Monro Muffler Brake Inc., aided in part by its Mr. Tire acquisition, expects sales in fiscal 2005 to grow about 25 percent to more than $345 million, according to Monro President and CEO Robert Gross.
The Mr. Tire acquisition, completed in March, added about $3.5 million in sales to Monro's fiscal 2004 revenue, which was up 8.3 percent to $279.5 million. Mr. Tire's 36 outlets should contribute about $50 million in annual revenue.
The fiscal 2004 sales increase also was driven by a 4.7-percent increase in comparable store sales. New stores added $10.9 million, including the addition from Mr. Tire.
The comparable store increases were fueled by a 16-percent increase in scheduled maintenance, a 6-percent rise in brake sales and a 19-percent jump in commercial sales, Monro said.
Net income grew to a record $17 million, up 23.9 percent from fiscal 2003's $13.7 million. Gross profit also improved to $114.8 million, or 41.1 percent of sales. Monro's fiscal year ended March 27.
Fourth quarter sales increased 9.4 percent to $67.2 million from $61.4 million the prior year. The quarter saw an increase in comparable store sales of 2 percent. New stores added $5.1 million to sales in the quarter. Net income fell 12.1 percent to $2.2 million from $2.5 million.
Monro plans to open 25 new stores in the current fiscal year, 20 of which are projected to be at BJ's Wholesale Club outlets. Comparable store sales should grow about 3-5 percent, Mr. Gross said.
``We are encouraged by the results of fiscal 2004 and look forward to significant achievements in 2005,'' Mr. Gross said.
``We anticipate even further growth in our business as we receive the benefits from our Mr. Tire purchase and continue to evaluate acquisition opportunities that will not only strengthen our geographic presence but will also be accretive to earnings in a timely manner.''
With the Mr. Tire locations, Monro operates more than 600 company-owned locations in 18 states, operating under the Monro Muffler Brake and Service, Speedy Auto Service by Monro, Kimmel Tires-Auto Service, Tread Quarters Discount Tires and Mr. Tire names.