Monro Muffler Brake anticipates 5.4% increase in sales

May 2, 2008

Monro Muffler Brake Inc. anticipates sales of approximately $440 million for its fiscal year ended March 31, 2008. That's a projected increase of 5.4% over the previous fiscal year.

The company plans to release its fourth-quarter and fiscal 2008 results on May 29, 2008.

Comparable store sales for the year will be up 3.1%, adjusted for days, or approximately 1.2% on a reported basis.

For its fourth quarter, Monro expects sales of approximately $107 million, with a comparable store sales increase of approximately 0.8%, adjusted for days, or a decrease of approximately 5.3% on a reported basis, due to one less selling week.

"We are pleased that we are on track to meet our expectations for fiscal 2008 and are particularly gratified that our business has performed solidly despite the challenging economy," says Robert Gross, chairman and CEO. "Further, we are off to a good start to fiscal 2009, having generated approximately 8% comparable store sales growth for the month of April, as we continue to trend ahead of our industry peers.

"While this strong monthly comparable store sales increase is an encouraging sign for our business, we remain cautious in our outlook for the quarter and the full year. As we move forward in fiscal 2009, we expect that our low cost operating model and our somewhat nondiscretionary products and services will enable us to weather the expected difficult macro conditions as we continue to seek growth both organically and through value-priced acquisitions."

Based on current visibility and economic trends, the company expects fiscal 2009 comparable store sales growth of 2% to 4%. Monro anticipates first-quarter 2009 comparable store sales growth in the range of 3% to 5%.

The data provided for the fourth quarter and full-year fiscal 2008 is based on preliminary, unaudited internal results and is subject to change as the company completes the preparation of full consolidated financials statements for the period.