Monro Muffler Brake, Inc. Announces Fourth Quarter and Fiscal 2013 Financial Results

Monro Muffler Brake, Inc. Announces Fourth Quarter and Fiscal 2013 Financial
Results

             ~ Fourth Quarter Sales Up 14.1% to $195.9 Million ~
 ~ Fourth Quarter Net Income of $8.1 Million; EPS of $0.25 at the High End of
                                  Guidance ~
          ~ Fiscal 2013 Net Income of $42.6 Million; EPS of $1.32 ~
            ~ Fiscal 2014 Estimated EPS Range of $1.65 to $1.80 ~
   ~ Increasing Quarterly Cash Dividend 10.0% from $.10 to $.11 per Share ~

ROCHESTER, N.Y., May 21, 2013 (GLOBE NEWSWIRE) -- Monro Muffler Brake, Inc.
(Nasdaq:MNRO), a leading provider of automotive undercar repair and tire
services, today announced financial results for its fourth quarter and fiscal
year ended March 30, 2013.

Fourth Quarter Results

Sales for the fourth quarter of fiscal 2013 increased 14.1% to $195.9 million
as compared to $171.7 million for the fourth quarter of fiscal 2012, which
included an extra week of sales. The total sales increase for the fourth
quarter of $24.2 million was due to an increase in sales from new stores,
including recently acquired stores, of $43.5 million. Adjusted for days,
comparable store sales decreased 5.6%, slightly better than the Company's
previously estimated range of -9% to -6% and compared to a comparable store
sales increase of .7% for the same period last year. On a reported basis,
comparable store sales decreased 11.4%.Comparable store sales, adjusted for
days, were flat for maintenance services, and decreased approximately 6% for
tires, alignments and exhaust, 7% for front end/shocks and 11% for brakes.

Gross margin decreased to 36.0% in the fourth quarter from 38.7% in the prior
year quarter due to a sales mix shift to the lower margin tire category,
related primarily to acquired stores and a loss of leverage due to weaker
year-over-year comparable store sales, including one less week in the fourth
quarter of fiscal 2013 as compared to the same period of the prior year.These
declines were offset, in part, by lower labor costs as a percentage of
sales.Total operating expenses were $55.1 million, or 28.1% of sales, as
compared with $49.0 million, or 28.6% of sales, for the same period of the
prior year.The decrease in operating expenses as a percent of sales is due to
leverage from higher acquisition sales and focused cost control.

Operating income for the quarter decreased 11.4% to $15.5 million from $17.5
million in the fourth quarter of fiscal 2012.Interest expense was $3.1
million as compared to $1.6 million in the fourth quarter of fiscal 2012.

Net income for the fourth quarter decreased 22.6% to $8.1 million from $10.5
million in the prior year period.Diluted earnings per share for the quarter
decreased 24.2% to $.25, and were at the high end of the Company's estimated
range of $.20 to $.25.This compares to diluted earnings per share of $.33 in
the fourth quarter of fiscal 2012, or $.26 excluding a $.07 benefit from the
53^rd week in fiscal 2012.Net income for the fourth quarter reflects an
effective tax rate of 34.8% as compared with 34.9% for the prior year period.

The Company added 23 locations and closed four locations during the quarter,
ending fiscal 2013 with 937 stores.

John Van Heel, President and Chief Executive Officer stated, "Our fourth
quarter performance reflects the continued impact of the challenging economic
environment that has been weighing on our customers.Given the environment,
our customers continued to defer purchases and trade down from higher cost
automotive maintenance and repair purchases.Additionally weather conditions
remained less than ideal for our business, which impacted our comparable store
sales results, particularly in January.Notably, however, with the return to
more normalized weather after January, we saw an improvement in comparable
store sales trends, and trends to-date in the first quarter of 2014 have shown
further improvement into positive territory.Our ability to leverage our
strong business model, regardless of the economic or operating environment and
to take advantage of increased acquisition opportunities, is demonstrated by
the record of eight acquisitions for 139 stores that we completed in fiscal
2013.These acquisitions enabled us to deliver healthy growth in overall sales
for the fourth quarter despite the decline in comparable store sales, while
helping us increase our market share and achieve greater economies of scale."


