Q1 2024 Monro Inc Earnings Call
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I would like to introduce feed expects one senior director of Investor Relations at Monro. Please go ahead.
Thank you Hello, everyone and thank you for joining us on this morning's call before we get started please note that as part of this call. We will be referencing a presentation that is available on the investors section of our website at corporate Dot Monroe Dot com forward slash investors, if I could draw your attention to the safe Harbor statement on <unk>.
Two I would like to remind participants that our presentation includes some forward looking statements about <unk> future performance actual results may differ materially from those suggested by our comments today. The most significant factors that could affect future results are outlined in monroe's filings with the SEC and in our earnings release.
The company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise except as required by law. Additionally on today's call management's statements include a discussion of certain non-GAAP financial measures, which are intended to supplement and.
Not be substitutes for comparable GAAP measures reconciliations of such supplemental information to the comparable GAAP measures will be included as part of today's presentation and in our earnings release with that I'd like to turn the call over to <unk>, President and Chief Executive Officer, Michael <unk>.
Thank you Felix and good morning, everyone I'd like to start off by acknowledging that our first quarter results fell short of the expectations that we set on our last earnings call in May.
I'll spend the first part of our call. This morning walking through the shortfall, which was primarily driven by lower than expected sales due to customer deferrals in our higher margin service categories in June.
Broad based inflationary pressures have persisted such that the consumer slowed their purchases of some of our higher ticket service categories. As a result of this we took swift action to reduce nonproductive labor cost, including overtime hours in our stores, which allowed us to preserve margins and profitability on lower than expected sales.
I'll conclude with our plans to deliver improved earnings this fiscal year. Despite some of the consumer related headwinds that we and others in our industry are experiencing.
Before we get started I'd like to recognize and thank all of our teammates serving as trusted vehicle advisors in what continues to be a challenging macro environment for our customers.
Now turning to our first quarter results and the actions that we took to reduce nonproductive labor costs.
Our first quarter comparable store sales growth of less than 1% fell short of our expectations.
As I stated earlier, the shortfall was primarily driven by lower than expected sales due to customer deferrals and some of our key service categories in June.
This also resulted in store comps for our 300 small underperforming stores that were consistent with our overall comps in the quarter.
Our comps in the quarter fell short of expectations customer traffic counts were in line with our expectations and remains consistent with improving traffic trends in the back half of fiscal 2023.
And while our tire margins returned to solid footing. Our overall gross margin in the quarter was impacted by a lower sales mix of higher margin service categories.
This resulted in higher material costs and continued labor cost pressures as a percentage of sales relative to our expectations. We took swift actions to reduce nonproductive labor costs, including overtime hours in our stores, which were down 23% year over year and 13% sequentially.
This allowed us to preserve margins and profitability on lower than expected sales. We will continue to closely manage our labor costs and expense to maximize store productivity.
Now concluding with our plans to deliver improved earnings this fiscal year.
While we will likely need to see an improvement in the overall health of the consumer before we can fully capitalize on longer term industry tailwind. We will remain relentlessly focused on achieving our mid single digit comp store sales expectations through accelerating growth in our 300 small our underperforming stores mainly.
Gaining a balanced approach between our tire and service categories with competitive pricing to drive store traffic and continuously improving our customer experience.
Encouragingly, our preliminary comp store sales growth for fiscal July are up approximately 1%, which is a positive rebound off the sales trends that we saw in fiscal June at a step in the right direction.
We will also strive to expand our gross margins through appropriate staffing in our stores and properly training our teammates to maximize their productivity.
However, given the current pressures on the consumer we're also laser focused on maximizing profitability through prudent cost control, which includes right sizing our fixed costs and rationalizing unproductive labor, while we take these actions we will not cut productive labor at the sacrifice of our standards and to the detriment of our law.
Long term service model.
In addition, we will continue to create cash by optimizing inventory and leveraging the strength of our vendor partners for better availability quality and cost of parts and tires and our stores.
In closing our business is well positioned and we are confident that we remain on a path to restore gross margins back to pre COVID-19 levels with double digit operating margins over the longer term.
With that I'll now turn the call over to Brian who will provide an overview of <unk> first quarter performance strong financial position and additional color regarding fiscal 2020 for Brian.
Thank you, Mike and good morning, everyone turning to slide eight sales decreased six 5% year over year to $327 million in the first quarter, which was due to the divestiture of our wholesale tire and distribution assets in the first quarter of fiscal 2023.
Sales for these divested assets were approximately $24 million in the prior year first quarter.
Comparable store sales increased <unk>, 5% and sales from new stores increased approximately $2 million.
Gross margin was flat compared to the prior year, primarily resulting from 220 basis points of benefit from both the divestiture of our wholesale tire and distribution assets as well as lower distribution and occupancy costs as a percentage of sales.
Which were offset by higher material costs and higher technician labor costs due to an incremental investment in technician head count as well as wage inflation.
$1 million or an effective tax rate of 39.6% in the prior year period.
Hire effective tax rate in the prior year period was primarily due to discrete tax impacts related to the divestiture of our wholesale tire locations and tire distribution operations as well as the revaluation of deferred tax balances due to changes in the mix of pretax income and various U S state jurisdictions b.
Cause of the divestiture.
Net income was approximately $8 $8 million as compared to $12.5 million in the same period last year diluted earnings per share was 28 cents compared to 37 for the same period last year adjusted diluted earnings per share a non-GAAP measure was 31.
This is compared to adjusted diluted earnings per share of 42 in the first quarter of fiscal 2023.
Please refer to our reconciliation of adjusted diluted EPS and this morning's earnings press release and on slide eight and our earnings presentation for further details regarding excluded items in the first quarter of both fiscal years.
Is highlighted on slide nine we continue to maintain a very solid financial position, we generated $72 million of cash from operations during the first quarter, including $52 million in working capital reductions.
This has reduced our cash conversion cycle by approximately 71 days at the end of the first quarter compared to the prior year period.
Our inventory ratio at the end of the first quarter was 195% versus 178% at the end of fiscal 2023.
We received $4 million in divestiture proceeds, we invested $8 million capital expenditures spend $10 million in principle payments for financing leases and distributed $9 million in dividends.
At earnings per share a non-GAAP measure was 31.
Lastly, given the higher interest rate environment, we opted to pay down some of our debt in the first quarter to reduce interest expense versus repurchasing shares under our program, which authorizes us to repurchase up to $150 million of the company's common stock.
This is compared to adjusted diluted earnings per share of <unk> 42 in the first quarter of fiscal 2023.
Please refer to our reconciliation of adjusted diluted EPS in this morning's earnings press release and on slide eight in our earnings presentation for further details regarding excluded items in the first quarter of both fiscal years.
We have used our significant cash flow to reduce invested capital by $53 million during the first quarter.
At the end of the first quarter, we had bank debt of $65 million cash and cash equivalents of $15 million and a net debt to EBITDA ratio of three times.
As highlighted on slide nine we continue to maintain a very solid financial position, we generated $72 million of cash from operations during the first quarter, including $52 million and working capital reductions.
While we are not providing full year guidance, we are providing color to assist in your modeling.
This has reduced our cash conversion cycle by approximately 71 days at the end of the first quarter compared to the prior year period.
We expect to drive higher year over year sales through low to mid single digit comparable store sales growth and outsize performance and our 300 small are underperforming stores, which is inclusive of an extra week of sales and our fiscal fourth quarter.
Our AP to inventory ratio at the end of the first quarter was 195% versus 178% at the end of fiscal 2023.
We expect to drive year over year improvements in our gross margin through pricing actions.
We received $4 million in divestiture proceeds we invested $8 million of capital expenditures spent $10 million in principal payments for financing leases and distributed $9 million in dividends.
Lower fixed distribution and occupancy costs as a percentage of sales due to a higher sales base.
And productivity improvements from our labor investments and reduction of nonproductive payroll, which will be partially offset by continued wage inflation.
