Good morning, ladies and gentlemen, and welcome to the Monro Muffler Brake’s First Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded and may not be reproduced in whole or in part without permission from the company. I would now like to introduce Ms. Jennifer Milan of FTI Consulting. Please go ahead.

Thank you. Hello, everyone, and thank you for joining us on this morning’s call. I would just like to remind you that on this morning’s call, management may reiterate forward-looking statements made in today’s release. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, I would like to call your attention to the risks and uncertainties related to these statements, which are more fully described in the press release and the company’s filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not necessarily limited to, uncertainties affecting retail generally such as consumer confidence and demand for auto repair, risks relating to leverage and debt service including sensitivity to fluctuations in interest rates, dependence on and competition within the primary markets, in which the company’s stores are located, and the need for and cost associated with store renovations and other capital expenditures. The company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this call does not constitute an admission by Monro or any other person that the events or circumstances described in such statements are material. Joining us for this morning’s call from management are John van Heel, President and Chief Executive Officer; Cathy D’Amico, Chief Financial Officer; and Rob Gross, Executive Chairman. With these formalities out of the way, I’d like to turn the call over to John van Heel. John, you may begin.

Thanks, Jen. Good morning and thank you for joining us on today’s call. We are pleased that you are with us to discuss our first quarter fiscal 2014 performance. After some brief opening remarks, I will review our quarterly performance then provide you with an update on our key initiatives and outlook for the remainder of the year. I’ll then turn the call over to Cathy D’Amico, our Chief Financial Officer, who will provide additional details on our financial results. I want to start by saying that although our first quarter results are weaker than we had hoped our strong business model and execution against our long-term growth strategy enables us to increase our market share and deliver sales and net income growth of 22% and 17% respectively. This is a testament to our proven strategy and the initiatives that have helped us consistently lead our industry during both strong and weak markets. We said that 2014 would be marked by increased traffic in sales reduced higher cost, expense reduction, significant sales and earnings contribution from our recent acquisitions, and opportunities to make further accretive acquisitions at attractive price. While we still have market on predicating sales, we delivered on all these other important objectives in the first quarter and expect these positive trends to grow as we progress in fiscal 2014. In fiscal 2013, we achieved record acquisition growth providing us with greater economies of scale and positioning the company to deliver strong earnings over the next several years. Importantly, we continue to be very encouraged by our fiscal 2013 acquisition, which generated $44 million of sales and contributed to our earnings for the quarter outperforming our plan. As a reminder, starting in our first quarter, the Kramer stores are included in our comparable store sales base. We are…

Thank you. (Operator Instructions) And we’ll take our first question from Bret Jordan with BB&T Capital Markets. Bret Jordan – BB&T Capital Markets: Hi. Good morning. I’ve couple of quick questions here. And one of them I guess if you in your markets your tire units were up 4%. Do you have a feeling for how that compared to general higher traffic in the market that you serve? And then as a bigger sort of geographic outlook, if you are now in 22 states, did you see any regional dispersion on performance where some of the market that had historically wet Junes, like Philadelphia underperforming some of the Western markets or was there any noticeable difference regionally?

Yes. On the tire units I think we are at or better than what we see within our markets and being guys that we are looking to buy, so that’s favorable. With regard to regional differences, we didn’t see significant regional differences. June retail sales were weak generally weather certainly didn’t help that situation plus I frankly would have expected after running positive three comps for seven weeks have run six weeks of flat. So, I think that had an impact. Bret Jordan – BB&T Capital Markets: Okay and then I guess if you look at oil, oil is a category and tire starts deflating with the import mix. Did your oil change pricing year-over-year meaningfully down? I think you’ve been promoting it $21.99 what was the prior, the year ago quarter for oil pricing?

Overall it’s not down meaningfully. I think it might have ticked down slightly but not (inaudible) at all. Bret Jordan – BB&T Capital Markets: Okay. And then I guess one just housekeeping. Could you give us some monthly comps and maybe some cadence as we come into July?

