Slide 1: Monro, Inc. First Quarter Fiscal 2021 Earnings Call
Monro, Inc. First Quarter Fiscal 2021 Earnings Call FIRST QUARTER FISCAL 2021 EARNINGS CALL JULY 29, 2020 July 29, 2020
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: COVID-19 Response
COVID-19 Response Executing on Elements Within Our Control to Support Our Business Operations Key Prioritizing health & Ensuring business Emerging stronger post safety in all aspects of continuity to serve our Priorities COVID-19 crisis our business customers Operations Update Financial Update ▪ Enh
Slide 4: First Quarter Fiscal 2021 Highlights
First Quarter Fiscal 2021 Highlights Navigating Uncertain Environment and Challenges Related to Ongoing COVID-19 Pandemic Quarterly Comps Trends Monthly Comparable Store Sales 5% 0% 0% 1 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Apr-20 May-20 Jun-20 Jul-20 -5% -10% -10% -20% -15% -30% -20% -25% -40% -30% -
Slide 5: Monro.Forward Progress Update
Monro.Forward Progress Update Progress on Monro.Forward Initiatives Positioning Us Well to Emerge Stronger Post-Crisis ❑ Completed pre-COVID plan to streamline real estate portfolio with closure of 42 Improve Customer underperforming stores, including six in Q4FY20 and 36 in Q1FY21 Experience ❑ Outp
Slide 6: First Quarter Fiscal 2021 Results
First Quarter Fiscal 2021 Results The COVID-19 Related Drop in Traffic Significantly Impacted Our First Quarter Performance Q1FY21 Q1FY20 Δ Sales (millions) $247.1 $317.1 (22.1%) Same Store Sales (25.8%) 0.8% (2,660 bps) Gross Margin 35.4% 40.4% (500 bps) Operating Margin 4.6% 11.5% (690 bps) Dilute
Slide 7: First Quarter Fiscal 2021 EPS Bridge
First Quarter Fiscal 2021 EPS Bridge $0.80 $0.67 ($0.77) $0.60 $0.40 $0.20 ($0.06) $0.45 $0.15 $0.09 $0.00 ($0.20) -$0.20 -$0.40 Q1FY20 Diluted Impact of -25.8% Impact of Gross Other 1 Q1FY21 Adjusted Planned Store Q1FY21 Diluted Earnings Per Share - Comp Sales Margin Decline Diluted Earnings Per Cl
Slide 8: Maximizing Financial Flexibility
Maximizing Financial Flexibility We Have Taken Proactive Measures to Operate on a Cash Flow Positive Basis During COVID-19 Pandemic Disciplined Capital Allocation First Quarter Fiscal 2021 Near-term Priorities ▪ Paid down $240.2M of bank debt ▪ Maintaining rigorous capital management ▪ Capex of $15.
Slide 9: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Healthy Balance Sheet and Ample Liquidity to Support Ongoing Business Operations ▪ Generated $73M of operating cash flow during Q1FY21 ▪ Net bank debt of $179M as of June 2020 ▪ Net debt-to-EBITDA ratio as of June 2020 of 3.86x ▪ Strong liquidity position of ~$400M
Slide 10: Fiscal 2021 Outlook – Financial Assumptions
Fiscal 2021 Outlook – Financial Assumptions Financial Assumptions as of July 29, 2020 Additional Assumptions Tire and Oil Costs Stable to slight decrease y/y ▪ Capex range accounts for rebrand of ~60 to ~120 stores as we resume this initiative Interest Expense ~$28M to ~$30M with a measured pace Dep
Slide 11: First Quarter Fiscal 2021 Key Takeaways
First Quarter Fiscal 2021 Key Takeaways Despite Ongoing Uncertainty, We Are Encouraged by the Improving Sales Environment and Well-Positioned to Deliver Long-term Value Once the COVID-19 Crisis Subsides ▪ Encouraged by gradual improvement in performance across all product and service categories thro
Slide 12: Appendix
Appendix 12
Slide 13: Store Refresh Transformation Timeline
Store Refresh Transformation Timeline 7 Stage Transformation Process from Beginning to End Takes ~17 Weeks BEFORE AFTER Store Team Trained Store Interior Remodel Store Exterior Painted Store Readiness Parts Inventory Store Inventory Storage Inventory Assortment on New Operating and Technology and Ne
Slide 14: Monro.Forward: Investments in Technology
Monro.Forward: Investments in Technology Significant Investments in Technology to Support Monro.Forward Strategy Area Strategic Rationale Timing • Launched in Q4 FY18 Business Intelligence • KPI dashboards for stores and management • Ongoing company-wide expansion • Ensures consistent onboarding and
Slide 15: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Q2FY21 Pilot store refresh & Scale store refresh & operational operational excellence excellence Improve Customer Experience Scheduled maintenance in-store selling Data-driven CRM Digital phone and cus