Monro (MNRO) 10-Q 2 Aug 21 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 26, 2021	Jul. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 26, 2021
Current Fiscal Year End Date	--03-26
Document Fiscal Year Focus	2022
Document Transition Report	false
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		33,505,537
Entity Central Index Key	0000876427
Amendment Flag	false
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 26, 2021	Mar. 27, 2021
Current assets
Cash and equivalents	$ 16,878	$ 29,960
Accounts receivable	15,422	15,324
Federal and state income taxes receivable	3,085	10,844
Inventories	167,501	162,282
Other current assets	53,180	48,115
Total current assets	256,066	266,525
Property and equipment, net	321,465	327,063
Finance lease and financing obligation assets, net	285,573	275,360
Operating lease assets, net	219,694	203,329
Goodwill	757,667	689,524
Intangible assets, net	27,229	26,068
Other non-current assets	18,261	18,332
Long-term deferred income tax assets	5,813	5,613
Total assets	1,891,768	1,811,814
Current liabilities
Current portion of finance leases and financing obligations	39,986	37,803
Current portion of operating lease liabilities	32,752	30,903
Accounts payable	121,378	112,378
Accrued payroll, payroll taxes and other payroll benefits	29,157	20,842
Accrued insurance	52,684	49,681
Deferred revenue	12,669	11,956
Other current liabilities	31,634	27,053
Total current liabilities	320,260	290,616
Long-term debt	198,000	190,000
Long-term finance leases and financing obligations	379,711	366,330
Long-term operating lease liabilities	197,571	177,724
Other long-term liabilities	17,154	16,649
Long-term deferred income tax liabilities	19,398	19,783
Long-term income taxes payable	1,083	1,028
Total liabilities	1,133,177	1,062,130
Commitments and contingencies - Note 10
Shareholders' equity
Class C Convertible Preferred Stock	29	29
Common Stock	399	398
Treasury Stock	(108,729)	(108,729)
Additional paid-in capital	239,738	238,244
Accumulated other comprehensive loss	(4,722)	(4,619)
Retained earnings	631,876	624,361
Total shareholders' equity	758,591	749,684
Total liabilities and shareholders' equity	$ 1,891,768	$ 1,811,814

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 26, 2021	Mar. 27, 2021
Consolidated Balance Sheets [Abstract]
Class C convertible preferred stock shares authorized	150,000	150,000
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 issued	19,664	19,664
Class C convertible preferred stock shares outstanding	19,664	19,664
Common stock shares authorized	65,000,000	65,000,000
Common stock par value	$ 0.01	$ 0.01
Common stock shares issued	39,865,158	39,848,093
Treasury stock shares	6,359,871	6,359,871

Consolidated Statements Of Inco

Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Consolidated Statements Of Income And Comprehensive Income [Abstract]
Sales	$ 341,818	$ 247,059
Cost of sales, including distribution and occupancy costs	215,887	159,605
Gross profit	125,931	87,454
Operating, selling, general and administrative expenses	98,014	76,053
Operating income	27,917	11,401
Interest expense, net of interest income	6,941	7,385
Other (income) loss, net	(44)	9
Income before income taxes	21,020	4,007
Provision for income taxes	5,339	1,020
Net income	15,681	2,987
Other comprehensive loss
Changes in pension, net of tax	(103)	(170)
Other comprehensive loss	(103)	(170)
Comprehensive income	$ 15,578	$ 2,817
Earnings per share
Basic	$ 0.46	$ 0.09
Diluted	$ 0.46	$ 0.09
Weighted average common shares outstanding
Basic	33,498	33,285
Diluted	34,022	33,854

