-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LsSvm9PeQMSF1/GhqqOy7M6wlypnozhKG52iHthmdBi1f5dK+8uI3xAsW+xD3TjU OICfNjpsBBPwcvySn3AvKg== 0000950152-97-008116.txt : 19971117 0000950152-97-008116.hdr.sgml : 19971117 ACCESSION NUMBER: 0000950152-97-008116 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONRO MUFFLER BRAKE INC CENTRAL INDEX KEY: 0000876427 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500] IRS NUMBER: 160838627 STATE OF INCORPORATION: NY FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19357 FILM NUMBER: 97721728 BUSINESS ADDRESS: STREET 1: 200 HOLLEDER PKWY CITY: ROCHESTER STATE: NY ZIP: 14615-3808 BUSINESS PHONE: 7166476100 10-Q 1 MONRO MUFFLER BRAKE, INC. 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997. ------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ______________ to ______________ Commission File No. 0-19357 ------- MONRO MUFFLER BRAKE, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) New York 16-0838627 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification #) 200 Holleder Parkway, Rochester, New York 14615 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zipcode) Registrant's telephone number, including area code 716-647-6400 ---------------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- As of October 31, 1997, 7,866,901 shares of the Registrant's Common Stock, par value $ .01 per share, were outstanding after giving effect to the five percent stock dividend, paid August 4, 1997, to stockholders of record as of June 20, 1997. 2 MONRO MUFFLER BRAKE, INC. INDEX -----
Part I. Financial Information Page No. Consolidated Balance Sheet at September 30, 1997 and March 31, 1997 3 Consolidated Statement of Income for the quarter and six months ended September 30, 1997 and 1996 4 Consolidated Statement of Changes in Common Shareholders' Equity for the six months ended September 30, 1997 5 Consolidated Statement of Cash Flows for the six months ended September 30, 1997 and 1996 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II. Other Information Item 4. Submission of Matters to a Vote of Security Holders 12 Item 6. Exhibits and Reports on Form 8-K 12 Signatures 13 Exhibit Index 14
-2- 3 MONRO MUFFLER BRAKE, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED)
SEPTEMBER 30, MARCH 31, 1997 1997 --------- --------- (DOLLARS IN THOUSANDS) ASSETS Current assets: Cash and equivalents, including interest-bearing accounts of $3,919 at September 30, 1997 and $6,438 at March 31, 1997 $ 3,919 $ 6,438 Trade receivables 820 1,128 Inventories, at LIFO cost 23,789 20,010 Federal and state income taxes receivable 0 296 Deferred income tax asset 1,790 1,790 Other current assets 2,815 2,935 --------- --------- Total current assets 33,133 32,597 --------- --------- Property, plant and equipment 164,468 151,906 Less - Accumulated depreciation and amortization (46,398) (42,223) --------- --------- Net property, plant and equipment 118,070 109,683 Other noncurrent assets 3,822 3,987 --------- --------- Total assets $ 155,025 $ 146,267 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 3,128 $ 3,128 Trade payables 11,167 8,728 Federal and state income taxes payable 873 0 Accrued expenses and other current liabilities Accrued interest 301 270 Accrued payroll, payroll taxes and other payroll benefits 4,103 4,260 Accrued insurance 2,193 2,110 Other current liabilities 3,206 4,522 --------- --------- Total current liabilities 24,971 23,018 Long-term debt 54,848 54,864 Deferred income tax liability 1,760 1,760 --------- --------- Total liabilities 81,579 79,642 --------- --------- Commitments Shareholders' equity: Class C Convertible Preferred Stock, $1.50 par value, $.227 and $.239 conversion value at September 30, 1997 and March 31, 1997, respectively; 150,000 shares authorized; 91,727 shares issued and outstanding 138 138 Common Stock, $.01 par value, 15,000,000 shares authorized; 7,866,901 shares and 7,470,326 shares issued and outstanding at September 30, 1997 and March 31, 1997, respectively 79 75 Additional paid-in capital 29,257 22,190 Retained earnings 43,972 44,222 --------- --------- Total shareholders' equity 73,446 66,625 --------- --------- Total liabilities and shareholders' equity $ 155,025 $ 146,267 ========= =========
These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K (File No. 0-19357), filed by the Company with the Securities and Exchange Commission on June 27, 1997. -3- 4 MONRO MUFFLER BRAKE, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
