Slide 1: Fourth Quarter and Fiscal 2019 Earnings Call
Monro, Inc. Fourth Quarter and Fiscal 2019 Earnings Call May 21, 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: Fourth Quarter Fiscal 2019 Highlights
Fourth Quarter Fiscal 2019 Highlights Achieved Fifth Consecutive Quarter of Positive Comparable Store Sales Growth1 Quarterly Comps Trends 2-Year Stacked Quarterly Comps Trends 3.5% 4.0% 3.0% 2.0% 2.5% 2.0% 0.0% 1 1 1 1.5% 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1.0% -2.0% 0.5% 0.0% -4.0% 1 1 1 4QFY18 1Q
Slide 4: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Completed and Announced in Fiscal 2019 Represent $132M in Annualized Sales Completed Acquisitions ▪ Completed the acquisition of 40 retail locations and one distribution center in California in 1QFY20 ▪ Enters a new state, expanding the Company’s
Slide 5: Monro.Forward Progress Update
Monro.Forward Progress Update 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 impact
Slide 6: Store Refresh: Brand Consolidation Strategy
Store Refresh: Brand Consolidation Strategy Consolidating Brand Portfolio Into Five Regional Power Brands to Increase Brand Awareness in Each Market Brand Consolidation Strategy ▪ Through acquisitions, Monro has grown to include 9 well-known Retail Brand Portfolio retail brands underneath our corpor
Slide 7: Store Refresh & Operational Excellence Initiative
Store Refresh & Operational Excellence Initiative Encouraged by Positive Customer Feedback and Strong Upside Opportunity ❑ Rochester pilot refresh stores seeing increased customer satisfaction ratings Improve Customer ❑ Expanding store refresh to approximately 50 stores during 1QFY20 Experience ❑ Mo
Slide 8: Monro.Forward Progress Update (cont.)
Monro.Forward Progress Update (cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned ❑ Expanded collaboration with Amazon.com to more than 800 stores, supporting Enhance Customer- omnichannel strategy Centric Engagement ❑ CRM and digital customer retention initiatives making solid
Slide 9: Monro.Forward Progress Update (cont.)
Monro.Forward Progress Update (cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned ❑ Continued momentum of Good-Better-Best product and service packages Optimize Product & ❑ Introduction of new Tier 2 tire brands to optimize tire assortment in 4QFY19 Service Offering ❑ Will conti
Slide 10: Fourth Quarter and Fiscal 2019 Results
Fourth Quarter and Fiscal 2019 Results Solid Fourth Quarter Performance and FY19 Results In-Line with Company Expectations 4QFY19 4QFY18 Δ FY19 FY18 Δ Sales (millions) $287.2 $285.6 0.6% $1,200.2 $1,127.8 6.4% Same Store Sales1 0.5% 2.4% (190 bps) 2.3% (0.1%) 240 bps Gross Margin 38.3% 37.7% 60 bps
Slide 11: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ Capex of $44.5M during fiscal 2019 ▪ Continue to expect ~$75M of incremental Capex over 5 years to invest in store re-image and technology Executing
Slide 12: Fiscal 2020 Outlook
Fiscal 2020 Outlook Delivering Growth Today While Continuing to Invest for Tomorrow Operating Margin FY20 FY19 Δ ▪ Assumes operating margin of ~11.3% at midpoint of FY20 sales guidance Sales (millions) $1,295 to $1,325 $1,200 8% to 10% ▪ Expect stable tire and oil costs year-over-year ▪ Expect to ge
Slide 13: Fourth Quarter and Fiscal 2019 Key Takeaways
Fourth Quarter and Fiscal 2019 Key Takeaways ▪ Delivered fifth consecutive quarter of comparable store sales growth1 and reported fiscal 2019 results in-line with Company expectations ▪ Execution of Monro.Forward initiatives progressing well one year after launch ▪ Recently completed acquisitions of
Slide 14: Appendix
Appendix 14
Slide 15: 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 Pilot store refresh & Scale store refresh & operational operational excellence excellence Improve Customer Technology based in-store experience Experience Schedu