Lastly, given the higher interest rate environment, we opted to pay down some of our debt in the first quarter to reduce interest expense versus repurchasing shares under our program, which authorizes us to repurchase up to $150 million of the company's common stock.
Total operating expenses as a percentage of sales are expected to be higher year over year due to increases in direct and departmental cost to support our store base as well as the impact of inflation.
We have used our significant cash flow to reduce invested capital by $53 million during the first quarter.
Our tax rate should be approximately 26% for fiscal 2024.
At the end of the first quarter, we had bank debt of $65 million cash and cash equivalents of $15 million and a net bank debt to EBITDA ratio of three times.
Regarding our capital expenditures, we expect to spend approximately $35 million to $45 million in fiscal 2024.
We also expect to continue improving our operating cash flow driven by continued working capital reductions are balanced approach of returning capital to shareholders through dividends and share repurchases as well as opportunistically completing value enhancing acquisitions is expected to meaningfully increase our return on invested capital.
While we are not providing full year guidance, we are providing color to assist in your modeling.
We expect to drive higher year over year sales through low to mid single digit comparable store sales growth and outsized performance in our 300 small our underperforming stores, which is inclusive of an extra week of sales in our fiscal fourth quarter. We.
And with that I will now turn the call back to Mike for some closing remarks.
We expect to drive year over year improvements in our gross margin through pricing actions.
Thanks, Brian we're optimistic about our outlook for fiscal 2000 2004 beyond.
Although we still have important work to do we remain well positioned to execute our growth strategy and deliver long term value creation for our shareholders with that I will now turn it over to the operator for questions.
Lower fixed distribution and occupancy costs as a percentage of sales due to a higher sales base.
And productivity improvements from our labor investments and reduction of nonproductive payroll, which will be partially offset by continued wage inflation.
Thank you if you would like to ask a question. Please press followed by wondering if <unk>. If you would like to withdraw your question. Please press stop from a bunch of.
Total operating expenses as a percentage of sales are expected to be higher year over year due to increases in direct and departmental cost to support our store base as well as the impact of inflation.
<unk> asked a question, please and showing devices on the smoking thing.
Our tax rate should be approximately 26% for fiscal 2024.
Once a day, we ask you limit yourself to one question on <unk>.
Regarding our capital expenditures, we expect to spend approximately $35 million to $45 million in fiscal 2024.
First question today comes from Brian <unk> from open Helena <unk>.
Hey, guys good morning.
We also expect to continue improving our operating cash flow driven by continued working capital reductions our balanced approach of returning capital to shareholders through dividends and share repurchases as well as opportunistically completing value enhancing acquisitions is expected to meaningfully increase our return on invested capital.
Good morning, Thank you Brian.
So the first question I have I'm <unk> I'm just looking.
We're going through the numbers here looking at.
The monthly comps.
And May I ask your discussion in your script I mean, you did slow down, but I mean, not just a one year basis to really over you know even a multiyear stack.
If you look at what cost that I mean, I know you had mentioned yoga inflationary pressures, but you know it seemed like something just give them the trajectory of the business.
And with that I'll now turn the call back to Mike for some closing remarks.
Thanks, Brian we're optimistic about our outlook for fiscal 2020 for beyond.
More specific to June may have occurred.
Although we still have important work to do we remain well positioned to execute our growth strategy and deliver long term value creation for our shareholders.
Yes, Brian This is Mike I'll take that.
What we saw was across the board Industrywide <unk>.
With that I will now turn it over to the operator for questions.
Significant slowdown entire entire units.
Just the overall compression on tires and I would look look at tyres as a high ticket item and then I moved right into some service categories and high ticket service categories.
Thank you if you would like to ask a question. Please press star followed by wondering if Samsung Keith.
If you would like to withdraw your question. Please press star from a bunch of them.
When asking a question please ensure devices on these.
What we did see was actually a decent balance of our customer transactions or invoice count was okay. It was just low ticket invoices.
Once a day, we ask you limit yourself to one question and one or two follow ups.
First question today comes from Brian Nagel from Oppenheimer. Your line is open.
