Monro Earnings 2020-06-27

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

mnro-20200627x10q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________

FORM 10-Q

____________________________________________________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2020.

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 0-19357

____________________________________________________________

MONRO, INC.

(Exact name of registrant as specified in its charter)

____________________________________________________________


New York	16-0838627
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

200 Holleder Parkway, Rochester, New York	14615
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (585) 647-6400

_________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

MNRO

The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x Accelerated Filer ¨ Non-Accelerated Filer ¨ Smaller Reporting Company ¨

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

There were 33,285,901 shares of the registrant's common stock, par value $0.01 per share, outstanding at July 24, 2020.

Table of Contents

MONRO, INC.

INDEX


Part I. Financial Information	Page No.
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets	3
Consolidated Statements of Comprehensive Income	4
Consolidated Statements of Changes in Shareholders’ Equity	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3. Quantitative and Qualitative Disclosures About Market Risk	18
Item 4. Controls and Procedures	18
Part II. Other Information
Item 1. Legal Proceedings	20
Item 1A. Risk Factors	20
Item 6. Exhibits	21
Signatures	22

‎

Table of Contents

MONRO, INC.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

MONRO, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



	June 27,		March 28,
	2020		2020
	(Dollars in thousands)
Assets
Current assets:
Cash and equivalents	$	147,174	$	345,476
Trade receivables		13,415		14,510
Federal and state income taxes receivable		7,345		8,056
Inventories		176,530		187,441
Other current assets		36,792		40,537
Total current assets		381,256		596,020
Property, plant and equipment		692,618		682,932
Less - Accumulated depreciation and amortization		(363,703)		(354,295)
Net property, plant and equipment		328,915		328,637
Finance lease and financing obligation assets, net		253,956		196,575
Operating lease assets, net		206,252		199,729
Goodwill		671,831		671,843
Intangible assets, net		28,706		29,781
Other non-current assets		21,787		20,688
Long-term deferred income tax assets		6,139		6,184
Total assets	$	1,898,842	$	2,049,457
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of finance leases and financing obligations	$	33,744	$	32,257
Current portion of operating lease liabilities		30,696		30,181
Trade payables		110,853		99,504
Accrued payroll, payroll taxes and other payroll benefits		17,873		14,429
Accrued insurance		42,461		43,387
Deferred revenue		12,281		13,129
Other current liabilities		33,868		22,049
Total current liabilities		281,776		254,936
Long-term debt		326,200		566,400
Long-term finance leases and financing obligations		350,212		298,373
Long-term operating lease liabilities		180,767		170,954
Other long-term liabilities		17,280		12,873
Long-term deferred income tax liabilities		10,461		10,069
Long-term income taxes payable		1,426		1,412
Total liabilities		1,168,122		1,315,017
Commitments and contingencies
Shareholders' equity:
Class C Convertible Preferred Stock, $1.50 par value, $0.064 conversion value, ‎150,000 shares authorized; 21,802 shares issued and outstanding		33		33
Common Stock, $0.01 par value, 65,000,000 shares authorized; 39,645,772 and ‎39,644,228 shares issued at June 27, 2020 and March 28, 2020, respectively		396		396
Treasury Stock, 6,359,871 shares, at cost		(108,729)		(108,729)
Additional paid-in capital		230,683		229,774
Accumulated other comprehensive loss		(7,059)		(6,889)
Retained earnings		615,396		619,855
Total shareholders' equity		730,720		734,440
Total liabilities and shareholders' equity	$	1,898,842	$	2,049,457

The accompanying notes are an integral part of these financial statements.

Table of Contents

MONRO, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)



	Quarter Ended
	June 27,		June 29,
	2020		2019
	(Dollars in thousands, ‎except per share data)
Sales	$	247,059	$	317,063
Cost of sales, including distribution and occupancy costs		159,605		188,916
Gross profit		87,454		128,147
Operating, selling, general and administrative expenses		76,053		91,776
Operating income		11,401		36,371
Interest expense, net of interest income		7,385		7,157
Other loss (income), net		9		(175)
Income before income taxes		4,007		29,389
Provision for income taxes		1,020		6,783
Net income	$	2,987	$	22,606
Other comprehensive loss:
Changes in pension, net of tax benefit		(170)		(89)
Other comprehensive loss		(170)		(89)
Comprehensive income	$	2,817	$	22,517
Earnings per common share:
Basic	$	0.09	$	0.68
Diluted	$	0.09	$	0.67
Weighted average number of common shares outstanding ‎ used in computing earnings per share:
Basic		33,285		33,183
Diluted		33,854		33,964

The accompanying notes are an integral part of these financial statements.

‎

Table of Contents

MONRO, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(UNAUDITED)

(Dollars and shares in thousands)



		Class C Convertible ‎Preferred Stock			Common Stock			Treasury Stock			Additional ‎Paid-in		Accumulated ‎Other ‎Comprehensive		Retained
		Shares	Amount		Shares	Amount		Shares	Amount		Capital		Loss		Earnings		Total
Balance at March 30, 2019		22	$	33	39,511	$	395	6,360	$	(108,729)	$	220,173	$	(4,536)	$	592,174	$	699,510
Accounting change - cumulative effect																(582)		(582)
Adjusted balance		22		33	39,511		395	6,360		(108,729)		220,173		(4,536)		591,592		698,928
Net income																22,606		22,606
Other comprehensive loss:
Pension liability adjustment ‎ ($118) pre-tax														(89)				(89)
Cash dividends ⁽¹⁾:	Preferred															(112)		(112)
	Common															(7,305)		(7,305)
Dividend payable																(10)		(10)
Activity related to equity-based plans					71		1					3,644						3,645
Stock-based compensation												925						925
Balance at June 29, 2019		22	$	33	39,582	$	396	6,360	$	(108,729)	$	224,742	$	(4,625)	$	606,771	$	718,588

Balance at March 28, 2020		22	$	33	39,645	$	396	6,360	$	(108,729)	$	229,774	$	(6,889)	$	619,855	$	734,440
Net income																2,987		2,987
Other comprehensive loss:
Pension liability adjustment ‎ ($226) pre-tax														(170)				(170)
Cash dividends ⁽¹⁾:	Preferred															(112)		(112)
	Common															(7,323)		(7,323)
Dividend payable																(11)		(11)
Activity related to equity-based plans					1		—					5

Price	78.51	EPS	2
Shares	34	P/E	33
MCap	2,668	P/FCF	26
Net Debt	163	EBIT	102
TEV	2,831	TEV/EBIT	28
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-27	Filed 2020-08-06
10-K	2020-03-28	Filed 2020-06-12
10-Q	2019-12-28	Filed 2020-02-06
10-Q	2019-09-28	Filed 2019-11-07
10-Q	2019-06-29	Filed 2019-08-08
10-K	2019-03-30	Filed 2019-05-29
10-Q	2018-12-29	Filed 2019-02-07
10-Q	2018-09-29	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-09
10-K	2018-03-31	Filed 2018-05-30
10-Q	2017-12-23	Filed 2018-02-01
10-Q	2017-09-23	Filed 2017-11-02
10-Q	2017-06-24	Filed 2017-08-03
10-K	2017-03-25	Filed 2017-05-24
10-Q	2016-12-24	Filed 2017-02-02
10-Q	2016-09-24	Filed 2016-11-03
10-Q	2016-06-25	Filed 2016-08-04
10-K	2016-03-26	Filed 2016-05-25
10-Q	2015-12-26	Filed 2016-02-04
10-Q	2015-09-26	Filed 2015-11-05
10-Q	2015-06-27	Filed 2015-08-06
10-K	2015-03-28	Filed 2015-05-27
10-Q	2014-12-27	Filed 2015-02-05
10-Q	2014-09-27	Filed 2014-11-06
10-Q	2014-06-28	Filed 2014-08-07
10-K	2014-03-29	Filed 2014-05-28
10-Q	2013-12-28	Filed 2014-02-04
10-Q	2013-09-28	Filed 2013-10-31
10-Q	2013-06-29	Filed 2013-07-30
10-K	2013-03-30	Filed 2013-05-29
10-Q	2012-12-29	Filed 2013-02-07
10-Q	2012-09-29	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-09
10-K	2012-03-31	Filed 2012-05-30
10-Q	2011-12-24	Filed 2012-02-02
10-Q	2011-09-24	Filed 2011-11-03
10-Q	2011-06-25	Filed 2011-08-04
10-K	2011-03-26	Filed 2011-05-25
10-Q	2010-12-25	Filed 2011-02-03
10-Q	2010-09-25	Filed 2010-10-29
10-Q	2010-06-26	Filed 2010-08-02
10-K	2010-03-27	Filed 2010-06-10
10-Q	2009-12-26	Filed 2010-02-04

8-K	2020-10-28	Earnings, Other Events, Exhibits
8-K	2020-08-18	Shareholder Vote, Other Events, Exhibits
8-K	2020-08-01	Officers, Exhibits
8-K	2020-07-29	Earnings, Other Events, Exhibits
8-K	2020-06-11
8-K	2020-05-28
8-K	2020-05-27
8-K	2020-04-11
8-K	2020-03-27
8-K	2020-02-14
8-K	2020-01-30
8-K	2019-10-24
8-K	2019-09-30
8-K	2019-08-13
8-K	2019-07-25
8-K	2019-05-21
8-K	2019-04-25
8-K	2019-03-21
8-K	2019-02-20
8-K	2019-01-31
8-K	2018-10-25
8-K	2018-10-08
8-K	2018-09-27
8-K	2018-08-14
8-K	2018-07-31
8-K	2018-07-26
8-K	2018-06-28
8-K	2018-05-21
8-K	2018-04-17
8-K	2018-03-26
8-K	2018-03-05
8-K	2018-02-16
8-K	2018-01-30

EX-31.1	mnro-20200627xex31_1.htm
EX-31.2	mnro-20200627xex31_2.htm
EX-32.1	mnro-20200627xex32_1.htm

MNRO 10Q Quarterly Report

Monro Earnings 2020-06-27