said Robert G. Gross, president and CEO. ``Our direct-to-consumer marketing system reinforces the positive in-store experience with targeted at-home coupons and service reminders.''
Sales for the nine-month period increased 12.8 percent to $196.6 million; net income was up 20 percent to $11.2 million. Rochester-based Monro likely will grow again by acquisition before the end of its fiscal year in March, Mr. Gross said.
``An important aspect of our growth strategy continues to be identifying acquisition targets that are both accretive in a timely manner and geographically complementary to our existing business,'' Mr. Gross said. ``As we mentioned last quarter, we look forward to announcing at least one such acquisition by the end of our fiscal year.''