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. 28, 2020	$ 33	$ 396	$ (108,729)	$ 229,774	$ (6,889)	$ 619,855	$ 734,440
Beginning balance, preferred shares at Mar. 28, 2020	22,000
Beginning balance, common shares at Mar. 28, 2020		39,645,000	6,360,000
Net income						2,987	2,987
Other comprehensive loss
Pension liability adjustment					(170)		(170)
Dividends declared
Preferred						(112)	(112)
Common						(7,323)	(7,323)
Dividend payable						(11)	(11)
Stock options and restricted stock				5			5
Stock options and restricted stock, shares		1,000
Stock-based compensation				904			904
Balance ending at Jun. 27, 2020	$ 33	$ 396	$ (108,729)	230,683	(7,059)	615,396	730,720
Ending balance, preferred shares at Jun. 27, 2020	22,000
Ending balance, common shares at Jun. 27, 2020		39,646,000	6,360,000
Balance beginning at Mar. 27, 2021	$ 29	$ 398	$ (108,729)	238,244	(4,619)	624,361	$ 749,684
Beginning balance, preferred shares at Mar. 27, 2021	20,000						19,664
Beginning balance, common shares at Mar. 27, 2021		39,848,000	6,360,000
Net income						15,681	$ 15,681
Other comprehensive loss
Pension liability adjustment					(103)		(103)
Dividends declared
Preferred						(110)	(110)
Common						(8,042)	(8,042)
Dividend payable						(14)	(14)
Stock options and restricted stock		$ 1		739			740
Stock options and restricted stock, shares		17,000
Stock-based compensation				755			755
Balance ending at Jun. 26, 2021	$ 29	$ 399	$ (108,729)	$ 239,738	$ (4,722)	$ 631,876	$ 758,591
Ending balance, preferred shares at Jun. 26, 2021	20,000						19,664
Ending balance, common shares at Jun. 26, 2021		39,865,000	6,360,000

Consolidated Statements Of Ch_2

Consolidated Statements Of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Consolidated Statements Of Changes In Shareholders' Equity [Abstract]
Common stock cash dividends per share	$ 0.24	$ 0.22

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Operating activities:
Net income	$ 15,681	$ 2,987
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	20,278	18,410
Share-based compensation expense	755	904
Gain on disposal of assets	(168)	(256)
Deferred income tax expense	2,931	494
Change in operating assets and liabilities (excluding acquisitions)
Accounts receivable	(98)	1,095
Inventories	(4,110)	10,985
Other current assets	(4,853)	3,745
Other non-current assets	7,950	7,294
Accounts payables	9,000	11,349
Accrued expenses	15,648	17,555
Federal and state income taxes receivable	7,759	711
Other long-term liabilities	(8,114)	(2,751)
Long-term income taxes payable	55	14
Cash provided by operating activities	62,714	72,536
Investing activities
Capital expenditures	(5,199)	(15,304)
Acquisitions, net of cash acquired	(62,059)	(200)
Proceeds from the disposal of assets	429	7
Other	67	323
Cash used for investing activities	(66,762)	(15,174)
Financing activities:
Proceeds from borrowings	77,000
Principal payments on long-term debt, finance leases and financing obligations	(78,661)	(247,364)
Exercise of stock options	779	9
Dividends paid	(8,152)	(7,435)
Deferred financing costs		(874)
Cash used for financing activities	(9,034)	(255,664)
Decrease in cash and equivalents	(13,082)	(198,302)
Cash and equivalents at beginning of period	29,960	345,476
Cash and equivalents at end of period	16,878	147,174
Supplemental information:
Leased assets obtained in exchange for new finance lease liabilities	6,599	64,216
Leased assets obtained in exchange for new operating lease liabilities	$ 1,382	$ 13,796

Description Of Business And Bas

Description Of Business And Basis Of Presentation	3 Months Ended
	Jun. 26, 2021
Description Of Business And Basis Of Presentation [Abstract]
Description Of Business And Basis Of Presentation	Note 1 – Description of Business and Basis of Presentation Description of business Monro, Inc. and its direct and indirect subsidiaries (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire replacement sales and tire related services in the United States. Monro had 1,291 Company-operated retail stores located in 32 states and 91 franchised locations as of June 26, 2021. A certain number of our retail locations also service commercial customers. Our locations that serve commercial customers generally operate consistently with our other retail locations, except that the sales mix for these locations includes a higher number of commercial tires. As of June 26, 2021, Monro had seven wholesale locations and three retread facilities. The wholesale locations, in most cases, sell tires to customers for resale, although these tire sales do not include installation or other tire related services. The retread facilities re-manufacture tires through the replacement of tread on worn tires that are later sold to customers. Monro’s operations are organized and managed as one single segment designed to offer to our customers replacement tires and tire related services, automotive undercar repair services as well as a broad range of routine maintenance services, primarily on passenger cars, light trucks and vans. We also provide other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension and wheel alignment. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. While these statements reflect all adjustments (consisting of items of a normal recurring nature) that are, in the opinion of management, necessary for a fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“U.S. GAAP”) for complete financial statement presentation. The consolidated financial statements should be read in conjunction with the financial statement disclosures in our Form 10-K for the fiscal year ended March 27, 2021. We use the same accounting policies in preparing quarterly and annual financial statements. Due to the seasonal nature of our business, quarterly operating results and cash flows are not necessarily indicative of the results that may be expected for other interim periods or the full year. Fiscal year We operate on a 52/53 week fiscal year ending on the last Saturday in March. Fiscal years 2022 and 2021 each contain 52 weeks. Unless specifically indicated otherwise, any references to “2022” or “fiscal 2022” and “2021” or “fiscal 2021” relate to the years ending March 26, 2022 and March 27, 2021, respectively. Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance intended to simplify the accounting for income taxes. The new guidance removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes,” and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020. We adopted this guidance during the first quarter of 2022. The adoption of this guidance did not have a material impact on our consolidated financial statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the ASC) and the SEC did not, or are not expected to have a material effect on Monro’s consolidated financial statements.

