Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 23, 2023 | Jan. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 23, 2023 | |
Current Fiscal Year End Date | --03-30 | |
Document Fiscal Year Focus | 2024 | |
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 $0.01 per share | |
Trading Symbol | MNRO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 29,902,141 | |
Entity Central Index Key | 0000876427 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 23, 2023 | Mar. 25, 2023 |
Current assets | ||
Cash and equivalents | $ 23,846 | $ 4,884 |
Accounts receivable | 14,434 | 13,294 |
Federal and state income taxes receivable | 808 | |
Inventories | 160,360 | 147,397 |
Other current assets | 72,246 | 92,892 |
Total current assets | 271,694 | 258,467 |
Property and equipment, net | 284,563 | 304,989 |
Finance lease and financing obligation assets, net | 189,774 | 217,174 |
Operating lease assets, net | 205,244 | 211,101 |
Goodwill | 736,435 | 736,457 |
Intangible assets, net | 14,087 | 16,562 |
Assets held for sale | 5,883 | |
Other non-current assets | 24,971 | 29,365 |
Long-term deferred income tax assets | 446 | 2,762 |
Total assets | 1,733,097 | 1,776,877 |
Current liabilities | ||
Current portion of finance leases and financing obligations | 38,858 | 39,982 |
Current portion of operating lease liabilities | 38,953 | 37,520 |
Accounts payable | 287,330 | 261,724 |
Federal and state income taxes payable | 541 | |
Accrued payroll, payroll taxes and other payroll benefits | 19,805 | 15,951 |
Accrued insurance | 53,601 | 47,741 |
Deferred revenue | 15,427 | 15,422 |
Other current liabilities | 32,658 | 30,296 |
Total current liabilities | 486,632 | 449,177 |
Long-term debt | 94,000 | 105,000 |
Long-term finance leases and financing obligations | 259,794 | 295,281 |
Long-term operating lease liabilities | 184,777 | 191,107 |
Other long-term liabilities | 10,168 | 10,721 |
Long-term deferred income tax liabilities | 37,799 | 30,460 |
Long-term income taxes payable | 209 | 209 |
Total liabilities | 1,073,379 | 1,081,955 |
Commitments and contingencies - Note 9 | ||
Shareholders' equity | ||
Class C Convertible Preferred stock | 29 | 29 |
Common stock | 400 | 400 |
Treasury stock | (250,115) | (205,648) |
Additional paid-in capital | 252,801 | 250,702 |
Accumulated other comprehensive loss | (3,834) | (4,115) |
Retained earnings | 660,437 | 653,554 |
Total shareholders' equity | 659,718 | 694,922 |
Total liabilities and shareholders' equity | $ 1,733,097 | $ 1,776,877 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 23, 2023 $ / shares shares | Mar. 25, 2023 $ / shares shares |
Consolidated Balance Sheets [Abstract] | ||
Class C convertible preferred stock shares authorized | 150,000 | 150,000 |
Class C convertible preferred stock par value | $ / shares | $ 1.50 | $ 1.50 |
Class C convertible preferred stock, conversion ratio | 61.275 | 23.389 |
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 | $ / shares | $ 0.01 | $ 0.01 |
Common stock shares issued | 40,006,829 | 39,966,401 |
Treasury stock shares | 10,104,688 | 8,561,121 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Sales | $ 317,653 | $ 335,193 | $ 966,712 | $ 1,014,546 |
Cost of sales, including distribution and occupancy costs | 204,976 | 221,742 | 624,666 | 662,171 |
Gross profit | 112,677 | 113,451 | 342,046 | 352,375 |
Operating, selling, general and administrative expenses | 91,294 | 89,605 | 280,959 | 278,802 |
Operating income | 21,383 | 23,846 | 61,087 | 73,573 |
Interest expense, net of interest income | 5,043 | 5,949 | 15,052 | 17,312 |
Other income, net | (62) | (98) | (153) | (275) |
Income before income taxes | 16,402 | 17,995 | 46,188 | 56,536 |
Provision for income taxes | 4,232 | 4,961 | 12,317 | 17,897 |
Net income | 12,170 | 13,034 | 33,871 | 38,639 |
Other comprehensive income (loss) | ||||
Changes in pension, net of tax | 94 | (98) | 281 | (296) |
Other comprehensive income (loss) | 94 | (98) | 281 | (296) |
Comprehensive income | $ 12,264 | $ 12,936 | $ 34,152 | $ 38,343 |
Earnings per share: | ||||
Basic | $ 0.38 | $ 0.41 | $ 1.06 | $ 1.18 |
Diluted | $ 0.38 | $ 0.41 | $ 1.05 | $ 1.17 |
Weighted average common shares outstanding | ||||
Basic | 30,934 | 31,470 | 31,263 | 32,386 |
Diluted | 32,188 | 31,985 | 32,142 | 32,890 |
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. 26, 2022 | $ 29 | $ 399 | $ (108,729) | $ 244,577 | $ (4,494) | $ 651,124 | $ 782,906 | |
Beginning balance, preferred shares at Mar. 26, 2022 | 20,000 | |||||||
Beginning balance, common shares at Mar. 26, 2022 | 39,907,000 | 6,360,000 | ||||||
Net income | 38,639 | 38,639 | ||||||
Other comprehensive income (loss) | ||||||||
Pension liability adjustment | (296) | (296) | ||||||
Dividends declared | ||||||||
Preferred | (386) | (386) | ||||||
Common | (27,096) | (27,096) | ||||||
Dividend payable | (161) | (161) | ||||||
Repurchase of stock | $ (96,919) | (96,919) | ||||||
Repurchase of stock, shares | 2,201,000 | |||||||
Stock options and restricted stock | $ 1 | 296 | 297 | |||||
Stock options and restricted stock, shares | 50,000 | |||||||
Stock-based compensation | 4,199 | 4,199 | ||||||
Balance ending at Dec. 24, 2022 | $ 29 | $ 400 | $ (205,648) | 249,072 | (4,790) | 662,120 | 701,183 | |
Ending balance, preferred shares at Dec. 24, 2022 | 20,000 | |||||||
Ending balance, common shares at Dec. 24, 2022 | 39,957,000 | 8,561,000 | ||||||
Balance beginning at Sep. 24, 2022 | $ 29 | $ 400 | $ (179,944) | 247,907 | (4,692) | 658,070 | 721,770 | |
Beginning balance, preferred shares at Sep. 24, 2022 | 20,000 | |||||||
Beginning balance, common shares at Sep. 24, 2022 | 39,957,000 | 7,977,000 | ||||||
Net income | 13,034 | 13,034 | ||||||
Other comprehensive income (loss) | ||||||||
Pension liability adjustment | (98) | (98) | ||||||
Dividends declared | ||||||||
Preferred | (129) | (129) | ||||||
Common | (8,791) | (8,791) | ||||||
Dividend payable | (64) | (64) | ||||||
Repurchase of stock | $ (25,704) | (25,704) | ||||||
Repurchase of stock, shares | 584,000 | |||||||
Stock options and restricted stock | 10 | 10 | ||||||
Stock-based compensation | 1,155 | 1,155 | ||||||
Balance ending at Dec. 24, 2022 | $ 29 | $ 400 | $ (205,648) | 249,072 | (4,790) | 662,120 | 701,183 | |
Ending balance, preferred shares at Dec. 24, 2022 | 20,000 | |||||||
Ending balance, common shares at Dec. 24, 2022 | 39,957,000 | 8,561,000 | ||||||
Balance beginning at Mar. 25, 2023 | $ 29 | $ 400 | $ (205,648) | 250,702 | (4,115) | 653,554 | $ 694,922 | |
Beginning balance, preferred shares at Mar. 25, 2023 | 20,000 | 19,664 | ||||||
Beginning balance, common shares at Mar. 25, 2023 | 39,966,000 | 8,561,000 | ||||||
Net income | 33,871 | $ 33,871 | ||||||
Other comprehensive income (loss) | ||||||||
Pension liability adjustment | 281 | 281 | ||||||
Dividends declared | ||||||||
Preferred | (804) | (804) | ||||||
Common | (25,992) | (25,992) | ||||||
Dividend payable | (192) | (192) | ||||||
Repurchase of stock | [1] | $ (44,467) | (44,467) | |||||
Repurchase of stock, shares | [1] | 1,544,000 | ||||||
Stock options and restricted stock | (414) | (414) | ||||||
Stock options and restricted stock, shares | 41,000 | |||||||
Stock-based compensation | 2,513 | 2,513 | ||||||
Balance ending at Dec. 23, 2023 | $ 29 | $ 400 | $ (250,115) | 252,801 | (3,834) | 660,437 | $ 659,718 | |
Ending balance, preferred shares at Dec. 23, 2023 | 20,000 | 19,664 | ||||||
Ending balance, common shares at Dec. 23, 2023 | 40,007,000 | 10,105,000 | ||||||
Balance beginning at Sep. 23, 2023 | $ 29 | $ 400 | $ (205,648) | 252,212 | (3,928) | 657,078 | $ 700,143 | |
Beginning balance, preferred shares at Sep. 23, 2023 | 20,000 | |||||||
Beginning balance, common shares at Sep. 23, 2023 | 40,006,000 | 8,561,000 | ||||||
Net income | 12,170 | 12,170 | ||||||
Other comprehensive income (loss) | ||||||||
Pension liability adjustment | 94 | 94 | ||||||
Dividends declared | ||||||||
Preferred | (337) | (337) | ||||||
Common | (8,392) | (8,392) | ||||||
Dividend payable | (82) | (82) | ||||||
Repurchase of stock | [1] | $ (44,467) | (44,467) | |||||
Repurchase of stock, shares | [1] | 1,544,000 | ||||||
Stock options and restricted stock, shares | 1,000 | |||||||
Stock-based compensation | 589 | 589 | ||||||
Balance ending at Dec. 23, 2023 | $ 29 | $ 400 | $ (250,115) | $ 252,801 | $ (3,834) | $ 660,437 | $ 659,718 | |
Ending balance, preferred shares at Dec. 23, 2023 | 20,000 | 19,664 | ||||||
Ending balance, common shares at Dec. 23, 2023 | 40,007,000 | 10,105,000 | ||||||
[1] Inclusive of excise tax of $ 0.4 million for the three months and nine months ended December 23, 2023. The excise tax is assessed at one percent of the fair value of net stock repurchases after December 31, 2022. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | |
Consolidated Statements of Changes in Shareholders’ Equity [Abstract] | ||||
Repurchase of stock, excise tax | $ 0.4 | $ 0.4 | ||
Common stock cash dividends per share | $ 0.28 | $ 0.28 | $ 0.84 | $ 0.84 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | Mar. 25, 2023 | |
Operating activities | |||||
Net income | $ 12,170 | $ 13,034 | $ 33,871 | $ 38,639 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||||
Depreciation and amortization | 54,437 | 58,201 | |||
Share-based compensation expense | 2,513 | 4,199 | |||
Gain on disposal of assets | (1,579) | (2,748) | |||
Gain on divestiture | (2,394) | ||||
Deferred income tax expense | 9,557 | 3,306 | |||
Change in operating assets and liabilities (excluding acquisitions and divestitures) | |||||
Accounts receivable | (1,140) | (2,360) | |||
Inventories | (12,709) | (12,319) | |||
Other current assets | 6,388 | (18,156) | |||
Other non-current assets | 30,837 | 27,732 | |||
Accounts payable | 25,606 | 96,366 | |||
Accrued expenses | 12,984 | 5,323 | |||
Federal and state income taxes payable | (1,349) | 2,269 | |||
Other long-term liabilities | (28,953) | (26,979) | |||
Long-term income taxes payable | 112 | ||||
Cash provided by operating activities | 130,463 | 171,191 | |||
Investing activities | |||||
Capital expenditures | (18,892) | (28,535) | |||
Acquisitions, net of cash acquired | (954) | ||||
Proceeds from divestiture | 56,586 | ||||
Deferred proceeds received from divestiture | 15,839 | 4,294 | |||
Proceeds from the disposal of assets | 2,793 | 4,416 | |||
Other | (25) | (256) | |||
Cash (used for) provided by investing activities | (285) | 35,551 | |||
Financing activities | |||||
Proceeds from borrowings | 99,103 | 139,176 | |||
Principal payments on long-term debt, finance leases and financing obligations | (139,496) | (215,439) | |||
Repurchase of stock | (44,044) | (96,919) | |||
Exercise of stock options | 17 | ||||
Dividends paid | (26,796) | (27,482) | |||
Deferred financing costs | (1,027) | ||||
Cash used for financing activities | (111,216) | (201,691) | |||
Increase in cash and equivalents | 18,962 | 5,051 | |||
Cash and equivalents at beginning of period | 4,884 | 7,948 | $ 7,948 | ||
Cash and equivalents at end of period | $ 23,846 | $ 12,999 | 23,846 | 12,999 | $ 4,884 |
Supplemental information | |||||
Leased assets reduced in exchange for reduced finance lease liabilities | (4,539) | (10,436) | |||
Leased assets obtained in exchange for new operating lease liabilities | $ 21,577 | $ 25,963 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Dec. 23, 2023 | |
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 1,296 Company-operated retail stores located in 32 states and 51 franchised locations as of December 23, 2023. 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. 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 statement 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 (“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 25, 2023. We use the same significant accounting policies in preparing quarterly and annual financial statements. For a description of our significant accounting policies followed in the preparation of the financial statements, see Note 1 of our Form 10-K for the fiscal year ended March 25, 2023. 