Yeah. The monthly comp was up three in April, up one in May and flat in June. Bret Jordan – BB&T Capital Markets: Okay. And I guess as we look at July I think the week around July 4th might have been soft industry-wide, but what if we say in concern?

Yeah. I mean actually we didn’t have a bad week there. Yeah, I mean, things have been uneven. Again, we’ve now proven to be able to predict things on the sales side so we’ve had some uneven weeks there. Look this week is up mid-single digits. That mean you tell me what sales are going to be outside U.S. I’ll tell you what the results are going to be. We are delivering on everything else and we’re working hard to bring customers in which we did in the first quarter with increased oil changes, where I think the tire units being up chose that folks are getting to a point that they need to replace some tires and we are – we’re working hard in a choppy environment? Bret Jordan – BB&T Capital Markets: Well, alright. Thank you.

Thank you.

And we’ll take our next question from James Albertine with Stifel Nicolaus. James Albertine – Stifel Nicolaus: Great. Thanks for taking the question. Good morning. Just wanted to focus on the M&SA side, just given the soft comp environment in certainly last six weeks of the quarter, and then as you noted the choppy July results, what are you seeing from I guess on the first time, the pipeline perspective or the number of deals, and the valuation secondly that you are seeing relatively to the deals that you are working on?

Yeah, I think last time we had eight NDAs. We have seven now because we singed one of those. So, the pipeline at that level is very strong. And in terms of I think a choppy environment plays into that. So, I expect to see more acquisition opportunities there as we move forward. And in terms of valuation, we’re being very careful with the valuation and we are within the parameters that we’ve been paying, 7 to 7.5 times EBITDA, 80% of sales. I would note in the last several transactions, we have been purchasing within those parameters, more of the real estate, which is a benefit on the valuation side to get more assets. James Albertine – Stifel Nicolaus: That’s very helpful. And then if I may ask a second question, on the implication – the conversion remains stubborn in the last quarter, I just wanted to get a sense for us consumers continue to differ items. Can you just get into a little bit more granularity maybe by segment where you are seeing that? And then as sort of a related question, I wouldn’t imagine its typical sort of your core consumer, but are you seeing folks that at this point with significantly older vehicles perhaps opting to replace rather than repair when they get into the big ticket maintenances and repair category? Thanks.

Yes. On a category basis, really that choppiness for that deferral there is kind of across the board. On the replacement of vehicles, that’s always been a consideration. And I think if you take a look at our consumer what the data showing is that they are hanging on to their cars, and they are investing in those cars. I think those consumers are having a tougher time right now and that is showing up in the choppiness in our sales, but I don’t think that those folks are going to find new cars and grow. James Albertine – Stifel Nicolaus: Okay.

Just as note, we continue to see the numbers for the percentage of vehicles that are 12 years old and older grow within our customer base and our traffic is out there. James Albertine – Stifel Nicolaus: Right. It doesn’t sound like there is any systematic change then as expeditiously.

I don’t see anything of that. James Albertine – Stifel Nicolaus: Great, okay. Well, I appreciate that and good luck in the coming quarters.

Thank you.

And we’ll take our next question from Rick Nelson with Stephens. Rick Nelson – Stephens: Thanks. Good morning. John, the Curry acquisition looks like it had more of a service component to an 80% service, does this signal any change or is it higher to look at more service stores as opposed to tire stores?

No. We have said in the past we are different there. Our multi-branding strategy allows us to have that kind of flexibility as we approach acquisition candidates and it allows us to get more deals done to create that store density that drives operating margins up, plus it’s in no way a shift to sign service stores as opposed to tire stores. What we have said is because of the significant numbers of independent tire dealers we will have more that are out there. We will have more of our acquisitions probably four out of five being on the tire store side versus a service store side. Rick Nelson – Stephens: Okay, got you. So, that would be true that seven NDAs are still more tire oriented?