All driven by the lack of I would say a healthy tire unit.
And what we see Brian.
Hey, guys good morning.
Good morning, Brian .
Pretty much in our footprint was pretty much across the board on the entire category and the tire category.
So the first question I have I'm just looking.
The numbers here and looking at the monthly.
Got it.
The monthly comps.
I guess no no.
We talked about this a lot Mike.
And as your discussion in your script I mean, you did slow down, but I mean, not just a one year basis or really over even a multi year stack.
The ongoing kind of repositioning that you've <unk> Monroe, but as you look at the business now and are you in.
Released that you read read that kind of a longer term guidance in that in that longer term objective to get consistent mid single digit comps.
As you look at what caused that I mean, I know you had mentioned you had inflationary pressures, but it would seem like something just given the trajectory of the business something more specific to June may have occurred.
What levers viewpoint.
Clues, there's an unfavorable backdrop, we've discussed that but what specific levers or they're incremental levers you could pull here to really start to get that get the business up to where you want it to be.
Yes, Brian This is Mike I'll take that.
What we saw was across the board industrywide.
Significant slowdown entire tire units.
That's a good question.
Just the overall compression on tires and I would look at tires as a high ticket item and then I'll move right into some much service categories and the high ticket service categories.
Everything we've been doing is preparing ourselves to create a munroe that's very nimble.
For the marketplace in the customer environment that we have.
We're dealing with we divested and we're now out of that divestiture were full year past. So we don't have to talk about that anymore, but all the work that the teams are doing are creating a better assortment for our teams to be able to sell managing payroll to a point, where we can manage payroll no matter what the circumstances are sales improve.
What we did see was actually a decent balance of our customer transaction. So our invoice count was okay. It was just low ticket invoices.
All driven by the lack of I would say a healthy tire unit.
And what we see Brian was pretty much in our footprint it was pretty much across the board on the tire category and the tire category.
We can really love her up sales decline, we can actually.
Take payroll out I'll give you. An example of the team and the work that they've done on overtime and that's I would say is has been pretty significant over 10 years that I've been here is really getting an emphasis on.
Got it and then.
And I know, we talked about this a lot Mike.
The ongoing kind of repositioning that <unk> spiritual Monroe, but as you look at the business now.
In the release today, you reiterated the kind of longer term guidance that in that longer term objective to get to consistent mid single digit comps.
Controlling payroll.
As we invest in our people agenda, it's going to be really important and especially in the wage inflation that we're dealing with is managing.
What levers you pull in.
Clues theres, an unfavorable backdrop, we've discussed that but what specific levers or are there incremental levers you can pull here to really get that you get the business up to where you want it to be.
Every hour for every store so that we can maximize productivity with our technicians.
I would say the biggest lever that we have to pull right now is really fixing our small stores. Although those stores were never supposed to be linear it took years for these stores to be underperforming.
Yes.
Good question.
Everything we've been doing is preparing ourselves to create a monro that's very nimble for the marketplace in the customer environment that we're dealing with we divested and we're now out of that divestiture, where full year passed. So we don't have to talk about that anymore, but all the work that the teams are doing are creating a better.
My expectation is that we delivered double digit comps in these stores.
But when I look at these stores most of them are low volume stores. So when they have missed one or two transactions a week and these were maybe tire transactions, which is a good ticket. It really has an adverse result of adverse impact on the comp.
For our teams to be able to sell managing payroll to a point, where we can manage payroll no matter what the circumstances are as sales improve.
Can really lever up as sales decline we can actually.
And Brian I have to tell you when I look at the low volume stores. It took several years to get there. It's gonna take me some time in order for us to have consistent results.
Take payroll out I'll give you. An example of the team and the work that they've done on overtime and Thats I would say is has been pretty significant over the 10 years that I've been here is really getting an emphasis on.
I think secondly, a lot of work that the team is doing is really creating a different culture, our sales culture, making sure that we we just have a better environment for our customers that are coming in.
Controlling payroll.
As we invest in our people agenda. It is going to be really important and especially in the wage inflation that we're dealing with is managing.
And with a little bit of help in the backdrop I think that we are well positioned to go after that mid single digit number.
Every hour for every store so that we can maximize productivity with our technicians.
I appreciate the color passed on next next questions. Thanks, Thank you Brian.
I would say the biggest lever that we have to pull right now is really fixing our small stores. Although those stores were never supposed to be linear it took years for these stores to be underperforming.
Oh next question comes from Daniel <unk> from Stevens Your line is open.
Yeah, good morning, everybody.
I have a question.
Thank you and good morning.
My expectation is that we delivered double digit comps in these stores.
I wanted to follow up on on second question there on the underperforming stores I think the outlook.
But when I look at these stores most of them were low volume stores. So when they have missed one or two transactions a week and these were maybe tire transactions, which is a good ticket. It really hasnt adverse result of adverse impact on the comp.
Gave.
Low to mid single digit calm, but it was driven by a better this year.
Hundred stores I'm trying to marry that with the comment in the relief about you know you need the consumer to turn before things really get better. So I guess, how much of that improved underperforming stores.
And Brian I have to tell you when I look at the low volume stores. It took several years to get there is going to take me some time in order for us to have consistent results.
And it made me more specifically like what are the things you're changing right now to to drive that improvement over the next six months.
I think secondly, a lot of the work that the team is doing is really creating a different culture, our sales culture, making sure that we we just have a better environment for our customers that are coming in and.
<unk>.
So.
I would say the.
And these stores a lot of it is that people focus on the people. So that people agenda that I started with from the very beginning coming along with the organization I would say is the foundation for improving these underperforming stores, we gotta get the right team to create the right experience for our customers now what are we doing holistically the support that initiative, obviously, we're creating.
And with a little bit of help in the backdrop I think that we're well positioned to go after that mid single digit number.
I appreciate the color.
Pass it on next.
Thank you Brian .
Yeah.
Training I've walked everybody through in the past, creating a better environment, but we're attracting better technicians. So that we are able to do better work and we have better customer retention.
Our next question comes from Daniel <unk> from Stephens. Your line is open.
Yeah, Hey, good morning, everybody. Thanks, taking my question.
Thank you Dan good morning.
No overall when I looked at the category on the tire short meant now that we're a full year outside of the divestiture of our wholesale business, we have a better tire assortment, we're able to manage our margins in the past I've talked about the fact that we sold a lot of <unk> I'm actually very happy with our tire performance looking at the market share data and how we're holding.
Thanks, Mike I wanted to follow up on Brian Second question, there on the underperforming stores I think the outlook.
Ryan gave kind of imply a low to mid single digit comp, but it was driven by a better improvement this year and the 300 stores.
Marry that with the comment in the release about you need the consumer to turn before things really get better. So I guess, how much of that improved underperforming stores that are in your control.
Our own looking at the margin, we are producing and looking at the mix of tires that were selling to very healthy mix of tires and I feel like we're meeting our customers with the right assortment.
And then maybe more specifically like what are the things you are changing right now too to drive that improvement over the next six months.
I've talked about breaks in the past, there's a lot of work being done on our service categories. I still think we have a lot of work in front of us that we're executing in 24 to be able to help us drive sales and margin. These are all things to help the stores the underperforming stores as well as the rest of the chain. These.
So.
Yeah.
I would say the.
And these stores a lot of it is the people focus on the people. So the people agenda that I started with from the very beginning coming on with the organization I would say is the foundation for improving these underperforming stores, we got to get the right team to create the right experience for our customers now what are we doing holistically to support that initiative, obviously, we're creating.
These underperforming stores. It just takes one or two transactions and their trajectory changes significantly in a week period of time, and we're really managing that that type of conversation every week when I'm focusing on these focus stores.
Training I've walked everybody through in the past, creating a better environment, we're attracting better technicians. So that we are able to do better work.
That's helpful and then from a follow up so I wanted to maintain the gross margin a little bit here.
We have better customer retention.
