ROCHESTER, N.Y. (July 15, 2004) — Monro Muffler Brake Inc.'s first quarter fiscal sales rose 18.6 percent to a record $87.3 million, thanks in part to a $12.3 million contribution from recently acquired Mr. Tire stores.
Monro said comparable store sales increased 0.9 percent compared with a 5.9-percent increase last year. New stores contributed $13.6 million toward sales—$12.3 million of which came from Mr. Tire. The increase in comparable store sales came primarily from a 12-percent rise in maintenance services and a 6-percent increase in comparable sales in the company's tire stores.
For the quarter, Monro also reported record net income of $6.97 million, up 17.8 percent from $5.92 million for the year-ago period. Gross profit slipped slightly to 42.7 percent of sales due to increased sales of lower-margin tires, Monro said. Selling, general and administrative expenses fell to 28.9 percent of sales from 29.9 percent.
For the second quarter, Monro expects its comparable store sales to grow between 1 and 3 percent, compared with a 6.6-percent increase in the year-ago period.
“We are continually evaluating acquisition candidates who will further expand our market share and develop synergies that will drive our long-term profitability,” said Robert Gross, president and CEO.
Monro, which has 597 stores, operates under Monro Muffler Brake and Service, Speedy Auto Service by Monro, Mr. Tire and Tread Quarters Discount Tires.