Slide 1: First Quarter Fiscal 2023 Earnings Call
FIRST QUARTER FISCAL 2023 EARNINGS CALL JULY 27, 2022
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: First Quarter Fiscal 2023 Highlights
First Quarter Fiscal 2023 Highlights ▪ Sales of $349.5M increased 2.3% ▪ Retail comp store sales increased 2.8%; comp store sales in ~300 small or underperforming stores Financial increased 15% Performance1 ▪ Gross margin decreased 180 basis points to 35.0%, driven by an incremental investment in te
Slide 4: First Quarter Fiscal 2023 Highlights
First Quarter Fiscal 2023 Highlights Delivered Comp Sales Growth led by Outperformance in Retail & Acceleration from 300 Small or Underperforming Stores Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 40% 36.3% 85% 79.0% FY22 70% 30% FY23 55% 20% 16.5% 16.
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: Non-Core Asset Divestiture & Capital Return
Non-Core Asset Divestiture & Capital Return Enables Sharper Focus on Retail Operations, Category Management, Working Capital Optimization & Capital Return to Shareholders Divestiture ▪ Completed divestiture of our non-core Wholesale and tire distribution assets to American Tire Distributors for $102
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: First Quarter Fiscal 2023 Results
First Quarter Fiscal 2023 Results Well Positioned to Drive Sustainable Comp Sales & EPS Growth in Fiscal 2023 Q1FY23 Q1FY22 Δ Sales (millions)1 $349.5 $341.8 2.3% Retail Same 2.8% 36.3% (3,350 bps) Store Sales Gross Margin1 35.0% 36.8% (180 bps) Operating 7.5% 8.2% (70 bps) Margin1 Diluted EPS1 $.37
Slide 9: Solid Financial Position
Solid Financial Position Strong Operating Cash Flow Supports Growth Strategy and Capital Return to Shareholders Disciplined Capital Allocation Strong Balance Sheet and Liquidity First Quarter Fiscal 2023 ▪ Received ~$62M of divestiture proceeds1 ▪ Generated record operating cash flow of ~$77M during
Slide 10: Fiscal 2023 Outlook – Financial Assumptions
Fiscal 2023 Outlook – Financial Assumptions Q2 & FY Outlook Considerations Financial Assumptions as of July 27, 2022 ▪ Preliminary fiscal July comp store sales decreased <1%; 300 small or Total Company Sales Increase y/y underperforming stores up nearly 10% and continued softness in consumer demand
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 1,303 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos