Monro (MNRO) 10-Q 6 Aug 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 27, 2020	Jul. 24, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 27, 2020
Current Fiscal Year End Date	--03-27
Document Fiscal Year Focus	2020
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		33,285,901
Entity Central Index Key	0000876427
Amendment Flag	false
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 27, 2020	Mar. 28, 2020
Current assets:
Cash and equivalents	$ 147,174	$ 345,476
Trade receivables	13,415	14,510
Federal and state income taxes receivable	7,345	8,056
Inventories	176,530	187,441
Other current assets	36,792	40,537
Total current assets	381,256	596,020
Property, plant and equipment	692,618	682,932
Less - Accumulated depreciation and amortization	(363,703)	(354,295)
Net property, plant and equipment	328,915	328,637
Finance lease and financing obligation assets, net	253,956	196,575
Operating lease assets, net	206,252	199,729
Goodwill	671,831	671,843
Intangible assets, net	28,706	29,781
Other non-current assets	21,787	20,688
Long-term deferred income tax assets	6,139	6,184
Total assets	1,898,842	2,049,457
Current liabilities:
Current portion of finance leases and financing obligations	33,744	32,257
Current portion of operating lease liabilities	30,696	30,181
Trade payables	110,853	99,504
Accrued payroll, payroll taxes and other payroll benefits	17,873	14,429
Accrued insurance	42,461	43,387
Deferred revenue	12,281	13,129
Other current liabilities	33,868	22,049
Total current liabilities	281,776	254,936
Long-term debt	326,200	566,400
Long-term finance leases and financing obligations	350,212	298,373
Long-term operating lease liabilities	180,767	170,954
Other long-term liabilities	17,280	12,873
Long-term deferred income tax liabilities	10,461	10,069
Long-term income taxes payable	1,426	1,412
Total liabilities	1,168,122	1,315,017
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; 39,645,772 and 39,644,228 shares issued at June 27, 2020 and March 28, 2020, respectively	396	396
Treasury Stock, 6,359,871 shares, at cost	(108,729)	(108,729)
Additional paid-in capital	230,683	229,774
Accumulated other comprehensive loss	(7,059)	(6,889)
Retained earnings	615,396	619,855
Total shareholders' equity	730,720	734,440
Total liabilities and shareholders' equity	$ 1,898,842	$ 2,049,457

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 27, 2020	Mar. 28, 2020
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	39,645,772	39,644,228
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. 27, 2020	Jun. 29, 2019
Consolidated Statements Of Comprehensive Income [Abstract]
Sales	$ 247,059	$ 317,063
Cost of sales, including distribution and occupancy costs	159,605	188,916
Gross profit	87,454	128,147
Operating, selling, general and administrative expenses	76,053	91,776
Operating income	11,401	36,371
Interest expense, net of interest income	7,385	7,157
Other loss (income), net	9	(175)
Income before income taxes	4,007	29,389
Provision for income taxes	1,020	6,783
Net income	2,987	22,606
Other comprehensive loss:
Changes in pension, net of tax benefit	(170)	(89)
Other comprehensive loss	(170)	(89)
Comprehensive income	$ 2,817	$ 22,517
Earnings per common share:
Basic	$ 0.09	$ 0.68
Diluted	$ 0.09	$ 0.67
Weighted average number of common shares outstanding used in computing earnings per share:
Basic	33,285	33,183
Diluted	33,854	33,964

Consolidated Statements Of Chan

Consolidated Statements Of Changes in Shareholders' Equity - USD ($) $ in Thousands		Class C Convertible Preferred Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Class C Convertible Preferred Stock [Member]	Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Common Stock [Member]	Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Retained Earnings [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Total
Balance beginning at Mar. 30, 2019		$ 33	$ 33	$ 395	$ 395	$ (108,729)	$ (108,729)	$ 220,173	$ 220,173	$ (4,536)	$ (4,536)	$ (582)	$ 591,592	$ 592,174	$ (582)	$ 698,928	$ 699,510
Beginning balance, preferred shares at Mar. 30, 2019		22,000	22,000
Beginning balance, common shares at Mar. 30, 2019				39,511,000	39,511,000	6,360,000	6,360,000
Net income														22,606			22,606
Other comprehensive loss:
Pension liability adjustment											(89)						(89)
Cash dividends:
Preferred	[1]													(112)			(112)
Common	[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
Ending balance, common shares at Jun. 29, 2019					39,582,000		6,360,000
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														21,802
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)
Cash dividends:
Preferred	[1]													(112)			(112)
Common	[1]													(7,323)			(7,323)
Dividend payable														(11)			(11)
Activity related to equity-based plans									5								5
Activity related to equity-based plans, 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														21,802
Ending balance, common shares at Jun. 27, 2020					39,646,000		6,360,000
[1]	First quarter fiscal year dividend payments of $ 0.22 per common share or common share equivalent paid on June 22, 2020 and June 17, 2019.

