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Contacts: Lawrence C. Day
President
Chief Executive Officer
(716) 647-6400
Catherine D'Amico
Senior V.P. - Finance
Chief Financial Officer
(716) 647-6400
FOR IMMEDIATE RELEASE
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MONRO MUFFLER BRAKE, INC. REPORTS RECORD SALES AND OPENS
A RECORD 43 STORES
- COMPANY DECLARES 5% STOCK DIVIDEND -
ROCHESTER, N.Y., May 22, 1996 -- Monro Muffler Brake, Inc. (NASDAQ: MNRO),
which operates 281 undercar auto repair stores, today announced a record 26.7%
increase in sales for its fourth quarter ended March 31, 1996 over the fourth
quarter of fiscal 1995.
For the three months ended March 31, 1996, sales were $28,752,000, a
$6,051,000 increase over fourth quarter sales last year. Comparable store sales
increased 11.6% and new stores added $3,651,000 in sales. Earnings per share
for the quarter rose to $.17 from $.14 last year, up 21.4%, after giving
retroactive effect to the 5% stock dividend paid August 7, 1995.
Net sales for the year ended March 31, 1996 were a record
$117,104,000, up 7.3% as compared with $109,098,000 for the previous fiscal
year. New stores opened after March 31, 1994 added $12,093,000, partially
offset by a comparable store sales decrease for the year of 3.9%.
Net income for the year was $7,614,000, or $.99 per share, compared to
$9,084,000, or $1.18 per share in the previous fiscal year. Earnings per share
give retroactive effect to the 5% stock dividend paid August 7, 1995.
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MONRO MUFFLER BRAKE, INC.
EARNINGS RELEASE
Larry Day, President and Chief Executive Officer commented: "We are
very pleased with our strong fourth quarter 1996 results, particularly the
significant improvement in comparable store sales over the first three quarters
of the fiscal year. More importantly, we continue to experience increases in
traffic and higher ticket averages. As a result, we are encouraged that the
industry slowdown which affected our performance earlier in the year has
reversed."
Mr. Day continued, "While fiscal 1996 was a challenging year in many
respects, we are proud of our many accomplishments which include opening a
record 43 stores, acquiring the seven store Muffler Xpress chain and achieving
a solidly profitable year, due in large part to the close management of the
business and our resources. Despite the industry slowdown, we continued to pay
constant attention to the factors which have made Monro a success: an
unwavering commitment to customer satisfaction, centralized control of our
stores, comprehensive and innovative training techniques, complete undercar
service and competitive pricing. These efforts have further enhanced Monro's
competitive edge and we are well-positioned to take advantage of the rebound in
consumer demand."
The Company plans to continue its expansion strategy by opening between
40 and 50 stores in fiscal 1997, seven of which are now open and seven more are
currently under construction.
Mr. Day concluded, "We are pleased to announce that just prior to year
end, we opened our first store in Indiana, and now operate stores in fourteen
states. We are also encouraged by the strong performance of our fiscal 1996 new
stores which, as a group, performed well in a difficult year for the industry."
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MONRO MUFFLER BRAKE, INC.
EARNINGS RELEASE
On a separate note, the Company said that its Board of Directors had
declared a 5% stock dividend, payable August 5, 1996, to holders of record as of
June 21, 1996.
Monro Muffler Brake operates a chain of stores providing automotive
undercar repair services in the United States. The Company currently operates
281 stores in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West
Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North
Carolina, South Carolina and Indiana. Monro's stores provide a full range of
services for exhaust systems, brake systems and steering and suspension
systems.
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MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended March 31,
----------------------
1996 1995 % Change
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Sales $28,752 $22,701 26.7%
Cost of sales, including
distribution and occupancy costs 16,372 12,936 26.6
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Gross profit 12,380 9,765 26.8
Operating, selling, general
and administrative expenses 9,199 7,547 21.9
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Operating income 3,181 2,218 43.4
Interest expense, net 854 484 76.4
Other expense, net 193 30
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Income before provision for
income taxes 2,134 1,704 25.2
Provision for income taxes 853 635 34.3
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Net income $ 1,281 $ 1,069 19.8%
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Earnings per share (a) $ .17 $ .14
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Weighted average number of
shares of common stock outstanding
(including common stock
equivalents) (000) (a) 7,688 7,709
Number of stores open
(at end of quarter) 274 232
<FN>
(a) All share data has been restated to reflect the 5% stock dividend paid to shareholders on August 7, 1995.
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MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands, except per share amounts)
Year Ended March 31,
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1996 1995 % Change
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Sales $117,104 $109,098 7.3%
Cost of sales, including
distribution and occupancy costs 66,236 59,725 10.9
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Gross profit 50,868 49,373 3.0
Operating, selling, general
and administrative expenses 35,299 32,304 9.3
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Operating income 15,569 17,069 (8.8)
Interest expense, net 2,637 1,939 36.0
Other expense, net 330 22
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Income before provision for
income taxes 12,602 15,108 (16.6)
Provision for income taxes 4,988 6,024 (17.2)
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Net income $ 7,614 $ 9,084 (16.2)%
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Earnings per share (a) $ .99 $ 1.18
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Weighted average number of
shares of common stock outstanding
(including common stock
equivalents) (000) (a) 7,693 7,699
<FN>
(a) All share data has been restated to reflect the 5% stock dividend paid to shareholders on August 7, 1995.
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