Slide 1: Second Quarter Fiscal 2020 Earnings Call
Monro, Inc. Second Quarter Fiscal 2020 Earnings Call October 24, 2019
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: Second Quarter Fiscal 2020 Highlights
Second Quarter Fiscal 2020 Highlights Achieved Record Sales of $324.1 Million, Up 5.5% Year-Over-Year Quarterly Comps Trends 2-Year Stacked Quarterly Comps Trends 3.5% 3.5% 3.0% 3.0% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 2QFY19 3QFY19 1 4QFY19 1 1QFY20 2QFY20 0.0% -0.5% 2QFY19 3QFY1
Slide 4: Store Refresh & Brand Consolidation Initiative
Store Refresh & Brand Consolidation Initiative Making Strong Progress as Store Refresh/Rebrand Program Is Rolled Out Across Base ❑ 159 stores in various stages of change during 2QFY20 ❑ Double-digit increase in same store sales at pilot locations reinforces strength of store refresh/rebrand strategy
Slide 5: Store Refresh Transformation Timeline
Store Refresh Transformation Timeline 7 Stage Transformation Process from Beginning to End Takes ~17 Weeks BEFORE AFTER Store Team Trained Store Interior Remodel Store Exterior Painted Store Readiness Parts Inventory Store Inventory Storage Inventory Assortment on New Operating and Technology and Ne
Slide 6: Performance Post-Store Refresh Program
Performance Post-Store Refresh Program Strong Performance of Refreshed Stores Driving Confidence In Strategy Comp Sales Comp Sales Stores Performance Performance Store Breakdown Prior to Refresh1 Post-Refresh Group 1 (Pilot) - 42 Comp Stores + LSD % ~ + 14%2 44 Stores - 2 Non Comp Stores Group 2 - 1
Slide 7: Store Refresh & Brand Consolidation Initiative
Store Refresh & Brand Consolidation Initiative Store Refresh Program On Track To Be Rolled Out Across Base Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Group 1 44 stores Group 2 43 stores Group 3 116 stores Group 4 ~80 stores Group 5 ~70 stores Group 6 ~70 stores 7
Slide 8: Monro.Forward: Investments in Technology
Monro.Forward: Investments in Technology Significant Investments in Technology to Support Monro.Forward Strategy Area Strategic Rationale Timing • Launched in Q4 FY18 Business Intelligence • KPI dashboards for stores and management • Ongoing company-wide expansion • Ensures consistent onboarding and
Slide 9: Monro.Forward Progress Update
Monro.Forward Progress Update Monro.Forward Initiatives Well Underway and Continuing to Advance ❑ Executing customer satisfaction and online reputation management program across Improve Customer Monro’s store base Experience ❑ Focus on the in-store experience is having significant impact on Company
Slide 10: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Announced and Completed in Fiscal 2020 Represent $120M in Annualized Sales Announced Acquisitions ▪ Announced definitive agreement to acquire 18 stores, including 14 in Nevada and four in Idaho ▪ Represents two new states and further expands the
Slide 11: Second Quarter Fiscal 2020 Results
Second Quarter Fiscal 2020 Results Achieved Record Sales of $324.1 Million, Up 5.5% Year-Over-Year 2QFY20 2QFY19 Δ 1HFY20 1HFY19 Δ Sales (millions) $324.1 $307.1 5.5% $641.2 $602.9 6.3% Same Store Sales 0.0% 3.2% (320 bps) 0.4% 2.5% (210 bps) Gross Margin 37.7% 39.1% (140 bps) 39.0% 39.3% (30 bps) O
Slide 12: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ 1HFY20 capex of $23.8M ▪ Continue to expect ~$75M of incremental Capex over 5 years to invest in store re-image and technology Executing on M&A Oppor
Slide 13: Fiscal 2020 Outlook
Fiscal 2020 Outlook Updates Fiscal 2020 Comparable Store Sales and EPS Guidance Ranges Operating Margin FY20 FY19 Δ ▪ Assumes operating margin of ~10.6% at midpoint of FY20 sales guidance Sales (millions) $1,295 to $1,315 $1,200 7.9% to 9.6% ▪ Expect relatively stable tire and oil costs year-over-ye
Slide 14: Second Quarter Fiscal 2020 Key Takeaways
Second Quarter Fiscal 2020 Key Takeaways ▪ Significant progression of store refresh with 159 stores in-flight during 2QFY20 ▪ Continued outperformance of pilot reimage stores underscores strength of strategy ▪ Rectified near-term margin pressures and implementing category management and store staffi
Slide 15: Appendix
Appendix 15
Slide 16: 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 Pilot store refresh & Scale store refresh & operational operational excellence excellence Improve Customer Experience Technology based in-store experience Scheduled maintenance in-store selling