Wired News – Monro Acquires Tennessee-Based Free Service Tire

Stock Monitor: VOXX Intl. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 23, 2018 / If you want access to our free research report on Monro, Inc. (NASDAQ: MNRO), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MNRO as the Company’s latest news hit the wire. On May 21, 2018, the Company announced that it has completed the acquisition of Johnson City, Tennessee-based Free Service Tire Co. The purchase consideration was not disclosed. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for VOXX International Corporation (NASDAQ: VOXX), which also belongs to the Consumer Goods sector as the Company Monro. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=VOXX

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Monro most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=MNRO

Deal Details

The acquisition includes Free Service Tire’s 12 retail and commercial stores, 4 wholesale distribution centers, and 1 retread facility, adding to Monro’s more than 130 existing retail, commercial, and wholesale locations in Tennessee, North Carolina, and Virginia.
Monro will continue to operate all Free Service Tire locations and retain store-level, wholesale, and retread associates.
The transaction is expected to add approximately $47 million in annualized sales, representing a sales mix of 15% service and 85% tires.
The acquisition is also expected to be breakeven to diluted earnings per share (EPS) in the fiscal year 2019.

Acquisition Expands Monro’s Footprint in the South, Providing Monro with an Even Stronger Platform for Further Growth in these Markets

Brett Ponton, President and Chief Executive Officer (CEO) of Monro, stated that this acquisition expands the Company’s footprint in the South while providing Monro with an even stronger platform for further growth in these markets. Ponton added that Monro is extremely pleased to welcome these outstanding teammates and locations to the Company, and looks forward to working with the entire Free Service Tire team.

Monro’s Tradition and Business Model is Similar to Free Service Tire

Commenting on the acquisition, Lewis Wexler, Jr., President of Free Service Tire, stated that Free Service Tire has been approached by many companies over the years, but it was not until Monro came along that it found the right fit for its customers, employees, and Company. Wexler, Jr. added that Monro has a tradition and business model much like Free Service Tire, and it is confident that Free Service Tire’s tradition of outstanding customer service will continue under Monro’s ownership.

Monro’s Fourth Quarter Financial Results

On May 21, 2018, the Company announced its financial results for the fourth quarter ended March 31, 2018 (Q4 FY18). The Company’s sales increased 13.3% to $285.6 million in Q4 FY18 compared to $252.0 million in Q4 FY17. The fiscal year 2018 was a 53-week year with 368 selling days compared to 361 selling days in FY17, and therefore included an extra week of sales in Q4 FY18. Monro’s gross margin increased 70 basis points to 37.7% in Q4 FY18 from 37.0% in the prior year’s same period, primarily due to leverage from higher comparable store sales. The Company’s total operating expenses increased by $4.2 million to $77.3 million, or 27.1% of sales, in Q4 FY18 compared to $73.1 million, or 29.0% of sales, in Q4 FY17.

Monro’s net income was $17.5 million in Q4 FY18 compared to $9.7 million in the prior year’s comparable period. The Company’s diluted EPS were $0.52 in Q4 FY18, including $0.02 per share in management transition costs; $0.04 per share of benefit related to the Tax Cuts and Jobs Act 2017 (TCJA); and $0.10 of contribution from the extra week. This compared to diluted EPS of $0.29 in Q4 FY17. During Q4 FY18, Monro opened 15 and closed 3 Company-operated locations, ending the quarter with 1,150 Company-operated stores and 102 franchised locations.

Monro’s Acquisition Deals in Q4 FY18

During Q4 FY18, Monro completed the previously announced acquisitions of 7 stores in Ohio, Kentucky, West Virginia, and Virginia. These stores fill in existing markets and are expected to add approximately $7 million in annualized sales, representing a sales mix of 45% service and 55% tires. Till date, the Company has completed over 80 acquisitions of multi-outlet and single store businesses.

About Monro, Inc.

Founded in 1957 and headquartered in Rochester, New York, Monro is the largest independently-owned and operated auto service chain in the United States, with 1,140 stores in 27 states, and the third-largest independent tire dealer. In 2017, the Company celebrated its 60th year in business.

Stock Performance Snapshot

May 22, 2018 – At Tuesday’s closing bell, Monro’s stock dropped 8.43%, ending the trading session at $52.15.

Volume traded for the day: 1.13 million shares, which was above the 3-month average volume of 315.66 thousand shares.

Stock performance in the last three-month – up 0.77%; previous six-month period – up 7.64%; and past twelve-month period – up 1.36%

After yesterday’s close, Monro’s market cap was at $1.73 billion.

Price to Earnings (P/E) ratio was at 28.45.

The stock has a dividend yield of 1.38%.

The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors

ReleaseID: 500569