ROCHESTER, N.Y. -- Monro Muffler Brake has announced record financial results for its first quarter ended June 25.

Sales for the first quarter of fiscal 2012 increased 4.2 percent to a record $164.8 million compared to $158.2 million for the first quarter of fiscal 2011. Comparable store sales increased 2.1 percent, following a 5.1 percent increase last year. Comparable store sales increased approximately 5 percent for exhaust, 5 percent for shocks, 3 percent for brakes and 2 percent for tires, were flat for maintenance services, and were down approximately 5 percent for alignments.

Operating income for the quarter increased 15.6 percent to a record $26.1 million from $22.6 million in the first quarter of fiscal 2011. Interest expense was $1.1 million as compared to $1.5 million in the first quarter of fiscal 2011.

Net income for the first quarter increased 16.9 percent to a record $15.4 million from $13.2 million in the prior year period. Diluted earnings per share for the quarter increased 14.3 percent to 48 cents, as compared to diluted earnings per share of 42 cents in the first quarter of fiscal 2011, and exceeded the high end of the company's estimated range of 44 cents to 47 cents. Net income for the first quarter reflects an effective tax rate of 38.5 percent as compared with 37.7 percent for the prior year period.

The company added 24 locations, including acquired stores, and closed three locations during the quarter, ending the quarter with 802 stores.

Robert Gross, chairman and CEO stated, "We started fiscal 2012 off on a strong note, and are pleased with our record sales results as well as better-than-expected gross margin and earnings per share in the first quarter. As planned, we implemented price increases during the quarter to pass through higher material costs, which helped drive our gross margin improvement. Importantly, our strong business model has provided us with the flexibility to pull different levers to expand our operating margin, and we believe that this will continue to be an advantage going forward. Additionally, we are encouraged with the results of the recently acquired Vespia stores, which have thus far performed ahead of expectations. Overall, we are pleased with our first quarter performance, which is the result of continuing to leverage our successful, low-cost business model, as well as the ability of our employees to execute well and consistently provide excellent service to our loyal customers."

Based on current visibility, business and economic trends, the recently completed Vespia acquisition, as well as fiscal 2012 being a 53-week year, Monro continues to anticipate fiscal 2012 comparable store sales growth in the range of 4 percent to 6 percent (2 percent to 4 percent adjusted for days) and is increasing its estimated fiscal 2012 diluted earnings per share to a range of $1.65 to $1.77, from the range of $1.61 to $1.75. The estimate is based on 32 million weighted average shares outstanding. The company's expected sales range for the year remains at $690 to $705 million.

For the second 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 second quarter to be between 46 cents and 50 cents, as compared to 42 cents for the second quarter of fiscal 2011.

Gross concluded, "We continue to have a positive outlook for our business in fiscal 2012 and the long-term, although we may continue to experience more moderate sales growth this year as a result of the macroeconomic environment, high gas prices and depressed consumer confidence. At the same time, we believe that this environment leaves us well-positioned to take advantage of additional acquisition opportunities, which should further expand our market share and more strongly position the company for continued profitable growth. Additionally, we anticipate continuing to achieve operating margin expansion through the integration of our recent acquisitions, the flexibility of our business model and our ability to leverage SG&A expenses. Finally, it is a testament to the strength of our business that we have increased our dividend for the sixth time in as many years while growing our company, increasing our operating leverage and using capital to pursue opportunistic acquisitions."