MONRO, INC.
For the period ended Jun 28, 2025. Filed Jul 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Jul 30, 2025
MNRO$10.95-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-28; filed 2025-01-29.
0001562762-25-000015
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-07-30.
0001562762-25-000184
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 103 current paragraphs.
36 unchanged; 28 reworded; 38 added; 19 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 25 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
On May 23, 2025, we entered into an amendment (the “Fifth Amendment”) to our Credit Facility, which, among other things, amends the terms of certain of the financial and restrictive covenants in the credit agreement to provide us with additional flexibility to operate our business from the first quarter of fiscal 2026 through the first quarter of fiscal 2027. See additional discussion related to the Fifth Amendment in Note 8 to our consolidated financial statements.
Current report
On May 23, 2025, following an evaluation of market segmentation and demographic data specific to geographic areas where our stores are located, our Board of Directors approved a plan to close 145 underperforming stores that we identified to have failed to maintain an acceptable level of profitability (the “Store Closure Plan”). These stores were closed during the first quarter of fiscal 2026. As a result of the store closures, we recorded net store closing costs of $14.8 million during the three months ended June 28, 2025. See additional discussion related to the Store Closure Plan in Note 1 to our consolidated financial statements.
Current report
On May 30, 2025, the Company amended its consulting agreement with AlixPartners, LLP (“AlixPartners”), pursuant to which AlixPartners will provide services to implement the plan developed from its detailed assessment of the Company(the “Operational Improvement Plan”). Such services include the previously disclosed Store Closure Plan, improving customer experience and the Company’s selling effectiveness, driving profitable customer acquisition and activation, and increasing merchandising productivity, including mitigating tariff risk. See additional discussion in Note 13 to our consolidated financial statements.
Current report
Diluted loss per common share was $0.28.
Current report
Sales increased 2.7 percent, due to higher overall comparable store sales partially offset by closed stores.
Current report
Comparable store sales increased 5.7 percent from the prior year period.
Current report
Operating loss was $6.1 million.
Current report
Adjusted operating income, a non-GAAP measure, was $14.0 million.
Current report
Net loss was $8.1 million.
Current report
(a)All 145 stores were closed in the first quarter of fiscal 2026 as a result of the Store Closure Plan.
Current report
Adjusted operating income is summarized as follows:
Current report
(a) Amount for the three months ended June 28, 2025 includes closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of related gains on the sale of owned locations and early lease terminations.
Current report
(a) Amount for the three months ended June 28, 2025 includes closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of related gains on the sale of owned locations and early lease terminations.
Current report
Cash (used for) provided by operating activities
Current report
Cash used for investing activities
Current report
•the impact of competitive services and pricing;
Current report
•the effect of economic conditions and geopolitical uncertainty, seasonality, and the impact of weather conditions and natural disasters on customer demand;
Current report
•advances in automotive technologies including adoption of electronic vehicle technology;
Current report
•our dependence on third-party vendors for certain inventory;
Current report
•the risks associated with vendor relationships and international trade, particularly imported goods such as those sourced from China and other countries targeted with import tariffs;
Current report
•the impact of changes in U.S. trade relations and ongoing trade disputes between the United States, China, and other countries and other potential impediments to imports;
Current report
•our ability to generate sufficient cash flows from operations and service our debt obligations, including our expected annual interest expense, and to comply with the debt covenants of our Credit Facility;
Current report
•our cash needs, including our ability to fund our future capital expenditures and working capital requirements;
Current report
•our anticipated sales, comparable store sales, gross profit margin, costs of goods sold (including product mix), OSG&A expenses and other fixed costs, and our ability to leverage those costs;
Current report
•management’s estimates and expectations as they relate to income tax liabilities, deferred income taxes, and uncertain tax positions;
Current report
•management’s estimates associated with our critical accounting policies, including insurance liabilities, income taxes, and valuations for our goodwill and long-lived assets impairment analyses;
Current report
•the impact of industry regulation, including changes in environmental, consumer protection, and labor laws;
Current report
•potential outcomes related to pending or future litigation matters;
Current report
•business interruptions;
Current report
•risks relating to disruption or unauthorized access to our computer systems;
Current report
•our ability to protect customer and employee personal data;
Current report
•risks relating to acquisitions and the integration of acquired businesses with ours;
Current report
•our growth plans, including our plans to add, renovate, re-brand, expand, remodel, relocate, or close stores and any related costs or charges, our leasing strategy for future expansion, and our ability to renew leases at existing store locations;
Current report
•the impact of costs related to planned store closings or potential impairment of goodwill, other intangible assets, and long-lived assets;
Current report
•expected dividend payments;
Current report
•our ability to protect our brands and our reputation;
Current report
•our ability to attract, motivate, and retain skilled field personnel and our key executives; and
Current report
•the potential impacts of climate change on our business.
