Monro, Inc. · NASDAQ:MNRO
Monro — Investor Presentation (June 2011)
21 slides from Monro's investor presentation, June 2011
Slide 1: Nasdaq: MNRO Updated June 2011
Updated June 2011 Nasdaq: MNRO 1
Slide 2: Forward Looking Information
Forward Looking Information Statements contained in these materials regarding Monro’s expectations with respect to future operations and other information, which can be identified by the use of forward looking terminology, such as “may,” “will,” “expect,” “project,” “anticipate,” “estimate” or “cont
Slide 3: Who We Are
Who We Are (won) <j AUTOTIRE
Slide 4: Company Overview
Company Overview • Largest chain of Company-operated undercar care facilities in the United States • As of June 6, 2011, the Company operated 804 stores in 19 states 4
Slide 5: Service Mix
Service Mix Gross Margin % FY09 Brakes and Steering = +15 32% Maintenance and Exhaust = baseline company margin Tires = -15 FY10 29% 21% 31% FY11 28% 12% 6% 32% 20% 18% 38% 11% 6% 5% 11% Brakes Exhaust Steering Maintenance* Tires *Includes state inspections, lube, oil, filter, engine cooling service
Slide 6: Geographic Presence
Geographic Presence MAINTAINING DOMINANCE IN THE NORTHEASTERN U.S.
Slide 7: Competitive Advantages: Operating Model
Competitive Advantages Operating Model • Company-operated stores – Faster, Better, Cheaper – Centralized purchasing and distribution – Efficient marketing (database mailing and direct mail) – Superior customer service • Pricing power and fixed cost leverage – Low cost operator 7
Slide 8: Competitive Advantages: Customer Value Proposition
Competitive Advantages Customer Value Proposition • Monro establishes relationships with customers based on TRUST • Direct marketing to customers fosters repeat business and long-term relationships • Company-operated store model enhances customer experience through: – High standards of customer care
Slide 9: Industry Overview
Industry Overview Monro operates in $158 billion “Do-It-For-Me” segment of $202 billion U.S. automotive aftermarket industry U.S. Automotive Service Bay Population Aftermarket Industry Changes: 1999 – 2009 Total Bays / Mkt Share % Do-It-For-Me: (000’s) 1999 - 74.3% 2009 2008 -62 2009 - 78.0% 344/29.
Slide 10: Favorable Industry Trends
Favorable Industry Trends O Weak new car sales O Increasing number of vehicles on road O Increasing age of vehicles O Number of vehicles age 4 - 12 years old increasing O Significant average annual miles driven per vehicle O Decreasing number of service outlets and bays O Dealer consolidation and cl
Slide 11: Favorable Industry Trends
Favorable Industry Trends Cars and Light Trucks in Service Average Age of Car and Light Truck on the Road 250 12.5 249 249 235 245 238 11.5 12.0 Number of Vehicles (in Millions) 220 225 Age (in years) 205 215 10.5 201 204 190 10.1 9.5 9.9 9.6 9.6 9.7 175 9.4 9.4 9.2 8.5 160 145 7.5 1999 2000 2003 20
Slide 12: EPS Trends
EPS Trends $1.75 $1.50 Est. $1.61 - $1.75 $1.44 $1.25 $1.00 $1.07 $0.75 $0.80 $0.67 $0.67 $0.65 $0.50 $0.60 $0.51 $0.42 $0.36 $0.25 $0.31 $0.25 $0.00 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 % Change 192% 21% 17% 17% 22% 17% 12% (4)% 3% 20% 34% 35% 12%-22% •Adjusted for three-for-two stoc
Slide 13: Historical Financials
Historical Financials (Dollars in millions except per share data) 4th Quarter 4th Quarter Fiscal Year Fiscal Year Fiscal Year 2011 2010 2011 2010 2009 Sales $150.8 $147.2 $636.7 $ 564.6 $476.1 Sales Growth (vs. prior year) 2.4% 25.7% 12.8% 18.6% 8.4% EBITDA $20.0 $ 16.4 $101.4 $ 81.8 $ 64.6 EBITDA M
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights Fiscal Y/E Fiscal Y/E March 26, March 27, 2011 2010 Current assets $128,783 $ 124,092 Property, plant & equipment 200,596 202,746 Other 122,461 117,305 Total Assets $451,840 $ 444,143 Current liabilities $ 109,440 $ 99,377 Long-term debt 41,990 96,427 Other 20,161 15,669 Tot
Slide 15: Growth Strategy
Growth Strategy h Increase market share through same store sales growth h Expand product offerings h Acquire competitors cheaply h Continue new store openings in existing markets qApproximately six stores per year 15
Slide 16: Acquisitions and Opportunities
Acquisitions and Opportunities Building Tire Store Category h Combination of 15 acquisitions in the last ten years - 288 stores - $310 million revenue h Could have up to 1,200 tire stores and 1,200 service stores in our 19 states - Creates market dominance and pricing power - Diversifies risk - Expa
Slide 17: Acquisitions and Opportunities
Acquisitions and Opportunities Courthouse Tire (October 2010) Vespia Tire Centers (June 2011) h 3 stores in Fredericksburg, Virginia • 24 stores in New Jersey and Eastern Pennsylvania h 2009 sales $5 million • 2010 Sales $36 million h $3 million asset purchase • Slightly accretive in fiscal 2012 Imp
Slide 18: FY12 Earnings Assumptions
FY12 Earnings Assumptions • Earnings estimate for FY12: $1.61 - $1.75 vs $1.44 in FY11 – Q1 – FY12: $.44 - $.47 vs. $.42 in FY11 • Comparable Store Sales increase of 2.0% to 4.0% (4.0% to 6.0% includes 53rd week) for FY12; Q1 FY12: 1% - 3% • Gross Sales approximately $690 million - $705 million • Op
Slide 19: FY12 Other Assumptions
FY12 Other Assumptions • Interest Expense of $5.5 million • $31 million of Cap-ex – $19 million in maintenance cap-ex – $7 million for new stores – $5 million for headquarters expansion • $23 million depreciation and amortization • EBITDA $116 - $123 million 19
Slide 20: FY12 Cash Flow Priorities
FY12 Cash Flow Priorities hAcquisitions q Same or contiguous markets q Buy right q Accretive to earnings in a reasonable timeframe h Pay down debt 20
Slide 21: Investment Highlights
Investment Highlights h Largest chain of Company-operated undercar care facilities in the United States h Breadth of product and service offerings h Superior customer service h Favorable industry trends h Leading market position in northeast and mid-Atlantic with a presence in 19 states h Strong bal