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 year 2024 covers 53 weeks and fiscal year 2023 covers 52 weeks. Unless specifically indicated otherwise, any references to “2024” or “fiscal 2024” and “2023” or “fiscal 2023” relate to the years ending March 30, 2024 and March 25, 2023, respectively. Recent accounting pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which requires certain disclosure for supplier finance programs used in connection with the purchase of goods and services. We adopted this guidance during the first quarter of fiscal 2024, other than the roll forward information disclosure which we expect to adopt during the first quarter of the fiscal year ending March 29, 2025. The adoption of this guidance did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued new accounting guidance which requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination as if they entered into the original contract at the same time and same date as the acquiree. We adopted this guidance during the first quarter of fiscal 2024. The adoption of this guidance did not have a material impact on our consolidated financial statements. In November 2023, the FASB issued new accounting guidance which requires expanding disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. This guidance is effective for fiscal years beginning after December 15, 2023, and for interim periods within those years beginning after December 15, 2024. Early application permitted. We are currently evaluating the impact of adopting this guidance. In December 2023, the FASB issued new accounting guidance which requires income tax disclosure updates, primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. This guidance is effective for fiscal years periods beginning after December 15, 2024. Early application permitted. We are currently evaluating the impact of adopting this guidance. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification (“ASC”)) and the SEC did not or are not expected to have a material effect on our consolidated financial statements. Supplemental information Property and equipment, net : Property and equipment balances are shown on the Consolidated Balance Sheets net of accumulated depreciation of $ 440.6 million and $ 426.7 million as of December 23, 2023 and March 25, 2023, respectively. Assets held for sale We classify long-lived assets to be sold as held for sale in the period in which all of the required criteria are met. We initially measure a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, we cease depreciation and report long-lived assets, if material, as Assets held for sale in our Consolidated Balance Sheets. On June 1, 2023, we announced the planned sale of our corporate headquarters at 200 Holleder Parkway in Rochester, New York and our plan to relocate our corporate headquarters to another location in the greater Rochester area. We determined that the related assets met the criteria to be classified as held for sale as of December 23, 2023. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Dec. 23, 2023 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and Divestitures | Note 2 – Acquisitions and Divestitures 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. During 2023, we acquired six retail tire and automotive repair stores. We accounted for the 2023 acquisitions as business combinations using the acquisition method of accounting in accordance with the FASB ASC Topic 805, “Business Combinations.” See Note 2 of our Form 10-K for the fiscal year ended March 25, 2023 for additional information. We refined the valuation data and estimates primarily related to inventory, warranty reserves, intangible assets, real property leases, and certain liabilities for the 2023 acquisitions and completed the valuations prior to the first anniversary date of the acquisitions. Any adjustments were made to the fair values of identifiable assets acquired and liabilities assumed. Such amounts are immaterial to our consolidated financial statements. Divestiture On June 17, 2022, we completed the divestiture of assets relating to our wholesale tire operations ( seven locations) and internal tire distribution operations to American Tire Distributors, Inc. (“ATD”). We received $ 62 million from ATD at the closing of the transaction, of which $ 5 million was held in escrow and subsequently paid in December 2023. The remaining $ 40 million (“Earnout”) of the total consideration of $ 102 million will be paid quarterly over approximately two years based on our tire purchases from or through ATD pursuant to a distribution and fulfillment agreement with ATD. We received $ 11.1 million of the Earnout during the first nine months of fiscal 2024, $ 8.7 million of the Earnout during fiscal 2023 and $ 20.2 million of the Earnout is outstanding as of December 23, 2023. Under a distribution agreement between us and ATD, ATD agreed to supply and sell tires to retail locations we own. After ATD satisfies the Earnout payments, our company-owned retail stores will be required to purchase at least 90 percent of their forecasted requirements for certain passenger car tires, light truck replacement tires, and medium truck tires from or through ATD. Any tires that ATD is unable to supply or fulfill from those categories will be excluded from the calculation of our requirements for tires. The initial term of the distribution agreement is five years after the completion of the Earnout Period, with automatic 12 -month renewal periods thereafter. The divestiture enables us to focus our resources on our core retail business operations. The divestiture did not meet the criteria to be reported as discontinued operations in our consolidated financial statements as our decision to divest this business did not represent a strategic shift that would have a major effect on our operations and financial results. In connection with this transaction, we recognized a pre-tax gain of $ 2.4 million within OSG&A expenses, as finalized in June 2022. We also expensed $ 0.4 million of closing costs and costs associated with the closing of a related warehouse within OSG&A expenses, as finalized in September 2022. We finalized the impact of these associated closing costs and the subsequent gain on the sale of related warehouses of $ 2.3 million during the remainder of fiscal 2023, in addition to a subsequent final inventory adjustment of $ 0.3 million