Monro Muffler (MNRO) Tops Q1 EPS by 36c, Revenues Beat

Monro Muffler (NASDAQ: MNRO) reported Q1 EPS of $0.15, $0.36 better than the analyst estimate of ($0.21). Revenue for the quarter came in at $247.06 million versus the consensus estimate of $246.9 million.

“Our first quarter performance demonstrates solid execution despite the unprecedented challenges related to the COVID-19 pandemic, and I would like to thank all of our Monro teammates for their hard work and dedication to safely serving our customers. In-line with our expectations, April represented a low point in our sales performance, with May and June improving sequentially as government restrictions gradually abated through the quarter. Encouragingly, the demand recovery continued in fiscal July with comparable store sales down approximately 12%. Since the beginning of the pandemic, we have taken a number of proactive steps to mitigate near-term headwinds while maintaining our focus on our Monro.Forward initiatives, including our technology-based store staffing model and our tire category management and pricing system, and are pleased that these efforts have begun to bear fruit. In addition to streamlining our operations, we have redirected our marketing efforts towards higher ROI digital channels and made strategic investments in technology, which we believe have been critical in helping us navigate the current environment,” said Brett Ponton, President and Chief Executive Officer.

Ponton continued, “Despite the challenges presented by COVID-19, we are encouraged by the outperformance of our rebranded stores during the first quarter, reinforcing our confidence in our store rebrand and reimage initiative. Our solid financial position will allow us to gradually resume this program in the second quarter as we continue our disciplined approach to capital allocation. Overall, we remain focused on the aspects of our business within our control, and we believe that the continued execution of our Monro.Forward strategy will enable us to emerge stronger following this pandemic and drive long-term value creation.”

COVID-19 Update

Government actions to curb the COVID-19 pandemic led to a substantial decline in traffic, which adversely impacted Monro’s performance in the first quarter of fiscal 2021. The Company saw gradual improvement in its comparable store sales performance throughout the quarter as stay-at-home restrictions lifted in some geographies. While demand has improved, the environment remains uncertain and the ongoing pandemic has continued to impact Monro’s financial results in the second quarter-to-date.

Monro’s top priority remains health and safety across all aspects of the business. The Company’s stores have been designated as essential businesses and have remained open since the beginning of the pandemic. During the first quarter, stores gradually returned to more normalized hours of operation in light of the improving demand environment. To protect its teammates and customers, Monro has implemented strict cleaning and sanitation measures. The Company will continue to follow all federal and local health and safety guidelines and adjust its comprehensive business continuity plans as appropriate.

With cash and cash equivalents of approximately $145 million and availability on our revolving credit facility of approximately $255 million as of July 25, 2020, Monro firmly believes its solid balance sheet and ample liquidity position it well to navigate the current environment.

For earnings history and earnings-related data on Monro Muffler (MNRO) click here.

You May Also Be Interested In

• Intel slides in afterhours trading as Q1 revenue misses, Q2 outlook falls short
• European stocks rise, helped by positive global sentiment; NatWest gains
• Northeast Community Bancorp, Inc. (NECB) Tops Q1 EPS by 12c