Impact Of The COVID-19 Pandemic

Impact Of The COVID-19 Pandemic	3 Months Ended
	Jun. 26, 2021
Impact Of The COVID-19 Pandemic [Abstract]
Impact Of The COVID-19 Pandemic	Note 2 – Impact of the COVID-19 Pandemic The novel strain of coronavirus (“COVID-19”) pandemic has been a highly disruptive economic and societal event that has affected the Company’s business and has a significant impact on consumer shopping behavior. To date, our retail stores, wholesale locations and other facilities have remained open as an essential business. To serve our customers while also providing for the safety of employees, the Company has adapted certain aspects of the business. Throughout the pandemic, the Company has monitored the rapidly evolving situation and will continue to adapt its operations to (i) address federal, state and local standards, (ii) meet the demand of customers, and (iii) implement standards that the Company believes to be in the best interests of the safety and well-being of its employees and customers. The full impact of the COVID-19 pandemic will depend on factors such as the length of time of the pandemic; how federal, state and local governments are responding; the efficacy of the COVID-19 vaccines; the longer-term impact of the pandemic on the economy and consumer behavior; and the effect on our customers, employees, vendors and other partners.

Acquisitions

Acquisitions	3 Months Ended
	Jun. 26, 2021
Acquisitions [Abstract]
Acquisitions	Note 3 – Acquisitions Monro’s acquisitions are strategic moves in our plan to fill in and expand our presence in our existing and contiguous markets, expand into 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. 2022 On April 25, 2021 , we acquired 30 retail tire and automotive repair stores located in California from Mountain View Tire & Service, Inc. for $ 62.1 million. These stores will operate under the Mountain View Tire & Service name. The acquisition was financed through our Credit Facility, as defined in Note 9 . The results of operations for the acquisition are included in our financial results from the acquisition date. The acquisition resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining the business with ours, as well as unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We expensed all costs related to the acquisition in the three months ended June 26, 2021. The total costs related to the completed acquisition were $ 0.3 million and these costs are included in the Consolidated Statements of Income and Comprehensive Income primarily under operating, selling, general and administrative (“OSG&A”) expenses. Sales related to the completed acquisition totaled $ 7.9 million for the period from acquisition date through June 26, 2021. We accounted for the acquisition as a business combination using the acquisition method of accounting in accordance with the FASB ASC Topic 805, “Business Combinations.” The assets acquired and liabilities assumed were recorded at their acquisition-date fair values and were consolidated with those of the Company as of the acquisition date. The acquisition-date fair values were assigned based on preliminary valuations and estimates, and the consideration transferred and net liabilities assumed were recorded as goodwill. 2022 Acquisition-date Fair Values Assigned (thousands) Inventory $ 1,034 Other current assets 217 Property and equipment 960 Finance lease and financing obligation assets 12,098 Operating lease assets 22,867 Intangible assets 2,211 Other non-current assets 63 Long-term deferred income tax assets 3,482 Total assets acquired 42,932 Current portion of finance leases and financing obligations 1,184 Current portion of operating lease liabilities 1,960 Deferred revenue 955 Other current liabilities 208 Long-term finance leases and financing obligations 17,480 Long-term operating lease liabilities 26,417 Other long-term liabilities 747 Total liabilities assumed 48,951 Total net identifiable liabilities assumed $ ( 6,019 ) Total consideration transferred $ 62,117 Less: total net identifiable liabilities assumed ( 6,019 ) Goodwill $ 68,136 The total consideration of $ 62.1 million is comprised of $ 61.0 million in cash, and a $ 1.1 million payable to the seller. The payable is due upon finalization of a lease assignment for one store location. We assigned $ 2.2 million to amortizable intangible assets, including customer list and trade name, with a weighted-average amortizable period of approximately eight years . We have assigned acquired right-of-use assets at the present value of remaining lease payments adjusted to reflect favorable or unfavorable market terms of the lease. 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 continue to refine the valuation data and estimates primarily related to inventory, warranty reserves, intangible assets and real property leases and certain liabilities for the 2022 acquisition and the 2021 acquisition that closed in December 2020 and expect to complete the valuations no later than the first anniversary date of the 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. During the three months ended June 26, 2021, we paid $ 0.8 million to the seller of the 2021 acquisition as the lease assignment for one store location was finalized during the period.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Jun. 26, 2021
Earnings Per Common Share [Abstract]
Earnings Per Common Share	Note 4 – Earnings per Common Share Basic earnings per common share amounts are calculated by dividing income available to common shareholders, after deducting preferred stock dividends, by the weighted average number of shares of common stock outstanding. Diluted earnings per common share amounts are calculated by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents represent shares issuable upon the assumed exercise of common stock options outstanding. Earnings per Common Share Three Months Ended (thousands, except per share data) June 26, 2021 June 27, 2020 Numerator for earnings per common share calculation: Net income $ 15,681 $ 2,987 Less: Preferred stock dividends ( 110 ) ( 112 ) Income available to common shareholders $ 15,571 $ 2,875 Denominator for earnings per common share calculation: Weighted average common shares - basic 33,498 33,285 Effect of dilutive securities: Preferred stock 460 510 Stock options 31 31 Restricted stock 33 28 Weighted average common shares - diluted 34,022 33,854 Basic earnings per common share $ 0.46 $ 0.09 Diluted earnings per common share $ 0.46 $ 0.09 The calculation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 203,000 and 585,000 stock options for the three months ended June 26, 2021 and June 27, 2020, 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. 26, 2021
Income Taxes [Abstract]
Income Taxes	Note 5 – Income Taxes For the three months ended June 26, 2021, our effective income tax rate was 25.4 percent, compared to 25.5 percent for the three months ended June 27, 2020.