Fiscal Year Results

Net sales for fiscal 2013 increased 6.6% to $732.0 million from $686.6 million
for fiscal 2012.The total sales increase for the fiscal year of $45.4 million
was due to an increase in sales from new stores, including recently acquired
stores, of $99.6 million.Adjusted for days, comparable store sales decreased
5.5% for the year.On a reported basis, comparable store sales decreased
7.3%.

Gross margin was 38.0% for fiscal 2013 as compared to 40.3% in the prior
year.The decrease in gross margin as a percentage of sales largely reflects a
sales mix shift to the lower margin tire category related primarily to
acquired stores, and a loss of leverage due to weaker year-over-year
comparable store sales, including one less week in fiscal 2013 as compared to
fiscal 2012.

Total operating expenses were $204.4 million, or 27.9% of sales, for fiscal
2013, compared with $185.0 million, or 26.9% of sales, for the prior fiscal
year. Operating income for the year decreased 19.4% to $73.7 million from
$91.4 million in fiscal 2012.Interest expense was $7.2 million in fiscal 2013
as compared to $5.2 million in fiscal 2012.

Net income for fiscal 2013 decreased 22.1% to $42.6 million, or $1.32 per
diluted share.This compares to net income of $54.6 million, or $1.69 per
diluted share, for fiscal 2012, or $1.62 excluding an estimated $.07 benefit
from the 53^rd week in fiscal 2012.

Increase in Quarterly Cash Dividend

Additionally, the Company today announced that its Board of Directors has
approved a $.01 increase in the Company's cash dividend for the first quarter
of fiscal year 2014 to $.11 per share, representing an increase of 10.0% from
the quarterly dividends paid in fiscal 2013.The cash dividend is payable to
shareholders of record on the Company's outstanding shares of common stock
including the shares of common stock to which the holders of the Company's
Class C Convertible Preferred Stock are entitled.The increased dividend will
be payable on June 11, 2013 to shareholders of record as of May 31, 2013.

Company Outlook

Based on current visibility, business and economic trends, and the recent
acquisitions, the Company anticipates fiscal 2014 sales to be between $840 and
$865 million.Comparable store sales increases are expected to be in the range
of 2.5% to 4.5%.Fiscal 2014 diluted earnings per share are expected to be in
the range of $1.65 to $1.80, which compares to $1.32 diluted earnings per
share in fiscal 2013. The estimate is based on 32.4 million weighted average
shares outstanding.

For the first quarter of fiscal 2014, the Company anticipates comparable store
sales increases to be in the range of 3% to 4%.The Company expects diluted
earnings per share for the first quarter to be between $.42 and $.46, as
compared to $.36 for the first quarter of fiscal 2013.

Mr. Van Heel concluded, "As we look to fiscal 2014, we continue to have a
positive long-term outlook for our industry and company and are more
optimistic about the near-term based on the recent trends we have seen in our
business.To-date in the first quarter of fiscal 2014, comparable store sales
are up 3% with higher traffic and a rebound in key sales categories,
particularly tires.Based on these positive trends in April and May, we are
optimistic about our ability to deliver increases in comparable store sales
for the first quarter and full year fiscal 2014 as customers turn to us for
purchases that have been deferred.At the same time, we believe our
significant acquisition growth in fiscal 2013 positions the Company to deliver
strong earnings growth over the next several years and we continue to see
attractive acquisition opportunities in the marketplace.We will continue to
pursue these opportunities in a disciplined manner as we leverage our strong
balance sheet and business model to drive top-line growth and operating
leverage.The increase in our quarterly cash dividend announced today, which
is the eighth increase in the last eight years, reflects the Board's continued
confidence in Monro's long-term strategic plan and commitment to increasing
shareholder returns." 

Earnings Conference Call and Webcast

The Company will host a conference call and audio webcast on Tuesday, May 21,
2013 at 11:00 a.m. Eastern Time.The conference call may be accessed by
dialing 1-888-599-4875 and using the required pass code 8393697.A replay will
be available approximately one hour after the recording through Tuesday, June
4, 2013 and can be accessed by dialing 1-877-870-5176.The live conference
call and replay can also be accessed via audio webcast at the Investor Info
section of the Company's website, located at www.monro.com. An archive will be
available at this website through June 4, 2013.