Removed paragraphs (19)
Previous report
On October 23, 2024, American Tire Distributors, Inc. (“ATD”), one of our vendors for tires, filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. While ATD has proposed restructuring its business with the support of its lenders, uncertainty exists about how our distribution and fulfillment agreement with ATD will be treated in the proceeding and whether and when we will receive the remaining $6.8 million in earnout payments from our divesture of assets to ATD. We intend to seek the remaining earnout payments and future performance under the distribution agreement with ATD so that we will be able to continue to provide high-quality service to our guests.
Previous report
Economic Conditions
Previous report
The United States economy has experienced higher inflation during fiscal 2024 and into fiscal 2025 and there are market expectations that consumer prices may remain at elevated levels for a sustained period. In addition, labor availability has continued to be constrained and market labor costs have continued to increase. These conditions may give rise to an economic slowdown, and perhaps a recession, and could further increase our costs and/or impact our revenues. It is unclear whether the current economic conditions and government responses to these conditions, including inflation, changing interest rates, and geopolitical uncertainty, will result in an economic slowdown or recession in the United States. If that occurs, demand for our products and services may further decline, possibly significantly, which may significantly and adversely impact our business, results of operations and financial position.
Previous report
Adjusted diluted EPS, a non-GAAP measure, were $0.19.
Previous report
Sales decreased 3.7 percent, primarily due to lower overall comparable store sales resulting from lower store traffic.
Previous report
Comparable store sales decreased 1.9 percent from the prior year, or a decrease of 0.8 percent if adjusted for selling days.
Previous report
Operating income of $10.0 million.
Previous report
Net income was $4.6 million.
Previous report
Note: Amounts may not foot due to rounding.
Previous report
(a) Comparable store sales decreased 0.8% and 5.6% when adjusted for selling days for the three months and nine months ended December 28, 2024.
Previous report
An increase in battery sales of 30% and 16% and an increase in alignment services of 13% and 1% in the three months and nine months ended December 28, 2024, respectively, partially offset the decrease in sales in other categories. Broad-based economic pressures impacting consumers partly led to lower demand in tires and our higher-margin service categories during the three months and nine months ended December 28, 2024. We expect the economic environment to continue to impact our customers throughout the remainder of fiscal 2025. The following table shows the primary drivers of the comparable store product category sales change for the three months and nine months ended December 28, 2024, as compared to the same period ended December 23, 2023.
Previous report
Net interest expenseof $14.5 million for the nine months ended December 28, 2024 decreased $0.5 million compared to the prior year period, and remained at 1.6 percent as a percentage of sales. Weighted average debt outstanding for the nine months ended December 28, 2024 decreased by approximately $34.7 million and the weighted average interest rate increased approximately 20 basis points as compared to the same period of the prior year.
Previous report
(a) Amounts include the gain on sale of the corporate headquarters building net of associated closing and relocation costs.
Previous report
(b) Amount includes a loss on subsequent inventory adjustments on prior year sale of wholesale tire and distribution assets.
Previous report
In the Reconciliation of Adjusted Net Income, we determined the Provision for income taxes on pre-tax adjustments by calculating our estimated annual effective income tax rate on pre-tax income before giving effect to any discrete tax items and applying it to the pre-tax adjustments.
Previous report
(b) Amounts include the gain on sale of the corporate headquarters building net of associated closing and relocation costs.
Previous report
(c) Amount includes a loss on subsequent inventory adjustments on prior year sale of wholesale tire and distribution assets.
Previous report
Cash provided by operating activities
Previous report
Cash provided by (used for) investing activities
Reworded paragraphs (28)
Previous wording
Third quarter 2025 included the following notable items:
Current wording
First quarter 2026 included the following notable items:
Previous wording
Diluted earnings per common share (“EPS”) were $0.15.
Current wording
Adjusted diluted earnings per common share (“EPS”), a non-GAAP measure, was $0.22.
Previous wording
Adjusted net income, a non-GAAP measure, was $5.8 million.
Current wording
Adjusted net income, a non-GAAP measure, was $7.0 million.
Previous wording
Adjusted net income and adjusted diluted EPS, each of which is a measure not derived in accordance with GAAP, exclude the impact of certain items. Management believes that adjusted net income and adjusted diluted EPS are useful in providing period-to-period comparisons of the results of our operations by excluding certain non-recurring items, such as costs related to litigation reserve, transition costs related to back-office optimization, store closing costs, closed store impairment charges, shareholder matters from our equity capital structure recapitalization, net loss on subsequent inventory adjustment related to the prior year sale of wholesale tire and distribution assets, and a gain on sale of corporate headquarters net of closing and relocation costs. Reconciliations of these non-GAAP financial measures to GAAP measures are provided beginning onpage 17 under “Non-GAAP Financial Measures.”
Current wording
Adjusted operating income, adjusted net income and adjusted diluted EPS, each of which is a measure not derived in accordance with GAAP, exclude the impact of certain items. Management believes that adjusted operating income, adjusted net income and adjusted diluted EPS are useful in providing period-to-period comparisons of the results of our operations by excluding certain items that are not part of our core operations, such as store closing costs, consulting costs related to the Company’s Operational Improvement Plan, transition costs related to back-office optimization, store impairment charges, corporate headquarters relocation costs and write-off of debt issuance costs. Reconciliations of these non-GAAP financial measures to GAAP measures are provided beginning onpage 18 under “Non-GAAP Financial Measures.”
Previous wording
Sales include automotive undercar repair, tire replacement and tire related service sales, net of discounts, returns, etc., and revenue from the sale of warranty agreements and commissions earned from the delivery of tires. See Note 7 to our consolidated financial statements for further information. We use comparable store sales to evaluate the performance of our existing stores by measuring the change in sales for a period over the comparable, prior-year period of equivalent length. There were 89 selling days in the three months ended December 28, 2024 and 90 selling days in the three months ended December 23, 2023, and 270 selling days in the nine months ended December 28, 2024 and 271 selling days in the nine months ended December 23, 2023. There was one fewer selling day in the three months and nine months ended December 28, 2024, as compared to the same period ended December 23, 2023, due to a shift in the timing of the Christmas holiday from the fourth quarter in fiscal 2024 to the third quarter in fiscal 2025.
Current wording
Sales include automotive undercar repair, tire replacement and tire related service sales, net of discounts, returns, and revenue from the sale of warranty agreements and commissions earned from the delivery of tires. See Note 7 to our consolidated financial statements for further information. We use comparable store sales to evaluate the performance of our existing stores by measuring the change in sales for a period over the comparable, prior-year period. There were 90 selling days in each of the three months ended June 28, 2025 and June 29, 2024.
Previous wording
The sales decrease was primarily due to adecrease in comparable store sales resulting from lower store traffic. Although overall comparable sales were down for the three months and nine months ended December 28, 2024, we returned to year-over-year comparable store sales growth in fiscal December. The following table shows the primary drivers of the change in sales for the three months and nine months ended December 28, 2024, as compared to the same period ended December 23, 2023.
Current wording
The sales increase was due to an increase in comparable store sales partially offset by a decrease in sales from closed stores. The following table shows the primary drivers of the change in sales for the three months ended June 28, 2025, as compared to the same period ended June 29, 2024.
Previous wording
(a) The comparable store product category sales change for the three and nine months ended December 28, 2024 are adjusted for selling days.
