EXHIBIT 99.1
CONTACT: Robert Gross
President and Chief Executive Officer
(585) 647-6400
Catherine D'Amico
Executive Vice President - Finance
Chief Financial Officer
(585) 647-6400
Investor Relations:
Cara O'Brien/Melissa Myron
Media Contact:
Stephanie Sampiere
Financial Dynamics
(212) 850-5600
FOR IMMEDIATE RELEASE
MONRO MUFFLER BRAKE, INC. PROVIDES BUSINESS UPDATE
~ ANTICIPATES 2004 EPS OF $1.17 - $1.19 ~
~ FORECASTS RECORD 2005 EPS OF $1.40 - $1.50 ~
ROCHESTER, N.Y. - APRIL 20, 2004 - MONRO MUFFLER BRAKE, INC. (NASDAQ:
MNRO) today provided a business update for fiscal 2004, which ended on March 27,
2004, and its financial outlook for fiscal 2005.
FISCAL 2004
The Company currently anticipates fourth quarter diluted earnings per
share to be between $0.15 and $0.16, which is within the Company's previously
announced range of $0.14 to $0.17. Full year diluted earnings per share are
expected to be $1.17 to $1.19, which represents an increase of over 20% versus
last year's diluted earnings per share of $0.97 (as adjusted for the October
2003 three-for-two stock split). The Company also currently expects comparable
store sales for the quarter to increase approximately 2% versus 7.3% in the
fourth quarter last year, and annual comparable stores sales to increase
approximately 4.7% compared to 2.9% in fiscal 2003.
- more -
Robert G. Gross, President and Chief Executive Officer of Monro,
commented, "Throughout fiscal 2004, we continued to increase same store traffic
and improve comparable store sales, which helped us to achieve the financial
goals we set at the beginning of the year. As previously announced, we closed
our Mr. Tire acquisition a month earlier than anticipated on March 1, 2004, and
are excited that we will benefit fully from Mr. Tire during its seasonally
strong period. Overall, we are pleased with our performance and confident in our
superior business model, dedicated employees, and industry-leading customer
service that has earned us the loyalty and trust of our customers."
FISCAL 2005 OUTLOOK
Given positive industry conditions and strong sales trends month-to-date,
the Company's comparable stores sales for April are expected to increase between
3% and 4%. The Company expects fiscal 2005 annual sales of $345 million to $355
million, with comparable store sales growth of 3% to 5%. This translates into
record earnings per diluted share in the range of $1.40 to $1.50, based upon
weighted average shares outstanding of approximately 14.8 million, reflecting a
strong 20% to 30% increase over the Company's estimated results for fiscal 2004.
For the first quarter, the Company anticipates earnings per diluted share to be
between $0.48 and $0.52. Finally, the Company plans to open 25 new stores in
fiscal 2005, of which 20 are projected to be BJ's Wholesale Club locations.
Mr. Gross concluded, "Our tire, commercial and miscellaneous service
businesses continue to provide opportunities to increase sales and we are
working to grow consumer awareness of our competitively priced, high quality
automotive repair products and services. In addition, while acquisitions are not
reflected in our earnings projections for fiscal 2005, we continue to evaluate
appropriate strategic opportunities for the future growth and expansion of the
business."
The Company plans to release its full fourth quarter and fiscal 2004
results on May 20, 2004, upon completion of its annual audit.
The Company will host a conference call and webcast today at 11:00 a.m.,
Eastern Time to provide more details on the Company's Fiscal 2005 financial
projections. To access the call,
please visit the following web address: www.vcall.com. An archive of the webcast
will be available on this website through midnight Tuesday, April 27, 2004.
Monro Muffler Brake operates a chain of stores providing automotive
undercar repair and tire services in the United States, operating under the
brand names of Monro Muffler Brake and Service, Speedy Auto Service by Monro,
Kimmel Tires - Auto Service, Tread Quarters Discount Tires and Mr. Tire. The
Company currently operates 595 stores, 10 Kiosks and has 18 dealer locations in
New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia,
Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South
Carolina, Indiana, Rhode Island, Delaware, Michigan and Maine. Monro's stores
provide a full range of services for exhaust systems, brake systems, tires,
steering and suspension systems and many vehicle maintenance services.
The statements contained in this press release that are not historical
facts may contain statements of future expectations and other forward-looking
statements made pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are subject to risks,
uncertainties and other important factors that could cause actual results to
differ materially from those expressed. These factors include, but are not
necessarily limited to, product demand, dependence on and competition within the
primary markets in which the Company's stores are located, the need for and
costs associated with store renovations and other capital expenditures, the
effect of economic conditions, the impact of competitive services and pricing,
product development, parts supply restraints or difficulties, industry
regulation, risks relating to leverage and debt service (including sensitivity
to fluctuations in interest rates), continued availability of capital resources
and financing, risks relating to integration of acquired businesses and other
factors set forth elsewhere herein and in the Company's Securities and Exchange
Commission filings, including the report on Form 10-K for the fiscal year ended
March 29, 2003.
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