ROCHESTER, N.Y. — Monro Inc. reported a slight decline in operating income for the fiscal year ended March 31 on record sales of $1.2 billion.
Operating income slipped 0.5% to $126.7 million, or 10.6% of sales, due primarily to five fewer selling days in fiscal 2019 versus 2018, the company said.
The sales increase of 6.4% was due almost entirely to revenue from businesses acquired throughout the year, Monro said. Comparable store sales grew 0.4% on a reported basis, the company said, but adjusted for the extra days in the fiscal 2019 year the gain was 2.3%.
Net income for fiscal 2019 was up 24.9% to $79.8 million or $2.37 per diluted share.
Comparable store sales, adjusted for days, increased approximately 10% for brakes and 2% for tires, were flat for maintenance services and alignments, and decreased approximately 1% for front end/shocks, Monro said.
During the company's fourth quarter, Monro completed its acquisition of Certified Tire & Service Centers Inc. in California. The deal — which covers 40 retail stores and one distribution center — is expected to add approximately $45 million in annualized sales, representing a sales mix of 70% service and 30% tires, and to be breakeven to diluted earnings per share in fiscal 2020.
It also completed its acquisition of Allied Discount Tire in Louisiana during the current quarter. The deal comprises a dozen retail stores and is expected to add approximately $15 million in annualized sales, representing a sales mix of 35% service and 65% tires, Monro said.
On a combined basis, acquisitions completed and announced in fiscal 2019 represent an expected total of $132 million in annualized sales.
The company did not disclose its investments in the deals.
Based on current visibility, business and economic trends, and recently completed acquisitions, Monro said it expects fiscal 2020 sales to be in the range of $1.3 billion to $1.33 billion, an increase of 7.9% to 10.4% versus fiscal 2019 sales. Fiscal 2020 sales guidance assumes a comparable store sales increase of 2% to 4%.
Monro also disclosed it has expanded its collaboration with Amazon.com to provide tire installation services at over 400 additional Monro retail tire and automotive service locations in nine additional states across the Central and Western regions of the U.S., more than doubling the number of service locations to 800-plus stores.