of expense in November 2023. Additionally, in August 2022 we incurred $ 1.3 million in costs in connection with restructuring and elimination of certain executive management positions upon completion of the divestiture. See Note 2 of our Form 10-K for the fiscal year ended March 25, 2023 for additional information. For additional information regarding discrete tax impacts because of the divestiture, see Note 4 . |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Dec. 23, 2023 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | Note 3 – 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 outstanding adjusted to give effect to potentially dilutive securities. Earnings per Common Share Three Months Ended Nine Months Ended (thousands, except per share data) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Numerator for earnings per common share calculation: Net income $ 12,170 $ 13,034 $ 33,871 $ 38,639 Less: Preferred stock dividends ( 337 ) ( 129 ) ( 804 ) ( 386 ) Income available to common shareholders $ 11,833 $ 12,905 $ 33,067 $ 38,253 Denominator for earnings per common share calculation: Weighted average common shares - basic 30,934 31,470 31,263 32,386 Effect of dilutive securities: Preferred stock 1,205 460 815 460 Restricted stock 49 55 64 44 Weighted average common shares - diluted 32,188 31,985 32,142 32,890 Basic earnings per common share $ 0.38 $ 0.41 $ 1.06 $ 1.18 Diluted earnings per common share $ 0.38 $ 0.41 $ 1.05 $ 1.17 Weighted average common share equivalents that have an anti-dilutive impact are excluded from the computation of diluted earnings per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 23, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4 – Income Taxes For the three months and nine months ended December 23, 2023, our effective income tax rate was 25.8 percent and 26.7 percent, respectively, compared to 27.6 percent and 31.7 percent for the three months and nine months ended December 24, 2022 , respectively. The difference from the statutory rate is due to state taxes and the discrete tax impact related to share-based awards. Our effective income tax rate for the three months and nine months ended December 23, 2023 was higher by 0.3 percent and 0.8 percent, respectively, and was higher by 0.9 percent and 0.7 percent for the three months and nine months ended December 24, 2022, respectively , due to the discrete tax impact related to share-based awards. Our effective income tax rate for the nine months ended December 24, 2022 was higher by 4.7 percent because of discrete tax impacts from the divestiture of assets relating to our wholesale tire operations and internal tire distribution operations as well as the revaluation of deferred tax balances due to changes in the mix of pre-tax income in various U.S. state jurisdictions because of the divestiture. |
Fair Value
Fair Value | 9 Months Ended |
Dec. 23, 2023 | |
Fair Value [Abstract] | |
Fair Value | Note 5 – Fair Value Long-term debt had a carrying amount that approximates a fair value of $ 94.0 million as of December 23, 2023, as compared to a carrying amount and a fair value of $ 105.0 million as of March 25, 2023. The carrying value of our debt approximated its fair value due to the variable interest nature of the debt. |
Cash Dividend
Cash Dividend | 9 Months Ended |
Dec. 23, 2023 | |
Cash Dividend [Abstract] | |
Cash Dividend | Note 6 – Cash Dividend We paid dividends of $ 26.8 million during the nine months ended December 23, 2023. The declaration 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 contractual restrictions, and such other factors as the Board of Directors deems relevant. Under our Credit Facility, there are no restrictions on our ability to declare dividends as long as we are in compliance with the covenants in the Credit Facility. For additional information regarding our Credit Facility, see Note 8 . |
Revenues
Revenues | 9 Months Ended |
Dec. 23, 2023 | |
Revenues [Abstract] | |
Revenues | Note 7 – 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 and franchise royalties. 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 may vary depending on the customer and generally are 30 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 Nine Months Ended (thousands) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Tires (a) $ 161,116 $ 176,532 $ 467,069 $ 507,501 Maintenance 84,179 86,217 267,325 267,131 Brakes 39,824 41,396 133,663 137,613 Steering 24,490 25,379 78,851 82,973 Exhaust 5,031 5,006 15,386 17,202 Franchise royalties 3,013 663 4,418 2,126 Total $ 317,653 $ 335,193 $ 966,712 $ 1,014,546 (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 December 23, 2023 and March 25, 2023 were $ 22.1 million and $ 22.4 million, respectively, of which $ 15.4 million and $ 15.4 million, respectively, are reported in Deferred revenue and $ 6.7 million and $ 7.0 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets. Changes in Deferred Revenue (thousands) Balance at March 25, 2023 $ 22,354 Deferral of revenue 16,480 Recognition of revenue ( 16,722 ) Balance at December 23, 2023 $ 22,112 As of December 23, 2023 , we expect to recognize $ 5.1 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2024, $ 12.4 million of deferred revenue during our fiscal year ending March 29, 2025 , and $ 4.6 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 | 9 Months Ended |
Dec. 23, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 8 – Long-term Debt Credit Facility In April 2019, we entered into a five-year $ 600 million revolving credit facility agreement with eight banks (the “Credit Facility”) that includes an accordion feature permitting us to request an increase in availability of up to an additional $ 250 million. See Note 6 of our Form 10-K for the fiscal year ended March 25, 2023 for additional information. On November 10, 2022, we entered into a Third Amendment to the Credit Facility (the “Third Amendment”). The Third Amendment, among other things, extended the term of the Credit Facility to November 10, 2027 and amended certain of the financial terms in the Credit Agreement, as amended by the Second Amendment. The Third Amendment amended the interest rate charged on borrowings to be based on 0.10 percent over the Secured Overnight Financing Rate (“SOFR”), replacing the previously used LIBOR. In addition, one additional bank was added to the bank syndicate for a total of nine banks now within the syndicate. Except as amended by the First Amendment, Second Amendment and Third 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 $ 30.1 million outstanding letter of credit at December 23, 2023. We are required to maintain an interest coverage ratio, as defined in the Credit Facility, of at least 1.55 to 1. In addition, our ratio of adjusted debt to EBITDAR, as defined in the Credit Facility, cannot exceed 4.75 to 1, subject to certain exceptions under the Credit Facility. We were in compliance with all debt covenants at December 23, 2023. There was $ 94.0 million outstanding and $ 475.9 million available under the Credit Facility at December 23, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 23, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 9 – 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 $ 94,000 $ 94,000 Finance lease commitments/financing obligations (a) 365,192 $ 51,045 $ 94,171 79,883 $ 140,093 Operating lease commitments (a) 259,079 46,356 82,249 59,096 71,378 Total $ 718,271 $ 97,401 $ 176,420 $ 232,979 $ 211,471 (a) Finance and operating lease commitments represent future undiscounted lease payments and include $ 78.6 million and $ 51.4 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. |
Supplier Finance Program
Supplier Finance Program | 9 Months Ended |
Dec. 23, 2023 | |
Supplier Finance Program [Abstract] | |
Supplier Finance Program | Note 10 – Supplier Finance Program We facilitate a voluntary supply chain financing program to provide our suppliers with the opportunity to sell receivables due from us (our accounts payable) to a participating financial institution at the sole discretion of both the supplier and the financial institution. Should a supplier choose to participate in the program, it may receive payment from the financial institution in advance of agreed payment terms; our responsibility is limited to making payments to the respective financial institution on the terms originally negotiated with our supplier, which are generally for a term of 360 days. We have concluded that the program is a trade payable program and not indicative of a borrowing arrangement. Our outstanding supplier obligations eligible for advance payment under the program totaled $ 168.4 million, $ 167.3 million, and $ 133.9 million as of December 23, 2023, March 25, 2023, and December 24, 2022, respectively, and are included within Accounts Payable on our Consolidated Balance Sheets. Our outstanding supplier obligations do not represent actual receivables sold by our suppliers to the financial institutions, which may be lower. |
Share Repurchase
Share Repurchase | 9 Months Ended |
Dec. 23, 2023 | |
Share Repurchase [Abstract] | |
Share Repurchase | Note 11 – Share Repurchase We periodically repurchase shares of our common stock under a board-authorized repurchase program through open market transactions. The share repurchase activity below does not include excise tax of $ 0.4 million during the three and nine months ended December 23, 2023. The excise tax is assessed at one percent of the fair market value of net stock repurchases after December 31, 2022. Share Repurchase Activity Three Months Ended Nine Months Ended (thousands, except per share data) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Number of shares purchased 1,543.6 583.8 1,543.6 2,201.3 Average price paid per share $ 28.50 $ 44.00 $ 28.50 $ 44.00 Total repurchased $ 43,997 $ 25,687 $ 43,997 $ 96,853 |
Equity Capital Structure Reclas
Equity Capital Structure Reclassification | 9 Months Ended |
Dec. 23, 2023 | |
Equity Capital Structure Reclassification [Abstract] | |
Equity Capital Structure Reclassification | Note 12 – Equity Capital Structure Reclassification On May 12, 2023, we entered into a reclassification agreement (the “Reclassification Agreement”) with the holders (the “Class C Holders”) of our Class C Convertible Preferred Stock (the “Class C Preferred Stock”) to reclassify our equity capital structure to eliminate the Class C Preferred Stock. Under the Reclassification Agreement, after receiving shareholder approval on August 15, 2023, we filed amendments to our certificate of incorporation (the “Certificate of Incorporation”) to create a mandatory conversion of any outstanding shares of Class C Preferred Stock prior to an agreed sunset date of the earliest of (i) August 15, 2026; (ii) the first business day immediately prior to the record date established for the determination of the shareholders of the Company entitled to vote at the Company’s 2026 annual meeting of shareholders; and (iii) the date on which the Class C Holders, in the aggregate, cease to beneficially own at least 50 % of all shares of the Class C Preferred Stock issued and outstanding as of May 12, 2023. In exchange for this sunset of the Class C Preferred Stock, the conversion rate of Class C Preferred Stock was adjusted so that each share of Class C Preferred Stock will convert into 61.275 shares of common stock (the “adjusted conversion rate”), an increase from the prior conversion rate of 23.389 shares of common stock for each share of Class C Preferred Stock under the Certificate of Incorporation. At the end of the sunset period, all shares of Class C Preferred Stock remaining outstanding will be automatically converted into shares of common stock at the adjusted conversion rate. In addition, the liquidation preference for the Class C Preferred Stock was amended to provide that, upon a liquidation event, each holder of Class C Preferred Stock would be entitled to receive, for each share of Class C Preferred Stock held by the holder upon a liquidation, dissolution, or winding up of the affairs of the Company, an amount equal to the greater of $ 1.50 per share and the amount the holder would have received had each share of Class C Preferred Stock been converted to shares of common stock immediately prior to the