Slide 1: Monro, Inc. Fourth Quarter Fiscal 2020 Earnings Call
Monro, Inc. Fourth Quarter Fiscal 2020 Earnings Call May 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: COVID-19 Response: Executing on Key Priorities
COVID-19 Response Executing on Key Priorities During This Critical Period Prioritizing health & Ensuring business Emerging stronger post safety in all aspects of continuity to serve our COVID-19 crisis our business customers Protecting the well-being of our Providing essential services to Exec
Slide 4: COVID-19 Response: Prioritizing Health and Safety
COVID-19 Response Prioritizing Health and Safety in All Aspects of Our Business Protecting the Health and Well-being of Our Teammates and Customers: Enhanced daily cleaning procedures and rigorous hygiene protocols Offering key drop and contact-less services Following CDC social distancing and
Slide 5: COVID-19 Response: Ensuring Business Continuity
COVID-19 Response Ensuring Business Continuity to Serve Our Customers Operations Update Financial Update Stores remain open to provide essential services Solid balance sheet and strong liquidity providing ample flexibility to support business operations Reducing store hours and aligning labor
Slide 6: Monro.Forward Progress Update
Monro.Forward Progress Update Monro.Forward Progress Positions Us Well to Emerge Stronger Post COVID-19 Crisis Strong performance of rebranded stores prior to COVID-19 Substantially completed transformation of 42 recently acquired California stores in Improve Customer Q4FY20 Experience Pre-COV
Slide 7: Fourth Quarter Fiscal 2020 Highlights
Fourth Quarter Fiscal 2020 Highlights Navigating Uncertain Environment and Challenges Related to COVID-19 Quarterly Comps Trends Monthly Comparable Store Sales 3.5% 1.5% 0.0% Jan-20 Feb-20 Mar-20 Apr-20 May-20 -0.5% 1 -10.0% 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 MTD2 -2.5% -20.0% -4.5% -30.0% -6.5% -8.
Slide 8: Fourth Quarter Fiscal 2020 Results
Fourth Quarter Fiscal 2020 Results Results Impacted by COVID-19 Crisis and Soft Winter Weather Conditions Q4FY20 Q4FY19 Δ FY20 FY19 Δ Sales (millions) $286.1 $287.2 (0.4%) $1,256.5 $1,200.2 4.7% Same Store Sales1 -9.5% 0.5% (1,000 bps) -2.3% 2.3% (460 bps) Gross Margin 35.7% 38.3% (260 bps) 37.9% 38
Slide 9: Fourth Quarter Fiscal 2020 EPS Bridge
Fourth Quarter Fiscal 2020 EPS Bridge $0.60 $0.50 ($0.30) $0.50 $0.40 $0.30 ($0.12) $0.20 $0.10 $0.08 ($0.10) $0.00 -$0.10 ($0.10) ($0.12) -$0.20 Q4 FY19 Diluted Impact of -9.5% Comp COVID-19 Business Q4 FY20 Adjusted Planned Store Other N/G 1 Q4 FY20 Diluted Earnings Per Share - Sales Impact Dilute
Slide 10: Maximizing Financial Flexibility
Maximizing Financial Flexibility We Have Taken Proactive Measures to Operate on a Cash Flow Positive Basis During COVID-19 Pandemic Disciplined Capital Allocation Fiscal 2020 Near-term Priorities Capex of $55.9M, of which $25M was related to Deferring non-critical capex including store store reb
Slide 11: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Healthy Balance Sheet and Ample Liquidity to Support Ongoing Business Operations Strong liquidity position of ~$375M as of May 26, 2020 Generated $120M of operating cash flow during FY20 Net bank debt of $221M as of March 2020 Net debt-to-EBITDA ratio as of
Slide 12: Fiscal 2020 Accomplishments
Fiscal 2020 Accomplishments Strong Progress on Building a Scalable Platform For Sustainable Growth Store Rebrand and Refresh Initiative: Completed transformation of 219 stores to date, migrating 71 stores to a 1 tire-oriented brand, with rebranded stores in key markets outperforming store base Inves
Slide 13: Fiscal 2021 Outlook
Fiscal 2021 Outlook While Environment Remains Uncertain, We Are Focused on Elements in Business Within Our Control and Are Well-Positioned to Deliver Long-term Value Once the COVID-19 Crisis Subsides Not issuing FY21 guidance at this time due to uncertainty surrounding COVID-19 pandemic Expect C
Slide 14: Appendix
Appendix 14
Slide 15: Fiscal 2021 Outlook – Financial Assumptions
Fiscal 2021 Outlook – Financial Assumptions Assumptions as of May 28, 2020 Tire and Oil Costs Stable to slight decrease year-over-year Interest Expense ~$30 million to ~$32 million Depreciation and Amortization ~$72 million to ~$78 million Tax Rate ~24% Capital Expenditures ~$25 million to ~$45 mill
Slide 16: 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 17: 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 18: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Q2FY21 Pilot store refresh & Scale store refresh & operational operational excellence excellence Improve Customer Experience Scheduled maintenance in-store selling Data-driven CRM Digital phone and cus