Monro, Inc. · NASDAQ:MNRO
Monro — Q2 2024 Earnings Presentation
11 slides from Monro's earnings presentation, Oct 25, 2023
Slide 1: Second Quarter Fiscal 2024 Earnings Call
SECOND QUARTER FISCAL 2024 EARNINGS CALL OCTOBER 25, 2023
Slide 2: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement and Non-GAAP Measures Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities
Slide 3: Second Quarter Fiscal 2024 Highlights
Second Quarter Fiscal 2024 Highlights ▪ Sales of $322.1M decreased 2.3%, primarily due to lower tire unit sales ▪ Comp store sales decreased 2.3%; comp store sales in ~300 small or underperforming stores decreased ~1% Financial ▪ Gross margin increased 30 basis points compared to prior year, primari
Slide 4: Second Quarter Fiscal 2024 Highlights
Second Quarter Fiscal 2024 Highlights Comparable Store Sales Decline Due to Customer Deferrals Causing Industry-Wide Slowdown in Tire Unit Sales Quarterly Comparable Store Sales Trends Monthly Comparable Store Sales Trends 10% 10% FY23 5.6% 4.5% 5% 3.7% FY24 5% 1.9% 2.5% 0.5% 1.3% 0% 0.5% 0% -0.7% -
Slide 5: Strategic Priorities
Strategic Priorities Capitalize on Growing Retail Demand to Sustain Long Term Growth Driving productivity improvements and delivering sales growth in all Retail locations with a focus on ~300 of our small or underperforming stores Generate significant cash flow through improved profitability and wor
Slide 6: Focus on In-Store Execution
Focus on In-Store Execution Attachment Outside Purchase Staffing Scheduling Training Selling Management Sustainable Comp Sales Growth Gross Profit Operating Margin Improvement Expansion Opportunistic M&A Expected Additional Value Creation for Shareholders through: Enhanced Significant Higher Returns
Slide 7: A Scalable Platform for Acquisitions
A Scalable Platform for Acquisitions Disciplined M&A Strategy to Capitalize on Significant Opportunities for Consolidation in the Aftermarket Fiscal 2024 Acquisition Outlook ▪ Financial flexibility to continue to roll up attractive opportunities in a highly fragmented industry ▪ Significant growth p
Slide 8: Second Quarter Fiscal 2024 Results
Second Quarter Fiscal 2024 Results Laser Focused on Maximizing Profitability through Prudent Cost Control Q2FY24 Q2FY23 Δ Sales (millions) $322.1 $329.8 (2.3%) Same Store Sales (2.3%) 1.3% (360) bps Gross Margin 35.7% 35.4% 30 bps Operating Margin 6.9% 7.1% (20) bps Diluted EPS $.40 $.40 flat Exclud
Slide 9: Solid Financial Position
Solid Financial Position Operating Cash Flow Supports Growth Strategy and Capital Return to Shareholders Disciplined Capital Allocation Strong Balance Sheet and Liquidity First Half Fiscal 2024 ▪ Received ~$7M of divestiture proceeds ▪ Generated operating cash flow of ~$98M during first half of fisc
Slide 10: Fiscal 2024 Outlook – Financial Assumptions
Fiscal 2024 Outlook – Financial Assumptions FY Outlook Considerations Financial Assumptions as of October 25, 2023 Drive higher y/y sales through: ▪ Preliminary fiscal October comp ▪ Comparable store sales growth; and store sales down approximately 5% Total Company Sales ▪ Outsized performance in ~3
Slide 11: Investment Thesis
Investment Thesis Leading national Focus on operational Scalable platform with Commitment to driving automotive service and tire excellence to increase significant growth Monro.Forward provider with 1,298 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos