Slide 1: Second Quarter Fiscal 2021 Earnings Call
SECOND QUARTER FISCAL 2021 EARNINGS CALL OCTOBER 28, 2020
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 2021 Overview
Second Quarter Fiscal 2021 Overview Executing Our Strategy To Position Monro For Long-Term Success Given continued challenges in the operating environment, focused on profit and cash flow through: Right-sizing the business to Driving variable margin Executing targeted cost match demand: improvement:
Slide 4: Second Quarter Fiscal 2021 Sales Highlights
Second Quarter Fiscal 2021 Sales Highlights Focused on Aspects of The Business Within Our Control as Demand Remains Soft Quarterly Comps Trends Monthly Comparable Store Sales 5% 0% 0% 1 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 -2% Jul-20 Aug-20 Sep-20 Oct-20 -5% -4% -10% -6% -15% -8% -20% -10% -25% -12% -
Slide 5: Market Backdrop
Market Backdrop Monro Comp Sales and Tire Units Have Correlated with VMT as Well as U.S. Tire Retail Industry (Units) 15% Monro Comp Sales Monro Tire Units Veh. Miles Traveled (U.S.) U.S. Tire Retail Industry (Units) 5% -5% -15% -25% 7/11 7/18 7/25 8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 9/26 10/3 10/1
Slide 6: Monro.Forward Progress Update
Monro.Forward Progress Update Demonstrated Progress on Monro.Forward Initiatives Will Position Us Well to Emerge Stronger Post-Crisis Substantially completed the rebrand and reimage of approximately 40 stores in Improve Customer attractive markets Experience Outperformance of rebranded stores re
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 Announced Acquisitions Announced definitive agreement to acquire 17 stores in Southern California Further expands the Company’s geographic f
Slide 8: Second Quarter Fiscal 2021 Results
Second Quarter Fiscal 2021 Results Managing Business For Profit in a Challenging Demand Environment Q2FY21 Q2FY20 Δ 1HFY21 1HFY20 Δ Sales (millions) $288.6 $324.1 (11.0%) $535.6 $641.2 (16.5%) Same Store Sales -11.4% 0.0% (1,140 bps) -18.7% 0.4% (1,910 bps) Gross Margin 36.2% 37.7% (150 bps) 35.8% 3
Slide 9: Second Quarter Fiscal 2021 EPS Bridge
Second Quarter Fiscal 2021 EPS Bridge $0.70 Other includes the benefit of cost reductions and lower expenses due to a year-over-year reduction in the $.60 ($.34) number of stores as well as the $0.60 positive impact of non-comp stores, partially offset by higher recruiting expenses $0.50 $.13 ($.01)
Slide 10: Solid Financial Position and Flexibility
Solid Financial Position and Flexibility We Remain Well Positioned to Support Our Ongoing Business Operations and Growth Strategy Disciplined Capital Allocation Strong Balance Sheet and Liquidity First Half of Fiscal 2021 Reduced bank debt, net of cash by $71M Generated strong $126M of operating
Slide 11: Fiscal 2021 Outlook – Financial Assumptions
Fiscal 2021 Outlook – Financial Assumptions Financial Assumptions as of October 28, 2020 Additional Assumptions Tire and Oil Costs Stable y/y CapEx range accounting for rebrand of Interest Expense ~$28M to ~$30M ~100 to 150 stores Depreciation and Amortization ~$76M to ~$80M Realized ~$5M in cos
Slide 12: Second Quarter Fiscal 2021 Key Takeaways
Second Quarter Fiscal 2021 Key Takeaways Despite the Challenging Environment, We Are Focused on the Elements of Our Business Under Our Control and Making Strong Progress Executing Our Monro.Forward Strategy Focused on driving profit and cash flow by right-sizing the business to match demand, expan
Slide 13: Appendix
Appendix 13
Slide 14: 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 15: 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 16: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Q2FY21 Q3FY21 Pilot store refresh & Scale store refresh & operational Improve operational excellence excellence Customer Experience Scheduled maintenance in-store selling Enhance Data-driven CRM Digita