That’s right. Rick Nelson – Stephens: And just to follow up on the margin pressure you saw in the quarter, I understand acquisitions and lower margin tires weigh on that, if you could discuss on a competitive environment in the tire business what’s happening to pricing and margins and maybe looking at some of your legacy stores as opposed to the newer ones?

Yes. With tire cost coming down, there is a bit of a downward bias in tire retail pricing. But as Cathy said excluding the acquisitions, our gross margin was flat for the quarter. And as I said I thought we discounted more in the quarter in particular on tires than we should have. And we are addressing that. One of the things to remember as well on the acquisition side is those stores that we bought have a high concentration of tire sales, but they are also still coming up the spectrum and the integration. So, we always have a lower margin earlier in that integration. So, I expect that to be helped later in the year. And I would certain – we certainly see margin opportunity as we move through the year as we address our discounting and as those integrations occur and the tire costs continue to come down. Rick Nelson – Stephens: Got you. Thanks a lot and good luck.

Sure. Thank you. Cathy D’Amico: Thank you.

And we’ll take our next question from Scott Stember with Sidoti & Company. Scott Stember – Sidoti & Company: Good morning.

Good morning. Scott Stember – Sidoti & Company: Could you maybe talk about the tire performance between the two different types of formats that you have. I’m talking more along the lines of the volumes, higher stores like tire warehouse versus the payments to tire?

Sales wasn’t as significant difference between those formats if you’re talking about where the unit increase came from. Scott Stember – Sidoti & Company: Right. And that’s what I was referring to.

Yes. Now there was nothing meaningful there.

Now the big adjustments Scott just in general is we’re getting more units now, but people continue to look for value and trade down to the private label category as we’re offering that value. We’re encouraged with the units. We think at some point it levels off and the units will start approaching a comp number instead of a plus four, getting us a plus one. Scott Stember – Sidoti & Company: Got you. And last quarter you talked about the condition of the tires that are actually coming into your base, we haven’t seen any changes there, obviously they must still be in pretty rigid conditions, I imagine?

Yeah. They are, they had less stride on them than they have in recent years. Same trend that we’ve been seeing and I think again without driving positive units in the quarter that’s a good thing and it certainly gives me confidence as we look at the opportunity versus the second half of the year, which has been weak for two years now. I can’t imagine it’s going to be three years particularly if we get any kind a normalized level. Scott Stember – Sidoti & Company: Okay. And just last on some of the higher margin funds your business like brake little bit softer in the quarter than we expect here. Is there anything going on there and or is it just a function of the entire portfolio of products being affected by the lower June sales on the consumer?

On those categories, again, we continue to drive those folks and with oil changes, those categories have been weak they were in the quarter. I think that again comes back to the consumer and the consumer being in a tough environment, what I will say is we had negative trends and exhaust and in (inaudible) control and things like that. So, more favorable trends there, to me supports the fact that, we have a bunch of folks that are investing in older cars and keeping them. Certainly exhaust and life are both categories that you only spend those hundreds of dollar on when you’re going to be keeping your vehicle, so that’s great results, but at least stable as opposed to any kind of a decline. Scott Stember – Sidoti & Company: That’s great. Thanks a lot.

Thank you. Cathy D’Amico: Thank you.

(Operator Instructions) And we will take our next question from Michael Montani with ISI Group. Michael Montani – ISI Group: Hi, guys. Good morning. Just wanted to ask about on the tire side, the 4% comp and then – I’m sorry, the 1% comp and the 4% unit increase. Is the difference there basically all ASP compression or deflation or is it sort of 50-50 mix, can you just help us understand that?

Yeah, it’s a good chunk of trading down and some average selling price compression. So, it’s a chunk of all. Michael Montani – ISI Group: Okay and can you update John now in terms of what your total tire purchase volume is versus what it might have been a year ago. And then what percentage is looking like branded versus sort of private label?

