Monro, Inc. · NASDAQ:MNRO
Monro — Investor Presentation (August 2022)
16 slides from Monro's investor presentation, August 2022
Slide 1: Monro, Inc. Investor Presentation August 2022
Monro, Inc. FOURTH QUARTER InvestorFISCAL Presentation 2021 EARNINGS August 2022 CALL MAY 20, 2021
Slide 2: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement and Non-GAAP Measures Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities
Slide 3: Company Overview
Company Overview A Leading Chain of Independently Owned and Operated Tire and Auto Service Locations Fiscal 2022 sales of $1,359.3 million 1,303 company operated stores in 32 states 79 franchised locations 35 acquisitions in the past 9 years adding Dominant in the Expanding in Southern 443 locations
Slide 4: Investment Thesis
Investment Thesis Leading national Focus on operational Scalable platform with Commitment to driving automotive service and tire excellence to increase significant growth Monro.Forward provider with 1,303 customer lifetime value opportunity in acquisitions Responsibly locations in 32 states Well-pos
Slide 5: A Favorable Industry Backdrop
A Favorable Industry Backdrop Favorable Industry Backdrop for Automotive Services Despite a Decrease in Miles Traveled in 2020 Resulting from the COVID-19 Pandemic U.S. Annual Light Vehicle Sales U.S. Light Vehicles in Operation (VIO) 290,000 20 18 280,000 16 270,000 14 12 260,000 10 250,000 8 6 240
Slide 6: A Favorable Industry Backdrop: Vehicles in Operation
A Favorable Industry Backdrop Monro is Well-Positioned to Capitalize on Positive Industry Trends, with Our Sweet Spot Experiencing the Fastest Growth in Vehicles in Operation Vehicles in Operation – 0 to 5 Years Vehicles in Operation – 6 to 12 Years 120 120 110 +6.56% CAGR -.03% CAGR 110 -3.97% CAGR
Slide 7: A Favorable Industry Backdrop: DIFM Segment
A Favorable Industry Backdrop Monro Operates in the $280 Billion Do-It-For-Me* Segment of $357 Billion U.S. Automotive Aftermarket Industry Automotive Aftermarket DIFM vs. DIY Sales % % 2013 2021 CAGR (outlets) (outlets) 400,000 Motor Vehicle Dealers 17,635 13.5% 16,676 12.4% (0.7%) 350,000 300,000
Slide 8: First Quarter Fiscal 2023 Highlights
First Quarter Fiscal 2023 Highlights Delivered Comp Sales Growth led by Outperformance in Retail & Acceleration from 300 Small or Underperforming Stores Quarterly Retail Comparable Store Sales Trends Monthly Retail Comparable Store Sales Trends 40% 36.3% 85% 79.0% FY22 70% 30% FY23 55% 20% 16.5% 16.
Slide 9: First Quarter Fiscal 2023 Results
First Quarter Fiscal 2023 Results Well Positioned to Drive Sustainable Comp Sales & EPS Growth in Fiscal 2023 Q1FY23 Q1FY22 Δ Sales (millions)1 $349.5 $341.8 2.3% Retail Same 2.8% 36.3% (3,350 bps) Store Sales Gross Margin1 35.0% 36.8% (180 bps) Operating 7.5% 8.2% (70 bps) Margin1 Diluted EPS1 $.37
Slide 10: Solid Financial Position
Solid Financial Position Strong Operating Cash Flow Supports Growth Strategy and Capital Return to Shareholders Disciplined Capital Allocation Strong Balance Sheet and Liquidity First Quarter Fiscal 2023 ▪ Received ~$62M of divestiture proceeds1 ▪ Generated record operating cash flow of ~$77M during
Slide 11: Strategic Priorities
Strategic Priorities Capitalize on Growing Retail Demand to Sustain Long Term Growth Driving productivity improvements and delivering sales growth in all Retail locations with a focus on ~300 of our small or underperforming stores Generate significant cash flow through improved profitability and wor
Slide 12: Focus on In-Store Execution
Focus on In-Store Execution Attachment Outside Purchase Staffing Scheduling Training Selling Management Sustainable Comp Sales Growth Gross Profit Operating Margin Improvement Expansion Opportunistic M&A Expected Additional Value Creation for Shareholders through: Enhanced Significant Higher Returns
Slide 13: Non-Core Asset Divestiture & Capital Return
Non-Core Asset Divestiture & Capital Return Enables Sharper Focus on Retail Operations, Category Management, Working Capital Optimization & Capital Return to Shareholders Divestiture ▪ Completed divestiture of our non-core Wholesale and tire distribution assets to American Tire Distributors for $102
Slide 14: A Scalable Platform for Acquisitions
A Scalable Platform for Acquisitions Executing Disciplined M&A Strategy to Capitalize on Significant Opportunities for Consolidation in the Aftermarket Fiscal 2022 Acquisitions ▪ Completed acquisitions of 47 stores, including 36 in California and 11 in Iowa ▪ Further expands the Company’s geographic
Slide 15: Appendix
Appendix 15
Slide 16: Fiscal 2023 Outlook – Financial Assumptions
Fiscal 2023 Outlook – Financial Assumptions Q2 & FY Outlook Considerations Financial Assumptions as of July 27, 2022 ▪ Preliminary fiscal July comp store sales decreased <1%; 300 small or Total Company Sales Increase y/y underperforming stores up nearly 10% and continued softness in consumer demand