Driven Brands Holdings Inc. 報告第三季度
2024 年度結果
--15日 連續季度同店銷售增長--
--Take 5 Oil Change實現15%的營業收入增長和5%的同店銷售增長--
--淨損失為1500萬美元，調整後EBITDA為13900萬美元--
--重申2024財年營業收入、調整後息稅折舊及攤銷前利潤和每股收益的展望，不包括處分--
北卡羅來納州夏洛特。 (2024年10月31日) - driven brands holdings inc（納斯達克：驅動品牌）（以下簡稱“驅動品牌”或“該公司”）今天公布了截至2024年9月28日的第三季度財務業績。
對於第三季度，Driven Brands實現了營業收入為59200萬美元，較去年同期增長2%。系統範圍內銷售額達16億美元，較去年同期增長2%，主要原因是1.1%的同店銷售增長和淨增加56家新單位。
淨利潤虧損為1490萬美元，每股稀釋後0.09美元，較去年同期的淨損79930萬美元，每股稀釋後4.83美元，表現更好。調整後的凈利潤1 為4180萬美元，每股稀釋後0.26美元，較去年同期的2990萬美元，每股稀釋後0.18美元，表現更好。調整後的EBITDA1 為13880萬美元，較去年同期增長14%。
「我們很自豪地宣布我們連續第15季的同店銷售額增長，這證明了Take 5 Oil Change和我們穩定的特許經營業務可靠的雙重優勢。特別是，Take 5 Oil Change繼續高水準執行，我們預期將繼續增長，並得到我們強大的單元管道支持。我們的業績還得到了我們傳統特許品牌穩定的結果的增強，」公司總裁暨首席執行官Jonathan Fitzpatrick表示。
“我們提前實現了4.5倍淨槓桿率的目標，並致力於進一步降低槓桿率。今年剩餘的時間裡，我們期望通過達到財務展望並將Driven定位於持續增長，來延續我們的勢頭。”Fitzpatrick總結道。
2024年第三季各部門關鍵業績因數
系統範圍內銷售額（以百萬計） | 店鋪數量 | 同店銷售額2 | 營業收入 (以百萬為單位) | 片段調整後的EBITDA (以百萬為單位) | |||||||||||||
維護 | $ | 535.9 | 1,899 | 3.0 | % | $ | 278.2 | $ | 96.7 | ||||||||
洗車服務 | 140.4 | 1,107 | 1.8 | % | 142.2 | 25.6 | |||||||||||
油漆、碰撞及玻璃 | 857.2 | 1,897 | 1.3 | % | 109.0 | 34.7 | |||||||||||
平台服務 | 108.2 | 206 | 無可奉告 | 52.2 | 22.5 | ||||||||||||
公司/其他 | 無可奉告 | 無可奉告 | 無可奉告 | 10.1 | |||||||||||||
總計 | $ | 1,641.8 | 5,109 | 1.1 | % | $ | 591.7 | ||||||||||
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資本和流動性
公司第三季以總流動資金65530萬美元結束，其中現金及現金等價物20420萬美元，變量融資證券優先票據及循環信貸設施未動用額度為45110萬美元。這未包括另外1.35億美元的2022年A-1級票據，如果公司選擇行使，則擴大公司的變量融資票據借款額度，假設一定條件繼續得以滿足。
2024財政年度展望
公司重申之前的展望；以下反映了我們加拿大分銷業務出售的影響，預計將使全年營業收入減少約1800萬美元，調整後的EBITDA將減少約600萬美元。
| 原始展望 | 考慮處分調整後的展望 | 目前區間預期 | |||||||||
營業收入 | ~$2.35 - $24.5億 | ~$2.33 - $24.3億 | 低端 | ||||||||
調整後的稅前利潤減除折舊及攤銷後的費用1 | ~$535 - $56500萬 | ~$529 - $55900萬 | 中高階 | ||||||||
調整後每股收益1 | ~$0.88 - $1.00 | ~$0.88 - $1.00 | 高端 | ||||||||
公司還預期：
•1%至3%的同店銷售增長
•網店增長約為205至220。
備註：該公司未將未來可能的併購納入2024財年的展望。
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1 調整後的EBITDA、調整後的凈利潤和調整後的每股收益為非依照通用會計準則之財務指標。請參閱“非依照通用會計準則財務指標協調”以獲取有關非依照通用會計準則財務指標的附加資訊及與最相關的通用會計準則之協調。就調整後的EBITDA和調整後的每股收益的前瞻性估計而言，其制訂方式與本文所載相關的定義和假設一致。
2 公司不提供平臺服務業務的同店銷售結果，因為這僅適用於1-800-Radiator品牌，並不代表該業務部門的表現。 1-800-Radiator的同店銷售表現已包括在公司整體的同店銷售結果中。
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看漲會議通話
Driven Brands將於今天，2024年10月31日星期四上午8:30舉行一次電話看漲，討論第三季度2024年的業績。該通話將通過網絡直播提供，並可通過訪問Driven Brands的投資者關係網站investors.drivenbrands.com進行訪問。該通話的重播將至少提供三個月。
關於Driven Brands
Driven Brands，總部位於北卡羅來納州夏洛特，是北美最大的汽車服務公司，提供一系列消費和商業汽車需求，包括油漆、碰撞、玻璃、車輛維修、換油、保養和洗車。Driven Brands是北美一些領先的汽車服務業務的母公司，包括Take 5 Oil Change。™，總部位於北卡羅來納州夏洛特，是北美最大的汽車服務公司，提供一系列消費和商業汽車需求，包括油漆、碰撞、玻璃、車輛維修、換油、保養和洗車。Driven Brands是北美一些領先的汽車服務業務的母公司，包括Take 5 Oil Change。®Take 5更換機油®Take 5洗車、Meineke汽車護理中心®, Maaco®, 1-800-Radiator及空調®, Auto Glass Now®, 和CARSTAR®Driven Brands在14個國家擁有超過5,100個地點，每年為約70百萬輛車輛提供服務。Driven Brands的網絡每年從約64億美元的系統總銷售額中產生約23億美元的營業收入。
