Slide 1: Second Quarter Fiscal 2023 Earnings Call
SECOND QUARTER FISCAL 2023 EARNINGS CALL OCTOBER 26, 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: Second Quarter Fiscal 2023 Highlights
Second Quarter Fiscal 2023 Highlights ▪ Sales of $329.8M decreased 5.1%, due to the divestiture of Wholesale tire and distribution assets in first quarter fiscal 2023 ▪ Comp store sales increased 1.3%; comp store sales in ~300 small or underperforming stores increased Financial ~10% Performance ▪ Gr
Slide 4: Second Quarter Fiscal 2023 Highlights
Second Quarter Fiscal 2023 Highlights Delivered Comp Sales Growth led by Acceleration from 300 Small or Underperforming Stores with Momentum Building as Q2 Progressed Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 20% 20% 17.6% 16.5% 16.0% 16.5% FY22 15.3
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: 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 7: Second Quarter Fiscal 2023 Results
Second Quarter Fiscal 2023 Results Well Positioned to Capture Market Share Gains and Drive Store Traffic Q2FY23 Q2FY221 Δ Sales (millions) $329.8 $347.7 (5.1%) Retail Same Store Sales 1.3% 16.5% (1,520) bps Gross Margin 35.4% 37.6% (220) bps Operating Margin 7.1% 9.9% (280) bps Diluted EPS $.40 $.62
Slide 8: 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 Half Fiscal 2023 ▪ Received ~$62M of divestiture proceeds1 ▪ Generated strong operating cash flow of ~$120M during t
Slide 9: Fiscal 2023 Outlook – Financial Assumptions
Fiscal 2023 Outlook – Financial Assumptions Q3 & FY Outlook Considerations Financial Assumptions as of October 26, 2022 ▪ Preliminary fiscal October comp store sales up 3.7% with continued strong performance Continued pressure in back half of in tires and improving trends in fiscal 2023 with mitigat
Slide 10: 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 1,297 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos