Monro Muffler Brake, Inc. Post Solid Revenues, Earnings.

Monro Muffler Brake, Inc. said it had record sales and earnings for the third quarter and nine months ended December 28, 2002. Sales increased 15.8 percent to $60.7 million compared to $52.4 million last year, driven by a comparable store sales increase of 3.8 percent, as well as a sales contribution of $6.0 million from 34 Kimmel stores acquired in April 2002. The comparable store sales increase resulted largely from a 29 percent increase in scheduled maintenance services, a 5 percent increase in store traffic and a 33 percent increase in comparable store tire sales.

For the third quarter, gross margin remained relatively flat with the prior year quarter at 37.8 percent. Net income increased 35.5 percent over the prior year quarter to $2.4 million, from $1.8 million. Diluted earnings per share increased 30 percent to $0.26 from $0.20 quarter over quarter.

Sales for the nine-month period ended December 28, 2002 increased 12.8 percent to $196.6 million from $174.3 million last year. Net income for the nine months was $11.2 million, or $1.19 per diluted share, compared to $9.3 million, or $1.03 per diluted share in the year-ago period.

Monro said it expects fourth quarter diluted earnings per share to be in the range of $0.21 to $0.23 and full year EPS forecast of $1.41 to $1.43.