Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 29, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 29, 2019 | |
Entity File Number | 0-19357 | |
Entity Registrant Name | MONRO, INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-0838627 | |
Entity Address, Address Line One | 200 Holleder Parkway | |
Entity Address, City or Town | Rochester | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14615 | |
City Area Code | 585 | |
Local Phone Number | 647-6400 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MNRO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 33,224,179 | |
Entity Central Index Key | 0000876427 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --03-28 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 29, 2019 | Mar. 30, 2019 |
Current assets: | ||
Cash and equivalents | $ 8,513 | $ 6,214 |
Trade receivables | 17,380 | 14,617 |
Federal and state income taxes receivable | 5,586 | |
Inventories | 173,655 | 171,038 |
Other current assets | 46,733 | 42,452 |
Total current assets | 246,281 | 239,907 |
Property, plant and equipment | 647,015 | 640,421 |
Less - Accumulated depreciation and amortization | (335,997) | (327,869) |
Net property, plant and equipment | 311,018 | 312,552 |
Finance lease and financing obligation assets, net | 142,066 | 128,029 |
Operating lease assets, net | 201,401 | |
Goodwill | 626,108 | 565,503 |
Intangible assets | 32,085 | 51,107 |
Other non-current assets | 13,779 | 13,024 |
Long-term deferred income tax assets | 5,716 | 2,166 |
Total assets | 1,578,454 | 1,312,288 |
Current liabilities: | ||
Current portion of long-term debt, finance leases and financing obligations | 25,745 | 22,229 |
Current portion of operating lease liabilities | 28,804 | |
Trade payables | 104,828 | 103,602 |
Federal and state income taxes payable | 3,191 | |
Accrued payroll, payroll taxes and other payroll benefits | 26,054 | 20,231 |
Accrued insurance | 39,574 | 38,742 |
Deferred revenue | 13,163 | 12,059 |
Other current liabilities | 22,438 | 21,584 |
Total current liabilities | 263,797 | 218,447 |
Long-term debt | 160,000 | 137,682 |
Long-term finance leases and financing obligations | 260,818 | 238,089 |
Long-term operating lease liabilities | 160,163 | |
Accrued rent expense | 4,053 | |
Other long-term liabilities | 11,308 | 12,724 |
Long-term deferred income tax liabilities | 1,738 | |
Long-term income taxes payable | 2,042 | 1,783 |
Total liabilities | 859,866 | 612,778 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Class C Convertible Preferred Stock, $1.50 par value, $0.064 conversion value, 150,000 shares authorized; 21,802 shares issued and outstanding | 33 | 33 |
Common Stock, $0.01 par value, 65,000,000 shares authorized; 39,581,865 and 39,510,932 shares issued at June 29, 2019 and March 30, 2019, respectively | 396 | 395 |
Treasury Stock, 6,359,871 shares at June 29, 2019 and March 30, 2019, at cost | (108,729) | (108,729) |
Additional paid-in capital | 224,742 | 220,173 |
Accumulated other comprehensive loss | (4,625) | (4,536) |
Retained earnings | 606,771 | 592,174 |
Total shareholders' equity | 718,588 | 699,510 |
Total liabilities and shareholders' equity | $ 1,578,454 | $ 1,312,288 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 29, 2019 | Mar. 30, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Class C convertible preferred stock par value | $ 1.50 | $ 1.50 |
Class C convertible preferred stock, conversion value | $ 0.064 | $ 0.064 |
Class C convertible preferred stock shares authorized | 150,000 | 150,000 |
Class C convertible preferred stock shares issued | 21,802 | 21,802 |
Class C convertible preferred stock shares outstanding | 21,802 | 21,802 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 65,000,000 | 65,000,000 |
Common stock shares issued | 39,581,865 | 39,510,932 |
Treasury stock shares | 6,359,871 | 6,359,871 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Sales | $ 317,063 | $ 295,811 |
Cost of sales, including distribution and occupancy costs | 188,916 | 178,573 |
Gross profit | 128,147 | 117,238 |
Operating, selling, general and administrative expenses | 91,776 | 84,166 |
Operating income | 36,371 | 33,072 |
Interest expense, net of interest income | 7,157 | 6,580 |
Other income, net | (175) | (227) |
Income before provision for income taxes | 29,389 | 26,719 |
Provision for income taxes | 6,783 | 6,075 |
Net income | 22,606 | 20,644 |
Other comprehensive loss, net of tax: | ||
Changes in pension, net of tax benefit | (89) | (77) |
Comprehensive income | $ 22,517 | $ 20,567 |
Earnings per share: | ||
Basic | $ 0.68 | $ 0.63 |
Diluted | $ 0.67 | $ 0.62 |
Weighted average number of common shares outstanding used in computing earnings per share: | ||
Basic | 33,183 | 32,853 |
Diluted | 33,964 | 33,457 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes in Shareholders' Equity - USD ($) $ in Thousands | Class C Convertible Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total | |
Balance beginning at Mar. 31, 2018 | $ 33 | $ 392 | $ (106,563) | $ 199,576 | $ (4,248) | $ 539,286 | $ 628,476 | |
Beginning balance, preferred shares at Mar. 31, 2018 | 22,000 | |||||||
Beginning balance, common shares at Mar. 31, 2018 | 39,166,000 | 6,330,000 | ||||||
Net income | 20,644 | 20,644 | ||||||
Other comprehensive loss: | ||||||||
Pension liability adjustment | (77) | (77) | ||||||
Dividends: | ||||||||
Preferred dividends | (102) | (102) | ||||||
Common dividends | (6,572) | (6,572) | ||||||
Dividend payable | (12) | (12) | ||||||
Activity related to equity-based plans | $ (445) | 1,223 | 778 | |||||
Activity related to equity-based plans, shares | 38,000 | 8,000 | ||||||
Stock-based compensation | 1,084 | 1,084 | ||||||
Balance ending at Jun. 30, 2018 | $ 33 | $ 392 | $ (107,008) | 201,883 | (4,325) | 553,244 | 644,219 | |
Ending balance, preferred shares at Jun. 30, 2018 | 22,000 | |||||||
Ending balance, common shares at Jun. 30, 2018 | 39,204,000 | 6,338,000 | ||||||
Balance beginning at Mar. 30, 2019 | $ 33 | $ 395 | $ (108,729) | 220,173 | (4,536) | 592,174 | 699,510 | |
Accounting change - cumulative effect at Mar. 30, 2019 | (582) | (582) | ||||||
Adjusted balance at Mar. 30, 2019 | $ 33 | $ 395 | $ (108,729) | 220,173 | (4,536) | 591,592 | $ 698,928 | |
Beginning balance, preferred shares at Mar. 30, 2019 | 22,000 | 21,802 | ||||||
Beginning balance, common shares at Mar. 30, 2019 | 39,511,000 | 6,360,000 | ||||||
Net income | 22,606 | $ 22,606 | ||||||
Other comprehensive loss: | ||||||||
Pension liability adjustment | (89) | (89) | ||||||
Dividends: | ||||||||
Preferred dividends | [1] | (112) | (112) | |||||
Common dividends | [1] | (7,305) | (7,305) | |||||
Dividend payable | (10) | (10) | ||||||
Activity related to equity-based plans | $ 1 | 3,644 | 3,645 | |||||
Activity related to equity-based plans, shares | 71,000 | |||||||
Stock-based compensation | 925 | 925 | ||||||
Balance ending at Jun. 29, 2019 | $ 33 | $ 396 | $ (108,729) | $ 224,742 | $ (4,625) | $ 606,771 | $ 718,588 | |
Ending balance, preferred shares at Jun. 29, 2019 | 22,000 | 21,802 | ||||||
Ending balance, common shares at Jun. 29, 2019 | 39,582,000 | 6,360,000 | ||||||
[1] | First quarter fiscal year dividend payment of $ 0.22 and $ 0.20 per common share or common share equivalent paid on June 17, 2019 and June 14, 2018, respectively. |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ||
Common stock cash dividends per share | $ 0.22 | $ 0.20 |
Pension liability adjustment - pre-tax | $ (118) | $ (101) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 22,606 | $ 20,644 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 14,839 | 13,227 |
Loss on disposal of assets | 122 | 397 |
