ROCHESTER, N.Y. (Feb. 4, 2011) — Automotive service and tire retailer Monro Muffler Brake Inc. reported record sales and earnings for the three- and nine-month periods ended Dec. 25, and management anticipates continued improvements this year because the “macroeconomic drivers” of the firm's recent success are still in place.
Sales for the quarter rose 8.4 percent to a record $165.5 million, driven both by strong comparable sales growth and the addition of business from recent acquisitions, Rochester-based Monro said. Operating income increased 31 percent to $18.7 million, and net earnings jumped 39.9 percent to $11.1 million.
Tires led the way in comparable store sales, growing 8 percent during the period, followed by shocks (7 percent) and maintenance services (6 percent).
Tires accounted for 45 percent of Monro's business in the quarter, according to figures presented to financial analysts in late January, up from 32 percent in fiscal 2010.
The company opened four locations and closed four other locations during the quarter, leaving the store count at 783—including more than 235 tire-centered stores operating as Mr. Tire, Tire Warehouse, Tread Quarters and Auto Tire.
For the nine-month period, sales rose 16.4 percent to $485.9 million, while net income jumped 37.6 percent to $37.6 million. Comparable store sales for the nine months were up 5.7 percent.
Based on these results, Monro said it expects sales for the year ending March 26 to be in the range of $635 million to $645 million, up roughly 2 percent from previous forecasts. Diluted earnings per share should range from $1.41 to $1.45, up 6 percent from previous estimates and nearly a third better than fiscal 2010.
“Our recent acquisitions are outperforming expectations and we anticipate further expansion of our market share through additional fairly priced, opportunistic acquisitions in our existing markets,” said Chairman and CEO Robert Gross. “With our sales and earnings outlook for fiscal 2011, we are on track to achieve our tenth consecutive year of comparable store sales increases and to generate compound annual earnings growth of approximately 30 percent over the last three years.”