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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, 1998
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 June 18, 1998, to holders of record as of June 8,
1998.
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, 1998, 7,915,797 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 Page
- ----------- ----------- ----
99.1 Press Release 4
dated May 20, 1998
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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)
May 26, 1998 /s/ Catherine D'Amico
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Catherine D'Amico
Sr. Vice President-Finance & CFO
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Contacts: Jack M. Gallagher
President
Chief Executive Officer
(716) 647-6400
Catherine D'Amico
Senior V.P. - Finance
Chief Financial Officer
(716) 647-6400
FOR IMMEDIATE RELEASE
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MONRO MUFFLER BRAKE ANNOUNCES FOURTH QUARTER
AND YEAR-END RESULTS
~ COMPANY REPORTS RECORD SALES FOR FOURTH QUARTER AND FULL YEAR ~
~ DECLARES 5% STOCK DIVIDEND ~
ROCHESTER, N.Y., May 20, 1998 -- Monro Muffler Brake, Inc. (NASDAQ: MNRO), an
operator of 350 undercar auto repair stores, today announced results for its
fourth quarter and year ended March 31, 1998.
For the fiscal 1998 fourth quarter, sales rose to a record $35,645,000, a
$3,581,000 increase over sales for the prior-year period. Comparable store sales
increased 1.5% and new stores added $3,173,000 in incremental sales. Net income
for the quarter was $1,385,000, or $0.16 per diluted share, compared with fiscal
1997 fourth quarter net income of $1,461,000, or $0.17 per diluted share.
Earnings per share give retroactive effect to the 5% stock dividend paid August
4, 1997.
For the year ended March 31, 1998, sales increased 9.3% to a record $154,294,000
versus $141,169,000 for the prior fiscal year. New stores opened after March 31,
1996 added $13,624,000 in incremental sales. Comparable store sales declined
0.2% for the year. Net income for the year was $9,854,000, or $1.15 per diluted
share, compared to $10,191,000, or $1.19 per diluted share, in the prior fiscal
year. Earnings per share give retroactive effect to the 5% stock dividend paid
August 4, 1997.
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MONRO MUFFLER BRAKE, INC.
EARNINGS RELEASE
Jack M. Gallagher, President and Chief Executive Officer commented, "While 1998
was a challenging year in several respects, we are proud of our many
accomplishments which included the introduction of new products, the achievement
of a solidly profitable year, and improvements in infrastructure which will
enable us to capitalize upon changing industry trends. In the fourth quarter, we
successfully completed the rollout of scheduled maintenance services to all of
our stores. This innovative program offers our customers the services necessary
to keep their vehicles in compliance with their warranty schedules in a more
convenient and cost competitive fashion than auto dealers.
"In the course of the year, we also established Monro University, a
comprehensive training institute to maximize the potential of our store managers
and build on the company culture of customer trust. Most recently, we announced
a definitive agreement to acquire the 205-store Speedy U.S.A. chain. This
development is consistent with our growth strategy to take advantage of
consolidation opportunities within the industry and enhance our competitive
advantage."
Mr. Gallagher concluded, "In fiscal 1998, we continued to focus on the factors
which have made Monro a success: an unwavering commitment to customer
satisfaction, centralized control of our stores, comprehensive and innovative
training techniques, and complete undercar service with a continued focus on
product diversification. We believe these distinguishing strengths will
contribute to continued improvements in fiscal 1999 and should assist us in
maximizing the potential of the Speedy U.S.A. chain." The Company opened 39
stores in fiscal 1998 and plans to continue its expansion strategy by opening
approximately 30 stores in fiscal 1999, exclusive of the stores involved with
the pending Speedy acquisition.
Separately, the Company's Board of Directors has declared a 5% stock dividend,
payable June 18, 1998 to holders of record as of June 8, 1998.
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MONRO MUFFLER BRAKE, INC.
SALES AND EARNINGS RELEASE
Monro Muffler Brake operates a chain of stores providing automotive undercar
repair services in the United States. The company currently operates 350 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
mufflers and 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,
1997.
(Financial tables to follow)
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MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended March 31,
-----------------------
1998 1997 % Change
---- ---- --------
<S> <C> <C> <C>
Sales $35,645 $32,065 11.2%
Cost of sales, including
distribution and occupancy costs 20,652 17,968 14.9
------- -------
Gross profit 14,993 14,097 6.4
Operating, selling, general
and administrative expenses 11,483 10,740 6.9
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Operating income 3,510 3,357 4.6
Interest expense, net 1,054 722 46.0
Other expense, net 65 199
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Income before provision for
income taxes 2,391 2,436 (1.8)
Provision for income taxes 1,006 975 3.2
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Net income $ 1,385 $ 1,461 (5.2)
======= =======
Basic earnings per common share (a) $ .18 $ .19
========= =========
Diluted earnings per common share (a) $ .16 $ .17
========= =========
Number of stores open
(at end of quarter) 350 313
<FN>
(a) All share data has been restated to reflect the 5% stock dividend paid to shareholders on August 4, 1997.
</TABLE>
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<TABLE>
<CAPTION>
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands, except per share amounts)
Year Ended March 31,
--------------------
1998 1997 % Change
---- ---- --------
<S> <C> <C> <C>
Sales $154,294 $141,169 9.3%
Cost of sales, including
distribution and occupancy costs 87,510 78,792 11.1
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Gross profit 66,784 62,377 7.1
Operating, selling, general
and administrative expenses 46,120 41,749 10.5
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Operating income 20,664 20,628 .2
Interest expense, net 3,829 3,224 18.8
Other expense, net 331 475
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Income before provision for
income taxes 16,504 16,929 (2.5)
Provision for income taxes 6,650 6,738 (1.3)
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Net income $ 9,854 $ 10,191 (3.3)
========= =========
Basic earnings per common share (a) $ 1.25 $ 1.31
========== ===========
Diluted earnings per common share (a) $ 1.15 $ 1.19
========== ===========
<FN>
(a) All share data has been restated to reflect the 5% stock dividend paid to shareholders on August 4, 1997.
</TABLE>
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<TABLE>
<CAPTION>
MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Dollars in thousands)
March 31,
---------
1998 1997
---- ----
ASSETS
<S> <C> <C>
Cash $ 5,315 $ 6,438
Inventories 27,492 20,010
Other current assets 6,681 6,149
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Total current assets 39,488 32,597
Property, plant and equipment, net 116,410 109,683
Other noncurrent assets 3,190 3,987
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Total assets $159,088 $146,267
=============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 25,971 $ 23,018
Long-term debt 54,102 54,850
Other long term liabilities 576 14
Deferred income taxes 1,881 1,760
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Total liabilities 82,530 79,642
Total shareholders' equity 76,558 66,625
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Total liabilities and shareholders'
equity $159,088 $146,267
=============== ==============
</TABLE>
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