Fair Value

Fair Value	3 Months Ended
	Jun. 26, 2021
Fair Value [Abstract]
Fair Value	Note 6 – Fair Value Long-term debt had a carrying amount that approximates a fair value of $ 198.0 million as of June 26, 2021, as compared to a carrying amount and a fair value of $ 190.0 million as of March 27, 2021. The carrying value of our debt approximated its fair value due to the variable interest nature of the debt.

Cash Dividend

Cash Dividend	3 Months Ended
	Jun. 26, 2021
Cash Dividend [Abstract]
Cash Dividend	Note 7 – Cash Dividend We paid dividends of $ 8.2 million during the three months ended June 26, 2021. 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. Under our Credit Facility, we were permitted to declare, make or pay any dividend or distribution up to $ 38.5 million in the aggregate for the period from June 30, 2020 to June 30, 2021 if we were in compliance with the financial covenants and other restrictions in the Credit Facility, as amended. For additional information regarding our Credit Facility, see Note 9 .

Revenues

Revenues	3 Months Ended
	Jun. 26, 2021
Revenues [Abstract]
Revenues	Note 8 – Revenues Automotive undercar repair, tire replacement sales and tire related 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 replacement sales and tire related 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. Revenues Three Months Ended (thousands) June 26, 2021 June 27, 2020 Tires (a) $ 176,229 $ 137,270 Maintenance 84,459 57,620 Brakes 45,975 28,564 Steering 28,266 18,468 Exhaust 5,789 4,432 Other 1,100 705 Total $ 341,818 $ 247,059 (a) Includes the sale of tire road hazard warranty agreements and tire delivery commissions. Revenue from the sale of tire road hazard warranty agreements 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 deferred revenue balances at June 26, 2021 and March 27, 2021 were $ 18.0 million and $ 16.7 million, respectively, of which $ 12.7 million and $ 12.0 million, respectively, are reported in Deferred revenue and $ 5.3 million and $ 4.7 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets. Changes in Deferred Revenue (thousands) Balance at March 27, 2021 $ 16,712 Deferral of revenue 4,325 Deferral of revenue from acquisitions 1,605 Recognition of revenue ( 4,637 ) Balance at June 26, 2021 $ 18,005 As of June 26, 2021, we expect to recognize $ 10.5 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2022 , $ 6.0 million of deferred revenue during our fiscal year ending March 25, 2023 , and $ 1.5 million of 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.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Jun. 26, 2021
Long-Term Debt [Abstract]
Long-Term Debt	Note 9 – Long-term Debt In April 2019, we entered into a new five year $ 600 million revolving credit facility agreement with eight banks (the “Credit Facility”). 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 the London Interbank Offered Rate (“LIBOR”) (or replacement index) or at the prime rate, depending on the type of borrowing and the rates then in effect. On June 11, 2020, we entered into a First Amendment to the Credit Facility (the “First Amendment”), which, among other things, amended the terms of certain of the financial and restrictive covenants in the credit agreement through the first quarter of fiscal 2022 to provide us with additional flexibility to operate our business. The First Amendment permanently amended the interest rate charged on borrowings to be based on the greater of adjusted one-month LIBOR or 0.75 percent. For the period from June 30, 2020 to June 30, 2021, the minimum interest rate spread charged on borrowings was 225 basis points over LIBOR. Additionally, during the same period, we were permitted to declare, make or pay any dividend or distribution up to $ 38.5 million in the aggregate and the acquisition of stores or other businesses up to $ 100 million in the aggregate were permitted if we were in compliance with the financial covenants and other restrictions in the First Amendment and Credit Facility. The Credit Facility requires fees payable quarterly throughout the term between 0.125 percent and 0.35 percent of the amount of the average net availability under the Credit Facility during the preceding quarter. Except as amended by the First Amendment, the remaining terms of the credit agreement remain in full force and effect. Within the Credit Facility, we have a sub-facility of $ 80 million available for the purpose of issuing standby letters of credit. The sub-facility requires fees aggregating 87.5 to 212.5 basis points annually of the face amount of each standby letter of credit, payable quarterly in arrears. There was a $ 29.6 million outstanding letter of credit at June 26, 2021. There was $ 198.0 million outstanding and $ 372.4 million available under the Credit Facility at June 26, 2021. We were in compliance with all debt covenants at June 26, 2021.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 26, 2021
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 10 – Commitments and Contingencies Commitments Commitments Due by Period Within 2 to 4 to After (thousands) Total 1 Year 3 Years 5 Years 5 Years Principal payments on long-term debt $ 198,000 — $ 198,000 — — Finance lease commitments/financing obligations (a) 533,744 $ 58,034 114,582 $ 103,894 $ 257,234 Operating lease commitments (a) 266,783 39,184 71,021 58,413 98,165 Accrued rent 1,348 1,191 87 27 43 Other liabilities 933 841 92 — — Total $ 1,000,808 $ 99,250 $ 383,782 $ 162,334 $ 355,442 (a) Finance and operating lease commitments represent future undiscounted lease payments and include $ 112.0 million and $ 70.2 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised. Contingencies We are currently a party to various claims and legal proceedings incidental to the conduct of our business. If management believes that a loss arising from any of these matters is probable and can reasonably be estimated, we will record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Litigation is subject to inherent uncertainties, and unfavorable rulings could occur and may include monetary damages. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which any such ruling occurs, or in future periods. As previously disclosed by the Company, an action was filed against us on June 12, 2020 in the U.S. District Court for the Western District of Pennsylvania by Mark Cerini. The plaintiff, who is a former service store manager, sought certification to represent similarly situated store managers in a nationwide collective action for unpaid overtime wages, damages and attorneys’ fees. Plaintiff alleges violations of the Fair Labor Standards Act and various state laws relating to, among other things, overtime and unpaid wages. The parties have reached an agreement in principle to resolve this matter. The Company included the potential settlement amount of $ 3.9 million in OSG&A expenses in the Company’s Consolidated Statement of Income and Comprehensive Income for the three months ended June 26, 2021. A settlement agreement is currently being reviewed and the terms of the settlement may be subject to change. Settlement is subject to court approval.

Description Of Business And B_2

Description Of Business And Basis Of Presentation (Policy)	3 Months Ended
	Jun. 26, 2021
Description Of Business And Basis Of Presentation [Abstract]
Description of business	Description of business Monro, Inc. and its direct and indirect subsidiaries (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire replacement sales and tire related services in the United States. Monro had 1,291 Company-operated retail stores located in 32 states and 91 franchised locations as of June 26, 2021. A certain number of our retail locations also service commercial customers. Our locations that serve commercial customers generally operate consistently with our other retail locations, except that the sales mix for these locations includes a higher number of commercial tires. As of June 26, 2021, Monro had seven wholesale locations and three retread facilities. The wholesale locations, in most cases, sell tires to customers for resale, although these tire sales do not include installation or other tire related services. The retread facilities re-manufacture tires through the replacement of tread on worn tires that are later sold to customers. Monro’s operations are organized and managed as one single segment designed to offer to our customers replacement tires and tire related services, automotive undercar repair services as well as a broad range of routine maintenance services, primarily on passenger cars, light trucks and vans. We also provide other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension and wheel alignment.
Basis Of Presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. While these statements reflect all adjustments (consisting of items of a normal recurring nature) that are, in the opinion of management, necessary for a fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“U.S. GAAP”) for complete financial statement presentation. The consolidated financial statements should be read in conjunction with the financial statement disclosures in our Form 10-K for the fiscal year ended March 27, 2021. We use the same accounting policies in preparing quarterly and annual financial statements. Due to the seasonal nature of our business, quarterly operating results and cash flows are not necessarily indicative of the results that may be expected for other interim periods or the full year.
Fiscal year	Fiscal year We operate on a 52/53 week fiscal year ending on the last Saturday in March. Fiscal years 2022 and 2021 each contain 52 weeks. Unless specifically indicated otherwise, any references to “2022” or “fiscal 2022” and “2021” or “fiscal 2021” relate to the years ending March 26, 2022 and March 27, 2021, respectively.
Recent Accounting Pronouncements	Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance intended to simplify the accounting for income taxes. The new guidance removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes,” and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020. We adopted this guidance during the first quarter of 2022. The adoption of this guidance did not have a material impact on our consolidated financial statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the ASC) and the SEC did not, or are not expected to have a material effect on Monro’s consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Jun. 26, 2021
Fiscal 2022 Acquisitions [Member]
Business Acquisition [Line Items]
Schedule Of Purchase Price Allocation	2022 Acquisition-date Fair Values Assigned (thousands) Inventory $ 1,034 Other current assets 217 Property and equipment 960 Finance lease and financing obligation assets 12,098 Operating lease assets 22,867 Intangible assets 2,211 Other non-current assets 63 Long-term deferred income tax assets 3,482 Total assets acquired 42,932 Current portion of finance leases and financing obligations 1,184 Current portion of operating lease liabilities 1,960 Deferred revenue 955 Other current liabilities 208 Long-term finance leases and financing obligations 17,480 Long-term operating lease liabilities 26,417 Other long-term liabilities 747 Total liabilities assumed 48,951 Total net identifiable liabilities assumed $ ( 6,019 ) Total consideration transferred $ 62,117 Less: total net identifiable liabilities assumed ( 6,019 ) Goodwill $ 68,136

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jun. 26, 2021
Earnings Per Common Share [Abstract]
Reconciliation Of Basic And Diluted Earnings Per Share	Earnings per Common Share Three Months Ended (thousands, except per share data) June 26, 2021 June 27, 2020 Numerator for earnings per common share calculation: Net income $ 15,681 $ 2,987 Less: Preferred stock dividends ( 110 ) ( 112 ) Income available to common shareholders $ 15,571 $ 2,875 Denominator for earnings per common share calculation: Weighted average common shares - basic 33,498 33,285 Effect of dilutive securities: Preferred stock 460 510 Stock options 31 31 Restricted stock 33 28 Weighted average common shares - diluted 34,022 33,854 Basic earnings per common share $ 0.46 $ 0.09 Diluted earnings per common share $ 0.46 $ 0.09

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Jun. 26, 2021
Revenues [Abstract]
Schedule Of Disaggregated Revenue By Product Group	Revenues Three Months Ended (thousands) June 26, 2021 June 27, 2020 Tires (a) $ 176,229 $ 137,270 Maintenance 84,459 57,620 Brakes 45,975 28,564 Steering 28,266 18,468 Exhaust 5,789 4,432 Other 1,100 705 Total $ 341,818 $ 247,059 (a) Includes the sale of tire road hazard warranty agreements and tire delivery commissions.
Schedule Of Changes In Deferred Revenue	Changes in Deferred Revenue (thousands) Balance at March 27, 2021 $ 16,712 Deferral of revenue 4,325 Deferral of revenue from acquisitions 1,605 Recognition of revenue ( 4,637 ) Balance at June 26, 2021 $ 18,005

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 26, 2021
Commitments and Contingencies [Abstract]
Schedule Of Payments Due By Period	Commitments Due by Period Within 2 to 4 to After (thousands) Total 1 Year 3 Years 5 Years 5 Years Principal payments on long-term debt $ 198,000 — $ 198,000 — — Finance lease commitments/financing obligations (a) 533,744 $ 58,034 114,582 $ 103,894 $ 257,234 Operating lease commitments (a) 266,783 39,184 71,021 58,413 98,165 Accrued rent 1,348 1,191 87 27 43 Other liabilities 933 841 92 — — Total $ 1,000,808 $ 99,250 $ 383,782 $ 162,334 $ 355,442 (a) Finance and operating lease commitments represent future undiscounted lease payments and include $ 112.0 million and $ 70.2 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised.

Description Of Business And B_3

Description Of Business And Basis Of Presentation (Narrative) (Details)	Jun. 26, 2021itemstorestate
Description Of Business And Basis Of Presentation [Abstract]
Company operated retail stores | store	1,291
Number of states in which entity operates | state	32
Number of franchised locations | item	91

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) $ in Thousands	Apr. 25, 2021USD ($)item	Jun. 26, 2021USD ($)propertystore
Business Acquisition [Line Items]
Store acquisitions related to acquisition growth strategy | property		5
Customer List and Trade Name [Member]
Business Acquisition [Line Items]
Weighted average useful life		8 years
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
Mountain View Tire And Service [Member]
Business Acquisition [Line Items]
Number of stores acquired | item	30
Total consideration transferred	$ 62,100
Acquisition date	Apr. 25, 2021
Costs related to completed acquisitions		$ 300
Sales for acquired entities		$ 7,900
Fiscal 2021 Acquisitions [Member]
Business Acquisition [Line Items]
Number of stores acquired | store		1
Total consideration transferred, portion in cash		$ 800
Fiscal 2022 Acquisitions [Member]
Business Acquisition [Line Items]
Total consideration transferred		62,117
Total consideration transferred, portion in cash		61,000
Payable to a seller		1,100
Fiscal 2022 Acquisitions [Member] | Customer List and Trade Name [Member]
Business Acquisition [Line Items]
Intangible assets		$ 2,200

Acquisitions (Schedule Of Purch

Acquisitions (Schedule Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2021	Mar. 27, 2021
Purchase price of acquisitions allocation
Goodwill	$ 757,667	$ 689,524
Fiscal 2022 Acquisitions [Member]
Purchase price of acquisitions allocation
Inventory	1,034
Other current assets	217
Property and equipment	960
Finance lease and financing obligation assets	12,098
Operating lease assets	22,867
Intangible assets	2,211
Other non-current assets	63
Long-term deferred income tax assets	3,482
Total assets acquired	42,932
Current portion of finance leases and financing obligations	1,184
Current portion of operating lease liabilities	1,960
Deferred revenue	955
Other current liabilities	208
Long-term finance leases and financing obligations	17,480
Long-term operating lease liabilities	26,417
Other long-term liabilities	747
Total liabilities assumed	48,951
Total net identifiable liabilities assumed	(6,019)
Total consideration transferred	62,117
Less: total net identifiable liabilities assumed	(6,019)
Goodwill	$ 68,136

Earnings Per Common Share (Narr

Earnings Per Common Share (Narrative) (Details) - shares shares in Thousands	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Earnings Per Common Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	203,000	585,000

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. 26, 2021	Jun. 27, 2020
Numerator for earnings per common share calculation:
Net income	$ 15,681	$ 2,987
Less: Preferred stock dividends	(110)	(112)
Income available to common shareholders	$ 15,571	$ 2,875
Denominator for earnings per common share calculation:
Weighted average common shares - basic	33,498	33,285
Effect of dilutive securities:
Preferred stock	460	510
Weighted average common shares - diluted	34,022	33,854
Basic earnings per common share	$ 0.46	$ 0.09
Diluted earnings per common share	$ 0.46	$ 0.09
Stock Options [Member]
Effect of dilutive securities:
Share based payment arrangements (in shares)	31	31
Restricted Stock [Member]
Effect of dilutive securities:
Share based payment arrangements (in shares)	33	28

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Income Taxes [Abstract]
Effective income tax rate	25.40%	25.50%

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) - USD ($) $ in Millions	Jun. 26, 2021	Mar. 27, 2021
Fair Value [Abstract]
Carrying amount of long-term debt ( including current portion)	$ 198	$ 190

Cash Dividend (Narrative) (Deta

Cash Dividend (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Dividends to shareholders	$ 8,152	$ 7,435
First Amendment To Credit Facility [Member]
Debt instrument, Allowable dividend or distribution in next year	$ 38,500

Revenues (Narrative) (Details)

Revenues (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2021	Mar. 27, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 18,005	$ 16,712
Deferred revenue, current	12,669	11,956
Deferred revenue, noncurrent	$ 5,300	$ 4,700
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

