Slide 1: First Quarter Fiscal 2024 Earnings Call
FIRST QUARTER FISCAL 2024 EARNINGS CALL JULY 26, 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: First Quarter Fiscal 2024 Highlights
First Quarter Fiscal 2024 Highlights ▪ Sales of $327.0M decreased 6.5%, due to the divestiture of Wholesale tire and distribution assets in first quarter fiscal 2023 ▪ Comp store sales increased 0.5%; comp store sales in ~300 small or underperforming stores increased ~1% Financial ▪ Gross margin fla
Slide 4: First Quarter Fiscal 2024 Highlights: Comparable Store Sales
First Quarter Fiscal 2024 Highlights Lower-than-Expected Comparable Store Sales Due to Customer Deferrals in Some Higher Margin Service Categories Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 10% 10% FY23 5.6% FY24 5.6% 5% 4.5% 2.4% 2.2% 5% 0.7% 0.6% 2.
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: First Quarter Fiscal 2024 Results
First Quarter Fiscal 2024 Results Laser Focused on Maximizing Profitability through Prudent Cost Control Q1FY24 Q1FY231 Δ Sales (millions) $327.0 $349.5 (6.5%) Retail Same Store Sales 0.5% 2.8% (230) bps Gross Margin 35.0% 35.0% Flat Operating Margin 5.3% 7.5% (220) bps Diluted EPS $.28 $.37 (24.3%)
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 Quarter Fiscal 2024 ▪ Received ~$4M of divestiture proceeds ▪ Generated operating cash flow of ~$72M during Q1FY24 ▪ Capex
Slide 10: Fiscal 2024 Outlook – Financial Assumptions
Fiscal 2024 Outlook – Financial Assumptions FY Outlook Considerations Financial Assumptions as of July 26, 2023 ▪ Preliminary fiscal July comp store sales up approximately 1% Drive higher y/y sales through: ▪ Low to mid-single-digit comparable ▪ Extra week (53rd week) of sales Total Company Sales st
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 1,299 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos