ROCHESTER, N.Y. (Oct. 14, 2004) — Monro Muffler Brake Inc.´s sales increased 19.3 percent in the second quarter, helped in part by growing comparable store sales plus the acquisition earlier this year of Mr. Tire outlets.
Sales grew to $88.4 million from $74.1 million in the last fiscal year. This increase was spurred about $14.2 million from new stores, including about $13 million from Mr. Tire, along with a 0.6-percent improvement in comparable store sales, Monro reported.
The Rochester-based service chain also said it signed an agreement to buy Donald B. Rice Tire Co.'s five retail stores in the Baltimore market. The transaction is expected to close this month, and within 90 days they will be rebranded as Mr. Tire outlets. The collective stores have combined annual sales of about $6.5 million, Monro said.
“Store expansion remains a significant part of our overall growth and profitability objectives, and the recent weak marketplace provides the opportunity to acquire businesses at advantageous prices,” said Robert Gross, president and CEO of Monro. “We continue to evaluate attractively priced targets which would further expand our market share and be accretive to earnings in a timely manner.”
Net income grew 13.1 percent in the quarater to a record $6.67 million, up from $5.9 million the previous year. For the third quarter, the company estimated comparable store sales growth would be between 3-5 percent vs. 4 percent last year.
Monro operates 603 stores and seven kiosks plus 16 dealer locations in several states under the brand names Monro Muffler Brake and Service, Speedy Auto Service by Monro, Mr. Tire and Tread Quarters Discount Tires.