Current wording
During the three months ended June 28, 2025, comparable store sales increased across our product categories with significant growth in our front end/shocks category, as well as our batteries and brakes categories, each of which experienced significant declines during the three months ended June 29, 2024. The following table shows the primary drivers of the comparable store product category sales change for the three months ended June 28, 2025, as compared to the same period ended June 29, 2024
Previous wording
Gross profit, as a percentage of sales, decreased 120 basis points (“bps”) for the three months ended December 28, 2024, as compared to the prior year comparable period. Material costs increased, as a percentage of sales, due primarily to mix within tires and increased levels of self-funded promotions. Partially offsetting this was a decrease in technician labor costs, as a percentage of sales, due primarily to improvements in labor productivity and efficiency. Gross profit, as a percentage of sales, increased 20 basis points for the nine months ended December 28, 2024, as compared to the prior year comparable period. The increase in gross profit, as a percentage of sales, was primarily due to improvements in labor productivity and efficiency, partially offset by an increase in occupancy costs, as we lost leverage on these largely fixed costs, and an increase in material costs due primarily to mix within tires and increased levels of self-funded promotions.
Current wording
Gross profit, as a percentage of sales, decreased 170 basis points (“bps”) for the three months ended June 28, 2025, as compared to the prior year comparable period. Technician labor costs increased, as a percentage of sales, due primarily to wage inflation. Material costs increased, as a percentage of sales, due primarily to mix within tires and increased levels of self-funded promotions. Partially offsetting these increases was a decrease in occupancy costs, as we gained leverage on these largely fixed costs with higher comparable store sales.
Previous wording
The increase of $3.5 million in operating, selling, general and administrative (“OSG&A”) expenses for the three months ended December 28, 2024, from the comparable prior year period is primarily due to an increase in OSG&A expenses from comparable stores, litigation reserve, transition costs related to back-office optimization, as well as costs related to store closings. Partially offsetting these increases were decreases due to closed stores, store advertising costs, costs related to shareholder matters and other net non-recurring costs. The following table shows the impact of these costs on the change in OSG&A expenses for the three months and nine months ended December 28, 2024, as compared to the same periods ended December 23, 2023.
Current wording
The increase of $17.0 million in operating, selling, general and administrative (“OSG&A”) expenses for the three months ended June 28, 2025, from the comparable prior year period is primarily due to store closure costs and consulting costs related to the Operational Improvement Plan. The following table shows the impact of these costs on the change in OSG&A expenses for the three months ended June 28, 2025, as compared to the same periods ended June 29, 2024.
Previous wording
Net interest expense of $4.2 million for the three months ended December 28, 2024 decreased $0.8 million as compared to the prior year period, and decreased as a percentage of sales from 1.6 percent to 1.4 percent. Weighted average debt outstanding for the three months ended December 28, 2024 decreased by approximately $59.5 million as compared to the three months ended December 23, 2023. This decrease is primarily related to lower debt outstanding under the Credit Facility as well as lower finance lease debt related to our stores. The weighted average interest rate decreased approximately 23 basis pointsas compared to the same period of the prior year.
Current wording
Net interest expense of $4.8 million for the three months ended June 28, 2025 decreased $0.4 million as compared to the prior year period, and decreased as a percentage of sales from 1.8 percent to 1.6 percent. Weighted average debt outstanding for the three months ended June 28, 2025 decreased by approximately $62.0 million as compared to the three months ended June 29, 2024. This decrease is primarily related to lower debt outstanding under the Credit Facility as well as lower finance lease debt related to our stores. The weighted average interest rate increased approximately 30 basis pointsas compared to the same period of the prior year.
Previous wording
Our effective income tax rate for the three months and nine months ended December 28, 2024 was 21.2 percent and 27.5 percent, respectively, compared with 25.8 percent and 26.7 percent in the comparable prior-year periods. The difference from the statutory rate is primarily due to state taxes and the discrete tax impact related to share-based awards and the audit settlement of certain prior year state income tax returns.
Current wording
Our effective income tax rate for the three months ended June 28, 2025 was 24.8 percent, compared with 28.5 percent in the comparable prior-year period. The year-over-year difference in effective tax rate is primarily related to the discrete tax impact related to share-based awards and other adjustments, none of which are significant.
