Slide 1: Third Quarter Fiscal 2019 Earnings Call
Monro, Inc. Third Quarter Fiscal 2019 Earnings Call January 31, 2019
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: Third Quarter Fiscal 2019 Highlights
Third Quarter Fiscal 2019 Highlights Achieved Fourth Consecutive Quarter of Positive Comparable Store Sales Growth Y/Y Comps Trends Quarterly Comps Trends 10.0% 4.0% 8.0% 3.0% 6.0% 2.0% 4.0% 1.0% 2.0% 0.0% 1 2 3 0.0% 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 1 2 2 3 -1.0% Jan-18 Feb-18 Mar-18 Apr-18 May-18
Slide 4: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Completed and Announced to Date in Fiscal 2019 Represent $87M in Annualized Sales Announced Acquisitions ▪ Announced a definitive agreement to acquire 12 retail locations in Louisiana ▪ Enters a new state, expanding the Company’s presence in the
Slide 5: Monro.Forward Progress Update
Monro.Forward Progress Update Monro.Forward Initiatives Well Underway and Advancing as Planned ❑ Successfully implemented Monro playbook and store re-image initiative pilot at 31 locations in Rochester, NY during 3QFY19, leading to improved conversion and Improve Customer customer satisfaction Exper
Slide 6: Monro.Forward Progress Update: Number of Reviews
Monro.Forward Progress Update (Cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned ❑ Continuing to execute customer satisfaction and online reputation management Improve Customer program across Monro’s store base Experience ❑ Focus on the in-store experience is having significant
Slide 7: Monro.Forward Progress Update (Cont.)
Monro.Forward Progress Update (Cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned ❑ Retail website driving increase in online appointments and mobile calls Enhance Customer- ❑ Expanding direct marketing through CRM platform following strong pilot campaigns Centric Engagement ❑ D
Slide 8: Strong Third Quarter Fiscal 2019 Results
Strong Third Quarter Fiscal 2019 Results Improving In-Store Execution Drove Strong Top-Line Performance 3QFY19 3QFY18 Δ FY19 YTD FY18 YTD Δ Sales (millions) $310.1 $285.7 8.5% $913.0 $842.2 8.4% Same Store Sales1 3.3% -3.1% 640 bps 2.8% -0.7% 350 bps Gross Margin 38.0% 37.4% 60 bps 38.9% 38.9% 0 bps
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ Capex of $30.8M in the first nine months of fiscal 2019 ▪ Continue to expect ~$75M of incremental Capex over the next 5 years to invest in store re-i
Slide 10: Fiscal 2019 Outlook
Fiscal 2019 Outlook Guide to Upper End of Fiscal 2019 Comparable Store Sales and Reiterate EPS Guidance Operating Margin ▪ Assumes operating margin of ~11% at midpoint of FY19 sales guidance FY19 FY18 Δ ▪ Expect stable tire and oil costs year-over-year ▪ Expect to generate earnings increase on a com
Slide 11: Third Quarter Fiscal 2019 Key Takeaways
Third Quarter Fiscal 2019 Key Takeaways ▪ Delivered fourth consecutive quarter of comparable store sales growth ▪ Successfully implemented Monro playbook and store reimage pilot, and on track to expand initiative across store base ▪ Completed acquisitions of 18 stores and signed definitive agreement
Slide 12: Appendix
Appendix 12
Slide 13: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives Q4 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Foundational technology & tools Scale store refresh & operational Pilot store excellence Improve Customer refresh & operational Technology based in-store experience Experience excellence Schedu