Now overall when I look at the category on the tire assortment now that we're a full year outside of the divestiture of our wholesale business. We have a better tire assortment, we are able to manage our margins in the past I've talked about the fact that we sold a lot of otp tires, I'm actually very happy with our tire performance looking at the market share data and how we're holding.
Sequential Everytime I think he said, 13% that seemed like really nice.
I guess one per cent of labor hours remaining.
Will fall into the quote like nonproductive classification or how much left there to remove.
Terms of these non-productive hours.
<unk> com to accelerate as you Gotta think about managing the coffees.
Our own looking at the margin, we're producing and looking at the mix of tires that we're selling to a very healthy mix of tires and I feel like we're meeting our customers with the right assortment.
Yes. This this.
This is Brian Daniel we're not gonna go specifically into how much productivity or unproductive time is still there.
Well, what we do now is it is a a huge focus of the organization to drive out any unproductive labor.
I've talked about brakes in the past there is a lot of work being done on our service categories. I still think we have a lot of work in front of us that we're executing a 24 to be able to help us drive sales and margin. These are all things to help the stores the underperforming stores as well as the rest of the chain. These.
We believe that we're doing that through the actions that we've taken this past quarter and we continue to do that as Mike said in his prepared remarks, we are.
Avoiding touching anything that we feel is support truly supporting our top line growth. So that's why we feel like we can still go after mid single digit comp store sales, while carefully manning managing out on productive labor and those two things.
These underperforming stores. It just takes one or two transactions and their trajectory changes significantly in a week's period of time, and we're really managing that that type of conversation every week when I'm focusing on these focused stores.
Are competing with each other at the same time, we're obviously managing all other fixed costs as well outside of store direct labor, including back office to really make sure that we're being prudent about our cost structure against the the top line backdrop.
Got it that's helpful and then from a follow up so I wanted to maybe dig into the gross margin a little bit here, you've got sequential overtime. I think you said, 13% that seems like really nice growth. There I guess what percent of labor hours remaining would still fall into the quote Mike Nonproductive classification or how much left is there to remove it.
And then I guess.
Within the outlook you kind of provided the framework.
These non productive hours.
Oh gross margins would be up year over year that driven more by the sale of improvement, which is part of that are more about further cross section.
Until comps accelerate as you guys think about managing the cost base.
Yes.
This is Brian Daniel we're not going to go specifically into how much productivity or unproductive time is still there.
The bigger driver.
I think it's a it's a mix of both I think first of all we've got some easier gross margin comps coming up ahead of us so.
What we do know is a huge focus of the organization to drive out any unproductive labor.
So that's the first thing and then I think the second thing is that we expect to be able to drive that low to mid single digit camp as we do that we'll get leverage.
We believe that we're doing that through the actions that we've taken this past quarter and we continue to do that as Mike said in his prepared remarks, we are.
Against our fixed costs, but at.
Avoiding touching anything that we feel is support truly supporting our topline growth. So that's why we feel like we can still go after mid single digit comp store sales, while carefully manning managing out unproductive labor and those two things.
At the same time, we're rationalizing and looking like we said for pricing actions anything we can do to improve variable walk through so I think it's a mix of both both top line and and other actions.
Kind of a follow up before a fun I appreciate it thanks. Thank.
We are competing with each other at the same time, we're obviously managing all other fixed costs as well outside of store direct labor, including back office to really make sure that we're being prudent about our cost structure against the topline backdrop.
Thank you.
As a reminder, if you'd like to ask any further questions. Please press one on your telephone keypad now.
In that sense, you've got children with Jeffries <unk>.
Hi, good morning gas.
And then I guess.
Good morning.
Within the outlook you kind of provided the framework I think you said.
He would talk about car counts in the quarter I mean to give us some sort of feeling for what it same SKU price contributed a year over year versus traffic.
Gross margins will be up year over year is that driven more by the sales improvement, which is part of it or more about further cost actions.
I I brought up the fact that I.
The bigger driver.
Our traffic was.
I think it's a mix of both I think first of all we've got some easier gross margin comps coming up ahead of us.