Stock-based compensation expense | 925 | 1,084 |
Net change in deferred income taxes | 2,223 | 2,082 |
Change in operating assets and liabilities (excluding acquisitions) | ||
Trade receivables | (2,763) | (3,562) |
Inventories | 51 | 2,275 |
Other current assets | (3,966) | (1,465) |
Other non-current assets | 6,573 | 887 |
Trade payables | 1,226 | 6,115 |
Accrued expenses | 14,250 | 5,756 |
Federal and state income taxes payable | 5,586 | 3,457 |
Other long-term liabilities | (6,903) | (924) |
Long-term income taxes payable | 3,450 | 198 |
Total adjustments | 35,613 | 29,527 |
Net cash provided by operating activities | 58,219 | 50,171 |
Cash flows from investing activities: | ||
Capital expenditures | (13,996) | (11,440) |
Acquisitions, net of cash acquired | (54,720) | (27,518) |
Proceeds from the disposal of assets | 103 | 303 |
Other | 34 | |
Net cash used for investing activities | (68,579) | (38,655) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 119,603 | 108,668 |
Principal payments on long-term debt, finance leases and financing obligations | (103,257) | (103,535) |
Exercise of stock options | 3,730 | 778 |
Dividends paid | (7,417) | (6,674) |
Net cash provided by (used for) financing activities | 12,659 | (763) |
Increase in cash | 2,299 | 10,753 |
Cash at beginning of period | 6,214 | 1,909 |
Cash at end of period | $ 8,513 | $ 12,662 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Jun. 29, 2019 | |
Condensed Consolidated Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Note 1 – Condensed Consolidated Financial Statements The consolidated balance sheets as of June 29, 2019 and March 30, 2019, the consolidated statements of comprehensive income for the quarters ended June 29, 2019 and June 30, 2018, the consolidated statements of changes in shareholders’ equity for the quarters ended June 29, 2019 and June 30, 2018 and the consolidated statements of cash flows for the quarters ended June 29, 2019 and June 30, 2018, include financial information for Monro, Inc. and its wholly-owned subsidiaries, Monro Service Corporation; Car-X, LLC; MNRO Holdings, LLC and MNRO Service Holdings, LLC (collectively, “Monro,” “we,” “us,” “our,” the “Company”). These unaudited, condensed consolidated financial statements have been prepared by Monro. We believe all known adjustments (consisting of normal recurring accruals or adjustments) have been made to fairly state the financial position, results of operations and cash flows for the unaudited periods presented. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 30, 2019. We report our results on a 52/53 week fiscal year with the fiscal year ending on the last Saturday in March of each year. The following are the dates represented by each fiscal period reported in these condensed financial statements: “Quarter Ended Fiscal June 2019” March 31, 2019 – June 29, 2019 (13 weeks) “Quarter Ended Fiscal June 2018” April 1, 2018 – June 30, 2018 (13 weeks) Fiscal 2020, ending March 28, 2020, is a 52 week year. Monro’s operations are organized and managed in one operating segment. The internal management financial reporting that is the basis for evaluation in order to assess performance and allocate resources by our chief operating decision maker consists of consolidated data that includes the results of our retail, commercial and wholesale locations. As such, our one operating segment reflects how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management and the structure of our internal financial reporting. Recent Accounting Pronouncements In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. We adopted this standard as of March 31, 2019 using the modified retrospective approach and elected the optional transition relief amendment that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. In addition, we elected the package of practical expedients permitted under the transition guidance, which among other things, allowed us to carry forward the historical lease classification and provided relief from reviewing existing contracts to determine if they contain leases. We did not elect to use hindsight in determining the lease term. The adoption of this guidance resulted in a $ 165.3 million increase to total assets and a $ 165.9 million increase to total liabilities as of March 31, 2019. The Company recognized $ 186.9 million of operating lease ROU assets, $ 174.4 million of operating lease obligations, and a $ 0.7 million finance lease asset and liability related to embedded leases. The difference between the operating lease ROU assets and operating lease liabilities primarily represents the existing favorable lease intangibles of $ 19.6 million and unfavorable lease intangibles and deferred rent accruals of $ 7.2 million resulting from historical operating lease accounting. These were reclassified as operating ROU assets upon adoption. In addition, we recognized $ 8.4 million and $ 16.6 million of finance lease assets and liabilities, respectively, and removed $ 11.1 million and $ 18.6 million of assets and liabilities related to financial obligations connected with the construction of leased stores that are no longer considered a failed sale leaseback. As a result of using the modified retrospective approach, the adoption resulted in a cumulative-effect adjustment to retained earnings, net of tax, of approximately $ 0.6 million. The adoption of this guidance did not have a material impact to our Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. At adoption, we reclassified prior year capital lease and financing obligation assets from the Net property, plant and equipment line to the Finance lease and financing obligation assets, net line of our Consolidated Balance Sheet. See Note 8 for additional lease disclosures. In June 2018, the FASB issued new accounting guidance that amends the accounting for nonemployee share-based awards. Under the new guidance, the existing guidance related to the accounting for employee share-based awards will apply to nonemployee share-based transactions, with certain exceptions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance during the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued new accounting guidance which eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to have a material effect on our Consolidated Financial Statements. Financing In April 2019, we entered into a new five year $ 600 million revolving credit facility agreement currently with eight banks (the “Credit Facility”). The Credit Facility amended and restated our previous revolving credit facility which would have expired in January 2021. Interest only is payable monthly throughout the Credit Facility’s term. The borrowing capacity for the Credit Facility of $ 600 million includes an accordion feature permitting us to request an increase in availability of up to an additional $ 250 million. The Credit Facility bears interest at 75 to 200 basis points over LIBOR or at the prime rate, depending on the type of borrowing and the rates then in effect. The Credit Facility requires fees payable quarterly throughout the term between 0.125 % and 0.35 % of the amount of the average net availability under the Credit Facility during the preceding quarter. Within the Credit Facility, we have a sub-facility of $ 80 million available for the purpose of issuing standby letters of credit. The line requires fees aggregating 87.5 to 212.5 basis points over LIBOR annually of the face amount of each standby letter of credit, payable quarterly in arrears. Specific terms of the Credit Facility permit the payment of cash dividends (with certain limitations), and permit mortgages and specific lease financing arrangements with other parties (with certain limitations). Other specific terms and the maintenance of specified ratios are generally consistent with our prior financing agreement. Additionally, the Credit Facility is not secured by our real property, although we have agreed not to encumber our real property, with certain permissible exceptions. Commitments and Contingencies As of the date of this report, other than changes related to adoption of the new lease accounting standard as described in Note 8 to the Consolidated Financial Statements, there were no material changes to our commitments and contingencies outside those related to business acquisitions since March 30, 2019, as reported in our Form 10-K. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 29, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2 – Acquisitions Monro’s acquisitions are strategic moves in our plan to fill in and expand our presence in existing and contiguous markets, expand in to new markets and leverage fixed operating costs such as distribution, advertising and administration. Acquisitions in this footnote include acquisitions of five or more locations as well as acquisitions of one to four locations that are part of our greenfield store growth strategy. Subsequent Events Subsequent to June 29, 2019, we signed definitive asset purchase agreements to complete the acquisition of eight retail tire and automotive repair stores located in Louisiana. These transactions are expected to close during the second quarter of fiscal 2020 and are expected to be financed through our existing credit facility. Fiscal 2020 During the first quarter of fiscal 2020, we acquired the following businesses for an aggregate purchase price of $ 54.5 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in our financial results from the respective acquisition dates. On June 23, 2019 , we acquired two retail tire and automotive repair stores located in California from BAW LLC. These stores operate under the Tire Choice name. On May 19, 2019 , we acquired 40 retail tire and automotive repair stores and one distribution center located in California from Certified Tire & Service Centers, Inc. These stores operate under the Tire Choice name. On March 31, 2019 , we acquired 12 retail tire and automotive repair stores located in Louisiana from Allied Discount Tire & Brake, Inc. These stores operate under the Tire Choice name. These acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these businesses with ours, as well as unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to customer lists. We expensed all costs related to acquisitions in the quarter ended June 29, 2019. The total costs related to completed acquisitions were $ 0.5 million for the quarter ended June 29, 2019. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales for the fiscal 2020 acquired entities for the quarter ended June 29, 2019 totaled $ 7.1 million for the period from acquisition date through June 29, 2019. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. The preliminary fair values of identifiable assets acquired and liabilities assumed were based on preliminary valuations and estimates. The consideration transferred and net identifiable liabilities assumed were recorded as goodwill. The preliminary allocation of the aggregate purchase price as of June 29, 2019 was as follows: As of Acquisition Date (Dollars in thousands) Inventories $ 2,856 Other current assets 300 Property, plant and equipment 456 Finance lease and financing obligation assets, net 17,977 Operating lease assets, net 18,757 Intangible assets 1,523 Other non-current assets 103 Long-term deferred income tax assets 4,223 Total assets acquired 46,195 Current portion of long-term debt, finance leases and financing obligations 2,445 Current portion of operating lease liabilities 1,684 Deferred revenue 1,047 Other current liabilities 214 Long-term finance leases and financing obligations 30,720 Long-term operating lease liabilities 15,688 Other long-term liabilities 1,155 Total liabilities assumed 52,953 Total net identifiable liabilities assumed $ ( 6,758 ) Total consideration transferred $ 54,505 Less: total net identifiable liabilities assumed ( 6,758 ) Goodwill $ 61,263 The following are the intangible assets acquired and their respective fair values and weighted average useful lives: As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 1,523 7 years Fiscal 2019 During the first quarter of fiscal 2019, we acquired the following businesses for an aggregate purchase price of $ 27.2 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in our financial results from the respective acquisition dates. On May 13, 2018 , we acquired 12 retail/commercial tire and automotive repair stores and one retread facility located in Tennessee, as well as four wholesale locations in North Carolina, Tennessee and Virginia, from Free Service Tire Company, Incorporated. These locations operate under the Free Service Tire name. On April 1, 2018 , we acquired four retail tire and automotive repair stores located in Minnesota from Liberty Auto Group, Inc. These stores operate under the Car-X name. These acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these businesses with ours, as well as unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to customer lists, favorable leases and a trade name. We expensed all costs related to acquisitions in the quarter ended June 30, 2018. The total costs related to completed acquisitions were $ 0.2 million for the quarter ended June 30, 2018. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales for the fiscal 2019 acquired entities for the quarter ended June 30, 2018 totaled $ 5.4 million for the period from acquisition date through June 30, 2018. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. We have recorded the identifiable assets acquired and liabilities assumed at their fair values as of their respective acquisition dates (including any measurement period adjustments), with the remainder recorded as goodwill as follows: As of Acquisition Date (Dollars in thousands) Trade receivables $ 1,674 Inventories 7,594 Other current assets 192 Property, plant and equipment 2,342 Finance lease and financing obligation assets, net 2,893 Intangible assets 6,812 Long-term deferred income tax assets 1,051 Total assets acquired 22,558 Current portion of long-term debt, finance leases and financing obligations 557 Deferred revenue 115 Other current liabilities 419 Long-term finance leases and financing obligations 6,320 Other long-term liabilities 274 Total liabilities assumed 7,685 Total net identifiable assets acquired $ 14,873 Total consideration transferred $ 27,167 Less: total net identifiable assets acquired 14,873 Goodwill $ 12,294 The following are the intangible assets acquired and their respective fair values and weighted average useful lives: As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 5,247 13 years Favorable leases 1,165 10 years Trade name 400 2 years Total $ 6,812 12 years As a result of the updated purchase price allocations for the entities acquired during the fiscal year ended March 30, 2019, certain of the fair value amounts previously estimated were adjusted during the measurement period. These measurement period adjustments resulted from updated valuation reports and appraisals received from our external valuation specialists, as well as revisions to internal estimates . The changes in estimates include a decrease in inventories of $ 0.3 million; an increase in other current assets of $ 0.1 million; an increase in property, plant and equipment of $ 0.1 million; a decrease