Yes. We are about $2 million. Now, we are nearly $2.8 million and the branded, the import tires have grown to the high 20s in terms of the percentage from the mid 20s last year. Michael Montani – ISI Group: And then just an update in terms of the savings that you are realizing, I think it’s now 15% run rate on the imported tires, can you provide an update on where branded is and are we mixing out in total then it’s sort of a high single-digit type improvement in purchase cost?

Yeah. We have said in the past that branded was up 8%, and that we are still in that general range. Again, we are not going to talk too much about this. It’s pretty competitive information. I expect margins to while in the second quarter will still be impacted by the bringing in the acquired stores higher tire mix, so gross margin to be impacted there somewhat in the third quarter, but margin is an absolute opportunity as we move through the year, because we will have more of these discounts actually coming through our cost. Michael Montani – ISI Group: Okay, great. And just the last question I had was in terms of the competitive environment you touched on it a bit before, but when you think about getting into the September timeframe where you’ve historically done price increases with traffic now positive, do you actually feel like there is a decent chance you can get a price increase through again and what are you sort of seeing out there in terms of the outlook?

Yes, I think you can take from our comments about managing or discounting and in that to be through our consistent approach of trying to collect (inaudible), so we will absolutely look at further price increase through in September, but we will wait until we get there to evaluate what to do there, we will see how the next month and a half lays out? Michael Montani – ISI Group: Okay, great. Thanks. Good luck.

Thank you.

And we will take our next question from Peter Keith with Piper Jaffray. Peter Keith – Piper Jaffray: Hi. Good morning everyone.

Good morning. Peter Keith – Piper Jaffray: Just want to understand the revision to the full year earnings guidance, so clearly there is a little bit of a reduced compound look, would the margin characteristics, if you strip out what Curry’s with that, did your margin outlook at all change for the year?

No. It hasn’t changed other than to account for some potential upside there that we have been describing.

I mean, we did we are calling for 1 to 3 and spend 2.5 to 4 if you just do the math of every 1% comp, it’s $0.07 and you are lowering everything by 1.5% on your estimate, the margin doesn’t change just sales are a little bit later than we might have anticipated after the start for the year being three.

Yes. And we’ve got, we are very pleased with where the acquisitions are and they came in, in the first quarter ahead of our plan. So, that also helps. Peter Keith – Piper Jaffray: Okay. That’s helpful clarification.

Peter, if you look at the second quarter with 41 and 45 of 36 and then 0% to 2% comp, so zero, we said we start leveraging the business on the low end. It kind of gives you an indication of what we think the acquisitions are going to do to get us from 36 to 41 and then you just do the math $0.07 per year and 1% comp, you move it up to 2% and that’s where 45 comes from. Peter Keith – Piper Jaffray: Okay.

So, fairly consistent on everything with obviously proving our lack of ability to predict sales. Peter Keith – Piper Jaffray: Okay. Well, kind of as a follow-up to that last comment, so if we look at the revised comp guidance, you’ve guided the quarter 0 to 2% you are currently at zero, so there is clearly potential for some acceleration that you are factoring in. Also for just the rest of the year, it also looks like you are baking in the potential for acceleration. Can you give us some comfort on how that outlook comes together? Is it the tire pricing that you are going to annualize something or is just you think more normalized weather just help us understand where that acceleration might come from?

Yes, it’s primarily the opportunity in the back half of the year that we see coming off of two very weak years. Again, we are driving positive oil change units right now. We’ve got positive tire units. We get a handle on pricing gears. I see a real opportunity for unit increases to drive that positive comp in the second half of the year after two years of decline and the industry hasn’t seen that in decades, I can’t imagine it’s going be three. Peter Keith – Piper Jaffray: Okay, thank you.

