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Second Quarter Sales Up 18.6%, Comparable Store Sales Increase 6.4%
Second Quarter Net Income Up 33.2%; EPS $.63 Versus $.49 Last YearThird Quarter Fiscal 2011 Estimated EPS Range of $.44 to $.50 Versus $.38 Last YearIncrease Estimated Fiscal 2011 EPS Range to $2.00 to $2.06
ROCHESTER, N.Y., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Monro Muffler Brake, Inc. (Nasdaq:MNRO), a leading provider of automotive undercar repair and tire services, today announced record financial results for its second quarter ended September 25, 2010.
Second Quarter Results
Sales for the second quarter of fiscal 2011 increased 18.6% to a record $162.1 million compared to $136.6 million for the second quarter of fiscal 2010. Sales growth was driven by recent acquisitions, as well as strong in-store sales execution. Comparable store sales increased 6.4% on top of a 7.4% increase last year. Comparable store sales increased approximately 10% for tires, 9% for shocks, 8% for maintenance services, 6% for exhaust and 4% for alignments, with brakes flat as compared to last year.
Gross margin decreased to 40.9% in the second quarter from 43.1% in the prior year quarter as a result of a continued shift in sales mix towards the lower-margin tire category due to the addition of 79 acquired tire stores in fiscal 2010 and 2011 and increased tire material costs. The impact of these factors was partially offset by improved labor productivity and leveraging of fixed occupancy costs. Total operating expenses were $43.7 million, or 26.9% of sales, compared with $41.3 million, or 30.2% of sales, for the same period of the prior year. The reduction in operating expenses as a percent of sales is largely due to leveraging of these costs against the significant increase in sales, combined with the impact of cost control on discretionary expenses.
Operating income for the quarter increased 29.5% to $22.7 million from $17.5 million in the second quarter of fiscal 2010. Interest expense was $1.2 million compared to $1.4 million in the second quarter of fiscal 2010.