QUARTER ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1997 1996 1997 1996 ------- ------- ------- ------- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Sales $41,540 $37,799 $82,313 $75,544 Cost of sales, including distribution and occupancy costs (a) 23,231 20,291 45,862 40,957 ------- ------- ------- ------- Gross profit 18,309 17,508 36,451 34,587 Operating, selling, general and administrative expenses 11,735 10,386 23,227 21,031 ------- ------- ------- ------- Operating income 6,574 7,122 13,224 13,556 Interest expense, net of interest income for the quarter of $22 in 1997 and $3 in 1996 (a) 903 851 1,770 1,665 Other expense, net 86 55 172 71 ------- ------- ------- ------- Income before provision for income taxes 5,585 6,216 11,282 11,820 Provision for income taxes 2,233 2,474 4,513 4,699 ------- ------- ------- ------- Net income $ 3,352 $ 3,742 $ 6,769 $ 7,121 ======= ======= ======= ======= Earnings per share $ .39 $ .43 $ .79 $ .83 ======= ======= ======= ======= Weighted average number of shares of common stock and common stock equivalents used in computing earnings per share 8,608 8,620 8,607 8,580 ======= ======= ======= ======= (a) Amounts paid under operating and capital leases with affiliated parties totaled $474 and $500 for the quarters ended September 30, 1997 and 1996, respectively, and $957 and $996 for the six months ended September 30, 1997 and 1996, respectively.
These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K (File No. 0-19357), filed by the Company with the Securities and Exchange Commission on June 27, 1997. -4- 5 MONRO MUFFLER BRAKE, INC. CONSOLIDATED STATEMENT OF CHANGES IN COMMON STOCKHOLDERS' EQUITY (UNAUDITED)
COMMON STOCK ADDITIONAL ------------ PAID-IN RETAINED SHARES AMOUNT CAPITAL EARNINGS ------ ------ ------- -------- (Amounts in thousands) Balance at March 31, 1997 7,470 75 $22,190 $ 44,222 Net income 6,769 Exercise of stock options 23 52 5% stock dividend 374 4 7,015 (7,019) ------ --- ------- -------- Balance at September 30, 1997 $7,867 $79 $29,257 $ 43,972 ====== === ======= ========
These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K (File No. 0-19357), filed by the Company with the Securities and Exchange Commission on June 27, 1997. -5- 6 MONRO MUFFLER BRAKE, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED SEPTEMBER 30, ------------- 1997 1996 ---- ---- (DOLLARS IN THOUSANDS) INCREASE (DECREASE) IN CASH Cash flows from operating activities: Net income $ 6,769 $ 7,121 -------- -------- Adjustments to reconcile net income to net cash provided by operating activities - Depreciation and amortization 4,541 3,958 Loss (gain) on disposal of property, plant and equipment 17 (10) Decrease in trade receivables 308 252 Increase in inventories (3,779) (1,868) Decrease (increase) in other current assets 120 (45) Decrease (increase) in other noncurrent assets 24 (21) Increase (decrease) in trade payables 2,439 (75) (Decrease)increase in accrued expenses (1,359) 874 Increase in federal and state income taxes payable 1,169 1,140 -------- -------- Total adjustments 3,480 4,205 -------- -------- Net cash provided by operating activities 10,249 11,326 -------- -------- Cash flows from investing activities: Capital expenditures (12,573) (11,971) Proceeds from the disposal of property, plant and equipment 22 40 -------- -------- Net cash used for investing activities (12,551) (11,931) -------- -------- Cash flows from financing activities: Proceeds from the sale of common stock (option exercises) 52 515 Proceeds from borrowings 30,534 26,615 Principal payments on long-term debt and capital lease obligations (30,803) (26,254) -------- -------- Net cash used for financing activities (217) 876 -------- -------- (Decrease) increase in cash (2,519) 271 Cash at beginning of year 6,438 5,280 -------- -------- Cash at September 30 $ 3,919 $ 5,551 ======== ========
These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K (File No. 0-19357), filed by the Company with the Securities and Exchange Commission on June 27, 1997. -6- 7 MONRO MUFFLER BRAKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Stock Dividend - ----------------------- On May 14, 1997, the Board of Directors declared a five percent stock dividend, paid August 4, 1997, to stockholders of record as of June 20, 1997. The consolidated financial statements, including all share information therein, have been restated to reflect this dividend. Additionally, in accordance with antidilution provisions of the Class C Convertible Preferred Stock, the conversion value of the preferred stock was restated from $.239 per share to $.227 per share. Shares reserved for issuance to officers and key employees under outstanding options and under the 1984, 1987 and 