Previous wording
In addition to reporting net income and diluted EPS, which are GAAP measures, this Form 10-Q includes adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures. We have included reconciliations to adjusted net income and adjusted diluted EPS from our most directly comparable GAAP measures, net income and diluted EPS, below. Management views these non-GAAP financial measures as indicators to better assess comparability between periods because management believes these non-GAAP financial measures reflect our core business operations while excluding certain non-recurring items, such as costs related to litigation reserve, transition costs related to back-office optimization, store closing costs, closed store impairment charges, shareholder matters from our equity capital structure recapitalization, net loss on subsequent inventory adjustment related to the prior year sale of wholesale tire and distribution assets, and a gain on sale of corporate headquarters net of closing and relocation costs.
Current wording
In addition to reporting operating (loss) income, net (loss) income and diluted (loss) earnings per common share, which are GAAP measures, this Form 10-Q includes adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures. We have included reconciliations to adjusted operating income, adjusted net income and adjusted diluted EPS from our most directly comparable GAAP measures, operating (loss) income, net (loss) income, and diluted (loss) earnings per common share, below. Management views these non-GAAP financial measures as indicators to better assess comparability between periods because management believes these non-GAAP financial measures reflect our core business operations while excluding certain items that are not part of our core operations, such as store closing costs, consulting costs related to the Operational Improvement Plan, transition costs related to back-office optimization, store impairment charges, corporate headquarters relocation costs and write-off of debt issuance costs.
Previous wording
(a) Amounts, inthe periods presented, may be too minor in amount, net of the impact from income taxes, to have an impact on the calculation of adjusted diluted EPS.
Current wording
(a) Amounts, in the periods presented, may be too minor in amount, net of the impact from income taxes, to have an impact on the calculation of adjusted diluted EPS.
Previous wording
The other adjustments to diluted EPS reflect estimated annual effective income tax rates of 28.4 percent and 25.8 percent for the three months ended December 28, 2024 and December 23, 2023, respectively, and 28.0 percent and 25.6 percent for the nine months ended December 28, 2024 and December 23, 2023, respectively. These estimated annual effective income tax rates exclude the income tax impacts from share-based compensation and the audit settlement of certain prior year state income tax returns. See adjustments from the Reconciliation of Adjusted Net Income table above for pre-tax amounts.
Current wording
The other adjustments to diluted EPS reflect estimated annual effective income tax rates of 26.0 percent and 27.2 percent for the three months ended June 28, 2025 and June 29, 2024, respectively. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate. See adjustments from the Reconciliation of Adjusted Net Income table above for pre-tax amounts.
Previous wording
We expect to continue to generate positive operating cash flow as we have done in each of the last three fiscal years. The cash we generate from our operations will allow us to continue to support business operations as well as invest in opportunities intended to drive long-term sustainable growth, pay down debt, and return cash to our shareholders through our dividend program.
Current wording
We expect to continue to generate positive operating cash flow as we have done in each of the last three fiscal years. We believe the cash we generate from our operations will allow us to continue to support business operations, pay down debt, and return cash to our shareholders through our dividend program.
Previous wording
We currently expect our capital expenditures to support our projects, including upgrading our facilities and systems, to be $25 million to $30 million in the aggregate in fiscal 2025. Additionally, we have contractual finance lease and operating lease commitments with landlords through October 2040 for $463.9 million in lease payments, of which $95.5 million is due within one year. For details regarding these lease commitments, see Note 9 to our consolidated financial statements.
Current wording
We currently expect our capital expenditures to support our projects, including upgrading our facilities and systems, to be $25 million to $35 million in the aggregate in fiscal 2026. Additionally, we have contractual finance lease and operating lease commitments with landlords through October 2040 for $453.0 million in lease payments, of which $96.1 million is due within one year. For details regarding these lease commitments, see Note 9 to our consolidated financial statements.
Previous wording
As of December 28, 2024, we had $59.3 million outstanding under the Credit Facility, none of which is due in the succeeding 12 months. For details regarding our indebtedness that is due, see Note 8 to our consolidated financial statements.
Current wording
As of June 28, 2025 we had $71.5 million outstanding under the Credit Facility, none of which is due in the succeeding 12 months. For details regarding our indebtedness that is due, see Note 8 to our consolidated financial statements.
Previous wording
We declared dividends of $0.28 per share totaling $8.7 million for the three months ended December 28, 2024 and December 23, 2023, and $0.84 per share totaling $26.2 million and $26.8 million for the nine months ended December 28, 2024 and December 23, 2023, respectively.