in finance lease and financing obligation assets, net of $ 0.8 million; a decrease in intangible assets of $ 0.3 million; a decrease in long-term deferred income tax assets of $ 0.3 million; an increase in current portion of long-term debt, finance leases and financing obligations of $ 0.2 million and a decrease in long-term finance leases and financing obligations of $ 2.4 million. The measurement period adjustments resulted in a decrease of goodwill of $ 0.7 million. The measurement period adjustments were not material to the Consolidated Statement of Comprehensive Income for the quarter ended June 29, 2019. We continue to refine the valuation data and estimates primarily related to inventory, warranty reserves, intangible assets, real estate, and real property leases for fiscal 2019 acquisitions which closed subsequent to June 30, 2018 and the fiscal 2020 acquisitions, and expect to complete the valuations no later than the first anniversary date of the respective acquisition. We anticipate that adjustments will continue to be made to the fair values of identifiable assets acquired and liabilities assumed and those adjustments may or may not be material. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Jun. 29, 2019 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note 3 – Earnings per Common Share Basic earnings per common share amounts are computed by dividing income available to common shareholders, after deducting preferred stock dividends, by the average number of common shares outstanding. Diluted earnings per common share amounts assume the issuance of common stock for all potentially dilutive equivalent securities outstanding. The following is a reconciliation of basic and diluted earnings per common share for the respective periods: Quarter Ended Fiscal June 2019 2018 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 22,606 $ 20,644 Less: Preferred stock dividends ( 112 ) ( 102 ) Income available to common shareholders $ 22,494 $ 20,542 Denominator for earnings per common share calculation: Weighted average common shares, basic 33,183 32,853 Effect of dilutive securities: Preferred stock 510 510 Stock options 231 68 Restricted stock 40 26 Weighted average common shares, diluted 33,964 33,457 Basic earnings per common share: $ 0.68 $ 0.63 Diluted earnings per common share: $ 0.67 $ 0.62 The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 59,000 and 486,000 stock options for the quarters ended June 29, 2019 and June 30, 2018, respectively. Such amounts were excluded as the exercise price of these stock options was greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 29, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4 – Income Taxes In the normal course of business, we provide for uncertain tax positions and the related interest and penalties, and adjust our unrecognized tax benefits and accrued interest and penalties accordingly. The total amount of unrecognized tax benefits was $ 6.7 million and $ 6.4 million at June 29, 2019 and March 30, 2019, respectively, the majority of which, if recognized, would affect our effective tax rate. Additionally, we have accrued interest and penalties related to unrecognized tax benefits of approximately $ 0.4 million as of June 29, 2019 and March 30, 2019. We file U.S. federal income tax returns and income tax returns in various state jurisdictions. Our fiscal 2018 U.S. federal tax year and various state tax years remain subject to income tax examinations by tax authorities. |
Fair Value
Fair Value | 3 Months Ended |
Jun. 29, 2019 | |
Fair Value [Abstract] | |
Fair Value | Note 5 – Fair Value Long-term debt had a carrying amount that approximates a fair value of $ 160.0 million as of June 29, 2019, as compared to a carrying amount and a fair value of $ 137.7 million as of March 30, 2019. The fair value of long-term debt was estimated based on discounted cash flow analyses using either quoted market prices for the same or similar issues, or the current interest rates offered to Monro for debt with similar maturities. |
Cash Dividend
Cash Dividend | 3 Months Ended |
Jun. 29, 2019 | |
Cash Dividend [Abstract] | |
Cash Dividend | Note 6 – Cash Dividend In May 2019, our Board of Directors declared its intention to pay a regular quarterly cash dividend during fiscal 2020 of $ 0.22 per common share or common share equivalent beginning with the first quarter of fiscal 2020. We paid dividends of $ 7.4 million during the quarter ended June 29, 2019. However, the declaration of and any determination as to the payment of future dividends will be at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with charter and credit facility restrictions, and such other factors as the Board of Directors deems relevant. |
Revenue
Revenue | 3 Months Ended |
Jun. 29, 2019 | |
Revenue [Abstract] | |
Revenue | Note 7 – Revenues Automotive undercar repair, tire sales and tire services represent the vast majority of our revenues. We also earn revenue from the sale of tire road hazard warranty agreements as well as commissions earned from the delivery of tires on behalf of certain tire vendors. Revenue from automotive undercar repair, tire sales and tire services is recognized at the time the customers take possession of their vehicle or merchandise. For sales to certain customers that are financed through the offering of credit on account, payment terms are established for customers based on our pre-established credit requirements. Payment terms vary depending on the customer and generally range from 15 to 45 days. Based on the nature of receivables, no significant financing components exist. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimate the reduction to sales and cost of sales for returns based on current sales levels and our historical return experience. Such amounts are immaterial to our Consolidated Financial Statements. Revenue from the sale of tire road hazard warranty agreements (included in the Tires product group in the table below) is initially deferred and is recognized over the contract period as costs are expected to be incurred in performing such services, typically 21 to 36 months. The amounts recorded for deferred revenue balances at June 29, 2019 and March 30, 2019 were $ 19.0 million and $ 17.2 million, respectively, of which $ 13.2 million and $ 12.1 million, respectively, are reported in Deferred revenue and $ 5.8 million and $ 5.1 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets. The following table summarizes deferred revenue related to road hazard warranty agreements from March 30, 2019 to June 29, 2019: Dollars in thousands Balance at March 30, 2019 $ 17,150 Deferral of revenue 4,496 Deferral of revenue from acquisitions 1,909 Recognition of revenue ( 4,598 ) Balance at June 29, 2019 $ 18,957 We expect to recognize $ 10.9 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2020, $ 6.5 million of such deferred revenue during our fiscal year ending March 27, 2021, and $ 1.6 million of such deferred revenue thereafter. Under various arrangements, we receive from certain tire vendors a delivery commission and reimbursement for the cost of the tire that we may deliver to customers on behalf of the tire vendor. The commission we earn from these transactions is as an agent and the net amount retained is recorded as sales. (Included in the Tires product group in the following table.) The following table summarizes disaggregated revenue by product group: Quarter Ended Fiscal June 2019 2018 (Dollars in thousands) Revenues: Brakes $ 46,776 $ 42,748 Exhaust 6,953 7,076 Steering 26,232 25,059 Tires 154,065 141,103 Maintenance 82,174 79,010 Other 863 815 Total $ 317,063 $ 295,811 |
Leasing
Leasing | 3 Months Ended |
Jun. 29, 2019 | |
Leasing [Abstract] | |
Leasing | Note 8 – Leasing We enter into lease agreements for certain retail stores, warehouses, distribution centers, office space and land as well as service contracts that are considered leases. We determine if an arrangement is or contains a lease at inception. We record ROU assets and lease obligations for our finance and operating leases, which are initially based on the discounted future minimum lease payments over the term of the lease. As the rate implicit in our leases is not easily determinable, our applicable incremental borrowing rate is used in calculating the present value of the lease payments. We estimate our incremental borrowing rate considering the market rates of our outstanding collateralized borrowings and comparisons to comparable borrowings of similar terms. Our leases have remaining lease terms of less than one year to approximately 39 years. Most of our leases include one or more options to extend the lease, for periods ranging from one year to 69 years or more. If it is reasonably certain that an option to extend will be exercised, that option is considered in the lease term at inception. For leases with an initial term of 12 months or less, no ROU assets or lease obligations are recorded on the balance sheet and we recognize short-term lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include rental payments based on a percentage of retail sales over specified levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. For the majority of all classes of underlying assets, we have elected to separate lease from non-lease components. We have elected to combine lease and non-lease components for certain classes of equipment. We sublease excess space to third parties. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Interest expense for finance leases is recognized using the effective interest method. Variable payments, short-term rentals and payments associated with non-lease components are expensed as incurred. Historical failed sale leasebacks that were assumed through acquisitions and do not qualify for sale leaseback accounting continue to be accounted for as financing obligations. As of June 29, 2019, net assets of $ 4.6 million and liabilities of $ 7.7 million due to failed sale leaseback arrangements were included with finance lease assets and liabilities, respectively, on the Consolidated Balance Sheet. The components of operating and finance lease cost were as follows: Quarter Ended Fiscal June 2019 (Dollars in thousands) Operating lease cost $ 9,228 Finance lease/financing obligations cost: Amortization of assets 4,247 Interest on liabilities 5,278 Short term and variable lease cost 565 Sublease income ( 33 ) Total lease cost $ 19,285 Supplemental cash flow information related to leases was as follows: Quarter Ended Fiscal June 2019 (Dollars in thousands) Cash paid for amounts included in measurement of lease obligations: Operating cash flows from operating leases $ 8,669 Operating cash flows from finance leases/financing obligations 5,268 Financing cash flows from finance leases/financing obligations 5,942 Assets obtained in exchange for operating lease obligations 6,730 Assets obtained in exchange for finance lease obligations 6,220 The following table summarizes weighted average remaining lease term and discount rates: Operating Leases Finance Leases and Financing Obligations Weighted average remaining lease term, in years 9.4 10.1 Weighted average discount rate 3.67 % 10.31 % Future maturities of our lease liabilities, excluding subleases, as of June 29, 2019 are as follows: Operating Leases Finance Leases and Financing Obligations (Dollars in thousands) Remainder 2020 $ 26,526 $ 34,894 2021 33,404 46,962 2022 29,922 46,679 2023 25,652 46,456 2024 20,594 39,749 Thereafter 90,251 211,637 Total undiscounted lease obligations $ 226,349 $ 426,377 Less: imputed interest ( 37,382 ) ( 139,834 ) Net lease obligation $ 188,967 $ 286,543 Total lease payments include $ 68 million related to options to extend operating leases that are reasonably certain of being exercised, include $ 106 million related to options to extend finance leases that are reasonably certain of being exercised and exclude $ 15 million of legally binding lease payments for leases signed but not yet commenced as of June 29, 2019. The aggregate minimum annual lease rentals at March 30, 2019 for the remaining contractual term of non-cancelable leases were as follows: Operating Leases Finance Leases and Financing Obligations (Dollars in thousands) 2020 $ 33,225 $ 43,034 2021 28,819 43,791 2022 23,552 43,459 2023 17,949 42,981 2024 11,488 37,733 Thereafter 33,614 191,366 Total minimum rentals before sublease income $ 148,647 $ 402,364 Less: minimum sublease rentals ( 488 ) — Total minimum rentals $ 148,159 $ 402,364 Less: imputed interest ( 142,086 ) Present value of minimum lease payments $ 260,278 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events See Note 2 for a discussion of acquisitions subsequent to June 29, 2019. |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policy) | 3 Months Ended |
Jun. 29, 2019 | |
Condensed Consolidated Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. We adopted this standard as of March 31, 2019 using the modified retrospective approach and elected the optional transition relief amendment that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. In addition, we elected the package of practical expedients permitted under the transition guidance, which among other things, allowed us to carry forward the historical lease classification and provided relief from reviewing existing contracts to determine if they contain leases. We did not elect to use hindsight in determining the lease term. The adoption of this guidance resulted in a $ 165.3 million increase to total assets and a $ 165.9 million increase to total liabilities as of March 31, 2019. The Company recognized $ 186.9 million of operating lease ROU assets, $ 174.4 million of operating lease obligations, and a $ 0.7 million finance lease asset and liability related to embedded leases. The difference between the operating lease ROU assets and operating lease liabilities primarily represents the existing favorable lease intangibles of $ 19.6 million and unfavorable lease intangibles and deferred rent accruals of $ 7.2 million resulting from historical operating lease accounting. These were reclassified as operating ROU assets upon adoption. In addition, we recognized $ 8.4 million and $ 16.6 million of finance lease assets and liabilities, respectively, and removed $ 11.1 million and $ 18.6 million of assets and liabilities related to financial obligations connected with the construction of leased stores that are no longer considered a failed sale leaseback. As a result of using the modified retrospective approach, the adoption resulted in a cumulative-effect adjustment to retained earnings, net of tax, of approximately $ 0.6 million. The adoption of this guidance did not have a material impact to our Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. At adoption, we reclassified prior year capital lease and financing obligation assets from the Net property, plant and equipment line to the Finance lease and financing obligation assets, net line of our Consolidated Balance Sheet. See Note 8 for additional lease disclosures. In June 2018, the FASB issued new accounting guidance that amends the accounting for nonemployee share-based awards. Under the new guidance, the existing guidance related to the accounting for employee share-based awards will apply to nonemployee share-based transactions, with certain exceptions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance during the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued new accounting guidance which eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to have a material effect on our Consolidated Financial Statements. |