1989 Incentive Stock Option Plans have also been retroactively adjusted for the five percent stock dividend. Note 2 - New Accounting Standards - -------------------------------- The Company will adopt the provisions of Financial Accounting Standards ("FAS") No. 128, "Earnings Per Share" effective for financial statements issued for periods ending after December 15, 1997; earlier application is not permitted. FAS 128 requires dual presentation of basic and diluted EPS on the face of the income statement and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS calculation. Basic EPS excludes the effect of common stock equivalents and is computed by dividing income available to common shareowners by the weighted average common shares outstanding for the period. Diluted EPS reflects the potential dilution that could result if securities or other instruments to issue common stock were exercised or converted into common stock. Proforma earnings per share computed in accordance with FAS 128 is presented below:
Quarter Ended Six Months Ended ------------- ---------------- September 30, September 30, ------------- ------------- 1997 1996 1997 1996 ---- ---- ---- ---- Basic earnings per share $0.43 $0.48 $0.86 $0.92 Diluted earnings per share $0.39 $0.93 $0.79 $0.83
Note 3 - Inventories - -------------------- The Company's inventories consist of automotive parts and tires. Substantially all merchandise inventories are valued under the last-in, first-out (LIFO) method. Under the first-in, first-out (FIFO) method, these inventories would have been $740,000 and $544,000 higher at September 30, 1997 and March 31, 1997, respectively. The FIFO value of inventory approximates the current replacement cost. Note 4 - Cash and Equivalents - ----------------------------- The Company's policy is to invest cash in excess of operating requirements in income producing investments. Cash equivalents of $3,919,000 at September 30, 1997 and $6,438,000 at March 31, 1997 include money market accounts, which have maturities of three months or less. -7- 8 MONRO MUFFLER BRAKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 5 - Supplemental Disclosure of Cash Flow Information - --------------------------------------------------------- The following transactions represent noncash investing and financing activities during the periods indicated: SIX MONTHS ENDED SEPTEMBER 30, 1997: Capital lease obligations of $236,000 were incurred under various lease obligations. In connection with the declaration of a five percent stock dividend (see Note 1), the Company increased accrued expenses, common stock and additional paid-in capital by $1,000, $4,000 and $7,014,000, respectively, and decreased retained earnings by $7,019,000. SIX MONTHS ENDED SEPTEMBER 30, 1996: Capital lease obligations of $162,000 were incurred under various lease obligations. In connection with the termination of a capital lease, the Company reduced debt and fixed assets by $112,000. In connection with the declaration of a five percent stock dividend (see Note 1), the Company increased common stock and additional paid-in capital by $4,000 and $4,584,000, respectively, and decreased retained earnings by $4,588,000. CASH PAID DURING THE PERIOD:
SIX MONTHS ENDED ---------------- SEPTEMBER 30, ------------- 1997 1996 ---- ---- Interest, net $1,983,000 $1,897,000 Income taxes 3,344,000 3,560,000
Note 6 - Other - -------------- These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K (File No. 0-19357), filed by the Company with the Securities and Exchange Commission on June 27, 1997. -8- 9 MONRO MUFFLER BRAKE, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The statements contained in this Form 10-Q which are not historical facts, including (without limitation) statements made in the Management's Discussion and Analysis of Financial Condition and Results of Operations, may contain statements of future expectations and other forward-looking statements that are subject to important factors that could cause actual results to differ materially from those in the forward-looking statements, including (without limitation) product demand, the effect of economic conditions, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, industry regulation, the continued availability of capital resources and financing and other risks set forth or incorporated elsewhere herein and in the Company's Securities and Exchange Commission filings. RESULTS OF OPERATIONS The following table sets forth income statement data of Monro Muffler Brake, Inc. ("Monro" or the "Company") expressed as a percentage of sales for the fiscal periods indicated.
