Slide 1: Third Quarter Fiscal 2024 Earnings Call
THIRD QUARTER FISCAL 2024 EARNINGS CALL JANUARY 24, 2024
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 2024 Highlights
Third Quarter Fiscal 2024 Highlights ▪ Sales of $317.7M decreased 5.2%, primarily due to lower tire unit sales ▪ Comp store sales decreased 6.1% Financial ▪ Gross margin increased 170 basis points compared to prior year, primarily resulting from lower material Performance costs as a percentage of sa
Slide 4: Third Quarter Fiscal 2024 Highlights: Comparable Store Sales
Third Quarter Fiscal 2024 Highlights Comparable Store Sales Decline Due to Customer Deferrals Causing Industry-Wide Slowdown in Tire Unit Sales Quarterly Comparable Store Sales Trends Monthly Comparable Store Sales Trends 10% 15% 5.6% 10.5% FY23 4.5% 10% 7.9% 5% FY24 0.5% 5% 3.7% 3.5% 0% 0% -2.3% -5
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 Acquisition Outlook ▪ Financial flexibility to continue to roll up attractive opportunities in a highly fragmented industry ▪ Significant growth prospects in
Slide 8: Third Quarter Fiscal 2024 Results
Third Quarter Fiscal 2024 Results Laser Focused on Maximizing Profitability through Prudent Cost Control Q3FY24 Q3FY23 Δ Sales (millions) $317.7 $335.2 (5.2%) Same Store Sales (6.1%) 5.6% (1,170) bps Gross Margin 35.5% 33.8% 170 bps Operating Margin 6.7% 7.1% (40) bps Diluted EPS $.38 $.41 (7.3%) Ex
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 YTD Fiscal 2024 ▪ Received ~$16M of divestiture proceeds ▪ Generated operating cash flow of ~$130M during YTD fiscal 2024 ▪ Capex
Slide 10: Fiscal 2024 Outlook – Financial Assumptions
Fiscal 2024 Outlook – Financial Assumptions Q4 & FY Outlook Considerations Financial Assumptions as of January 24, 2024 Lower y/y sales, inclusive of an extra week ▪ Preliminary fiscal January comp Total Company Sales store sales down approximately 6% of sales in the fiscal fourth quarter Drive y/y
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 1,296 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos