Monro Muffler Brake Inc. reported unaudited earnings results for the third quarter and nine months ended December 31, 2012. For the third quarter, the company reported comparable store sales adjusted for date declined 4.9% compared with a 1.3% comparable store sales decline last year. For the third quarter, total sales increased by 7.8% to $190 million compared with $176 million in the prior year quarter due to the contribution from its recent acquisitions. Operating income was $18,828,000 against $22,633,000 a year ago. Income before provision for income taxes was $17,414,000 against $21,459,000 a year ago. Net income was $11,255,000 or $0.35 per diluted share against $13,552,000 or $0.42 per diluted share a year ago.

The company reported year-to-date sales increased $21.3 million and 4.1%, new stores contributed $56.1 million of the increase partially offsetting this sales increase was a comparable store sales decrease of 5.9% and a decrease in sales for closed stores amounting to $5.3 million. Operating income was $58,242,000 against $73,965,000 a year ago. Income before provision for income taxes was $54,351,000 against $70,559,000 a year ago. Net income was $34,440,000 or $1.07 per diluted share against $44,110,000 or $1.37 per diluted share a year ago.

The company expects comparable store sales for the fourth quarter to be down 9% to 6% adjusted for date versus up 0.7% last year. The company expects fourth quarter earnings per share to be in the range of $0.20 to $0.25, with the fiscal 2013 acquisition at breakeven for slightly diluted. This compares with $0.33 in the fourth quarter of fiscal 2012 or $0.29 excluding the estimated $0.07 benefit from the 53 week and $0.03 in Midas related due diligence cost. The expected tax rate for the quarter ended December 2012 and December 2011 was 35.4% and 36.9% respectively of pretax income.

The company expects full year of 2013 organic sales to be weak as a result of continued pressure on consumers and its poor results in the first nine months of the year. For the full fiscal year, taking in to account sales contributions from the eight acquisitions completed year-to-date, the company now expects total sales to be in the range of 725 to 735 million, incorporating a comparable store sales decline in the range of 6.5% to 5.5% adjusted for days. Based on these new assumptions, the company estimates full fiscal year 2013 EPS of a $1.27 to $1.32, which compares to EPS of a $1.69 in fiscal 2012 or EPS of $1.65 last year excluding the estimated $0.07 benefit from the 53rd week and the $0.03 in Midas related due diligence cost.