Monro Earnings 2019-12-28

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

mnro-20191228x10q

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 December 28, 2019.

¨ 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 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

As of January 24, 2020, 33,283,751 shares of the registrant's common stock, par value $0.01 per share, were outstanding.

Table of Contents

MONRO, INC.

INDEX


Part I. Financial Information	Page No.
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of December 28, 2019 and March 30, 2019	3
Consolidated Statements of Comprehensive Income for the quarters and nine months ended December 28, 2019 and December 29, 2018	4
Consolidated Statements of Changes in Shareholders’ Equity for the quarters and nine months ended December 28, 2019 and December 29, 2018	5
Consolidated Statements of Cash Flows for the nine months ended December 28, 2019 and December 29, 2018	6
Notes to Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3. Quantitative and Qualitative Disclosures About Market Risk	21
Item 4. Controls and Procedures	21
Part II. Other Information
Item 1. Legal Proceedings	22
Item 6. Exhibits	22
Signatures	23

‎

Table of Contents

MONRO, INC.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

MONRO, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



	December 28,		March 30,
	2019		2019
	(Dollars in thousands)
Assets
Current assets:
Cash and equivalents	$	8,826	$	6,214
Trade receivables		16,973		14,617
Federal and state income taxes receivable		1,652		5,586
Inventories		179,171		171,038
Other current assets		45,883		42,452
Total current assets		252,505		239,907
Property, plant and equipment		676,071		640,421
Less - Accumulated depreciation and amortization		(349,798)		(327,869)
Net property, plant and equipment		326,273		312,552
Finance lease and financing obligation assets, net		193,900		128,029
Operating lease assets, net		211,573		—
Goodwill		673,569		565,503
Intangible assets, net		30,916		51,107
Other non-current assets		18,436		13,024
Long-term deferred income tax assets		5,041		2,166
Total assets	$	1,712,213	$	1,312,288
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt, finance leases and financing obligations	$	31,084	$	22,229
Current portion of operating lease liabilities		30,534		—
Trade payables		115,512		103,602
Accrued payroll, payroll taxes and other payroll benefits		20,692		20,231
Accrued insurance		39,234		38,742
Deferred revenue		13,635		12,059
Other current liabilities		22,037		21,584
Total current liabilities		272,728		218,447
Long-term debt		196,985		137,682
Long-term finance leases and financing obligations		298,888		238,089
Long-term operating lease liabilities		176,583		—
Accrued rent expense		—		4,053
Other long-term liabilities		10,824		12,724
Long-term deferred income tax liabilities		7,258		—
Long-term income taxes payable		2,355		1,783
Total liabilities		965,621		612,778
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; 39,639,544 and ‎39,510,932 shares issued at December 28, 2019 and March 30, 2019, respectively		396		395
Treasury Stock, 6,359,871 shares at December 28, 2019 and March 30, 2019, at cost		(108,729)		(108,729)
Additional paid-in capital		228,617		220,173
Accumulated other comprehensive loss		(4,802)		(4,536)
Retained earnings		631,077		592,174
Total shareholders' equity		746,592		699,510
Total liabilities and shareholders' equity	$	1,712,213	$	1,312,288

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

Table of Contents

MONRO, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)



	Quarter Ended				Nine Months Ended
	Fiscal December				Fiscal December
	2019		2018		2019		2018
	(Dollars in thousands, ‎except per share data)
Sales	$	329,281	$	310,110	$	970,458	$	913,027
Cost of sales, including distribution and occupancy costs		204,929		192,144		595,886		557,876
Gross profit		124,352		117,966		374,572		355,151
Operating, selling, general and administrative expenses		92,781		87,256		273,273		256,862
Operating income		31,571		30,710		101,299		98,289
Interest expense, net of interest income		6,983		6,797		21,100		20,180
Other income, net		(274)		(321)		(655)		(809)
Income before provision for income taxes		24,862		24,234		80,854		78,918
Provision for income taxes		5,982		3,703		19,054		15,982
Net income		18,880		20,531		61,800		62,936
Other comprehensive loss, net of tax:
Changes in pension, net of tax benefit		(89)		(76)		(266)		(227)
Comprehensive income	$	18,791	$	20,455	$	61,534	$	62,709
Earnings per common share:
Basic	$	0.56	$	0.62	$	1.85	$	1.90
Diluted	$	0.56	$	0.61	$	1.82	$	1.87
Weighted average number of common shares outstanding ‎ used in computing earnings per share:
Basic		33,274		33,032		33,234		32,932
Diluted		33,973		33,766		33,971		33,605

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 September 29, 2018		22	$	33	39,300	$	393	6,345	$	(107,523)	$	206,533	$	(4,399)	$	568,304	$	663,341
Net income																20,531		20,531
Other comprehensive loss:
Pension liability adjustment ‎ ($100) pre-tax														(76)				(76)
Cash dividends ⁽¹⁾:	Preferred															(102)		(102)
	Common															(6,620)		(6,620)
Dividend payable																(12)		(12)
Activity related to equity-based plans					159		2	15		(1,206)		9,191						7,987
Stock-based compensation												1,085						1,085
Balance at December 29, 2018		22	$	33	39,459	$	395	6,360	$	(108,729)	$	216,809	$	(4,475)	$	582,101	$	686,134

Balance at September 28, 2019		22	$	33	39,628	$	396	6,360	$	(108,729)	$	226,948	$	(4,713)	$	619,641	$	733,576
Net income																18,880		18,880
Other comprehensive loss:
Pension liability adjustment ‎ ($118) pre-tax

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

EX-31.1	mnro-20191228xex31_1.htm
EX-31.2	mnro-20191228xex31_2.htm
EX-32.1	mnro-20191228xex32_1.htm

MNRO 10Q Quarterly Report

Monro Earnings 2019-12-28