So, now that it’s important to us that we saw the tire units respond in the first quarter and that again gives me a lot of confidence looking at the back half of the year if we get some (inaudible). Peter Keith – Piper Jaffray: Okay. Just changing gears real quick on the acquisition front, you talked recently maybe just last quarter that you thought this current fiscal year will be an above average acquisition year, because some of the changes to the healthcare laws. So, the Affordable Healthcare Act employer mandate there was since pushed out a full year to 2015. Would that change the acquisitions dynamic and maybe do you find sellers maybe less eager to sell this year as a result?

Well, no one called after they heard the Treasury department’s announcement to tell me that they weren’t interested anymore. So, no, I think the weak environment that and the choppy environment that we are currently facing has been the primary issue. In the long-term trend, these guys getting older and looking for other things to do, given that environment is where we’ll find most of the opportunity. So, I haven’t seen any impact from the healthcare mandates being pushed off for employers. And frankly, if the opportunities were there, we could certainly hit the right deals we were able to strike. We could get to that 10% growth this year and a handle there from a management perspective. Peter Keith – Piper Jaffray: Okay, great. Thanks a lot for that John and good luck to everyone for this coming quarter.

Thank you.

(Operator Instructions) And we’ll take our question from Gary Balter with Credit Suisse. Gary Balter – Credit Suisse: Thank you. One question which is the follow-up. I don’t know and I joined the call a bit late, you may have discussed this, but could you talk about regionality whether some areas that were just significantly weaker and was some of that weather related?

Yes. We saw the weakness in the back half of our quarter. More generally, weather certainly didn’t help much. Gary Balter – Credit Suisse: But given that it’s getting warmer, shouldn’t that be helping at this stage?

Yes. Like we said we have proven our inability to predict the sales side, I certainly didn’t see six weeks flat coming after three weeks of positive comp. I mentioned a little bit earlier this week is up mid-single digits, and we haven’t been able to predict it what we are focused on is continuing to bring customers in, and that’s why for us the oil change is so important and the fact that we drove some higher tire units is very favorable for us. Gary Balter – Credit Suisse: And just a follow-up like historically Monro would be able to put through price increases on a relatively consistent basis. Is there a worry and I don’t know the competitive market very well, so it’s maybe a naïve question, but is there a worry that you are pricing yourself a little too high relative to either other franchise operations or other people trying to be in the business in some of these categories?

Yes, certainly, we’ve never been the low price guy out there. We got attractive everyday prices on oil changes and entry level tires. We look to be competitive and slightly above a lot of our competitors are. And what we look at is traffic, and we typically we’ll run plus 2 to minus 2 traffic. And that’s what we really gauge to determine whether we’re pushing too hard on the prices side. So, with the traffic as we’re seeing, what it tells me and of course and the weakness in sales, I mean it’s a consumer issue. Retail sales were weak in June. Weather played a small part of that. And we have an opportunity in the back half of the year if we get some weather, plus really if we’re driving the traffic and I’m comfortable that we are here because we continue to drive folks in for oils, and that’s how we monitor the pricing. And we will continue to operate that way. Our margins are pretty good and that’s the way that we support.

We also have the benefit Gary of seeing the seven guys we are trying to buy plus the one guy we just bought, what they are doing in units and what they are doing in sales, which gives us some comfort that after 12 years we just been all of a sudden get stupid. Gary Balter – Credit Suisse: Okay. Yeah, I would say (inaudible) by any means, but just maybe I don’t know if somebody outside players like a Wal-Mart or Steers is trying to drive some business and getting more aggressive, but it doesn’t seem like that’s going on?

No, we don’t think that’s a case. Gary Balter – Credit Suisse: Okay. Thank you very much. Cathy D’Amico: Thank you.

And that does conclude our question-and-answer session. I would now like to turn the conference back over to you speakers for any closing or additional remarks.

I just like to thank everyone for their time this morning. We continue to work hard to take advantage of the great opportunities that we have here and I look forward to talking with everyone about better numbers in October. Thanks. Have a great day.

And that does conclude our conference. Thank you for your participation.