Monro, Inc. · NASDAQ:MNRO
Monro — Q4 FY2021 Earnings Presentation
18 slides from Monro's earnings presentation, May 20, 2021
Slide 1: Monro, Inc. Fourth Quarter Fiscal 2021 Earnings Call
Monro, Inc. FOURTH QUARTER InvestorFISCAL Presentation 2021 EARNINGS June 2021 CALL MAY 20, 2021
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: Company Overview
Company Overview A Leading Chain of Independently Owned and Operated Tire and Auto Service Locations ▪ Dominant in the Northeastern U.S. and expanding in Southern and Western markets ▪ Fiscal 2021 sales of $1,125.7 million ▪ 1,292 company operated stores in 32 states and 91 franchised locations as o
Slide 4: A Unique Operating Model
A Unique Operating Model Monro Has a Diversified Supply Chain, Sourcing High Quality, Low-Cost Parts Direct and a Strong Portfolio of Tire Brands PARTS Monro sources these parts from leading Secondary parts distribution: aftermarket parts suppliers: ▪ Brake Rotors and Pads ▪ Filters ▪ Steering and S
Slide 5: A Favorable Industry Backdrop
A Favorable Industry Backdrop Favorable Industry Backdrop for Automotive Services Despite a Decrease in Miles Traveled in 2020 Resulting from the COVID-19 Pandemic U.S. Annual Light Vehicle Sales U.S. Light Vehicles in Operation (VIO) 20 290,000 18 280,000 16 14 270,000 12 260,000 10 8 250,000 6 240
Slide 6: A Favorable Industry Backdrop
A Favorable Industry Backdrop Monro is Well-Positioned to Capitalize on Positive Industry Trends, with Our Sweet Spot Experiencing the Fastest Growth in Vehicles in Operation Vehicles in Operation – 0 to 5 Years Vehicles in Operation – 6 to 12 Years 120 120 110 +6.56% CAGR -.03% CAGR 110 -3.97% CAGR
Slide 7: A Favorable Industry Backdrop
A Favorable Industry Backdrop Monro Operates in the $252 Billion Do-It-For-Me* Segment of $325 Billion U.S. Automotive Aftermarket Industry Automotive Aftermarket DIFM vs. DIY Sales % % 2010 2020 CAGR (outlets) (outlets) 350,000 Dealers 18,460 14.3% 16,623 12.5% (1.0%) 300,000 General Repair 250,000
Slide 8: Fourth Quarter Fiscal 2021 Sales Highlights
Fourth Quarter Fiscal 2021 Sales Highlights Well Positioned to Drive Higher Sales and Generate Strong Cash Flow Quarterly Comps Trends Monthly Comparable Store Sales 10% 100% 5% 80% 0% 60% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 -5% 40% -10% 20% -15% 0% -20% -20% -40% -25% -60% January February March Apr
Slide 9: Fourth Quarter Fiscal 2021 Results
Fourth Quarter Fiscal 2021 Results Solid Results Reflect Strong Momentum Exiting Fiscal 2021 Q4FY21 Q4FY20 Δ FY21 FY20 Δ Sales (millions) $305.5 $286.1 6.8% $1,125.7 $1,256.5 (10.4%) Same Store Sales 9.4% -9.5% 1,890 bps -11.1% -2.3% (880 bps) Gross Margin 35.1% 35.7% (60 bps) 35.1% 37.9% (280 bps)
Slide 10: Solid Financial Position
Solid Financial Position Ample Financial Flexibility to Support Growth Strategy and Business Operations Disciplined Capital Allocation Strong Balance Sheet and Liquidity Fiscal 2021 ▪ Reduced bank debt, net of cash by ~$61M ▪ Generated record ~$185M of operating cash flow during FY21 ▪ Capex of ~$52
Slide 11: Go-Forward Priorities
Go-Forward Priorities A Renewed Focus on Operational Execution To Realize the Full Potential of Our Business Enhance the customer experience and improve in-store execution to drive long-term organic growth Capitalize on strategic acquisition opportunities in our highly fragmented industry Generate s
Slide 12: Driving Long-Term Sustainable Growth
Driving Long-Term Sustainable Growth Improve Customer Experience Optimize Product & • Online reputation management Service Offering • Consistent in-store experience • Redefined selling approach • Consistent store appearance • Optimized tire assortment Scalable Platform to Enhance Customer-Centric Dr
Slide 13: Monro.Forward Progress Update
Monro.Forward Progress Update Focused on Aspects of Business Within Our Control to Drive Profitable Growth and Operational Excellence ▪ Substantially completed the rebrand and reimage of ~360 stores in key markets Improve Customer Experience ▪ Migrated ~115 stores from service branded stores to a ti
Slide 14: Omnichannel: Amazon.com Collaboration
Omnichannel: Amazon.com Collaboration Collaboration With Amazon.com Supports Monro’s Online Tire Retailers Installation Strategy Amazon.com Collaboration ▪ Monro’s tire installation services available to customers who purchase tires online from Amazon.com and select the Ship-to-Store option ▪ Amazon
Slide 15: A Proven Acquisition Strategy
A Proven Acquisition Strategy Monro’s Acquisition Strategy Has Delivered Significant Growth Over the Years A Proven Track Record ▪ 40 acquisitions in the past 9 fiscal years, adding 535 locations and $730M in revenue ▪ Entered 13 new states, expanding our presence in the Southern and Western markets
Slide 16: Investment Highlights
Investment Highlights ▪ Leading chain of Company-operated undercar care facilities in the U.S. with a wide breadth of product and service offerings ▪ Strong position in Northeast, Great Lakes and Mid-Atlantic and expanding into Southern and Western markets with a presence in 32 states ▪ Low-cost ope
Slide 17: Appendix
Appendix 17
Slide 18: Fiscal 2022 Outlook – Financial Assumptions
Fiscal 2022 Outlook – Financial Assumptions Financial Assumptions as of May 20, 2021 Q1 Outlook Considerations as of May 20, 2021 Tire and Oil Costs Increase y/y ▪ Expect double digit comparable store sales growth Interest Expense ~$25M to ~$28M – Fiscal first quarter-to-date comps of Depreciation a