Consolidated Statements Of Ch_2

Consolidated Statements Of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Consolidated Statements Of Changes In Shareholders' Equity [Abstract]
Common stock cash dividends per share	$ 0.22	$ 0.22
Pension liability adjustment - pre-tax	$ (226)	$ (118)

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Cash flows from operating activities:
Net income	$ 2,987	$ 22,606
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	18,410	14,839
(Gain) loss on disposal of assets	(256)	122
Stock-based compensation expense	904	925
Net change in deferred income taxes	494	2,223
Change in operating assets and liabilities (excluding acquisitions):
Trade receivables	1,095	(2,763)
Inventories	10,985	51
Other current assets	3,745	(3,966)
Other non-current assets	7,294	7,741
Trade payables	11,349	1,226
Accrued expenses	17,555	14,250
Federal and state income taxes payable	711	5,586
Other long-term liabilities	(2,751)	(6,903)
Long-term income taxes payable	14	3,450
Total adjustments	69,549	36,781
Net cash provided by operating activities	72,536	59,387
Cash flows from investing activities:
Capital expenditures	(15,304)	(13,996)
Acquisitions, net of cash acquired	(200)	(54,720)
Proceeds from the disposal of assets	7	103
Other	323	34
Net cash used for investing activities	(15,174)	(68,579)
Cash flows from financing activities:
Proceeds from borrowings		119,603
Principal payments on long-term debt, finance leases and financing obligations	(247,364)	(103,257)
Exercise of stock options	9	3,730
Dividends paid	(7,435)	(7,417)
Deferred financing costs	(874)	(1,168)
Net cash (used for) provided by financing activities	(255,664)	11,491
(Decrease) increase in cash	(198,302)	2,299
Cash at beginning of period	345,476	6,214
Cash at end of period	147,174	8,513
Supplemental information:
Leased assets obtained in exchange for finance lease liabilities	64,216	3,099
Leased assets obtained in exchange for operating lease liabilities	$ 13,796	$ 3,632

Description Of Business And Bas

Description Of Business And Basis Of Presentation	3 Months Ended
	Jun. 27, 2020
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 wholly owned operating subsidiaries, Monro Service Corporation, Car-X, LLC, MNRO Holdings, LLC and MNRO Service Holdings, LLC (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire sales and services in the United States. 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. Basis of Presentation The accompanying unaudited, condensed consolidated financial statements (“Consolidated Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statement presentation. The Consolidated Financial Statements include the consolidated accounts of the Company with all intercompany transactions eliminated. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature), which are necessary for a fair statement of the results for the interim period. The Consolidated Financial Statements should be read in conjunction with the Company’s consolidated financial statements and related Notes to Consolidated Financial Statements presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 28, 2020 (“fiscal 2020”). Operating results and cash flows for the quarter ended June 27, 2020 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending March 27, 2021 (“fiscal 2021”). Fiscal Year 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 the Consolidated Financial Statements: “Quarter Ended Fiscal June 2020” March 29, 2020 – June 27, 2020 (13 weeks) “Quarter Ended Fiscal June 2019” March 31, 2019 – June 29, 2019 (13 weeks) Fiscal 2021 is a 52 week year. Reclassifications Certain amounts in these financial statements have been reclassified to maintain comparability among the periods presented. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“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 was permitted. We adopted this guidance during the first quarter of fiscal 2021. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements. In December 2019, the 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 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. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact 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.

