Monro Muffler Brake Inc. (MNRO) reported that net income for the fourth quarter decreased 22.6% to $8.1 million from $10.5 million in the prior year period. Earnings per share for the quarter decreased 24.2% to $0.25. This compared to earnings per share of $0.33 in the fourth quarter of fiscal 2012, or $0.26 excluding a $0.07 benefit from the 53rd week in fiscal 2012.
Sales for the fourth quarter of fiscal 2013 increased 14.1% to $195.9 million as compared to $171.7 million for the fourth quarter of fiscal 2012, which included an extra week of sales. The total sales increase for the fourth quarter of $24.2 million was due to an increase in sales from new stores, including recently acquired stores, of $43.5 million.
Adjusted for days, comparable store sales decreased 5.6%, slightly better than the Company's previously estimated range of -9% to -6% and compared to a comparable store sales increase of .7% for the same period last year.
On a reported basis, comparable store sales decreased 11.4%. Comparable store sales, adjusted for days, were flat for maintenance services, and decreased approximately 6% for tires, alignments and exhaust, 7% for front end/shocks and 11% for brakes.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share on revenues of $189.92 million for the quarter. Analysts' estimates typically exclude special items.
John Van Heel, President and Chief Executive Officer said, "Our fourth quarter performance reflects the continued impact of the challenging economic environment that has been weighing on our customers. Given the environment, our customers continued to defer purchases and trade down from higher cost automotive maintenance and repair purchases. Additionally weather conditions remained less than ideal for our business, which impacted our comparable store sales results, particularly in January. Notably, however, with the return to more normalized weather after January, we saw an improvement in comparable store sales trends, and trends to-date in the first quarter of 2014 have shown further improvement into positive territory."
Additionally, the company announced that its Board has approved a $0.01 increase in the company's cash dividend for the first quarter of fiscal year 2014 to $0.11 per share, representing an increase of 10.0% from the quarterly dividends paid in fiscal 2013. The cash dividend is payable to shareholders of record on the Company's outstanding shares of common stock including the shares of common stock to which the holders of the Company's Class C Convertible Preferred Stock are entitled. The increased dividend will be payable on June 11, 2013 to shareholders of record as of May 31, 2013.
For the first quarter of fiscal 2014, the company anticipates comparable store sales increases to be in the range of 3% to 4%. The company expects earnings per share for the first quarter to be between $0.42 and $0.46, as compared to $0.36 for the first quarter of fiscal 2013. Analysts expect the company to report earnings of $0.48 per share on revenues of $211.13 million for the first-quarter.
The company anticipates fiscal 2014 sales to be between $840 and $865 million. Comparable store sales increases are expected to be in the range of 2.5% to 4.5%. Fiscal 2014 earnings per share are expected to be in the range of $1.65 to $1.80, which compares to $1.32 earnings per share in fiscal 2013.
Analysts expect the company to report earnings of $1.78 per share on revenues of $865.39 million for fiscal 2014.
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