Slide 1: First Quarter Fiscal 2019 Earnings Call
Monro, Inc. First Quarter Fiscal 2019 Earnings Call July 26, 2018
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: First Quarter Fiscal 2019 Highlights
First Quarter Fiscal 2019 Highlights Continued Top-Line Momentum Driven by Strong Comparable Store Sales Y/Y Comps Trend Improvement 2-Year Stacked Comps Trend Improvement3 4.0% 3.0% 6.0% 4.0% 2.0% 2.0% 1.0% 0.0% 1 2 2 -2.0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 0.0% -4.0% (MTD) 1 2 2 Jan
Slide 4: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Completed and Announced to Date in Fiscal 2019 Represent $63M in Annualized Sales Completed Acquisitions ▪ Completed acquisition of eight retail locations from Sawyer Tire Company in 2QFY19 ▪ Fill in the existing market of Missouri ▪ $8M in annua
Slide 5: Omnichannel: Amazon.com Collaboration
Omnichannel: Amazon.com Collaboration Collaboration With Amazon.com Supports Monro’s Online Tire Retailers Installation Strategy Amazon.com Collaboration ▪ Monro’s tire installation services available to customers who purchase tires online from Amazon.com and select the Ship-to-Store option ▪ Initia
Slide 6: Monro.Forward Progress Update
Monro.Forward Progress Update Monro.Forward Initiatives Well Underway and Advancing as Planned Continuing to execute customer satisfaction and online reputation management Improve Customer program across Monro’s store base Experience Store re-image initiative pilot in Rochester, NY on track to b
Slide 7: Monro.Forward Progress Update (Cont.)
Monro.Forward Progress Update (Cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned Direct marketing through analytic-based CRM platform and modernized website on Enhance Customer- track for 2QFY19 launch Centric Engagement Collaboration with Amazon.com supports omnichannel st
Slide 8: Solid First Quarter Fiscal 2019 Results
Solid First Quarter Fiscal 2019 Results Robust Sales and Improving Traffic Trends Drove Solid Top-Line Performance 1QFY19 1QFY18 Δ Free Service Acquisition Impact Sales (millions) $295.8 $278.5 6.2% ▪ Wholesale locations acquired as part of the Free Service acquisition operate at a lower Same Store
Slide 9: First Quarter Fiscal 2019 EPS Bridge
First Quarter Fiscal 2019 EPS Bridge $0.65 $0.11 ($0.01) $0.60 $0.62 $0.04 ($0.01) ($0.01) $0.01 ($0.04) $0.55 $0.53 $0.50 $0.45 $0.40 Q1 FY18 EPS Comp Store Sales Comp Store Comp Store Tech FY18 and FY19 Monro.Forward FY19 Tax Reform Other Q1 FY19 EPS Price/Sales Labor Acquisitions Initiatives 1 Im
Slide 10: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ 1QFY19 capex of $11.4M ▪ Continue to expect ~$75M of incremental CapEx over the next 5 years to invest in store re-image and technology Executing on
Slide 11: Fiscal 2019 Outlook
Fiscal 2019 Outlook Increase Fiscal 2019 Sales Guidance and Reiterate EPS Guidance Operating Margin ▪ Assumes operating margin of 11.1% at midpoint of FY19 sales guidance FY19 FY18 Δ (11.4% excluding FY19 acquisitions announced and completed to date) ▪ Expect stable tire and oil costs year-over-year
Slide 12: First Quarter Fiscal 2019 Key Takeaways
First Quarter Fiscal 2019 Key Takeaways ▪ Continued top-line momentum supported by strong comparable store sales ▪ Majority of one-time Monro.Forward investments completed during 1QFY19 ▪ Implementation and execution of Monro.Forward initiatives on track and progressing well ▪ Amazon.com collaborati
Slide 13: Appendix
Appendix 13
Slide 14: 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 Foundational technology & tools Scale store refresh & operational Pilot store excellence Improve Customer refresh & operational Technology based in-store experience Experience excellence Schedu