Financing | Financing In April 2019, we entered into a new five year $ 600 million revolving credit facility agreement currently with eight banks (the “Credit Facility”). The Credit Facility amended and restated our previous revolving credit facility which would have expired in January 2021. Interest only is payable monthly throughout the Credit Facility’s term. The borrowing capacity for the Credit Facility of $ 600 million includes an accordion feature permitting us to request an increase in availability of up to an additional $ 250 million. The Credit Facility bears interest at 75 to 200 basis points over LIBOR or at the prime rate, depending on the type of borrowing and the rates then in effect. The Credit Facility requires fees payable quarterly throughout the term between 0.125 % and 0.35 % of the amount of the average net availability under the Credit Facility during the preceding quarter. Within the Credit Facility, we have a sub-facility of $ 80 million available for the purpose of issuing standby letters of credit. The line requires fees aggregating 87.5 to 212.5 basis points over LIBOR annually of the face amount of each standby letter of credit, payable quarterly in arrears. Specific terms of the Credit Facility permit the payment of cash dividends (with certain limitations), and permit mortgages and specific lease financing arrangements with other parties (with certain limitations). Other specific terms and the maintenance of specified ratios are generally consistent with our prior financing agreement. Additionally, the Credit Facility is not secured by our real property, although we have agreed not to encumber our real property, with certain permissible exceptions. |
Commitments And Contingencies | Commitments and Contingencies As of the date of this report, other than changes related to adoption of the new lease accounting standard as described in Note 8 to the Consolidated Financial Statements, there were no material changes to our commitments and contingencies outside those related to business acquisitions since March 30, 2019, as reported in our Form 10-K. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Inventories $ 2,856 Other current assets 300 Property, plant and equipment 456 Finance lease and financing obligation assets, net 17,977 Operating lease assets, net 18,757 Intangible assets 1,523 Other non-current assets 103 Long-term deferred income tax assets 4,223 Total assets acquired 46,195 Current portion of long-term debt, finance leases and financing obligations 2,445 Current portion of operating lease liabilities 1,684 Deferred revenue 1,047 Other current liabilities 214 Long-term finance leases and financing obligations 30,720 Long-term operating lease liabilities 15,688 Other long-term liabilities 1,155 Total liabilities assumed 52,953 Total net identifiable liabilities assumed $ ( 6,758 ) Total consideration transferred $ 54,505 Less: total net identifiable liabilities assumed ( 6,758 ) Goodwill $ 61,263 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 1,523 7 years |
Fiscal 2019 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Trade receivables $ 1,674 Inventories 7,594 Other current assets 192 Property, plant and equipment 2,342 Finance lease and financing obligation assets, net 2,893 Intangible assets 6,812 Long-term deferred income tax assets 1,051 Total assets acquired 22,558 Current portion of long-term debt, finance leases and financing obligations 557 Deferred revenue 115 Other current liabilities 419 Long-term finance leases and financing obligations 6,320 Other long-term liabilities 274 Total liabilities assumed 7,685 Total net identifiable assets acquired $ 14,873 Total consideration transferred $ 27,167 Less: total net identifiable assets acquired 14,873 Goodwill $ 12,294 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 5,247 13 years Favorable leases 1,165 10 years Trade name 400 2 years Total $ 6,812 12 years |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Earnings Per Common Share [Abstract] | |
Reconciliation Of Basic And Diluted Earnings Per Share | Quarter Ended Fiscal June 2019 2018 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 22,606 $ 20,644 Less: Preferred stock dividends ( 112 ) ( 102 ) Income available to common shareholders $ 22,494 $ 20,542 Denominator for earnings per common share calculation: Weighted average common shares, basic 33,183 32,853 Effect of dilutive securities: Preferred stock 510 510 Stock options 231 68 Restricted stock 40 26 Weighted average common shares, diluted 33,964 33,457 Basic earnings per common share: $ 0.68 $ 0.63 Diluted earnings per common share: $ 0.67 $ 0.62 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Revenue [Abstract] | |
Schedule Of Changes In Deferred Revenue | Dollars in thousands Balance at March 30, 2019 $ 17,150 Deferral of revenue 4,496 Deferral of revenue from acquisitions 1,909 Recognition of revenue ( 4,598 ) Balance at June 29, 2019 $ 18,957 |
Schedule Of Disaggregated Revenue By Product Group | Quarter Ended Fiscal June 2019 2018 (Dollars in thousands) Revenues: Brakes $ 46,776 $ 42,748 Exhaust 6,953 7,076 Steering 26,232 25,059 Tires 154,065 141,103 Maintenance 82,174 79,010 Other 863 815 Total $ 317,063 $ 295,811 |
Leasing (Tables)
Leasing (Tables) | 3 Months Ended |
Jun. 29, 2019 | |
Leasing [Abstract] | |
Schedule Of Operating And Finance Lease Costs | Quarter Ended Fiscal June 2019 (Dollars in thousands) Operating lease cost $ 9,228 Finance lease/financing obligations cost: Amortization of assets 4,247 Interest on liabilities 5,278 Short term and variable lease cost 565 Sublease income ( 33 ) Total lease cost $ 19,285 |
Schedule Of Supplemental Cash Flow Information Related To Leases | Quarter Ended Fiscal June 2019 (Dollars in thousands) Cash paid for amounts included in measurement of lease obligations: Operating cash flows from operating leases $ 8,669 Operating cash flows from finance leases/financing obligations 5,268 Financing cash flows from finance leases/financing obligations 5,942 Assets obtained in exchange for operating lease obligations 6,730 Assets obtained in exchange for finance lease obligations 6,220 |
Schedule Of Weighted Average Remaining Lease Terms And Discount Rates | Operating Leases Finance Leases and Financing Obligations Weighted average remaining lease term, in years 9.4 10.1 Weighted average discount rate 3.67 % 10.31 % |
Schedule Of Future Maturities of Lease Liabilities | Operating Leases Finance Leases and Financing Obligations (Dollars in thousands) Remainder 2020 $ 26,526 $ 34,894 2021 33,404 46,962 2022 29,922 46,679 2023 25,652 46,456 2024 20,594 39,749 Thereafter 90,251 211,637 Total undiscounted lease obligations $ 226,349 $ 426,377 Less: imputed interest ( 37,382 ) ( 139,834 ) Net lease obligation $ 188,967 $ 286,543 |
Schedule Of Minimum Annual Lease Rentals | Operating Leases Finance Leases and Financing Obligations (Dollars in thousands) 2020 $ 33,225 $ 43,034 2021 28,819 43,791 2022 23,552 43,459 2023 17,949 42,981 2024 11,488 37,733 Thereafter 33,614 191,366 Total minimum rentals before sublease income $ 148,647 $ 402,364 Less: minimum sublease rentals ( 488 ) — Total minimum rentals $ 148,159 $ 402,364 Less: imputed interest ( 142,086 ) Present value of minimum lease payments $ 260,278 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statements (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 29, 2019USD ($)segment | Mar. 30, 2019USD ($) | |
Financial Statement [Line Items] | ||
Number of operating segments | segment | 1 | |
Total assets | $ 1,578,454 | $ 1,312,288 |
Total liabilities | 859,866 | 612,778 |
Operating lease right-of-use assets | 201,401 | |
Operating lease obligations | 188,967 | |
Finance lease asset | 142,066 | 128,029 |
Finance lease liability | $ 286,543 | |
Accounting change - cumulative effect | (582) | |
Accounting Standards Update 2016-02 [Member] | ||
Financial Statement [Line Items] | ||
Total assets | 165,300 | |
Total liabilities | 165,900 | |
Operating lease right-of-use assets | 186,900 | |
Operating lease obligations | 174,400 | |
Finance lease asset | 700 | |
Finance lease liability | 700 | |
Operating lease, asset (liability), difference in assets resulting from favorable leases | 19,600 | |
Operating lease, asset (liability), difference in assets resulting from unfavorable lease intangibles and deferred rent | 7,200 | |
Lease financial obligations | 18,600 | |
Assets related to finance lease construction | 11,100 | |
Leased Stores [Member] | Accounting Standards Update 2016-02 [Member] | ||
Financial Statement [Line Items] | ||
Finance lease asset | 8,400 | |
Finance lease liability | $ 16,600 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) | 1 Months Ended | 3 Months Ended | |
Aug. 07, 2019entity | Jun. 29, 2019USD ($)warehousepropertystoreentity | Jun. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |||
Store acquisitions related to acquisition growth strategy | property | 5 | ||
Costs related to completed acquisitions | $ 500,000 | $ 200,000 | |
Sales for acquired entities | 7,100,000 | 5,400,000 | |
Total consideration transferred | 54,500,000 | $ 27,167,000 | |
Change in estimates, inventories | (300,000) | ||
Change in estimates, property, plant and equipment | 100,000 | ||
Change in estimates, finance lease assets | (800,000) | ||
Change in estimates, intangible assets | (300,000) | ||
Change in estimates, other current assets | 100,000 | ||
Change in estimates, long-term deferred income tax assets | 300,000 | ||
Change in estimates, current portion of finance leases and financing obligations | (200,000) | ||
Change in estimates, long-term finance leases and financing obligations | (2,400,000) | ||
Adjustments to goodwill related to purchase accounting | $ (700,000) | ||
Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | entity | 8 | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Store acquisitions related to greenfield store growth strategy | property | 4 | ||
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Store acquisitions related to greenfield store growth strategy | property | 1 | ||
BAW LLC [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jun. 23, 2019 | ||
Number of stores acquired | store | 2 | ||
Certified Tire And Service Centers, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | May 19, 2019 | ||
Number of stores acquired | store | 40 | ||
Number of distribution center | warehouse | 1 | ||
Allied Discount Tire And Brake, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Mar. 31, 2019 | ||
Number of stores acquired | store | 12 | ||
Free Service Tire Company, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | May 13, 2018 | ||
Number of stores acquired | store | 12 | ||
Liberty Auto Group, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Apr. 1, 2018 | ||
Number of stores acquired | store | 4 | ||
Fiscal 2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | $ 54,505,000 | ||
Standby Letters of Credit [Member] | |||
Business Acquisition [Line Items] | |||
Revolving credit facility agreement | $ 80,000,000 | ||
Standby Letters of Credit [Member] | Maximum [Member] | LIBOR [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate over LIBOR on the facility | 2.125% | ||
Standby Letters of Credit [Member] | Minimum [Member] | LIBOR [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate over LIBOR on the facility | 0.875% | ||
Revolving Credit Facility [Member] | |||
Business Acquisition [Line Items] | |||
Credit facility term | 5 years | ||
Revolving credit facility agreement | $ 600,000,000 | ||
Number of banks involved in credit facility | entity | 8 | ||
Credit facility, Potential increased availability | $ 250,000,000 | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of face amount of standby letter of credit payable as fees | 0.35% | ||
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate over LIBOR on the facility | 2.00% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of face amount of standby letter of credit payable as fees | 0.125% | ||
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate over LIBOR on the facility | 0.75% |
Acquisitions (Schedule Of Purch
Acquisitions (Schedule Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Mar. 30, 2019 | |
Purchase price of acquisitions allocation | |||
Trade receivables | $ 1,674 | ||
Inventories | 7,594 | ||
Other current assets | 192 | ||
Property, plant and equipment | 2,342 | ||
Finance lease and financing obligation assets, net | 2,893 | ||
Intangible assets | 6,812 | ||
Long-term deferred income tax assets | 1,051 | ||
Total assets acquired | 22,558 | ||
Current portion of long-term debt, finance leases and financing obligations | 557 | ||
Deferred revenue | 115 | ||
Other current liabilities | 419 | ||
Long-term finance leases and financing obligations | 6,320 | ||
Other long-term liabilities | 274 | ||
Total liabilities assumed | 7,685 | ||
Total net identifiable assets acquired (liabilities assumed) | 14,873 | ||
Total consideration transferred | $ 54,500 | 27,167 | |
Less: total net identifiable assets acquired (liabilities assumed) | 14,873 | ||
Goodwill | 626,108 | $ 12,294 | $ 565,503 |
Fiscal 2020 Acquisitions [Member] | |||
Purchase price of acquisitions allocation | |||
Inventories | 2,856 | ||
Other current assets | 300 | ||
Property, plant and equipment | 456 | ||
Finance lease and financing obligation assets, net | 17,977 | ||
Operating lease assets, net | 18,757 | ||
Intangible assets | 1,523 | ||
Other non-current assets | 103 | ||
Long-term deferred income tax assets | 4,223 | ||
Total assets acquired | 46,195 | ||
Current portion of long-term debt, finance leases and financing obligations | 2,445 | ||
Current portion of operating lease liabilities | 1,684 | ||
Deferred revenue | 1,047 | ||
Other current liabilities | 214 | ||
Long-term finance leases and financing obligations | 30,720 | ||
Long-term operating lease liabilities | 15,688 | ||
Other long-term liabilities | 1,155 | ||
Total liabilities assumed | 52,953 | ||
Total net identifiable assets acquired (liabilities assumed) | (6,758) | ||
Total consideration transferred | 54,505 | ||
Less: total net identifiable assets acquired (liabilities assumed) | (6,758) | ||
Goodwill | $ 61,263 |
Acquisitions (Schedule Of Intan
Acquisitions (Schedule Of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 1,523 | |
Weighted average useful life | 7 years | |
Fiscal 2019 Acquisitions [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 6,812 | |
Weighted average useful life | 12 years | |
Fiscal 2019 Acquisitions [Member] | Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 5,247 | |
Weighted average useful life | 13 years | |
Fiscal 2019 Acquisitions [Member] | Favorable Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 1,165 | |
Weighted average useful life | 10 years | |
Fiscal 2019 Acquisitions [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 400 | |
Weighted average useful life | 2 years |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 59,000 | 486,000 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | ||