Low single digits decline low single digit so when I look at our comp it was driven by very low.
So that's the first thing and then I think the second thing is that we expect to be able to drive that low to mid single digit comp as we do that we will get leverage.
Improvement in and.
And I actually feel like maybe I can even give more color into that that is part of what we've been focusing on here Monroe is making sure that we have a healthy.
Against our fixed costs, but at the same time, we are rationalizing and looking like we said for pricing actions anything we can do to improve variable flow through so I think it's a mix of both both top line and other actions.
Customer traffic trends, even though we had a significant backdrop, even though when I look at the industry data and I look at our units and tires to actually have a very low single unit decline and Bush decline I feel like we're we're really waiting or we're we're managing the business appropriate way. We just didn't have the tire business I came in.
Got it a follow up.
I appreciate it thanks. Thank you. Thank you.
As a reminder, if you'd like to ask any further questions. Please press star one on the telephone keypad now.
We just didn't have it.
Bret Jordan with Jefferies. Your line is open.
Yeah, Okay and then.
Called out and that sort of <unk>.
Hey, good morning, guys.
Nonrecurring expenses the cost of the recap was there anything that was in the quarter that was sort of a pre spend on.
Good morning.
Could you talk about car counts in the quarter I mean to give us some sort of feeling for what a same SKU price contributed year over year versus traffic.
The ultimate recap or was that could you carve out what was what was that number.
I brought up the fact that our traffic was.
Yeah, No I mean, those are just those are just fees than normal expenses associated with the recapitalization.
Low single digits decline low single digits. So when I look at our comp was driven by very low improvement in.
Okay, and then could you give us the monthly cops.
Sure we were up to 4% in April 0.7 in May and down 1.6 in June.
Arrow and I actually feel like Thats, maybe I can even give more color into that that is part of what we've been focusing here on monro is making sure that we have a healthy.
Okay, Great and then any regional dispersion west coast versus northeast versus southeast.
Yeah, we the Midwest and the West Comped slightly above are consolidated comps in the northeast, obviously, where we have a lot of stores was up was below south was a little bit below as well.
Customer traffic trends, even though we had a significant backdrop, even though when I look at the industry data and I look at our units in tires to actually have a very low single digit unit decline in voice decline I feel like we're really waiting or.
Okay.
Great. Thank you I appreciate it.
Thanks for it.
Managing the business in the appropriate way, we just didn't have the tire business that came in we just didnt have it.
This can please talk to you and I come back.
Back to Mike Roderick Presidency closing remarks.
Okay and then.
You'd called out in the sort of non recurring expenses the cost of the recap was there anything that was in the quarter that was sort of a pre spend on.
Thank you for joining US today. This continues to be an exciting time to be part of Munroe, we have a strong foundation to build upon to create long term value for all our stakeholders I look forward to keeping you updated on our progress have a great day.
The ultimate recap or was that could you carve out what was what was that number.
Ladies and gentlemen, today's call is not completed we'd like to thank you for your participation you may now disconnect your lines.
Yes, no I mean, those are just those are just fees and normal expenses associated with the recapitalization.
Okay, and then could you give us the monthly comps.
Sure we were up two 4% in April seven in May and down $1 six and Jim.
Okay, Great and then any regional dispersion west coast versus northeast versus southeast.
Yes.
Mid west and the West Comped slightly above our consolidated comps in the northeast, obviously, where we have a lot of stores.
<unk> was below south was a little bit below as well.
Okay.
Great. Thank you appreciate it.
Thanks, Brian .
Yes.
This concludes our Q&A.
Mike Broderick, President and CEO for closing remarks.
Thank you for joining US today. This continues to be an exciting time dv part of Monro, we have a strong foundation to build upon to create long term value for all our stakeholders. We look forward to keeping you updated on our progress have a great day.
Ladies and gentlemen, today's call is now complete it we'd like to thank you for your participation you may now disconnect your lines.
Yeah.
Yeah.
Okay.
Okay.
Yes.
Sure.
Okay.
Yeah.
Sure.