Slide 1: Third Quarter Fiscal 2020 Earnings Call
Monro, Inc. Third Quarter Fiscal 2020 Earnings Call January 30, 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: Third Quarter Fiscal 2020 Highlights
Third Quarter Fiscal 2020 Highlights Achieved Record Sales of $329.3 Million, Up 6.2% Year-Over-Year Quarterly Comps Trends 2-Year Stacked Quarterly Comps Trends 3.5% 3.5% 3.0% 3.0% 2.5% 2.5% 2.0% 1.5% 2.0% 1.0% 1.5% 0.5% 1.0% 0.0% 1 1 -0.5% 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 0.5% -1.0% 0.0% 1 1 1 -
Slide 4: Store Rebrand & Reimage Initiative
Store Rebrand & Reimage Initiative Moving Forward with Store Rebrand & Reimage Rollout Across Base ❑ Completed 74 stores and substantially completed 42 recently acquired California locations during the quarter Improve Customer ❑ Sustained performance of locations post-transformation reinforces stren
Slide 5: Store Rebrand & Reimage Initiative
Store Rebrand & Reimage Initiative Making Strong Progress Through the Early Innings of a Strategic Transformation Monro Store Footprint Prior to Rebrand Migrating Portfolio to Tire-Oriented Brands Service Brand Stores (~$600K in annual revenue/store): 555 Service Tire – ~15% tires and ~85% service T
Slide 6: Monro.Forward Progress Update
Monro.Forward Progress Update Critical Investments In Technology On-Track to Support Broader Strategy ❑ Executing customer satisfaction and online reputation management program across Improve Customer Monro’s store base Experience ❑ Focus on the in-store experience is having significant impact on Co
Slide 7: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Announced and Completed in Fiscal 2020 Represent $120M in Annualized Sales Completed Acquisitions ▪ Completed acquisitions of 18 stores, including 14 in Nevada and four in Idaho ▪ Represents two new states and further expands the Company’s geogra
Slide 8: Third Quarter Fiscal 2020 Results
Third Quarter Fiscal 2020 Results Achieved Record Sales of $329.3 Million, Up 6.2% Year-Over-Year 3QFY20 3QFY19 Δ FY20 YTD FY19 YTD Δ Sales (millions) $329.3 $310.1 6.2% $970.5 $913.0 6.3% Same Store Sales1 -0.9% 3.3% (420 bps) -0.1% 2.8% (290 bps) Gross Margin 37.8% 38.0% (20 bps) 38.6% 38.9% (30 b
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ Capex of $42.2M in the first nine months of fiscal 2020 ▪ Continue to expect ~$75M of incremental Capex over 5 years to invest in store re-image and
Slide 10: Fiscal 2020 Outlook
Fiscal 2020 Outlook Updates Fiscal 2020 Comparable Store Sales and EPS Guidance Ranges Operating Margin FY20 FY19 Δ ▪ Assumes operating margin of ~10.2% at midpoint of FY20 sales guidance $1,275 to Sales (millions) $1,200 6.2% to 7.5% ▪ Expect relatively stable tire and oil costs year-over-year $1,2
Slide 11: Third Quarter Fiscal 2020 Key Takeaways
Third Quarter Fiscal 2020 Key Takeaways ▪ Continued progression of store rebrand and reimage initiative with 203 stores substantially completed through 3QFY20 ▪ Strong performance of transformed stores underscores strength of strategy ▪ Investing in technology to drive long-term margin expansion ▪ C
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: Store Rebrand & Reimage Initiative
Store Rebrand & Reimage Initiative Store Refresh Program On Track To Be Rolled Out Across Base Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Group 1 44 stores Group 2 43 stores Group 3 116 stores Group 4 ~80 stores Group 5 ~70 stores Group 6 ~70 stores 14
Slide 15: 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 16: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives Q4 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Pilot store refresh & Scale store refresh & operational operational excellence excellence Improve Customer Experience Technology based in-store experience Scheduled maintenance in-store selling