liquidation, dissolution, or winding up. There was no Class C Preferred Stock converted during the three months ended December 23, 2023. The Reclassification Agreement also provides that, during the sunset period, the Class C Holders will have the right to appoint one member of the Board of Directors. This designee is expected to be Peter J. Solomon, who is one of the Company’s current directors and one of the Class C Holders. Additionally, on August 15, 2023, our shareholders voted to approve an amendment to our Certificate of Incorporation to declassify the Board of Directors. Under this amendment, the class of directors standing for election at our 2024 annual meeting of shareholders will stand for election for one-year terms expiring at the 2025 annual meeting of shareholders. Starting with the 2025 annual meeting of shareholders, the Board of Directors will no longer be classified, and all the directors elected at that meeting (and each meeting thereafter) will be elected for a term expiring at the next annual meeting of shareholders. We have determined the amendments to the Class C Preferred Stock, because of the Reclassification Agreement, should be accounted for as a modification. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policy) | 9 Months Ended |
Dec. 23, 2023 | |
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 1,296 Company-operated retail stores located in 32 states and 51 franchised locations as of December 23, 2023. 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. 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 statement 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 (“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 25, 2023. We use the same significant accounting policies in preparing quarterly and annual financial statements. For a description of our significant accounting policies followed in the preparation of the financial statements, see Note 1 of our Form 10-K for the fiscal year ended March 25, 2023. 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 year 2024 covers 53 weeks and fiscal year 2023 covers 52 weeks. Unless specifically indicated otherwise, any references to “2024” or “fiscal 2024” and “2023” or “fiscal 2023” relate to the years ending March 30, 2024 and March 25, 2023, respectively. |
Recent Accounting Pronouncements | Recent accounting pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which requires certain disclosure for supplier finance programs used in connection with the purchase of goods and services. We adopted this guidance during the first quarter of fiscal 2024, other than the roll forward information disclosure which we expect to adopt during the first quarter of the fiscal year ending March 29, 2025. The adoption of this guidance did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued new accounting guidance which requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination as if they entered into the original contract at the same time and same date as the acquiree. We adopted this guidance during the first quarter of fiscal 2024. The adoption of this guidance did not have a material impact on our consolidated financial statements. In November 2023, the FASB issued new accounting guidance which requires expanding disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. This guidance is effective for fiscal years beginning after December 15, 2023, and for interim periods within those years beginning after December 15, 2024. Early application permitted. We are currently evaluating the impact of adopting this guidance. In December 2023, the FASB issued new accounting guidance which requires income tax disclosure updates, primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. This guidance is effective for fiscal years periods beginning after December 15, 2024. Early application permitted. We are currently evaluating the impact of adopting this guidance. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification (“ASC”)) and the SEC did not or are not expected to have a material effect on our consolidated financial statements. |
Property and Equipment, Net | Property and equipment, net : Property and equipment balances are shown on the Consolidated Balance Sheets net of accumulated depreciation of $ 440.6 million and $ 426.7 million as of December 23, 2023 and March 25, 2023, respectively. |
Assets Held for Sale | Assets held for sale We classify long-lived assets to be sold as held for sale in the period in which all of the required criteria are met. We initially measure a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, we cease depreciation and report long-lived assets, if material, as Assets held for sale in our Consolidated Balance Sheets. On June 1, 2023, we announced the planned sale of our corporate headquarters at 200 Holleder Parkway in Rochester, New York and our plan to relocate our corporate headquarters to another location in the greater Rochester area. We determined that the related assets met the criteria to be classified as held for sale as of December 23, 2023. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Dec. 23, 2023 | |
Earnings per Common Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings per Share | Earnings per Common Share Three Months Ended Nine Months Ended (thousands, except per share data) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Numerator for earnings per common share calculation: Net income $ 12,170 $ 13,034 $ 33,871 $ 38,639 Less: Preferred stock dividends ( 337 ) ( 129 ) ( 804 ) ( 386 ) Income available to common shareholders $ 11,833 $ 12,905 $ 33,067 $ 38,253 Denominator for earnings per common share calculation: Weighted average common shares - basic 30,934 31,470 31,263 32,386 Effect of dilutive securities: Preferred stock 1,205 460 815 460 Restricted stock 49 55 64 44 Weighted average common shares - diluted 32,188 31,985 32,142 32,890 Basic earnings per common share $ 0.38 $ 0.41 $ 1.06 $ 1.18 Diluted earnings per common share $ 0.38 $ 0.41 $ 1.05 $ 1.17 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Dec. 23, 2023 | |
Revenues [Abstract] | |
Schedule of Disaggregated Revenue by Product Group | Revenues Three Months Ended Nine Months Ended (thousands) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Tires (a) $ 161,116 $ 176,532 $ 467,069 $ 507,501 Maintenance 84,179 86,217 267,325 267,131 Brakes 39,824 41,396 133,663 137,613 Steering 24,490 25,379 78,851 82,973 Exhaust 5,031 5,006 15,386 17,202 Franchise royalties 3,013 663 4,418 2,126 Total $ 317,653 $ 335,193 $ 966,712 $ 1,014,546 (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 25, 2023 $ 22,354 Deferral of revenue 16,480 Recognition of revenue ( 16,722 ) Balance at December 23, 2023 $ 22,112 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 23, 2023 | |
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 $ 94,000 $ 94,000 Finance lease commitments/financing obligations (a) 365,192 $ 51,045 $ 94,171 79,883 $ 140,093 Operating lease commitments (a) 259,079 46,356 82,249 59,096 71,378 Total $ 718,271 $ 97,401 $ 176,420 $ 232,979 $ 211,471 (a) Finance and operating lease commitments represent future undiscounted lease payments and include $ 78.6 million and $ 51.4 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised. |
Share Repurchase (Tables)
Share Repurchase (Tables) | 9 Months Ended |
Dec. 23, 2023 | |
Share Repurchase [Abstract] | |
Schedule of Share Repurchase Activity | Share Repurchase Activity Three Months Ended Nine Months Ended (thousands, except per share data) December 23, 2023 December 24, 2022 December 23, 2023 December 24, 2022 Number of shares purchased 1,543.6 583.8 1,543.6 2,201.3 Average price paid per share $ 28.50 $ 44.00 $ 28.50 $ 44.00 Total repurchased $ 43,997 $ 25,687 $ 43,997 $ 96,853 |
Description of Business and B_3
Description of Business and Basis of Presentation (Narrative) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 23, 2023 USD ($) store segment item state | Mar. 30, 2024 | Mar. 25, 2023 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Company operated retail stores | store | 1,296 | ||
Number of states in which entity operates | state | 32 | ||
Number of franchised locations | item | 51 | ||
Number of operating segments | segment | 1 | ||
Fiscal period duration | 364 days | ||
Property and equipment accumulated depreciation | $ | $ 440.6 | $ 426.7 | |
Forecast [Member] | |||
Significant Accounting Policies [Line Items] | |||
Fiscal period duration | 371 days | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Fiscal period duration | 364 days | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Fiscal period duration | 371 days |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 17, 2022 USD ($) item | Aug. 31, 2022 USD ($) | Sep. 24, 2022 USD ($) | Dec. 23, 2023 USD ($) | Dec. 24, 2022 USD ($) | Mar. 25, 2023 USD ($) store | Nov. 30, 2023 USD ($) | |
Acquisitions And Divestitures [Line Items] | |||||||
Deferred proceeds received from divestiture | $ 15,839 | $ 4,294 | |||||
American Tire Distributors [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||
Acquisitions And Divestitures [Line Items] | |||||||
Pre-tax gain | $ 2,400 | ||||||
Number of wholesale locations | item | 7 | ||||||
Amount received at closing of transaction | $ 62,000 | ||||||
Amount held in escrow | 5,000 | ||||||
Total consideration amount | 102,000 | ||||||
Term of quarterly payments | 2 years | ||||||
Closing costs | $ 400 | ||||||
Costs incurred with restructuring and elimination of certain positions | $ 1,300 | ||||||
Deferred proceeds received from divestiture | $ 11,100 | $ 8,700 | |||||
Percentage of forecasted requirements required to purchase after satisfaction of earnout | 90% | ||||||
Distribution agreement, term, after completion of Earnout Period | 5 years | ||||||
Distribution agreement, automatic renewal term | 12 months | ||||||
Recognized gain on subsequent sale of related warehouses | $ 2,300 | ||||||
Subsequent final inventory adjustment | $ 300 | ||||||
Remaining Consideration [Member] | American Tire Distributors [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||||
Acquisitions And Divestitures [Line Items] | |||||||
Total consideration amount | $ 40,000 | $ 20,200 | |||||
Retail Tire and Automotive Repair Stores [Member] | |||||||
Acquisitions And Divestitures [Line Items] | |||||||
Number of stores acquired | store | 6 |
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 | 9 Months Ended | ||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | |
Numerator for earnings per common share calculation: | ||||
Net income | $ 12,170 | $ 13,034 | $ 33,871 | $ 38,639 |
Less: Preferred stock dividends | (337) | (129) | (804) | (386) |
Income available to common shareholders | $ 11,833 | $ 12,905 | $ 33,067 | $ 38,253 |
Denominator for earnings per common share calculation: | ||||
Weighted average common shares - basic | 30,934 | 31,470 | 31,263 | 32,386 |
Effect of dilutive securities: | ||||
Preferred stock | 1,205 | 460 | 815 | 460 |
Restricted stock | 49 | 55 | 64 | 44 |
Weighted average common shares - diluted | 32,188 | 31,985 | 32,142 | 32,890 |
Basic earnings per common share | $ 0.38 | $ 0.41 | $ 1.06 | $ 1.18 |
Diluted earnings per common share | $ 0.38 | $ 0.41 | $ 1.05 | $ 1.17 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 25.80% | 27.60% | 26.70% | 31.70% |
Discrete tax impacts from the divestiture of assets | 4.70% | |||
Discrete tax impact related to share-based payments, Percent | 0.30% | 0.90% | 0.80% | 0.70% |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Dec. 23, 2023 | Mar. 25, 2023 |
Fair Value [Abstract] | ||
Carrying amount of long-term debt ( including current portion) | $ 94 | $ 105 |
Cash Dividend (Narrative) (Deta
Cash Dividend (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 23, 2023 | Dec. 24, 2022 | |
Cash Dividend [Abstract] | ||
Dividends to shareholders | $ 26,796 | $ 27,482 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 23, 2023 | Mar. 25, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Payment term | 30 days | |
Deferred revenue | $ 22,112 | $ 22,354 |
Deferred revenue, current | 15,427 | 15,422 |
Deferred revenue, noncurrent | $ 6,700 | $ 7,000 |
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 | Dec. 23, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-24 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | $ 5.1 |
