Monro Muffler Brake reported an increase of net income and sales for its 2014 fiscal year, which ended March 29. The company’s net sales increased 13.6% to $831.4 million and its total net income increased 27.9% to $54.5 million.
Monro accounts its sales increase to newly acquired stores, which offset a .5% decrease in comparable store sales, the company said.
“We are very pleased with our team’s ability to deliver earnings results ahead of expectations for the fourth quarter due to 1% higher comparable store tire units, improved margins, our ongoing focus on cost control and continued out performance of our recent acquisitions,” said John Van Heel, president and CEO.
Despite weather related disruptions of business and customers delayed purchased, the company finished strong, he said.
“Customer acceptance of our expanded tire offerings, and our execution on our recent acquisitions, were better than planned and drove our significant increase in operating margin for the quarter and the year,” he noted.
For the first quarter of fiscal 2015, Monro anticipates comparable store sales to increase in the range of 2-3%, it said.
Acquisitions
Monro also announced that it has signed agreements to purchase 21 stores. The acquisitions are expected to generate roughly $16 million in sales, the company said.
Nineteen of the purchases are in Michigan allowing the company to expand its geographic footprint to the state. Monro is purchasing Lentz USA and Kan Rock Tire & Auto Service and will convert those stores to its Monro Brake & Tire brand.
Two other stores will be acquired in New Hampshire and converted to the company’s Tire Warehouse brand.
The acquisitions will fill in an existing market, the company said.
Monro expects the acquisitions to add approximately 2% annualized sales. The transactions will close this quarter, according to the company.
“We look forward to the contributions from the acquisition of the 21 stores we announced today. In addition, we remain very encouraged by the opportunities we see to complete further acquisitions in the near future and expect this year to be strong for acquisition growth,” said Van Heel.