Numerator for earnings per common share calculation: | |||
Net income | $ 22,606 | $ 20,644 | |
Less: Preferred stock dividends | (112) | [1] | (102) |
Income available to common shareholders | $ 22,494 | $ 20,542 | |
Denominator for earnings per common share calculation: | |||
Weighted average common shares, basic | 33,183 | 32,853 | |
Effect of dilutive securities: | |||
Preferred stock | 510 | 510 | |
Weighted average common shares, diluted | 33,964 | 33,457 | |
Basic earnings per common share: | $ 0.68 | $ 0.63 | |
Diluted earnings per common share: | $ 0.67 | $ 0.62 | |
Stock Options [Member] | |||
Effect of dilutive securities: | |||
Share based payment arrangements (in shares) | 231 | 68 | |
Restricted Stock [Member] | |||
Effect of dilutive securities: | |||
Share based payment arrangements (in shares) | 40 | 26 | |
[1] | First quarter fiscal year dividend payment of $ 0.22 and $ 0.20 per common share or common share equivalent paid on June 17, 2019 and June 14, 2018, respectively. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Mar. 30, 2019 |
Income Taxes [Abstract] | ||
Unrecognized tax benefits | $ 6.7 | $ 6.4 |
Interest and penalties accrued related to unrecognized tax benefits | $ 0.4 | $ 0.4 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Mar. 30, 2019 |
Fair Value [Abstract] | ||
Carrying amount of long-term debt ( including current portion) | $ 160 | $ 137.7 |
Cash Dividend (Details)
Cash Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 31, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | |
Cash Dividend [Abstract] | |||
Common stock cash dividends per share declared | $ 0.22 | ||
Dividends to shareholders | $ 7,417 | $ 6,674 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Mar. 30, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 18,957 | $ 17,150 |
Deferred revenue, current | 13,163 | 12,059 |
Deferred revenue, noncurrent | $ 5,800 | $ 5,100 |
Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Payment term | 15 days | |
Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Payment term | 45 days | |
Tire Road Hazard Warranty [Member] | Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognition, contract term | 21 months | |
Tire Road Hazard Warranty [Member] | Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognition, contract term | 36 months |
Revenue (Narrative) (Performanc
Revenue (Narrative) (Performance Obligation) (Details) $ in Millions | Jun. 29, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | $ 10.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | 6.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | $ 1.6 |
Revenue (Schedule Of Changes In
Revenue (Schedule Of Changes In Deferred Revenue) (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Revenue [Abstract] | |
Balance at March 30, 2019 | $ 17,150 |
Deferral of revenue | 4,496 |
Deferral of revenue from acquisitions | 1,909 |
Recognition of revenue | (4,598) |
Balance at June 29, 2019 | $ 18,957 |
Revenue (Schedule Of Disaggrega
Revenue (Schedule Of Disaggregated Revenue By Product Group) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 317,063 | $ 295,811 |
Brakes [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46,776 | 42,748 |
Exhaust [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,953 | 7,076 |
Steering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 26,232 | 25,059 |
Tires [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 154,065 | 141,103 |
Maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 82,174 | 79,010 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 863 | $ 815 |
Leasing (Narrative) (Details)
Leasing (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2019 | Mar. 30, 2019 | |
Sale Leaseback Transaction [Line Items] | ||
Finance lease and financing obligation assets, net | $ 142,066 | $ 128,029 |
Long-term finance leases and financing obligations | 260,818 | $ 238,089 |
Operating lease payments, related to options to extend, reasonably certain of being exercised | 68,000 | |
Finance lease payments, related to options to extend, reasonable certain of being exercised | 106,000 | |
Lease payments, leases signed but not yet commenced | 15,000 | |
Failed Sale Leasebacks That Were Assumed Through Acquisitions [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Finance lease and financing obligation assets, net | 4,600 | |
Long-term finance leases and financing obligations | $ 7,700 | |
Minimum [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Remaining lease term | 1 year | |
Option to extend, term of option | 1 year | |
Maximum [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Remaining lease term | 39 years | |
Option to extend, term of option | 69 years |
Leasing (Schedule Of Operating
Leasing (Schedule Of Operating And Finance Lease Costs) (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Leasing [Abstract] | |
Operating lease cost | $ 9,228 |
Amortization of assets | 4,247 |
Interest on liabilities | 5,278 |
Short term and variable lease cost | 565 |
Sublease income | (33) |
Total lease cost | $ 19,285 |
Leasing (Schedule Of Supplement
Leasing (Schedule Of Supplemental Cash Flow Information Related To Leases) (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Leasing [Abstract] | |
Operating cash flows from operating leases | $ 8,669 |
Operating cash flows from finance leases/financing obligations | 5,268 |
Financing cash flows from finance leases/financing obligations | 5,942 |
Assets obtained in exchange for operating lease obligations | 6,730 |
Assets obtained in exchange for finance lease obligations | $ 6,220 |
Leasing (Schedule Of Weighted A
Leasing (Schedule Of Weighted Average Remaining Lease Terms) (Details) | Jun. 29, 2019 |
Operating Leases | |
Weighted average remaining lease term, in years | 9 years 4 months 24 days |
Weighted average discount rate | 3.67% |
Finance Leases and Financing Obligations | |
Weighted average remaining lease term, in years | 10 years 1 month 6 days |
Weighted average discount rate | 10.31% |
Leasing (Schedule Of Future Mat
Leasing (Schedule Of Future Maturities of Lease Liabilities) (Details) $ in Thousands | Jun. 29, 2019USD ($) |
Operating Leases: | |
Remainder 2020 | $ 26,526 |
2021 | 33,404 |
2022 | 29,922 |
2023 | 25,652 |
2024 | 20,594 |
Thereafter | 90,251 |
Total undiscounted lease obligations | 226,349 |
Less: imputed interest | (37,382) |
Net lease obligation | 188,967 |
Finance Leases and Financing Obligations: | |
Remainder 2020 | 34,894 |
2021 | 46,962 |
2022 | 46,679 |
2023 | 46,456 |
2024 | 39,749 |
Thereafter | 211,637 |
Total undiscounted lease obligations | 426,377 |
Less: imputed interest | (139,834) |
Net lease obligation | $ 286,543 |
Leasing (Schedule Of Minimum An
Leasing (Schedule Of Minimum Annual Lease Rentals) (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Leasing [Abstract] | |
Operating leases, 2020 | $ 33,225 |
Operating, 2021 | 28,819 |
Operating, 2022 | 23,552 |
Operating, 2023 | 17,949 |
Operating, 2024 | 11,488 |
Operating, Thereafter | 33,614 |
Operating Leases, Total | 148,647 |
Less: minimum sublease rentals | (488) |
Total | 148,159 |
Finance Leases and Financing Obligations, 2020 | 43,034 |
Finance Leases and Financing Obligations, 2021 | 43,791 |
Finance Leases and Financing Obligations, 2022 | 43,459 |
Finance Leases and Financing Obligations, 2023 | 42,981 |
Finance Leases and Financing Obligations, 2024 | 37,733 |
Finance Leases and Financing Obligations, Thereafter | 191,366 |
Total minimum rentals | 402,364 |
Less: imputed interest | (142,086) |
Present value of minimum lease payments | $ 260,278 |