ROCHESTER, N.Y. — Monro Muffler Brake has announced financial results for its fourth quarter and fiscal year ended March 29.

Sales for the fourth quarter of fiscal 2008 were $107.2 million compared to $107.7 million for the fourth quarter of fiscal 2007, primarily due to one less selling week in the fourth quarter of fiscal 2008 versus fiscal 2007. Adjusted for days, comparable store sales increased .8 percent, which compares to a 7.3 percent comparable store sales increase in the fourth quarter of fiscal 2007. On a reported basis, comparable store sales decreased 5.3 percent.

Adjusted for days, comparable store sales increased approximately 7 percent for brakes, 1 percent for maintenance services and were flat for tires. Comparable store sales for exhaust and alignments, adjusted for days, each decreased by approximately 3 percent.

The total sales for the quarter included an increase in sales from new stores of $5.3 million. New store sales include $4.8 million from the 19 former Craven and Valley Forge stores acquired in July 2007 and $.7 million from the seven former Broad-Elm group stores acquired in January 2008. Comparable store sales for ProCare decreased 6.8 percent for the reported period, or .8 percent adjusted for days.

Net income for the quarter was $1.9 million compared to $4.2 million for the prior year period. Diluted earnings per share for the quarter were 10 cents. This compares to diluted earnings per share of 18 cents in the fourth quarter of fiscal 2007.

Robert Gross, chairman and chief executive officer stated, "Our performance for the quarter was impacted by the shorter selling period as well as by ongoing challenges in the economic environment and the resulting delays in big-ticket purchases. That said, we have experienced some positive trends including an increase in our average transaction size as customers who have deferred needed maintenance for long time periods have begun to return to us for repairs. Additionally, we are encouraged by our performance in certain categories, such as brakes, as we continue to increase our share of the market and outperform our competition."

The company opened nine locations and closed two locations during the quarter, ending fiscal 2008 with 720 stores.

Net sales for fiscal 2008 increased 5.3 percent to $439.4 million from $417.2 million for fiscal 2007. Comparable store sales increased 3.1 percent for the year, adjusted for days, or approximately 1.2 percent on a reported basis. The total sales for the year included an increase in sales from new stores of $21.3 million, including $13.8 million from the 19 former Craven and Valley Forge stores acquired in July 2007, and $.7 million from the seven former Broad-Elm group stores acquired in January 2008. For the former ProCare stores, comparable store sales increased 3.8 percent for the year, adjusted for days.

Net income for fiscal 2008 was $21.9 million, or $1 per diluted share. Excluding the fourth quarter charge related to the lawsuit settlement, diluted earnings per share were $1.03, at the low end of the company’s range. This compares to $22.3 million or 97 cents per diluted share, for fiscal year 2007.

Based on current visibility and business trends, the company continues to anticipate fiscal 2009 comparable store sales growth of 2 percent to 4 percent and diluted earnings per share in the range of $1.08 and $1.18, as previously announced on May 1. The estimate is based on 20.4 million weighted average shares outstanding and excludes the impact of any potential acquisitions. The company’s expected sales range for the year is $455 million to $465 million.

For the first quarter of fiscal 2009, the company continues to anticipate comparable store sales growth in the range of 3 percent to 5 percent. The company also expects diluted earnings per share for the first quarter to be between $.37 and $.39, compared to $.36 for the first quarter of fiscal 2008. The company’s 72 ProCare stores are included in the comparable store sales base estimate for the first quarter and full year 2009.

Gross concluded, "We are pleased with our solid start to fiscal 2009 and are encouraged by certain positive trends we are seeing in our business. As of last weekend, we have achieved comparable store sales growth of approximately 6 percent for the quarter against a strong 6.2 percent comparable sales increase in the first quarter of fiscal 2008. The increase is being driven, in part, by the price increases that we implemented in March as well as our effective spring advertising campaigns. While we remain cautious in our outlook for the first quarter and year due to the ongoing macro economic challenges, we expect that our low-cost operating model will continue to serve us well during this time, and positions us to take advantage of value-priced acquisition opportunities that we anticipate may arise in this environment."

For more information about Monro Muffler Brake, go to: http://www.monro.com.