Impact Of The COVID-19 Pandemic

Impact Of The COVID-19 Pandemic	3 Months Ended
	Jun. 27, 2020
Impact Of The COVID-19 Pandemic [Abstract]
Impact Of The COVID-19 Pandemic	NOTE 2 – IMPACT OF THE COVID-19 PANDEMIC In response to the unprecedented and rapid spread of COVID-19 (coronavirus), many U.S. state governments, in states in which we operate, have taken preventative or protective actions, such as issuing stay-at-home restrictions and social distancing measures. State and local governments have ordered temporary closures of some businesses and numerous other businesses have temporarily closed voluntarily. Further, individuals’ ability to travel has been curtailed through mandated travel restrictions and may be further limited through additional voluntary or mandated closures of certain businesses. Substantially all Company-operated retail stores operated under a reduced schedule throughout the quarter to match lower demand. Given the uncertainties surrounding the impacts of the COVID-19 pandemic on our future financial condition, results of operations and cash flows, we have taken a number of actions in response to prevailing uncertain market conditions. In order to enhance our liquidity position, we took a precautionary measure and borrowed $ 350 million available to us under our Credit Facility in March 2020. We subsequently repaid $ 240 million of these borrowings during the quarter ended June 27, 2020. Additionally, we negotiated rent deferrals for a significant number of our stores, as well as other rent reductions. See additional discussion of these rent deferrals and reductions under Note 10.

Acquisitions

Acquisitions	3 Months Ended
	Jun. 27, 2020
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. Fiscal 2020 During the first quarter of fiscal 2020, we acquired the following businesses for an aggregate purchase price of $ 54.1 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. 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 consideration transferred and net identifiable liabilities assumed recorded as goodwill as follows: As of Acquisition Date (Dollars in thousands) Inventories $ 2,691 Other current assets 371 Property, plant and equipment 1,558 Finance lease and financing obligation assets, net 15,867 Operating lease assets, net 23,411 Intangible assets 1,598 Other non-current assets 103 Long-term deferred income tax assets 3,489 Total assets acquired 49,088 Current portion of finance leases and financing obligations 1,470 Current portion of operating lease liabilities 2,644 Deferred revenue 1,069 Other current liabilities 214 Long-term finance leases and financing obligations 20,750 Long-term operating lease liabilities 25,674 Other long-term liabilities 1,171 Total liabilities assumed 52,992 Total net identifiable liabilities assumed $ ( 3,904 ) Total consideration transferred $ 54,093 Less: total net identifiable liabilities assumed ( 3,904 ) Goodwill $ 57,997 The following are the intangible assets acquired and their respective fair value and weighted average useful life: As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 1,598 7 years As a result of the updated purchase price allocations for the entities acquired during the fiscal year ended March 28, 2020, 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 measurement period adjustments were not material to the Consolidated Balance Sheet and Statement of Comprehensive Income for the quarter ended June 27, 2020. We continue to refine the valuation data and estimates primarily related to inventory, warranty reserves, intangible assets and real property leases for fiscal 2020 acquisitions which closed subsequent to June 29, 2019, 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. 27, 2020
Earnings Per Common Share [Abstract]
Earnings Per Common Share	NOTE 4 – 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 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. A reconciliation of basic and diluted earnings per common share for the quarters ended June is as follows: Quarter Ended June 27, June 29, 2020 2019 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 2,987 $ 22,606 Less: Preferred stock dividends ( 112 ) ( 112 ) Income available to common shareholders $ 2,875 $ 22,494 Denominator for earnings per common share calculation: Weighted average common shares, basic 33,285 33,183 Effect of dilutive securities: Preferred stock 510 510 Stock options 31 231 Restricted stock 28 40 Weighted average common shares, diluted 33,854 33,964 Basic earnings per common share: $ 0.09 $ 0.68 Diluted earnings per common share: $ 0.09 $ 0.67 The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 585,000 and 59,000 stock options for the quarters ended June 27, 2020 and June 29, 2019, 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. 27, 2020
Income Taxes [Abstract]
Income Taxes	NOTE 5 – INCOME TAXES For the quarter ended June 27, 2020, our effective income tax rate was 25.5 % compared to 23.1 % for the quarter ended June 29, 2019, as discrete items, primarily related to employee share-based compensation, resulted in a larger tax rate benefit in the prior year period.