Quarter ended September 30, Six Months ended September 30, --------------------------- ------------------------------ 1997 1996 1997 1996 ---- ---- ---- ---- Sales .................................. 100.0% 100.0% 100.0% 100.0% Cost of sales, including distribution and occupancy costs ................... 55.9 53.7 55.7 54.2 ----- ----- ----- ----- Gross profit ........................... 44.1 46.3 44.3 45.8 Operating, selling, general and administrative expenses ............... 28.3 27.5 28.2 27.9 ----- ----- ----- ----- Operating income ....................... 15.8 18.8 16.1 17.9 Interest expense - net ................. 2.2 2.3 2.2 2.2 Other expenses - net ................... .2 .1 .2 .1 ----- ----- ----- ----- Income before provision for income taxes 13.4 16.4 13.7 15.6 Provision for income taxes ............. 5.3 6.5 5.5 6.2 ----- ----- ----- ----- Net income ............................. 8.1% 9.9% 8.2% 9.4% ===== ===== ===== =====
-9- 10 SECOND QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO SECOND QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 1996 Sales were $41.5 million for the quarter ended September 30, 1997 compared with $37.8 million in the quarter ended September 30, 1996. The sales increase of $3.7 million, or 9.9%, was due to an increase in sales of approximately $3.8 million relating to stores opened since April 1, 1996. Comparable store sales were even with sales from the prior year period. Sales for the six months ended September 30, 1997 were $82.3 million compared with $75.5 million for the comparable period of the prior year. The sales increase of $6.8 million or 9.0% was due to an increase in sales of approximately $7.2 million relating to stores opened since April 1, 1996, partially offset by a comparable store sales decrease of .5%. At September 30, 1997, the Company had 332 stores in operation compared to 293 at September 30, 1996. Gross profit for the quarter ended September 30, 1997 was $18.3 million or 44.1% of sales compared with $17.5 million or 46.3% of sales for the quarter ended September 30, 1996. Gross profit for the six months ended September 30, 1997 was $36.5 million, or 44.3% of sales, compared to $34.6 million or 45.8% of sales, for the six months ended September 30, 1997. The decline in gross profit as a percentage of sales was due, in part, to an increase in labor costs. During periods of slower sales when technicians may not be fully productive, they will receive a minimum base level wage. Additionally, there was an increase in purchases at the store level of certain higher-cost parts ("Outside Purchases"). During periods of slower sales, store personnel more readily accept repair work outside of the normal recurring services the store usually provides. Parts proliferation also continues to present a challenge with regard to inventory stocking levels and outside purchases. Operating, selling, general and administrative expenses for the quarter ended September 30, 1997 increased by $1.3 million to $11.7 million over the quarter ended September 30, 1996, and were 28.3% of sales compared to 27.9% in the same quarter of the prior year. For the six months ended September 30, 1997, these expenses increased by $2.2 million to $23.2 million over the comparable period of the prior year and were 28.2% of sales compared to 27.8% in the comparable period of the prior year. The increase in total dollars expended is primarily attributable to the increase in the number of stores and store related operating costs such as supervision and utilities, against flat (for the quarter) or slightly negative (for the six months) comparable store sales. These increases were partially offset by a reduction in bonus and profit sharing expense, and an increase in cooperative advertising credits. Net interest expense for the quarter ended September 30, 1997 increased by approximately $52,000 compared to the comparable period in the prior year, and decreased from 2.3% to 2.2% as a percentage of sales for the same period. Net interest expense for the six months ended September 30, 1997 increased by $105,000 compared to the same period in the prior year, and was 2.2% of sales for both periods. The increase in expense is due to an increase in the weighted average debt outstanding for the quarter and six months ended September 30, 1997 as compared to the same periods in the previous year, partially offset by decreases in the weighted average interest rates for each period. Net income for the quarter ended September 30, 1997 of $3.4 million decreased 10.4% from net income for the quarter ended September 30, 1996. For the six months ended September 30, 1997, net income of approximately $6.8 million decreased 4.9%, due to the factors discussed above. Interim Period Reporting The data included in this report are unaudited and are subject to year-end adjustments; however, in the opinion of management, all known adjustments (which consist only of normal recurring adjustments) have been made to present fairly the Company's operating results for the unaudited periods. The results for interim periods are not necessarily indicative of results to be expected for the fiscal year. -10- 11 CAPITAL RESOURCES AND LIQUIDITY Capital Resources The Company's primary capital requirement has been the funding of its new store expansion program and the upgrading of facilities and systems in existing stores. For the six months ended September 30, 1997, the Company spent $12.8 million for equipment and new store construction. Funds were provided primarily by cash flow from operations. Management believes that the Company has sufficient resources available (including cash and equivalents, net cash flow from operations and bank financing) to expand its business as currently planned for the next several years. Liquidity The Company has a line of credit from a commercial bank of $7.5 million. No amounts were outstanding under this short-term borrowing facility at September 30, 1997. Through February 7, 1996, the Company had a real estate line of credit of $25 million to be used for placement of mortgages. This line was terminated in fiscal 1996 at the Company's initiative and replaced by a new unsecured Revolving Credit facility with two banks. In June 1997, the Credit Agreement was modified to increase the amount available under the facility from $30 million to $50 million, and extend the term to March 2000. The facility bears interest at the prime rate or other LIBOR-based rate options tied to the Company's financial performance. Prior to the termination of the real estate line, the Company had utilized $13.2 million of the real estate line of credit for permanent mortgages. The Company has outstanding $3.7 million in principal amount of its 10.65% Senior Notes due 1999 (the "Senior Notes") with Massachusetts Mutual Life Insurance Company pursuant to a Senior Note Agreement. The fourth of six equal annual installments of principal in the amount of $1.8 million was paid on April 1, 1997. The Company has financed its office/warehouse facility via a 10-year mortgage with a current balance of $2.8 million, amortizable over 20 years, and an eight-year term loan with a balance of $.6 million. Certain of the Company's long-term debt agreements require, among other things, the maintenance of specified current ratios, interest and rent coverage ratios and amounts of tangible net worth, and also contain restrictions on dividend payments and capital expenditures. -11- 12 MONRO MUFFLER BRAKE, INC. PART II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- The 1997 Annual Meeting of Shareholders of the Company (the "1997 Meeting") was held on August 12, 1997. At the 1997 Meeting, the Company's common shareholders elected management's nominees, Charles J. August, Frederick M. Danziger, Lawrence C. Day, Jack M. Gallagher, and Peter J. Solomon to Class 2 of the Board of Directors, to serve until the election and qualification