Current wording
We declared and paid dividends of $0.28 per share totaling $8.7 million for each of the three months ended June 28, 2025 and June 29, 2024.
Previous wording
As of December 28, 2024, we had a working capital deficit of $234.0 million, an increase of $32.1 million from a deficit of $201.9 million as of March 30, 2024. The overall working capital deficit is a result of our supply chain finance program. We have agreed to contractual payment terms and conditions with our suppliers. As part of our working capital management, we facilitate a voluntary supply chain finance program to provide our suppliers with the opportunity to sell receivables due from Monro to a participating financial institution. For details regarding our supply chain finance program, see Note 10 to our consolidated financial statements.
Current wording
As of June 28, 2025, we had a working capital deficit of $251.2 million, an increase of $4.3 million from a deficit of $246.9 million as of March 29, 2025. The overall working capital deficit is a result of extended payment terms negotiated with certain suppliers. As part of our working capital management, we facilitate a voluntary supply chain finance program to provide our suppliers with the opportunity to sell receivables due from Monro to a participating financial institution subject to the independent discretion of both the supplier and participating financial institution. For details regarding our supply chain finance program, see Note 10 to our consolidated financial statements.
Previous wording
As of December 28, 2024, we had $10.2 million of cash and equivalents. In addition, we had $510.6 million available under the Credit Facility as of December 28, 2024.
Current wording
As of June 28, 2025, we had $7.8 million of cash and equivalents. In addition, we had $398.4 million available under the Credit Facility as of June 28, 2025, subject to compliance with our covenants.
Previous wording
For the nine months ended December 24, 2023, cash provided by operating activities was $130.5 million, which consisted of net income of $33.9 million, adjusted by non-cash charges of $64.9 million and by a change in operating assets and liabilities of $31.7 million. The non-cash charges were largely driven by $54.4 million of depreciation and amortization, as well as $9.6 million in deferred income tax expense. The change in operating assets and liabilities was primarily due to our supply chain finance program being a source of cash as we improved our cash flow by $17.8 million. Additionally, the change in operating assets and liabilities was also partially due to accounts payable and accrued liabilities, net of vendor rebate receivables, being a source of cash of $30.5 million driven by timing of payments. These sources of cash were partially offset by our inventory balance being a use of cash of $12.7 million due to increased inventory purchases.
Current wording
For the three months ended June 28, 2025, cash used for operating activities was $1.9 million, which consisted of a net loss of $8.1 million and a change in operating assets and liabilities of $9.2 million, partially offset by non-cash adjustments of $15.4 million. The change in operating assets and liabilities was driven by timing of payments that caused accounts payable to be a use of cash of $21.3 million. This was partially offset by ourinventory being a source of cash of $7.4 millionand accrued expenses being a source of cash of $4.3 million. The non-cash charges were driven by $15.6 million of depreciation and amortization, $1.5 million in loss on disposal of assets and $1.0 million in share-based compensation expense, offset by $2.7 million in deferred income tax expense.
Previous wording
For the nine months ended December 28, 2024, cash provided by operating activities was $103.0 million, which consisted of net income of $16.1 million, increased by non-cash adjustments of $58.3 million and net change in operating assets and liabilities of $28.6 million. The non-cash charges were largely driven by $52.4 million of depreciation and amortization, as well as $5.7 million in deferred income tax expense. The change in operating assets and liabilities was primarily due toour supply chain finance program being a source of cash as we improved our cash flow by $80.7 million. This was partially offset by accrued expenses and other current assets being a use of cash of $24.4 million driven by timing of payments, as well as our inventory balance being a use of cash of $22.2 million due to increased inventory purchases.
Current wording
For the three months ended June 29, 2024, cash provided by operating activities was $25.6 million, which consisted of net income of $5.9 million, increased by non-cash adjustments of $20.9 million, offset by a net change in operating assets and liabilities of $1.1 million. The non-cash charges were largely driven by $17.8 million of depreciation and amortization, as well as $1.6 million in deferred income tax expense. The change in operating assets and liabilities was driven by timing of payments, primarily due to accrued expenses and other current assets being a use of cash of $21.2 million, as well as our inventory balance being a use of cash of $8.1 million. These uses of cash were partially offset by our supply chain finance program being a source of cash as we improved our cash flow by $28.3 million.