Fair Value

Fair Value	3 Months Ended
	Jun. 27, 2020
Fair Value [Abstract]
Fair Value	NOTE 6 – FAIR VALUE Long-term debt had a carrying amount that approximates a fair value of $ 326.2 million as of June 27, 2020, as compared to a carrying amount and a fair value of $ 566.4 million as of March 28, 2020. 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. 27, 2020
Cash Dividend [Abstract]
Cash Dividend	NOTE 7 – CASH DIVIDEND We paid dividends of $ 7.4 million during the quarter ended June 27, 2020. 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 may 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 are 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. 27, 2020
Revenues [Abstract]
Revenues	NOTE 8 – REVENUES Automotive undercar repair and tire sales and 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 and tire sales and 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 second 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 27, 2020 and March 28, 2020 were $ 17.0 million and $ 18.5 million, respectively, of which $ 12.3 million and $ 13.1 million, respectively, are reported in Deferred revenue and $ 4.7 million and $ 5.4 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 28, 2020 to June 27, 2020 : Dollars in thousands Balance at March 28, 2020 $ 18,506 Deferral of revenue 3,169 Deferral of revenue from acquisitions — Recognition of revenue ( 4,643 ) Balance at June 27, 2020 $ 17,032 We expect to recognize $ 10.2 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2021, $ 5.6 million of deferred revenue during our fiscal year ending March 26, 2022, and $ 1.2 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. (Included in the Tires product group in the following table.) The following table summarizes disaggregated revenue by product group: Quarter Ended June 27, June 29, 2020 2019 (Dollars in thousands) Revenues: Brakes $ 28,564 $ 46,776 Exhaust 4,432 6,953 Steering 18,468 26,232 Tires 137,270 154,065 Maintenance 57,620 82,174 Other 705 863 Total $ 247,059 $ 317,063

Long-Term Debt

Long-Term Debt	3 Months Ended
	Jun. 27, 2020
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. On June 11, 2020, we entered into a First Amendment to the Credit Facility (the “First Amendment”), which, among other things, amends 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 will permanently amend the interest rate charged on borrowings to be based on the greater of adjusted one-month LIBOR or 0.75 %. For the period from June 30, 2020 to June 30, 2021, the minimum interest rate spread charged on borrowings will be 225 basis points over LIBOR. Additionally, during the same period, we may 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 are permitted if we are in compliance with the financial covenants and other restrictions in the First Amendment and Credit Facility. Except as amended by the First Amendment, the remaining terms of the credit agreement remain in full force and effect. In order to enhance our liquidity position during the COVID-19 pandemic, we took a precautionary measure and borrowed $ 350 million available to us under our Credit Facility in March 2020. We subsequently repaid $ 240 million of these borrowings during the quarter ended June 27, 2020. The net availability under the Credit Facility was $ 240.2 million at June 27, 2020. We were in compliance with all debt covenants at June 27, 2020.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 27, 2020
Commitments and Contingencies [Abstract]
Commitments and Contingencies	NOTE 10 – COMMITMENTS AND CONTINGENCIES Payments due by period under long-term debt, other financing instruments and commitments are as follows: Within 2 to 4 to After Total 1 Year 3 Years 5 Years 5 Years (Dollars in thousands) Principal payments on long-term debt $ 326,200 $ 326,200 Finance lease commitments/financing obligations (a) 503,276 $ 52,009 $ 104,839 97,008 $ 249,420 Operating lease commitments (a) 243,829 36,422 66,101 53,192 88,114 Accrued rent 3,118 2,764 319 18 17 Other liabilities 1,733 800 933 — — Total $ 1,078,156 $ 91,995 $ 172,192 $ 476,418 $ 337,551 _______________ (a) Operating and finance lease commitments represent future undiscounted lease payments and include $ 62.5 million and $ 96.1 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised. In the first quarter of fiscal 2021, we negotiated rent deferrals for a significant number of our stores, with repayment at later dates, primarily in the third and fourth quarters of fiscal 2021 and the first and second quarters of fiscal 2022. These concessions provide a deferral of rent payments with no substantive changes to the original contract. Consistent with updated guidance from the FASB in April 2020, we have elected to treat the rent deferrals as accrued liabilities. The accrued rent reflected in the table above includes $ 1.5 million related to rent deferrals and $ 1.6 million due to timing of other lease related expenses. We will continue to recognize expense during the deferral periods. In addition, we negotiated rent reductions with certain landlords on approximately 20 % of our leases in exchange for extending our current lease term during the first quarter of fiscal 2021. As these agreements represent substantive changes to our contractual obligations, the leases were remeasured in accordance with existing guidance. As a result, finance lease and financing obligation assets, net and finance leases and financing obligations were increased by $ 59.8 million and $ 56.3 million, respectively, and operating lease assets, net and operating lease liabilities were increased by $ 13.8 million and $ 17.3 million, respectively. The negotiated terms were generally consistent with terms of normal renewal agreements. We believe that we can fulfill our commitments utilizing our cash flow from operations and, if necessary, cash on hand and/or bank financing. As of the date of this report, there were no material changes to our contingencies since March 28, 2020, as reported in our Form 10-K for the fiscal year ended March 28, 2020.

