Monro fourth-quarter net income nearly doubles on strong sales, price increases, acquisitions

Monro fourth-quarter net income nearly doubles

ROCHESTER, N.Y. — Auto repair company Monro Muffler Brake Inc. said its net income nearly doubled to a record $5.9 million in the fiscal fourth quarter thanks to strong in-store sales, price increases and the acquisition of two regional tire chains.

Rochester-based Monro said its revenue rose 26 percent to a record $147.2 million compared to the January-March period a year ago. Earnings per share rose 87 percent to 28 cents. The company’s 2010 fiscal year ended March 31.

The company handily beat Wall Street’s expectations. Analysts polled by Thomson Reuters were forecasting earnings of 25 cents a share on revenue of $145 million.

For the full year, Monro said net income increased 38 percent to a record $33.2 million, or $1.61 per share. That exceeded the company’s previous guidance of $1.56 to $1.58 per share. Revenue rose 19 percent to a record $564.6 million.

Repair shops like Monro have largely seen better business in the economic downturn as strapped consumers repaired older cars rather than buying new ones. Monro said same-store sales, or sales at stores open at least a year, increased 8 percent in the fourth quarter and 7.2 percent for the year, offsetting customers’ shift to cheaper tires.

Monro Chairman and CEO Robert Gross noted that the company’s 2010 fiscal year was its ninth consecutive year of same-store sales growth.

For 2011, the company is forecasting earnings per share of $1.92 to $2, slightly higher than analysts have anticipated. The company said it expects first-quarter earnings per share between 58 cents and 62 cents, compared to 46 cents for the first quarter in fiscal 2010.

The company forecast same-store sales growth in the 4 to 6 percent range for both the first quarter and the full year in 2011. So far this quarter, same-store sales have increased 5 percent, Gross said.

Munro shares rose $1.66, or nearly 4.5 percent, to close Thursday at $38.71 in afternoon trading.