of their respective successors at the 1999 Annual Meeting of Shareholders. Such nominees for director received the following votes: Name Votes For Votes Withheld ---- --------- -------------- Charles J. August 4,919,127 3,786 Frederick M. Danziger 4,921,182 1,731 Lawrence C. Day 4,921,182 1,731 Jack M. Gallagher 4,921,182 1,731 Peter J. Solomon 4,920,182 2,731 As required under the Company's Certificate of Incorporation, such election of directors and other matters were confirmed by the holders of all 91,727 outstanding shares of the Company's Class C Convertible Preferred Stock, par value $1.50 per share, by written consent dated as of August 12, 1997. In addition, Burton S. August, Robert W. August, Donald Glickman, Lionel B. Spiro, and W. Gary Wood will continue as Class 1 directors until the election and qualification of their respective successors at the 1998 Annual Meeting of Shareholders. Also approved by the following votes were: (i) a proposal to ratify the re-appointment of Price Waterhouse LLP as the independent auditors of the Company for the fiscal year ending March 31, 1998 (4,917,616 shares in favor, 2,663 shares against, 2,634 shares abstaining and zero broker non-votes); (ii) a proposal to ratify the amendment to the Monro Muffler Brake, Inc. Non-Employee Directors' Stock Option Plan to increase the number of authorized shares (4,479,653 shares in favor, 208,881 shares against, 6,247 shares abstaining and 228,132 broker non-votes); and (iii) a proposal to ratify the amendment to the Monro Muffler Brake, Inc. 1989 Employee's Incentive Stock Option Plan to increase the number of authorized shares (4,647,570 shares in favor, 23,840 shares against, 12,075 shares abstaining and 239,428 broker non-votes). Item 6. Exhibits and Reports on Form 8-K -------------------------------- a. Exhibits 11 - Statement of Computation of Per Share Earnings. b. Reports on Form 8-K The Company was not required to file reports on Form 8-K during the quarter ended September 30, 1997. -12- 13 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MONRO MUFFLER BRAKE, INC. DATE: November 13, 1997 By /s/ Lawrence C. Day --------------------------- Lawrence C. Day President and Chief Executive Officer DATE: November 13, 1997 By /s/ Catherine D'Amico --------------------------- Catherine D'Amico Senior Vice President-Finance, Treasurer and Chief Financial Officer -13- 14 EXHIBIT INDEX Exhibit No. Description Page No. - ----------- ----------- -------- 11 Statement of computation of per share earnings 15 -14- EX-11 2 EXHIBIT 11 1 MONRO MUFFLER BRAKE, INC. Exhibit 11 STATEMENT OF COMPUTATION OF PER SHARE EARNINGS Earnings per share for each period was computed by dividing net income for such period by the weighted average number of shares of Common Stock and common stock equivalents outstanding during such period. All share data have been restated to reflect the 5% stock dividend paid August 4, 1997. (See Note 1 of Notes to Consolidated Financial Statements).
QUARTER ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------- ------------- 1997 1996 1997 1996 ---- ---- ---- ---- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) EARNINGS Net Income $3,352 $3,742 $6,769 $7,121 ====== ====== ====== ====== SHARES Weighted average number of shares of Common Stock 7,867 7,832 7,859 7,751 Assuming conversion of Class C Convertible Preferred Stock 605 605 605 605 Dilutive effect of outstanding options 136 183 143 224 ------ ------ ------ ------ Weighted average number of common and common equivalent shares 8,608 8,620 8,607 8,580 ====== ====== ====== ====== EARNINGS PER SHARE $ .39 $ .43 $ .79 $ .83 ====== ====== ====== ======
-15- EX-27 3 EXHIBIT 27
5 1,000 6-MOS MAR-31-1998 APR-01-1997 SEP-30-1997 3,919 0 820 0 23,789 33,133 164,468 (46,398) 118,070 24,971 0 0 138 79 73,229 155,025 82,313 82,313 45,862 45,862 23,399 0 1,770 11,282 4,513 6,769 0 0 0 6,769 0.79 0.79
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