UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.
Date of Report (Date of Earliest Event Reported):
May 4, 2017
MONRO MUFFLER BRAKE, INC.
(Exact name of registrant as specified in its charter)
New York | 0-19357 | 16-0838627 | ||
(State of Incorporation) | (Commission File Number) |
(I.R.S. Employer Identification No.) | ||
200 Holleder Parkway, Rochester, New York | 14615 | |||
(Address of Principal Executive Offices) | (Zip Code) | |||
Registrants telephone number, including area code | (585) 647-6400 |
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 | Regulation FD Disclosure |
On May 4, 2017, Monro Muffler Brake, Inc. (the Company) issued a press release in which it, among other things, provided a business update for expectations of sales and earnings for the Companys fourth quarter and fiscal year ended March 25, 2017. In addition, the Company provided preliminary guidance for fiscal 2018 and announced the completed acquisition during the fourth quarter of 16 Car-X stores in Illinois and Iowa. The Company also confirmed that it will release its complete fourth quarter and full year fiscal 2017 earnings and fiscal 2018 guidance on May 18, 2017. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 9.01 | Financial Statements and Exhibits |
(a) | Not applicable. | |
(b) | Not applicable. | |
(c) | The following is a list of exhibits furnished with this Current Report on Form 8-K: |
Exhibit |
Description | |
99.1 | Press release, dated May 4, 2017. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MONRO MUFFLER BRAKE, INC. | ||||||
(Registrant) | ||||||
May 4, 2017 |
By: | /s/ Maureen E. Mulholland | ||||
Maureen E. Mulholland | ||||||
Vice President General Counsel and | ||||||
Secretary |
Exhibit 99.1
CONTACT: | John Van Heel |
Chief Executive Officer |
(585) 647-6400 |
Robert Gross |
Executive Chairman |
(585) 647-6400 |
Brian DAmbrosia |
Senior Vice President Finance |
Chief Financial Officer |
(585) 647-6400 |
Investors and Media: Effie Veres |
FTI Consulting |
(212) 850-5600 |
FOR IMMEDIATE RELEASE
MONRO MUFFLER BRAKE, INC. PROVIDES BUSINESS UPDATE
AND ANNOUNCES CONFERENCE CALL AND WEBCAST OF FISCAL 2017 FOURTH
QUARTER RESULTS
ROCHESTER, N.Y. May 4, 2017 Monro Muffler Brake, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, today provided a business update for its fiscal 2017 fourth quarter ended March 25, 2017 and guidance for its full year fiscal 2018.
For the fourth quarter of fiscal 2017, total sales were approximately $252 million, a 10% increase over sales in the prior year quarter of $229 million, despite an 8% decline in comparable store sales and one less selling day in the quarter. As a result of the comparable store sales decline, the Company now expects diluted earnings per share for the fourth quarter to be $.29. The decline in comparable store sales was largely driven by a decline in tires sales, particularly in the Northeast and North central regions of the country, which were negatively impacted by weather.
For fiscal 2017, total sales were $1.022 billion, an 8% increase over sales in the prior year of $944 million, despite a comparable store sales decline of 4.3%. The Company now expects diluted earnings per share for fiscal 2017 of $1.85.
During the fourth quarter of fiscal 2017, the Company completed the previously announced acquisition of 16 Car-X stores in Illinois and Iowa, which represent annualized sales of approximately $15 million.
John Van Heel, President and Chief Executive Officer stated, We believe our fiscal 2017 comparable store sales decline is a reflection of the negative impact of unseasonable weather on our business, as well as the challenging economic conditions facing our customers. In fiscal 2017, we continued to leverage our increasing scale to lower our tire costs, while effectively controlling our operating expenses. In this difficult environment, we also capitalized on attractive acquisition opportunities, completing transactions representing approximately $150 million in annualized sales or 16% annualized sales growth. Quarter-to-date in fiscal 2018, our comparable store sales have improved and are up approximately 3%. We expect these early, positive trends, combined with contributions from our recent acquisitions and an extra week in fiscal 2018, to be positive drivers of earnings in the new fiscal year.
Based on current visibility and recently completed acquisitions, the Company anticipates that its fiscal 2018 diluted earnings per share will be between $2.10 to $2.30, which represents an increase of 14% to 24%, over the prior fiscal year. The guidance is based on an expected fiscal 2018 comparable store sales increase of 2% to 4% on a 52-week basis (4% to 6% including an extra week in the fourth quarter). This guidance reflects the estimated impact of higher tire selling prices related to expected tire cost increases. Fiscal 2018 diluted earnings per share guidance also includes approximately $.10 of contribution from the 53rd week and $.15 to $.19 in accretion from recent acquisitions.
The Company will release its complete fourth quarter and full year fiscal 2017 earnings on May 18, 2017. The Company will host a conference call and audio webcast on Thursday May 18, 2017 at 11:00 a.m. Eastern Time. The conference call may be accessed by dialing 1-888-516-2447 and using the required pass code 4779697. A replay will be available approximately one hour after the recording through Thursday, June 1, 2017 and can be accessed by dialing 1-844-512-2921. The live conference call and replay can also be accessed via audio webcast at the Investor Information section of the Companys website, located at www.monro.com. An archive will be available at this website through June 1, 2017.
About Monro Muffler Brake
Monro Muffler Brake operates a chain of stores providing automotive undercar repair and tire services in the United States, operating under the brand names of Monro Muffler Brake and Service, Mr. Tire, Tread Quarters Discount Tires, Autotire, Tire Warehouse, Tire Barn, Ken Towerys Tire and Auto Care, The Tire Choice and Car-X. The Company currently operates 1,117 Company stores in 27 states and is the franchisor of 113 Car-X stores in nine states. Monros stores provide a full range of services for brake systems, steering and suspension systems, tires, exhaust systems and many vehicle maintenance services and certain locations specialize in providing commercial tire and maintenance services. Through Tires Now, the Company also engages in wholesale tire distribution.
The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as expected, estimate, guidance, outlook, anticipate, project, believe, could, may, and other similar words or phrases. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to, product demand, dependence on and competition within the primary markets in which the Companys stores are located, the need for and costs associated with store renovations and other capital expenditures, the effect of economic conditions, seasonality, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to integration of acquired businesses and other factors set forth elsewhere herein and in the Companys Securities and Exchange Commission filings, including the Companys annual report on Form 10-K for the fiscal year ended March 26, 2016. Except as required by law, the Company does not undertake and specifically disclaims any obligation to update any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
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