Revenues (Performance Obligatio

Revenues (Performance Obligation) (Narrative) (Details) $ in Millions	Jun. 26, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, performance obligation	$ 10.5
Deferred revenue, timing of satisfaction	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, performance obligation	$ 6
Deferred revenue, timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, performance obligation	$ 1.5
Deferred revenue, timing of satisfaction	1 year

Revenues (Schedule Of Disaggreg

Revenues (Schedule Of Disaggregated Revenue By Product Group) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 341,818	$ 247,059
Tires [Member]
Disaggregation of Revenue [Line Items]
Revenues	176,229	137,270
Maintenance [Member]
Disaggregation of Revenue [Line Items]
Revenues	84,459	57,620
Brakes [Member]
Disaggregation of Revenue [Line Items]
Revenues	45,975	28,564
Steering [Member]
Disaggregation of Revenue [Line Items]
Revenues	28,266	18,468
Exhaust [Member]
Disaggregation of Revenue [Line Items]
Revenues	5,789	4,432
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 1,100	$ 705

Revenues (Schedule Of Changes I

Revenues (Schedule Of Changes In Deferred Revenue) (Details) $ in Thousands	3 Months Ended
	Jun. 26, 2021USD ($)
Revenues [Abstract]
Balance	$ 16,712
Deferral of revenue	4,325
Deferral of revenue from acquisitions	1,605
Recognition of revenue	(4,637)
Balance	$ 18,005

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	3 Months Ended
	Jun. 26, 2021USD ($)entity
Revolving Credit Facility [Member]
Debt Instrument [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
Net availability under the credit facility	372,400,000
Amount outstanding under credit facility	198,000,000
First Amendment To Credit Facility [Member]
Debt Instrument [Line Items]
Allowable dividend or distribution	38,500,000
Allowable acquisitions	$ 100,000,000
Interest rate	0.75%
Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Revolving credit facility agreement	$ 80,000,000
Letters of credit outstanding	$ 29,600,000
Minimum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Percentage of fees on amount available	0.125%
Minimum [Member] | Revolving Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR on the facility	0.75%
Minimum [Member] | First Amendment To Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR on the facility	2.25%
Minimum [Member] | Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Percentage of fees on amount available	0.875%
Maximum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Percentage of fees on amount available	0.35%
Maximum [Member] | Revolving Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR on the facility	2.00%
Maximum [Member] | Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Percentage of fees on amount available	2.125%

Commitments and Contingencies_2

Commitments and Contingencies (Narrative) (Details) $ in Millions	3 Months Ended
	Jun. 26, 2021USD ($)
Mark Cerini [Member] | Settled Litigation [Member]
Potential settlement amount included in OSG&A expenses	$ 3.9

Commitments and Contingencies_3

Commitments and Contingencies (Schedule Of Payments Due By Period) (Details) $ in Thousands	3 Months Ended
	Jun. 26, 2021USD ($)
Commitments and Contingencies [Abstract]
Principal payments on long-term debt, Total	$ 198,000
Principal payments on long-term debt, 2 to 3 years	198,000
Finance lease commitments/financing obligations, Total	533,744	[1]
Finance lease commitments/financing obligations, Remainder of Year	58,034	[1]
Finance lease commitments/financing obligations, 2 to 3 Years	114,582	[1]
Finance lease commitments/financing obligations, 4 to 5 Years	103,894	[1]
Finance lease commitments/financing obligations, After 5 Years	257,234	[1]
Operating lease commitments, Total	266,783	[1]
Operating lease commitments, Within 1 year	39,184	[1]
Operating lease commitments, 2 to 3 years	71,021	[1]
Operating lease commitments, 4 to 5 years	58,413	[1]
Operating lease commitments, After 5 years	98,165	[1]
Accrued rent, Total	1,348
Accrued rent, Within 1 year	1,191
Accrued rent, 2 to 3 Years	87
Accrued rent, 4 to 5 Years	27
Accrued rent, After 5 Years	43
Other liabilities, Total	933
Other liabilities, Within 1 year	841
Other liabilities, 2 to 3 years	92
Other liabilities, 4 to 5 years
Other liabilities, After 5 years
Contractual commitments, Total	1,000,808
Contractual commitments, Within 1 year	99,250
Contractual commitments, 2 to 3 years	383,782
Contractual commitments, 4 to 5 years	162,334
Contractual commitments, After 5 years	355,442
Operating lease payments, related to options to extend, reasonably certain of being exercised	112,000
Finance lease payments, related to options to extend, reasonable certain of being exercised	$ 70,200
[1]	Finance and operating lease commitments represent future undiscounted lease payments and include $ 112.0 million and $ 70.2 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised.