Slide 1: Fourth Quarter Fiscal 2023 Earnings Call
FOURTH QUARTER FISCAL 2023 EARNINGS CALL MAY 18, 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: Fiscal 2023 Key Takeaways
Fiscal 2023 Key Takeaways Well-Positioned to Capitalize on Strengthening Demand and Drive Long-Term, Sustainable Growth 1 Operational Excellence: Focused on in-store execution through training and productivity improvements 2 Growth: Delivered comparable store sales growth, driven by double-digit com
Slide 4: Fourth Quarter Fiscal 2023 Highlights
Fourth Quarter Fiscal 2023 Highlights ▪ Sales of $310.8M decreased 5.2%, due to the divestiture of Wholesale tire and distribution assets in first quarter fiscal 2023 ▪ Comp store sales increased 4.5%; comp store sales in ~300 small or underperforming stores increased ~7%; comp store sales increased
Slide 5: Fourth Quarter Fiscal 2023 Highlights
Fourth Quarter Fiscal 2023 Highlights Delivered Mid-Single Digit Comp Store Sales Growth led by Strength in Tires & Several Service Categories Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 10% 10% 7.9% FY22 7.3% 5.6% FY23 5.0% 5.6% 5% 3.0% 4.5% 2.4% 5% 1
Slide 6: 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 7: 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 8: 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 ▪ Completed acquisition of four stores in Iowa and one store in Illinois during fiscal fourth quarter ▪ Further expands the Company
Slide 9: Fourth Quarter Fiscal 2023 Results
Fourth Quarter Fiscal 2023 Results Well Positioned to Capture Market Share Gains and Drive Store Traffic Q4FY23 Q4FY221 Δ Sales (millions) $310.8 $328.0 (5.2%) Retail Same Store Sales2 4.5% 3.2% 130 bps Gross Margin 33.4% 31.9% 150 bps Operating Margin 2.0% 3.5% (150) bps Diluted EPS $.01 $.25 (96.0
Slide 10: 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 Fiscal 2023 ▪ Received ~$70M of divestiture proceeds1 ▪ Generated record operating cash flow of ~$215M during fiscal 2023
Slide 11: Fiscal First Quarter 2024 Guidance
Fiscal First Quarter 2024 Guidance Q1 Guidance Considerations Fiscal First Quarter 2024 Guidance Ranges ▪ Preliminary comp store sales up approximately 2% quarter-to- Total Company Sales $330M to $335M date Comparable Store Sales Growth 2% to 3% ▪ Sales from divested Wholesale and tire distribution
Slide 12: Fiscal 2024 Outlook – Financial Assumptions
Fiscal 2024 Outlook – Financial Assumptions FY Outlook Considerations Financial Assumptions as of May 18, 2023 ▪ Extra week (53rd week) of sales in fiscal fourth quarter Drive higher y/y sales through: ▪ Continued mid-single-digit comparable Total Company Sales store sales growth; and ▪ Continued ou
Slide 13: 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 1,299 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos