Monro, Inc. reported unaudited earnings results for the third quarter and nine months ended Dec. 23, 2017. For the quarter, the company's sales decreased 0.9% to $285.7 million, as compared to $288.3 million for the third quarter of fiscal 2017. The total sales decrease for the third quarter of $2.6 million was due to a comparable store sales decrease of 3.1%, partially offset by sales from new stores of $6.4 million, including sales from recent acquisitions of $2.3 million. Operating income was $29.3 million, or 10.3% of sales, as compared to $33.1 million, or 11.5% of sales in the prior year period. Income before provision for income taxes was $23,260,000 compared to $27,978,000 a year ago. Net income was $11,601,000 or $0.35 per diluted share compared to $17,566,000 or $0.53 per diluted share a year ago. Diluted earnings per share for the third quarter were $0.35, including $0.15 of one-time costs. These one-time costs consisted of $0.01 per share in management transition costs, $0.04 per share in litigation settlement costs and $0.10 per share related to the net impact of newly enacted tax legislation.

For the nine months, the company's sales increased 9.5% to a record $842.2 million from $769.5 million in the same period of the prior year. Operating income was $96,868,000 compared to $96,294,000 a year ago. Income before provision for income taxes was $79,207,000 compared to $82,506,000 a year ago. Net income was $46.5 million or $1.39 per diluted share, as compared to $51.9 million, or $1.56 per diluted share in the same period of fiscal 2017. Diluted earnings per share for the first nine months of fiscal 2018 included $0.18 of one-time costs, consisting of $0.04 per share in management transition costs, $0.04 per share in litigation settlement costs and $0.10 per share related to the net impact of newly enacted tax legislation. Diluted earnings per share for the nine-month period also included $0.02 per share for the estimated net impact of Hurricane Irma in the second quarter.

For the year 2018, based on current sales, business and economic trends, and recently announced and completed acquisitions, the company now anticipates fiscal 2018 sales to be in the range of $1.120 billion to $1.135 billion, an increase of 10% to 11% as compared to fiscal 2017 sales. Fiscal 2018 sales guidance assumes a comparable store sales decrease of 0.5% to an increase of 0.5% on a 52-week basis (an increase of 1.5% to 2.5% including an extra week in the fourth quarter). This compares to the previous sales guidance range of $1.115 billion to $1.145 billion, which assumed a comparable store sales decrease of 1.0% to an increase of 1.0% on a 52-week basis. The company also updated its fiscal 2018 diluted earnings per share guidance to a range of $1.88 to $1.93, to reflect the revised comparable store sales guidance, as well as $0.04 in third quarter litigation settlement costs, $0.10 in third quarter incremental net tax expense and an expected $0.02 in net tax benefit in the fourth quarter from the newly enacted tax legislation. This compares to previous guidance of $1.95 to $2.10. Fiscal 2018 diluted earnings per share guidance continues to assume $0.05 in management transition costs and $0.10 of contribution from the 53rd week, and now includes $0.16 to $0.18 in accretion from recent acquisitions, compared to previous guidance of $0.15 to $0.19.

The company expects future earnings to be positively impacted by the new tax legislation, largely due to the reduction of the U.S. federal corporate income tax rate. This should represent a reduction in the estimated annual effective tax rate from approximately 37% to 24%, and a benefit of between $0.45 and $0.50 of diluted earnings per share in fiscal 2019.

The company expects to open another 13 locations in the fourth quarter with 27 greenfield stores openings expected for fiscal 2018.