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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 20, 1997
MONRO MUFFLER BRAKE, INC.
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(Exact name of registrant as specified in its charter)
Commission File Number 0-19357
New York 16-0838627
(State of incorporation) (I.R.S. Employer
Identification No.)
200 Holleder Parkway, Rochester, New York 14615
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (716) 647-6400
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Item 5. Other Events.
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The Board of Directors of Monro Muffler Brake, Inc. (the Registrant) declared a
5% stock dividend, payable August 4, 1997, to holders of record as of June 20,
1997.
In lieu of issuing any fractional shares of common stock, the Registrant will
pay holders thereof an amount in cash equal to such fraction times the closing
price of the common stock on the record date.
As of May 20, 1997, 7,470,326 shares of the Registrant's Common Stock, par value
$.01 per share, were outstanding.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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The following is a list of exhibits filed with this Current Report on Form 8-K
indexed to their location in the sequentially numbered copy.
Exhibit No. Description
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99.1 Press Release
dated May 20, 1997
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SIGNATURES
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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 hereunto duly authorized.
MONRO MUFFLER BRAKE, INC.
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(Registrant)
June 10, 1997 /s/ Catherine D'Amico
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Catherine D'Amico
Sr. Vice President-Finance & CFO
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[LOGO - NEWS RELEASE ...]
APPROVED BY: Lawrence C. Day
President
Chief Executive Officer
Catherine D'Amico
Senior V.P. - Finance
Chief Financial Officer
(716) 647-6400
CONTACT: Investor Relations:
June Filingeri/Melissa Garelick
Press: Stan Froelich
Morgan-Walke Associates
(212) 850-5600
FOR IMMEDIATE RELEASE
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MONRO MUFFLER BRAKE REPORTS RECORD SALES
AND EARNINGS FOR ITS 1997 FISCAL YEAR
- COMPANY DECLARES 5% STOCK DIVIDEND -
ROCHESTER, N.Y., May 20, 1997 -- Monro Muffler Brake, Inc. (Nasdaq:MNRO),
today announced record sales and earnings for its fiscal year ended March 31,
1997.
Net sales for fiscal 1997 increased 20.5% to a record $141,169,000, as
compared with $117,104,000 for the previous fiscal year. Monro attributed the
growth to a 7.9% increase in comparable store sales, and an increase of
$16,287,000 attributable to stores opened after March 31, 1995.
Net income for fiscal 1997 increased 33.8% to $10,191,000, or $1.25 per
share, compared to $7,614,000, or $.94 per share in the previous fiscal year.
Earnings per share give retroactive effect to the 5% stock dividend paid August
5, 1996.
For the three months ended March 31, 1997, sales increased 11.5% to
$32,065,000 compared to $28,752,000 for the corresponding quarter ended March
31, 1996. Comparable store sales for the fiscal 1997 fourth quarter increased
.9% and stores opened after March 31, 1995 added $3,308,000. The .9% comparable
store gain was against an 11.6% comparable store sales increase for the same
quarter last year.
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MONRO MUFFLER BRAKE REPORTS RECORD SALES AND EARNINGS Page 2
Net income for the fiscal 1997 fourth quarter increased 14.1% to
$1,461,000, or $.18 per share, compared to $1,281,000, or $.16 per share in the
same quarter last year, after giving retroactive effect to the 5% stock dividend
paid August 5, 1996.
Lawrence C. Day, President and Chief Executive Officer, commented, "We are
very proud of our record sales and earnings results for fiscal 1997, which we
believe reflect, in part, a release of the pent-up demand from previously
deferred repairs, combined with favorable industry factors."
Mr. Day continued, "Qualitatively, we are also very pleased with our fiscal
1997 performance which included repositioning the Company as a branded consumer
service company, as well as forming new, strong, strategic alliances.
"At the end of fiscal 1997, we introduced our new market positioning,
`Monro Muffler Brake & Service', which, going forward, will help to increase
consumer awareness of the breadth of the Company's services, thereby increasing
traffic. Additionally, we joined forces with two quality brands, Bridgestone
Firestone and Walker Manufacturing, which we believe will provide new marketing
and co-branding opportunities, with the end result of increasing consumer
awareness of Monro, especially in new markets.
"Overall, we believe that our fiscal 1997 results are positive steps toward
our primary goal of maximizing share-owner value," Mr. Day concluded.
The Company opened 40 new stores in fiscal 1997, and plans to continue its
expansion strategy by opening between 40 and 50 stores in fiscal 1998, two of
which are now open and 12 of which are currently under construction.
Separately, the Company announced that its Board of Directors has declared
a 5% stock dividend, payable August 4, 1997, to holders of record as of June
20, 1997.
- MORE -
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MONRO MUFFLER BRAKE REPORTS RECORD SALES AND EARNINGS Page 3
Monro Muffler Brake operates a chain of stores providing automotive
undercar repair services in the United States. The Company currently operates
315 stores in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West
Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North
Carolina, South Carolina and Indiana. Monro's stores provide a full range of
services for exhaust systems, brake systems, steering and suspension systems and
many vehicle maintenance services.
Certain statements made above may be forward-looking and are made pursuant
to the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve uncertainties which may cause the
Company's actual results in future periods to differ materially from those
expressed. These uncertainties include, but are not necessarily limited to,
uncertainties affecting retail generally (such as consumer confidence and demand
for auto repair); risks relating to leverage and debt service (including
sensitivity to fluctuations in interest rates); dependence on, and competition
within, the primary markets in which the Company's stores are located; the need
for, and costs associated with, store renovations and other capital
expenditures; and the risks described from time to time in the Company's SEC
reports which include the report on Form 10K for the fiscal year ended March 31,
1996.
(Financial tables to follow)
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<TABLE>
<CAPTION>
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended March 31,
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1997 1996 % Change
------- ------- ---------
<S> <C> <C> <C>
Sales $32,065 $28,752 11.5%
Cost of sales, including
distribution and occupancy costs 17,968 16,372 9.7
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Gross profit 14,097 12,380 13.9
Operating, selling, general
and administrative expenses 10,740 9,199 16.8
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Operating income 3,357 3,181 5.6
Interest expense, net 722 854 (15.5)
Other expense, net 199 193 3.1
------- -------
Income before provision for
income taxes 2,436 2,134 14.2
Provision for income taxes 975 853 14.3
------- -------
Net income $ 1,461 $ 1,281 14.1
======= =======
Earnings per share (a) $ .18 $ .16 12.5%
======= =======
Weighted average number of
shares of common stock outstanding
(including common stock
equivalents) (000) (a) 8,182 8,073
Number of stores open
(at end of quarter) 313 274
</TABLE>
(a) All share data has been restated to reflect the 5% stock dividend paid to
shareholders on August 5, 1996.
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<TABLE>
<CAPTION>
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands, except per share amounts)
Year Ended March 31,
----------------------
1997 1996 % Change
---- ---- --------
<S> <C> <C> <C>
Sales $141,169 $117,104 20.5%
Cost of sales, including
distribution and occupancy costs 78,792 66,236 19.0
-------- --------
Gross profit 62,377 50,868 22.6
Operating, selling, general
and administrative expenses 41,749 35,299 18.3
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Operating income 20,628 15,569 32.5
Interest expense, net 3,224 2,637 22.3
Other expense, net 475 330 43.9
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Income before provision for
income taxes 16,929 12,602 34.3
Provision for income taxes 6,738 4,988 35.1
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Net income $ 10,191 $ 7,614 33.8
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Earnings per share (a) $ 1.25 $ .94 33.0%
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Weighted average number of
shares of common stock outstanding
(including common stock
equivalents) (000) (a) 8,171 8,077
</TABLE>
(a) All share data has been restated to reflect the 5% stock dividend paid to
shareholders on August 5, 1996.
- MORE-
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<TABLE>
<CAPTION>
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands)
March 31,
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1997 1996
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ASSETS
<S> <C> <C>
Cash $ 6,438 $ 5,280
Inventories 20,010 16,538
Other current assets 6,149 4,729
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Total current assets 32,597 26,547
Property, plant and equipment, net 109,683 90,279
Other noncurrent assets 3,987 3,229
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Total assets $146,267 $120,055
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 23,018 $ 17,656
Long-term debt 54,864 45,459
Deferred income taxes 1,760 1,053
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Total liabilities 79,642 64,168
Total shareholders' equity 66,625 55,887
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Total liabilities and shareholders'
equity $146,267 $120,055
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</TABLE>
