Monro Muffler Brake has announced financial results for its fourth quarter and fiscal year ended March 26, 2016.

Sales for the fourth quarter of fiscal 2016 increased 4.5 percent to $229 million, as compared to $219.1 million for the fourth quarter of fiscal 2015. The total sales increase for the fourth quarter of $9.9 million was due primarily to an increase in sales from new stores of $11.1 million, including sales from recently acquired stores of $9.9 million, and a comparable store sales increase of .5 percent, partially offset by a decrease in sales from closed stores.

Operating income for the fourth quarter increased 12.6 percent over the prior year, and was $26.5 million, or 11.6 percent of sales, as compared to $23.5 million, or 10.7 percent of sales in the prior year period.

Net income for the fourth quarter was $13.9 million, as compared to $12.6 million in the same period of the prior year. Diluted earnings per share for the quarter were 42 cents, achieving the midpoint of the company’s guidance range of 40 to 45 cents. This compares to diluted earnings per share of 38 cents in the fourth quarter of fiscal 2015. Net income for the fourth quarter of fiscal 2016 reflects an effective tax rate of 36.5 percent, as compared to 37.5 percent for the prior year period.

Fiscal Year Results

Net sales for fiscal 2016 increased 5.5 percent to $943.7 million as compared to $894.5 million for fiscal 2015. The total sales increase of $49.2 million for the fiscal year was due to an increase in sales from recently acquired stores, while comparable store sales were flat.

Net income for fiscal 2016 increased 8.1 percent to $66.8 million, as compared to $61.8 million for the prior fiscal year. Diluted earnings per share for fiscal 2016 were $2, within the company’s guidance range, and included 4 cents per share of higher due diligence costs. This compares to $1.88 in earnings per diluted share for fiscal 2015.

John Van Heel, president and CEO, stated, “Our top-line results for the fourth quarter came in lower than initially anticipated due to the impact of a weak consumer and continued unseasonable warm weather in our northern markets. However, we delivered positive overall traffic for both the fourth quarter and the fiscal year. We believe this demonstrates that consumers continue to turn to Monro for repairs and maintenance they can no longer defer. Despite the ongoing choppiness in the market, our continued focus on margin improvement and diligent cost control, combined with the outperformance of our recent acquisitions, drove 5 percent higher sales, as well as 70 basis points of operating margin expansion and 10 percent net income growth in fiscal 2016 when adjusting for higher due diligence expense this year. This underscores the effectiveness of our business model.”

Acquisitions Update

In May 2016, the company completed the acquisition of 29 McGee Auto Service and Tires retail and commercial stores in Florida. The acquisition significantly increases Monro’s presence in the greater Tampa Bay and Fort Myers areas, while also expanding into Daytona and Tallahassee. The acquisition is expected to add approximately $50 million in annualized sales, representing a sales mix of 40 percent service and 60 percent tires. The acquisition is expected to be break-even in fiscal 2017. After entering Florida less than two years ago, Monro now operates 83 stores in the state extending across both Florida coasts, representing approximately $115 million in annualized sales. The state represents a significant opportunity for continued store growth and further diversification of the company’s footprint into southern markets.

Acquisitions completed in fiscal 2016 represent a total of $36 million in annualized sales, and include the acquisitions of 35 stores in New York, Pennsylvania, Massachusetts and Wisconsin, as well as the acquisition of Car-X, a chain which includes 134 franchised locations in 10 states.

Company Outlook

Based on current visibility, business and economic trends, and recently completed acquisitions, the company anticipates fiscal 2017 sales to be in the range of $980 million to $1.01 billion.