~ Second Quarter Sales Up 16.3% to $205.3 Million ~ ~ Second Quarter Net Income Up 18.2% to $13.6 Million; EPS of $.42 In Line With Guidance ~ ~ Signs Definitive Agreements to Acquire 10 Stores Representing Annual Sales of Approximately $15 Million ~ ~ Narrows Estimated Fiscal 2014 EPS Range to $1.58 to $1.65 ~
ROCHESTER, N.Y., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Monro Muffler Brake, Inc. (Nasdaq:MNRO) ("Monro" or the "Company"), a leading provider of automotive undercar repair and tire services, today announced financial results for its second quarter ended September 28, 2013.
Second Quarter ResultsSales for the second quarter of fiscal 2014 increased 16.3% to $205.3 million as compared to $176.5 million for the second quarter of fiscal 2013. The total sales increase for the second quarter of $28.8 million was due to an increase in sales from new stores, including recently acquired stores of $33.9 million, partially offset by a decrease in comparable store sales of 2.1%. Comparable store sales increased approximately 5% for exhaust and 4% for brakes, and were flat for front end/shocks, while comparable store sales decreased approximately 2% for maintenance, 4% for alignments, and 6% for tires. Gross margin increased to 39.8% in the second quarter from 39.6% in the prior year quarter due to lower material costs and payroll control in comparable stores. These factors and leverage of fixed costs from higher overall sales more than offset the sales mix shift to the lower margin tire category related to recently acquired stores. Total operating expenses were $57.8 million, or 28.2% of sales, as compared with $50.1 million, or 28.4% of sales, for the same period of the prior year. Operating income for the quarter increased 21.2% to $23.9 million from $19.7 million in the second quarter of fiscal 2013. Interest expense was $2.0 million as compared to $1.4 million in the second quarter of fiscal 2013.