About Monro Muffler Brake

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, Mr. Tire, Tread Quarters Discount Tires,
Autotire, Tire Warehouse, Tire Barn and Towery's Tire and Auto Care. The
Company currently operates 936 stores in New York, Pennsylvania, Ohio,
Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New
Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island,
Delaware, Maine, Illinois, Missouri, Tennessee, Kentucky and Wisconsin.
Monro's stores provide a full range of services for brake systems, steering
and suspension systems, tires, exhaust systems and many vehicle maintenance
services.

Important Information Regarding Forward-Looking Statements

This press release contains forward-looking statements with the meaning of the
Private Securities Litigation Reform Act of 1995 (the "PSLRA") and such
statements are made pursuant to the Safe Harbor provisions of the PSLRA. When
used in this press release, the words "anticipates", "expects", "believes",
"contemplates", "see", "could", "estimate", "intend", "plan" and variations
thereof are intended to identify forward-looking statements.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, parts supply restraints or
difficulties, industry regulation, litigation, 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 or the impairment of goodwill, 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 31, 2012.


MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)
                                                                   
                                          Quarter Ended Fiscal March 
                                          2013          2012         % Change
                                                                   
Sales                                      $ 195,910     $ 171,745    14.1%
                                                                   
Cost of sales, including distribution and  125,336       105,252      19.1
occupancy costs
                                                                   
Gross profit                               70,574        66,493       6.1
                                                                   
Operating, selling, general and            55,111        49,043       12.4
administrative expenses
                                                                   
Operating income                           15,463        17,450       (11.4)
                                                                   
Interest expense, net                      3,071         1,557        97.3
                                                                   
Other income, net                          (81)          (234)        (65.0)
                                                                   
Income before provision for income taxes   12,473        16,127       (22.7)
                                                                   
Provision for income taxes                 4,346         5,626        (22.7)
                                                                   
Net income                                $ 8,127       $ 10,501     (22.6)
                                                                   
Diluted earnings per share                $ .25         $ .33        (24.2)%
                                                                   
Weighted average number ofdiluted shares  32,297        32,196       
outstanding
                                                                   
Number of stores open (at end of quarter) 937           803          



MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)
                                                                   
                                            Year Ended Fiscal March 
                                            2013         2012        % Change
                                                                   
Sales                                        $731,997   $686,552  6.6%
                                                                   
Cost of sales, including distribution and    453,850      410,155     10.7
occupancy costs
                                                                   
Gross profit                                 278,147      276,397     0.6
                                                                   
Operating, selling, general and              204,442      184,981     10.5
administrative expenses
                                                                   
Operating income                             73,705       91,416      (19.4)
                                                                   
Interest expense, net                        7,213        5,220       38.2
                                                                   
Other income, net                            (332)        (490)       (32.3)
                                                                   
Income before provision for income taxes     66,824       86,686      (22.9)
                                                                   
Provision for income taxes                   24,257       32,074      (24.4)
                                                                   
Net income                                   $42,567    $54,612   (22.1)
                                                                   
Diluted earnings per common share            $1.32      $1.69     (21.9)%
                                                                   
Weighted average number ofdiluted shares    32,308       32,237      
outstanding



MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
                                                     
                                          March 30, March 31,
                                          2013        2012
                                                     
Current assets                                        
                                                     
Cash                                       $1,463    $3,257
                                                     
Inventories                                118,210     97,356
                                                     
Other current assets                       46,737      33,687
                                                     
Total current assets                       166,410     134,300
                                                     
Property, plant and equipment, net         270,858     212,994
                                                     
Other noncurrent assets                    274,264     162,798
                                                     
Total assets                               $711,532  $510,092
                                                     
                                                     
Liabilities and Shareholders' Equity                  
                                                     
Current liabilities                        $136,399  $109,794
                                                     
Long-term debt                             186,746     51,164
                                                     
Other long term liabilities                23,345      21,635
                                                     
Total liabilities                          346,490     182,593
                                                     
Total shareholders' equity                 365,042     327,499
                                                     
Total liabilities and shareholders' equity $711,532  $510,092

CONTACT: John Van Heel
         Chief Executive Officer
         (585) 647-6400
        
         Robert Gross
         Executive Chairman
         (585) 647-6400
        
         Catherine D'Amico
         Executive Vice President - Finance
         Chief Financial Officer
         (585) 647-6400
        
         Investors: Jennifer Milan
         Media: Kelly Whitten
         FTI Consulting
         (212) 850-5600
 
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