Previous wording
For the nine months ended December 28, 2024, cash provided by investing activities was $0.1 million. This was due to cash provided by payments from the disposal of property and equipment, including the proceeds related to the sale of our corporate headquarters, for $12.3 million, and cash provided by the earnout payment from the sale of our wholesale tire locations and distribution assets of $8.5 million, partially offset by cash used for capital expenditures, including property and equipment, of $20.7 million.
Current wording
For the three months ended June 28, 2025, cash used for investing activities was $2.4 million. This was primarily due to cash used for capital expenditures, including property and equipment, of $7.4 million, partially offset by subsequent proceeds from the sale of our wholesale tire locations and distribution assets and proceeds from the disposal of property and equipment of $3.5 million and $1.6 million, respectively.
Previous wording
For the nine months ended December 23, 2023, cash used for investing activities was $0.3 million. This was primarily due to cash used for capital expenditures, including property and equipment, of $18.9 million, partially offset by cash provided by the escrow and earnout payments from the sale of our wholesale tire locations and distribution assets and the disposal of property and equipment of $15.8 million and $2.8 million, respectively.
Current wording
For the three months ended June 29, 2024, cash used for investing activities was $4.2 million. This was primarily due to cash used for capital expenditures, including property and equipment, of $8.9 million, partially offset by subsequent proceeds from the sale of our wholesale tire locations and distribution assets and proceeds from the disposal of property and equipment of $4.4 million and $0.3 million, respectively.
Previous wording
For the nine months ended December 23, 2023, cash used for financing activities was $111.2 million, which was primarily due to payment on our Credit Facility, net of amounts borrowed during the period, of $11.0 million, as well as payment of finance lease principal and dividends of $29.4 million and $26.8 million, respectively. Also, we used $44.0 million to repurchase common stock during the period.
Current wording
For the three months ended June 28, 2025, cash used for financing activities was $8.7 million. This wasprimarily due to payment of finance lease principal and dividends of $9.8 million and $8.7 million, respectively, as well as deferred financing costs of $0.5 million. These were offset by amounts borrowed on our Credit Facility, net of payments made during the period, of $10.3 million.
Previous wording
For the nine months ended December 28, 2024, cash used for financing activities was $99.5 million, which was primarily due to payment on our Credit Facility, net of amounts borrowed during the period, of $42.8 million, as well as payment of finance lease principal and dividends of $29.8 million and $25.8 million, respectively.
Current wording
For the three months ended June 29, 2024, cash used for financing activities was $9.3 million. This was primarily due to payment of finance lease principal and dividends of $9.9 million and $8.7 million, respectively, as well as deferred financing costs of $0.7 million. These were offset by amounts borrowed on our Credit Facility, net of payments made during the period, of $10.0 million.
Previous wording
The consolidated financial statements are prepared in accordance with GAAP. The preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. We base our estimates on historical experience, as appropriate, and on various other assumptions that we believe to be reasonable under the circumstances. Changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ significantly from the estimates made by management. We evaluate our estimates and
Current wording
The consolidated financial statements are prepared in accordance with GAAP. The preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. We base our estimates on historical experience, as appropriate, and on various other assumptions that we believe to be reasonable under the circumstances. Changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ significantly from the estimates made by management. We evaluate our estimates and assumptions on an ongoing basis. To the extent that there are material differences between these estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows may be affected.
Previous wording
This Quarterly Report on Form 10-Q contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments, and results and do not relate strictly to historical facts. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by, or including words such as “anticipate,” “believe,” “can,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “seek,” “should,” “strategy,” “will,” “would” and variations thereof and similar expressions. Forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed. For example, our forward-looking statements include, without limitation, statements regarding:
Current wording
This Quarterly Report on Form 10-Q contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments, and results and do not relate strictly to historical facts. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by, or including words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “strategy,” “will,” “would” and variations thereof and similar expressions. Forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed. For example, our forward-looking statements include, without limitation, statements regarding:
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
assumptions on an ongoing basis. To the extent that there are material differences between these estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows may be affected.