Monro(MNRO) - 2025 Q3 - Quarterly Results

Financial Performance - Sales for the third quarter of fiscal 2025 decreased 3.7% to $305.8 million, compared to $317.7 million in the same period of fiscal 2024[2] - Net income for the third quarter of fiscal 2025 was $4.6 million, down 62.3% from $12.2 million in the same period of the prior year[9] - Diluted earnings per share for the third quarter of fiscal 2025 was $0.15, compared to $0.38 in the third quarter of fiscal 2024, reflecting a 60.5% decrease[9] - Operating income for the third quarter was $10.0 million, or 3.3% of sales, down from $21.4 million, or 6.7% of sales in the prior year[6] - Comparable store sales for the first nine months decreased 5.6%, with total sales down 6.9% to $900.3 million from $966.7 million in the prior year[12] - Net income for the nine months was $16,093,000, a decrease from $33,871,000 in the previous year, with adjusted net income at $17,865,000 compared to $35,726,000[39] Cost and Expenses - Gross margin decreased 120 basis points year-over-year, primarily due to higher material costs and increased self-funded promotions[5] - Total operating expenses for the third quarter were $94.8 million, or 31.0% of sales, compared to $91.3 million, or 28.7% of sales in the prior year[6] - Transition costs related to back-office optimization amounted to $527,000 for the quarter and $1,677,000 for the nine months[35][39] - Store closing costs were $437,000 for the quarter and $1,149,000 for the nine months, reflecting ongoing restructuring efforts[35][39] Store Operations - The company closed 9 stores during the third quarter, ending with 1,263 company-operated stores and 48 franchised locations[10] Legal and Asset Management - The company reported a litigation reserve of $650,000 for the quarter, indicating potential legal challenges[35] - The net loss on the sale of wholesale tire and distribution assets was recorded as $304,000 for the nine months, impacting overall profitability[39] - The company recognized a net gain of $73,000 from the sale of corporate headquarters for the quarter, contributing positively to adjusted net income[35] - Total assets as of December 2024 were $1,669,292,000, compared to $1,692,814,000 in the previous year, indicating a slight decrease in asset base[31] Earnings Adjustments - For the quarter ended December 2024, diluted EPS decreased to $0.15 from $0.38 in the same quarter of 2023, with adjusted diluted EPS at $0.19 compared to $0.39[33] - Net income for the quarter was $4,583,000, down from $12,170,000 in the prior year, resulting in adjusted net income of $5,791,000 compared to $12,546,000[35] - For the nine months ended December 2024, diluted EPS was $0.52, down from $1.05 in 2023, with adjusted diluted EPS at $0.57 compared to $1.11[37]