ROCHESTER, N.Y. (Jan. 19, 2005) — Monro Muffler Brake Inc.'s third quarter sales jumped 24.7 percent ahead of last year as the company continues to look for more acquisitions.
Monro reported sales of $80.5 million, compared with $64.5 million last year. For the period ending Dec. 25, the automotive repair chain also posted a 2.4-percent increase in comparable store sales, primarily from comparable increases of 15 percent in the service category and 5 percent in tire sales. New stores contributed $14.8 million in the quarter, Monro said. The company added 14 stores, including five Donald B. Rice Tire Co. retail stores, and closed two during the quarter. The company operates 611 stores in 18 states.
Monro also reported record net income of $3.65 million, up 20.5 percent from $3.03 million last year.
For the nine months, Monro reported sales of $256.3 million, up 20.7 percent from $212.3 million. Net income rose 16.5 percent to a record $17.3 million.
In the fourth quarter, Monro said it anticipates a 3-5 percent growth in comparable store sales, though the company is cautious concerning macroeconomic factors and their impact on consumers.
“In addition, as we look to enhance our industry-leading position, we continue to view our acquisition strategy as an important component of our store expansion and growth objectives,” said Robert Gross, president and CEO. “This strategy remains on track, as evidenced by our recent agreement to acquire 10 Mr. Tire stores in southern Maryland. …We remain very focused on finding similar opportunities that will allow us to grow our store base at compelling prices, further build our market share in key geographic areas and increase profitability over the short and long term.”
Mr. Gross added that the 10 Mr. Tire stores will generate about $12.5 million in annual sales. Monro is buying the stores for $7.5 million, including $1 million in cash and $6.5 million in Monro common stock.