ROCHESTER, N.Y. — Monro Inc. reported that sales increased 38.4% to a record $341.8 million for the quarter ended March 26, buoyed by "substantial" increases in store sales.
Total sales increased $94.7 million during the quarter, resulting from a comparable store sales increase of 34.5% for the period and an increase in sales from new stores of $14.1 million, including sales from recent acquisitions of $13.6 million.
Monro said comparable store sales increased approximately 57% for brakes, 54% for alignments, 42% for maintenance services, 40% for front/end shocks and 25% for tires compared to the previous year.
Net income for the first quarter of fiscal 2022 was $15.7 million, or 46 cents per diluted earnings per share, compared with $3 million, or 9 cents per diluted earnings share, in the previous quarter.
"Monro's solid first quarter results are a testament to the strong execution of our teammates, paired with the continued progress we have made on our Monro.Forward initiatives to enhance our competitive position and capitalize on the strengthening demand environment," President and CEO Mike Broderick said. "We delivered double-digit comparable store sales growth across all our regions driven by strength in our services categories."
Mr. Broderick, an ex-Advance Auto Parts executive, was named Monro's CEO April 5, filling positions left vacant by the August 2020 resignation of Brett Ponton. He said that Monro's momentum has continued into July, as sales are up 15%.
During the first quarter of fiscal 2022, Monro said it opened 30 company-operated stores while closing two. The dealership said it ended the quarter with 1,291 company-operated stores and 91 franchised locations.
"Looking ahead, we are confident that our focus on operational excellence and customer-centric approach will be instrumental in unlocking the full potential of our Monro.Forward strategy," Mr. Broderick said. "Importantly, our commitment to our teammates will be critical to further solidify our position as a field-led, best-in-class service organization to drive sustainable growth.
"Lastly, our proven business model and financial flexibility position us well to capitalize on additional market share opportunities through strategic and value-accretive acquisitions and greenfield expansion to deliver long-term shareholder value."
The Rochester-based tire services and vehicle repair company posted operating income for Q1 fiscal 2022 of $27.9 million, or 8.2% of sales, as compared to $11.4 million, or 4.6% of sales in the prior year. Excluding litigation settlement costs, operating income for the first quarter was $31.8 million, or 9.3% of sales.
Monro generated $63 million in operating cash flow, allowing it to support its business operations, its Monro.Forward initiatives and invest in "attractive acquisition opportunities intended to drive long-term sustainable growth while paying down debt and returning cash to shareholders through its dividend program."
As of June 26, Monro had cash and cash equivalents of $17 million and availability on its revolving credit facility of approximately $372 million.
Gross profit increased to $126 million, an increase of 44% from the Q1 of fiscal 2021, from nearly $87 million.
Monro recently released its inaugural corporate responsibility report, called Monro.Forward Responsibly, which covers fiscal year 2021. It highlights actions the company has taken to help employees and customers, while making a positive impact on the communities where it operates, and act as a good steward of the environment.