Deferred revenue, timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | $ 12.4 |
Deferred revenue, timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, performance obligation | $ 4.6 |
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 | 9 Months Ended | |||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 317,653 | $ 335,193 | $ 966,712 | $ 1,014,546 | |
Tires [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 161,116 | 176,532 | 467,069 | 507,501 |
Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 84,179 | 86,217 | 267,325 | 267,131 | |
Brakes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 39,824 | 41,396 | 133,663 | 137,613 | |
Steering [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 24,490 | 25,379 | 78,851 | 82,973 | |
Exhaust [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 5,031 | 5,006 | 15,386 | 17,202 | |
Franchise Royalties [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 3,013 | $ 663 | $ 4,418 | $ 2,126 | |
[1] Includes the sale of tire road hazard warranty agreements and tire delivery commissions. |
Revenues (Schedule of Changes i
Revenues (Schedule of Changes in Deferred Revenue) (Details) $ in Thousands | 9 Months Ended |
Dec. 23, 2023 USD ($) | |
Revenues [Abstract] | |
Balance beginning | $ 22,354 |
Deferral of revenue | 16,480 |
Recognition of revenue | (16,722) |
Balance end | $ 22,112 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 9 Months Ended |
Dec. 23, 2023 USD ($) entity | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility term | 5 years |
Revolving credit facility agreement | $ 600,000,000 |
Credit facility, Potential increased availability | 250,000,000 |
Net availability under the credit facility | 475,900,000 |
Amount outstanding under credit facility | $ 94,000,000 |
Interest coverage ratio | 1.55 |
Ratio of adjusted debt to EBITDAR | 4.75 |
Initial Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Number of banks involved in credit facility | entity | 8 |
Third Amendment To Credit Facility Member | |
Debt Instrument [Line Items] | |
Number of banks involved in credit facility | entity | 9 |
Number of additional banks added to the bank syndicate | entity | 1 |
Third Amendment To Credit Facility Member | SOFR [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 0.10% |
Standby Letters of Credit [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility agreement | $ 80,000,000 |
Letters of credit outstanding | $ 30,100,000 |
Minimum [Member] | Standby Letters of Credit [Member] | |
Debt Instrument [Line Items] | |
Percentage of fees on amount available | 0.875% |
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 (Schedule of Payments Due by Period) (Details) $ in Thousands | 9 Months Ended | |
Dec. 23, 2023 USD ($) | ||
Commitments and Contingencies [Abstract] | ||
Principal payments on long-term debt, Total | $ 94,000 | |
Principal payments on long-term debt, 4 to 5 years | 94,000 | |
Finance lease commitments/financing obligations, Total | 365,192 | [1] |
Finance lease commitments/financing obligations, Within 1 Year | 51,045 | [1] |
Finance lease commitments/financing obligations, 2 to 3 Years | 94,171 | [1] |
Finance lease commitments/financing obligations, 4 to 5 Years | 79,883 | [1] |
Finance lease commitments/financing obligations, After 5 Years | 140,093 | [1] |
Operating lease commitments, Total | 259,079 | [1] |
Operating lease commitments, Within 1 year | 46,356 | [1] |
Operating lease commitments, 2 to 3 years | 82,249 | [1] |
Operating lease commitments, 4 to 5 years | 59,096 | [1] |
Operating lease commitments, After 5 years | 71,378 | [1] |
Contractual commitments, Total | 718,271 | |
Contractual commitments, Within 1 year | 97,401 | |
Contractual commitments, 2 to 3 years | 176,420 | |
Contractual commitments, 4 to 5 years | 232,979 | |
Contractual commitments, After 5 years | 211,471 | |
Finance lease payments, related to options to extend, reasonable certain of being exercised | 78,600 | |
Operating lease payments, related to options to extend, reasonably certain of being exercised | $ 51,400 | |
[1] Finance and operating lease commitments represent future undiscounted lease payments and include $ 78.6 million and $ 51.4 million, respectively, related to options to extend lease terms that are reasonably certain of being exercised. |
Supplier Finance Program (Narra
Supplier Finance Program (Narrative) (Details) - USD ($) $ in Millions | Dec. 23, 2023 | Mar. 25, 2023 | Dec. 24, 2022 |
Supplier Finance Program [Abstract] | |||
Payment terms, period | 360 days | ||
Outstanding supplier obligations | $ 168.4 | $ 167.3 | $ 133.9 |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 23, 2023 | Dec. 24, 2022 | Dec. 23, 2023 | Dec. 24, 2022 | |||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of stock, excise tax | $ 400 | $ 400 | ||||
Total repurchased | $ 44,467 | [1] | $ 25,704 | $ 44,467 | [1] | $ 96,919 |
Common Class A [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of shares purchased | 1,543,600 | 583,800 | 1,543,600 | 2,201,300 | ||
Average price paid per share | $ 28.50 | $ 44 | $ 28.50 | $ 44 | ||
Total repurchased | $ 43,997 | $ 25,687 | $ 43,997 | $ 96,853 | ||
[1] Inclusive of excise tax of $ 0.4 million for the three months and nine months ended December 23, 2023. The excise tax is assessed at one percent of the fair value of net stock repurchases after December 31, 2022. |
Equity Capital Structure Recl_2
Equity Capital Structure Reclassification (Narrative) (Details) | 3 Months Ended | |||
Aug. 15, 2023 $ / shares | May 12, 2023 item | Dec. 23, 2023 shares | Mar. 25, 2023 | |
Equity Capital Structure Reclassification [Abstract] | ||||
Percentage of interest ownership the holders will cease to beneficially own | 50% | |||
Class C convertible preferred stock, conversion ratio | 61.275 | 23.389 | ||
Number of members that can be appointed to the Board of Directors | item | 1 | |||
Per share liquidation preference | $ / shares | $ 1.50 | |||
Class C convertible preferred stock, converted to common stock, shares | shares | 0 | |||
Directors election term in years | 1 year |