ROCHESTER, N.Y. — Monro Inc. saw a healthy rebound in tire sales during the latest financial quarter, helping push quarterly profits higher for the year ended March 27.
Despite the rebound, the company's overall profitability fell for the year.
The Rochester-based tire services and vehicle repair company posted operating income of $20.7 million during the fiscal 2021 fourth quarter, up from $400,000 during the prior-year fiscal fourth quarter.
Operating income — a measure of profitability that represents revenue after deduction of both direct and indirect operational costs — for fiscal 2021 was $72.2 million, down 28.6% from $101.7 million for the previous fiscal year.
"Monro's solid fourth quarter results capped an unprecedented and challenging year," President and CEO Mike Broderick said in a statement. "As we enter fiscal 2022, we look forward to continuing to build on the momentum we experienced during our fourth quarter.
"We are well positioned to capitalize on the strengthening demand environment, as reflected in our comparable store sales growth of approximately 53% in the fiscal 2022 first quarter-to-date."
Mr. Broderick, an ex-Advance Auto Parts executive, was named Monro's CEO April 5. He was hired in mid-March to fill positions left vacant by the August 2020 resignation of Brett Ponton.
Net income for the fourth quarter was $11.8 million, or 35 cents per diluted share on revenue of $305.5 million. This compares with a net loss of $3.8 million, or 12 cents per diluted share, on revenue of $286.1 million during last fiscal year's fourth quarter.
Profit for the fiscal year was $34.3 million or $1.01 per diluted share, on revenue of $1.13 billion. That compares with a profit of $58 million, or $1.71 per diluted share, on revenue of $1.26 billion for fiscal 2020.
Monro indicated tire sales were down about 3% for the latest fiscal year, a much smaller decline compared with other service areas. Revenue was down 19% for maintenance and front end/shocks, 24% for brakes and 13% for alignments.
Net income for fiscal 2021 was $34.3 million, or $1.01 per diluted share, as compared with $58 million, or $1.71 per diluted share in fiscal 2020.
Monro also said it completed its acquisition of Mountain View Tire & Service during the fiscal fourth quarter, a move that added 30 retail locations in the Los Angeles area.
Adding Mountain View not only expands the company's geographic footprint but also adds about $45 million in annual sales. That includes about 30% in tire and 70% in service revenue.