Slide 1: Third Quarter Fiscal 2023 Earnings Call
THIRD QUARTER FISCAL 2023 EARNINGS CALL JANUARY 25, 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: Third Quarter Fiscal 2023 Highlights
Third Quarter Fiscal 2023 Highlights ▪ Sales of $335.2M decreased 1.9%, due to the divestiture of Wholesale tire and distribution assets in first quarter fiscal 2023 ▪ Comp store sales increased 5.6%; comp store sales in ~300 small or underperforming stores increased Financial ~12%; comp store sales
Slide 4: Third Quarter Fiscal 2023 Highlights
Third Quarter Fiscal 2023 Highlights Delivered Mid-Single Digit Comp Store Sales Growth led by Strength in Tires & Acceleration from 300 Small or Underperforming Stores Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 20% 19.6% 20% 16.0% FY22 15.2% 15% FY23
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: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Executing Disciplined M&A Strategy to Capitalize on Significant Opportunities for Consolidation in the Aftermarket Acquisitions ▪ Announced definitive asset purchase agreement to acquire four stores in Iowa and one store in Illinois ▪ Further expands the Comp
Slide 8: Third Quarter Fiscal 2023 Results
Third Quarter Fiscal 2023 Results Well Positioned to Capture Market Share Gains and Drive Store Traffic Q3FY23 Q3FY221 Δ Sales (millions) $335.2 $341.8 (1.9%) Retail Same Store Sales2 5.6% 16.0% (1,040) bps Gross Margin 33.8% 35.3% (150) bps Operating Margin 7.1% 8.0% (90) bps Diluted EPS $.41 $.48
Slide 9: Solid Financial Position
Solid Financial Position Record Operating Cash Flow Supports Growth Strategy and Capital Return to Shareholders Disciplined Capital Allocation Strong Balance Sheet and Liquidity YTD Fiscal 2023 ▪ Received ~$66M of divestiture proceeds1 ▪ Generated record operating cash flow of ~$171M during YTD fisc
Slide 10: Fiscal 2023 Outlook – Financial Assumptions
Fiscal 2023 Outlook – Financial Assumptions Q4 & FY Outlook Considerations Financial Assumptions as of January 25, 2023 ▪ Continued sales momentum into fiscal January, with preliminary Continued pressure in fourth quarter comp store sales up of fiscal 2023 with mitigation approximately 8% through: ▪
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