Slide 1: Fourth Quarter Fiscal 2024 Earnings Call
FOURTH QUARTER FISCAL 2024 EARNINGS CALL MAY 23, 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: Fundamentals of Industry Remain Strong
Fundamentals of Industry Remain Strong Favorable Industry Backdrop for Automotive Services U.S. Annual Light Vehicle Sales U.S. Light Vehicles in Operation (VIO) 290,000 20 18 280,000 16 270,000 14 12 260,000 10 250,000 8 6 240,000 4 230,000 2 0 220,000 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2
Slide 4: Fundamentals of Industry Remain Strong
Fundamentals of Industry Remain Strong Monro Operates in the $311 Billion Do-It-For-Me* Segment of $389 Billion U.S. Automotive Aftermarket Industry Automotive Aftermarket DIFM vs. DIY Sales % % 2014 2022 CAGR (outlets) (outlets) 450,000 Motor Vehicle Dealers 16,396 12.6% 16,773 12.3% 0.3% 400,000 3
Slide 5: Current Tire Dynamics & Monro Actions
Current Tire Dynamics & Monro Actions Tires Are Providing a Temporary but Meaningful Negative Impact Given Monro’s ~50% Tire Mix Current Tire Dynamics: Average Supply Consumer ▪ Strained low-to-middle income consumers are Tire Tier deferring tire purchases in higher-margin tiers and Selling Price Dy
Slide 6: Initiatives to Offset Tire Market Weakness
Initiatives to Offset Tire Market Weakness Courtesy Inspections: Service Coupon: ▪ Investment made in stores to convert 32-point courtesy inspection from paper-based process to digital, tablet-based system that presents other needed services to customers via industry data and pictures ▪ Gives store
Slide 7: Foundational Progress to Benefit when Tire Volumes Recover
Foundational Progress made that will Enable Monro to Reap Benefits when Tire Volumes Recover Gross Margin Expansion through: Remain Relentlessly Focused on: ▪ Tire mix optimization ▪ Improving our ~300 small or underperforming stores ▪ Labor optimization through actions to reduce non-productive labo
Slide 8: Fourth Quarter Fiscal 2024 Results
Fourth Quarter Fiscal 2024 Results Laser Focused on Maximizing Profitability through Variable Margin Expansion and Prudent Cost Control Q4FY24 Q4FY23 Δ Sales (millions) $310.1 $310.8 (0.2%) Same Store Sales1 (7.2%) 4.5% (1,170) bps Gross Margin 35.5% 33.4% 210 bps Operating Margin 3.3% 2.0% 130 bps
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 Fiscal 2024 ▪ Received ~$21M of divestiture proceeds ▪ Generated operating cash flow of ~$125M during fiscal 2024 ▪ Capex of ~$25
Slide 10: Fiscal Q1 Expectations & Fiscal 2025 Assumptions
Fiscal Q1 Expectations & Fiscal 2025 Assumptions Fiscal Q1 Expectations Fiscal 2025 Assumptions ▪ Preliminary comp store sales down approximately 12% ▪ Fiscal 2025 is a 52-week year while fiscal 2024 was a 53- quarter-to-date week year that benefitted from an extra week of sales ▪ Expects to deliver
Slide 11: Appendix
Appendix 11
Slide 12: Fourth Quarter Fiscal 2024 Highlights
Fourth Quarter Fiscal 2024 Highlights Comparable Store Sales Decline Driven by Industry-Wide Consumer Tire Deferral and Trade-Down Cycle Quarterly Comparable Store Sales Trends Monthly Comparable Store Sales Trends 10% 10% 7.9% FY23 5.0% 4.5% 5% FY24 5% 2.4% 0.8% 0.7% FY25 0.5% 0% 0% -5% -2.3% -4.9%
Slide 13: Reconciliation of Adjusted Diluted EPS (Unaudited)
Reconciliation of Adjusted Diluted EPS (Unaudited) Quarter Ended Fiscal March 2024 2023 Diluted EPS $.12 $.01 Store impairment charges .04 .02 Net loss (gain) on sale of wholesale tire and distribution assets(a) - (.04) Store closing costs .01 .01 Monro.Forward initiative costs - - Acquisition due d