Description Of Business And B_2

Description Of Business And Basis Of Presentation (Policy)	3 Months Ended
	Jun. 27, 2020
Description Of Business And Basis Of Presentation [Abstract]
Description of business	Description of Business Monro, Inc. and its wholly owned operating subsidiaries, Monro Service Corporation, Car-X, LLC, MNRO Holdings, LLC and MNRO Service Holdings, LLC (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire sales and services in the United States. 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.
Fiscal year	Fiscal Year 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 the Consolidated Financial Statements: “Quarter Ended Fiscal June 2020” March 29, 2020 – June 27, 2020 (13 weeks) “Quarter Ended Fiscal June 2019” March 31, 2019 – June 29, 2019 (13 weeks) Fiscal 2021 is a 52 week year.
Reclassifications	Reclassifications Certain amounts in these financial statements have been reclassified to maintain comparability among the periods presented.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“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 was permitted. We adopted this guidance during the first quarter of fiscal 2021. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements. In December 2019, the 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 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. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact 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.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Jun. 27, 2020
Acquisitions [Abstract]
Schedule Of Purchase Price Allocation	As of Acquisition Date (Dollars in thousands) Inventories $ 2,691 Other current assets 371 Property, plant and equipment 1,558 Finance lease and financing obligation assets, net 15,867 Operating lease assets, net 23,411 Intangible assets 1,598 Other non-current assets 103 Long-term deferred income tax assets 3,489 Total assets acquired 49,088 Current portion of finance leases and financing obligations 1,470 Current portion of operating lease liabilities 2,644 Deferred revenue 1,069 Other current liabilities 214 Long-term finance leases and financing obligations 20,750 Long-term operating lease liabilities 25,674 Other long-term liabilities 1,171 Total liabilities assumed 52,992 Total net identifiable liabilities assumed $ ( 3,904 ) Total consideration transferred $ 54,093 Less: total net identifiable liabilities assumed ( 3,904 ) Goodwill $ 57,997
Schedule Of Intangible Assets Acquired	As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 1,598 7 years

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jun. 27, 2020
Earnings Per Common Share [Abstract]
Reconciliation Of Basic And Diluted Earnings Per Share	Quarter Ended June 27, June 29, 2020 2019 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 2,987 $ 22,606 Less: Preferred stock dividends ( 112 ) ( 112 ) Income available to common shareholders $ 2,875 $ 22,494 Denominator for earnings per common share calculation: Weighted average common shares, basic 33,285 33,183 Effect of dilutive securities: Preferred stock 510 510 Stock options 31 231 Restricted stock 28 40 Weighted average common shares, diluted 33,854 33,964 Basic earnings per common share: $ 0.09 $ 0.68 Diluted earnings per common share: $ 0.09 $ 0.67

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Jun. 27, 2020
Revenues [Abstract]
Schedule Of Changes In Deferred Revenue	Dollars in thousands Balance at March 28, 2020 $ 18,506 Deferral of revenue 3,169 Deferral of revenue from acquisitions — Recognition of revenue ( 4,643 ) Balance at June 27, 2020 $ 17,032
Schedule Of Disaggregated Revenue By Product Group	Quarter Ended June 27, June 29, 2020 2019 (Dollars in thousands) Revenues: Brakes $ 28,564 $ 46,776 Exhaust 4,432 6,953 Steering 18,468 26,232 Tires 137,270 154,065 Maintenance 57,620 82,174 Other 705 863 Total $ 247,059 $ 317,063

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 27, 2020
Commitments and Contingencies [Abstract]
Schedule Of Payments Due By Period	Within 2 to 4 to After Total 1 Year 3 Years 5 Years 5 Years (Dollars in thousands) Principal payments on long-term debt $ 326,200 $ 326,200 Finance lease commitments/financing obligations (a) 503,276 $ 52,009 $ 104,839 97,008 $ 249,420 Operating lease commitments (a) 243,829 36,422 66,101 53,192 88,114 Accrued rent 3,118 2,764 319 18 17 Other liabilities 1,733 800 933 — — Total $ 1,078,156 $ 91,995 $ 172,192 $ 476,418 $ 337,551 _______________ (a) Operating and finance lease commitments represent future undiscounted lease payments and include $ 62.5 million and $ 96.1 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised.

Impact Of The COVID-19 Pandem_2

Impact Of The COVID-19 Pandemic (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 27, 2020	Mar. 28, 2020
Impact Of The COVID-19 Pandemic [Abstract]
Revolving credit facility borrowed		$ 350
Repayment of revolving credit facility	$ 240

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) $ in Thousands	3 Months Ended
	Jun. 27, 2020property	Jun. 29, 2019USD ($)storewarehouse
Business Acquisition [Line Items]
Store acquisitions related to acquisition growth strategy | property	5
Total consideration transferred		$ 54,100
Costs related to completed acquisitions		500
Sales for acquired entities		$ 7,100
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 centers acquired | warehouse		1
Allied Discount Tire And Brake, Inc [Member]
Business Acquisition [Line Items]
Acquisition date	Mar. 31, 2019
Number of stores acquired | store		12
Fiscal 2020 Acquisitions [Member]
Business Acquisition [Line Items]
Total consideration transferred		$ 54,093

Acquisitions (Schedule Of Purch

Acquisitions (Schedule Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 29, 2019	Jun. 27, 2020	Mar. 28, 2020
Purchase price of acquisitions allocation
Total consideration transferred	$ 54,100
Goodwill		$ 671,831	$ 671,843
Fiscal 2020 Acquisitions [Member]
Purchase price of acquisitions allocation
Inventories	2,691
Other current assets	371
Property, plant and equipment	1,558
Finance lease and financing obligation assets, net	15,867
Operating lease assets, net	23,411
Intangible assets	1,598
Other non-current assets	103
Long-term deferred income tax assets	3,489
Total assets acquired	49,088
Current portion of finance leases and financing obligations	1,470
Current portion of operating lease liabilities	2,644
Deferred revenue	1,069
Other current liabilities	214
Long-term finance leases and financing obligations	20,750
Long-term operating lease liabilities	25,674
Other long-term liabilities	1,171
Total liabilities assumed	52,992
Total net identifiable liabilities assumed	(3,904)
Total consideration transferred	54,093
Less: total net identifiable liabilities assumed	(3,904)
Goodwill	$ 57,997

Acquisitions (Schedule Of Intan

Acquisitions (Schedule Of Intangible Assets Acquired) (Details) - Fiscal 2020 Acquisitions [Member] - Customer Lists [Member] - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets		$ 1,598
Weighted average useful life	7 years

Earnings Per Common Share (Narr

Earnings Per Common Share (Narrative) (Details) - shares	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Earnings Per Common Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	585,000,000	59,000,000

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. 27, 2020	Jun. 29, 2019
Numerator for earnings per common share calculation:
Net income		$ 2,987	$ 22,606
Less: Preferred stock dividends	[1]	(112)	(112)
Income available to common shareholders		$ 2,875	$ 22,494
Denominator for earnings per common share calculation:
Weighted average common shares, basic		33,285	33,183
Effect of dilutive securities:
Preferred stock		510	510
Weighted average common shares, diluted		33,854	33,964
Basic earnings per common share:		$ 0.09	$ 0.68
Diluted earnings per common share:		$ 0.09	$ 0.67
Stock Options [Member]
Effect of dilutive securities:
Share based payment arrangements (in shares)		31	231
Restricted Stock [Member]
Effect of dilutive securities:
Share based payment arrangements (in shares)		28	40
[1]	First quarter fiscal year dividend payments of $ 0.22 per common share or common share equivalent paid on June 22, 2020 and June 17, 2019.

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Income Taxes [Abstract]
Effective tax rate	25.50%	23.10%

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) - USD ($) $ in Millions	Jun. 27, 2020	Mar. 28, 2020
Fair Value [Abstract]
Carrying amount of long-term debt ( including current portion)	$ 326.2	$ 566.4

Cash Dividend (Narrative) (Deta

Cash Dividend (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Dividends to shareholders	$ 7,435	$ 7,417
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. 27, 2020	Mar. 28, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 17,032	$ 18,506
Deferred revenue, current	12,281	13,129
Deferred revenue, noncurrent	$ 4,700	$ 5,400
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 (Narrative) (Performan

Revenues (Narrative) (Performance Obligation) (Details) $ in Millions	Jun. 27, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, performance obligation	$ 10.2
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	5.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, performance obligation	$ 1.2

Revenues (Schedule Of Changes I

Revenues (Schedule Of Changes In Deferred Revenue) (Details) $ in Thousands	3 Months Ended
	Jun. 27, 2020USD ($)
Revenues [Abstract]
Balance	$ 18,506
Deferral of revenue	3,169
Deferral of revenue from acquisitions
Recognition of revenue	(4,643)
Balance	$ 17,032

Revenues (Schedule Of Disaggreg

Revenues (Schedule Of Disaggregated Revenue By Product Group) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 247,059	$ 317,063
Brakes [Member]
Disaggregation of Revenue [Line Items]
Revenues	28,564	46,776
Exhaust [Member]
Disaggregation of Revenue [Line Items]
Revenues	4,432	6,953
Steering [Member]
Disaggregation of Revenue [Line Items]
Revenues	18,468	26,232
Tires [Member]
Disaggregation of Revenue [Line Items]
Revenues	137,270	154,065
Maintenance [Member]
Disaggregation of Revenue [Line Items]
Revenues	57,620	82,174
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 705	$ 863

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	3 Months Ended
	Jun. 27, 2020USD ($)entity	Mar. 28, 2020USD ($)
Debt Instrument [Line Items]
Revolving credit facility borrowed		$ 350,000,000
Repayment of revolving credit facility	$ 240,000,000
Net availability under the credit facility	$ 240,200,000
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
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%
First Amendment To Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate over LIBOR on the facility	2.25%

Commitments and Contingencies_2

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2020	Mar. 28, 2020
Rent deferrals	$ 1,500
Timing of lease related expenses	1,600
Finance lease and financing obligation assets, net	253,956	$ 196,575
Operating lease assets, net	$ 206,252	$ 199,729
Re-negotiated Rental Payments [Member]
Percent of leases re-negotiated	20.00%
Finance lease and financing obligation assets, net	$ 59,800
Finance lease liability	56,300
Operating lease assets, net	13,800
Operating lease obligations	$ 17,300

Commitments and Contingencies_3

Commitments and Contingencies (Schedule Of Payments Due By Period) (Details) $ in Thousands	3 Months Ended
	Jun. 27, 2020USD ($)
Commitments and Contingencies [Abstract]
Principal payments on long-term debt, Total	$ 326,200
Principal payments on long-term debt, 4 to 5 years	326,200
Finance lease commitments/financing obligations, Total	503,276	[1]
Finance lease commitments/financing obligations, Within 1 Year	52,009	[1]
Finance lease commitments/financing obligations, 2 to 3 Years	104,839	[1]
Finance lease commitments/financing obligations, 4 to 5 Years	97,008	[1]
Finance lease commitments/financing obligations, After 5 Years	249,420	[1]
Total Operating lease commitments	243,829	[1]
Operating lease commitments, Within 1 year	36,422	[1]
Operating lease commitments, 2 to 3 years	66,101	[1]
Operating lease commitments, 4 to 5 years	53,192	[1]
Operating lease commitments, After 5 years	88,114	[1]
Accrued rent, Total	3,118
Accrued rent, Within 1 year	2,764
Accrued rent, 2 to 3 Years	319
Accrued rent, 4 to 5 Years	18
Accrued rent, After 5 Years	17
Other liabilities, Total	1,733
Other liabilities, Within 1 year	800
Other liabilities, 2 to 3 years	933
Other liabilities, 4 to 5 years
Other liabilities, After 5 years
Contractual commitments, Total	1,078,156
Contractual commitments, Within 1 year	91,995
Contractual commitments, 2 to 3 years	172,192
Contractual commitments, 4 to 5 years	476,418
Contractual commitments, After 5 years	337,551
Operating lease payments, related to options to extend, reasonably certain of being exercised	62,500
Finance lease payments, related to options to extend, reasonable certain of being exercised	$ 96,100
[1]	Operating and finance lease commitments represent future undiscounted lease payments and include $ 62.5 million and $ 96.1 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised.