ROCHESTER, N.Y. -- Monro Muffler Brake has announced financial results for its fourth quarter and fiscal year ended March 26.

Sales for the fourth quarter increased 2.4 percent to a record $150.8 million compared to $147.2 million for the fourth quarter of fiscal 2010. Comparable store sales were flat, negatively impacted by weather and rising gas prices, as compared to an 8 percent increase last year. Comparable store sales increased approximately 5 percent for exhaust and 3 percent for maintenance services and were down approximately 2 percent for tires and brakes.

Net income for the fourth quarter increased 40.5 percent to a record $8.2 million from $5.9 million in the prior year period. Diluted earnings per share for the quarter increased 36.8 percent to 26 cents, compared to diluted earnings per share of 19 cents in the fourth quarter of fiscal 2010, and were at the high end of the company's estimated range of 22 cents to 26 cents. Net income for the fourth quarter reflects an effective tax rate of 38 percent compared with 33 percent for the prior year period.

The company closed two locations during the quarter, ending fiscal 2011 with 781 stores.

Net sales for fiscal 2011 increased 12.8 percent to a record $636.7 million from $564.6 million for fiscal 2010. Comparable store sales increased 4.2 percent for the year, on top of a 7.2 percent increase in fiscal 2010, marking the tenth consecutive year of comparable store sales increases for the company.

Net income for fiscal 2011 increased 38.1 percent to a record $45.8 million, or $1.44 per diluted share, from $33.2 million, or $1.07 per diluted share, for fiscal 2010, at the high end of the company's recently increased estimated range of $1.41 to $1.45.

Robert Gross, chairman and CEO, stated, "The record results we achieved in the fourth quarter and fiscal year 2011 demonstrate the strength and consistency of our business model. Importantly, our position in the marketplace allows us flexibility to pull different levers to improve our performance, and we believe that this will continue to be an advantage going forward. Notably, fiscal 2011 marked our tenth consecutive year of same store sales increases, with our 4.2 percent comparable store sales increase following a solid 7.2 percent increase in fiscal 2010. Our ongoing strong execution demonstrates that our company is able to deliver solid results in both favorable and challenging economic times. Overall, we remain very pleased with our performance, which is a direct result of the ability of our employees to execute well and consistently provide excellent service to our loyal customers."

Monro also today announced that it has signed a definitive asset purchase agreement to acquire Vespia Tire Centers Inc. The transaction is expected to close by June 5. Vespia, which consists of 24 locations in New Jersey and Eastern Pennsylvania, will expand Monro's footprint in this region and will be funded primarily through the Company's existing line of credit. The company expects the Vespia acquisition to be slightly accretive in fiscal 2012. Vespia generated annual net sales of approximately $36 million in 2010. It is management's intention to retain Vespia's store employees.

Gross commented, "We are delighted that we have the opportunity to integrate the Vespia chain into the Monro business, which we believe will further broaden our market position and our strategy of achieving growth through reasonably priced, value-added acquisitions. Vespia's established store base in the New Jersey and Pennsylvania markets, with average sales of $1.5 million per location and loyal customer base, will help us to quickly expand Monro's footprint in this densely populated market. Further, we have entered into this agreement on attractive terms which are consistent with our previously stated acquisition criteria.

Based on current visibility, business and economic trends, the Vespia acquisition, as well as fiscal 2012 being a 53-week year, the company anticipates fiscal 2012 sales to be between $690 and $705 million. Comparable store sales growth is expected to be in the range of 4 percent to 6 percent (2 percent to 4 percent adjusted for days). Fiscal 2012 diluted earnings per share are expected to be in the range of $1.61 to $1.75. The estimate is based on 32.0 million weighted average shares outstanding.

For the first quarter of fiscal 2012, the company anticipates comparable store sales growth in the range of 1 percent to 3 percent. The company expects diluted earnings per share for the first quarter to be between 44 cents and 47 cents, compared to 42 cents for the first quarter of fiscal 2011.

Gross concluded, "While we continue to have a positive outlook, we anticipate that we will experience more moderate organic earnings growth in fiscal 2012, although growth from acquisitions will be accelerated. Specifically, we believe that rising gas prices and the macroeconomic environment will weigh on consumer sentiment and purchasing behavior. Historically, we have leveraged our strong business model and position as a low cost and trusted service provider to continue to grow the business and enhance shareholder returns regardless of the economic or operating environment. We are confident that we can continue this trend. Importantly, we believe the current environment will allow us to take advantage of additional acquisition opportunities, which should result in further economies of scale and enhanced convenience for customers, while more strongly positioning the company for continued profitable growth."