關於前瞻性聲明的披露
本新聞稿包含根據1995年《私人訴訟改革法案》的前瞻性聲明。這些前瞻性聲明通常通過使用前瞻性術語來辨識，包括“預測”、“相信”、“繼續”、“可能”、“估計”、“期望”、“打算”、“可能”、“可能發生”、“潛在”、“預測”、“項目”、“應”、“目標”、“將”、“將”等，並且在每種情況下以其否定的或其他各種或可比的術語。本新聞稿中除了包含歷史事實之外的所有聲明，包括關於我們策略、未來業務、未來財務狀況、未來營業收入、預期成本、前景、趨勢、計劃、管理目標、會計標準影響和展望、減值以及預期市場增長等的聲明，都屬於前瞻性聲明。特別是，前瞻性聲明包括，但不限於以下事項：(i) 我們的策略、展望和增長前景；(ii) 我們的運作和財務目標以及股息政策；(iii) 一般經濟趨勢和行業市場趨勢；(iv) 與我們商店和業務部門成功整合的風險和成本，以及我們整合這些的能力；(v) 適用普遍接受的會計原則，涉及許多主觀假設、估計和判斷；以及(vi) 我們運營環境的競爭環境。前瞻性聲明不是基於歷史事實，而代表我們目前對我們的業務、經濟和其他未來情況的期望和假設，涉及已知和未知的風險、不確定性和其他重要因素，可能導致我們的實際結果、表現或成就與前瞻性聲明所表達或暗示的任何未來結果、表現或成就有實質不同。不可能預測或識別所有這類風險。這
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risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
Contacts
Shareholder/Analyst inquiries:
Dawn Francfort
ICR, Inc.
investors@drivenbrands.com
(203) 682-8200
Media inquiries:
Taylor Blanchard
taylor.blanchard@drivenbrands.com
(704) 644-8129
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DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (in thousands, except per share amounts) | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||||||||
| Net Revenue: | |||||||||||||||||||||||
| Franchise royalties and fees | $ | 49,475 | $ | 47,362 | $ | 144,549 | $ | 140,682 | |||||||||||||||
| Company-operated store sales | 388,132 | 389,041 | 1,157,269 | 1,159,685 | |||||||||||||||||||
| Independently-operated store sales | 49,959 | 43,582 | 163,286 | 157,647 | |||||||||||||||||||
| Advertising contributions | 26,823 | 27,121 | 75,804 | 73,547 | |||||||||||||||||||
| Supply and other revenue | 77,290 | 73,928 | 234,563 | 218,791 | |||||||||||||||||||
| Total net revenue | 591,679 | 581,034 | 1,775,471 | 1,750,352 | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Company-operated store expenses | 242,073 | 262,282 | 738,300 | 762,731 | |||||||||||||||||||
| Independently-operated store expenses | 29,382 | 25,773 | 90,693 | 87,095 | |||||||||||||||||||
| Advertising expenses | 26,823 | 27,121 | 75,804 | 73,547 | |||||||||||||||||||
| Supply and other expenses | 35,790 | 38,816 | 112,560 | 118,188 | |||||||||||||||||||
| Selling, general, and administrative expenses | 149,766 | 123,012 | 387,291 | 332,155 | |||||||||||||||||||
| Acquisition related costs | (606) | 1,667 | 1,459 | 7,264 | |||||||||||||||||||
| Store opening costs | 1,476 | 1,372 | 3,679 | 3,774 | |||||||||||||||||||
| Depreciation and amortization | 43,357 | 45,639 | 131,219 | 129,256 | |||||||||||||||||||
| Goodwill impairment | — | 850,970 | — | 850,970 | |||||||||||||||||||
| Asset impairment charges and lease terminations | 24,111 | 111,239 | 55,934 | 117,450 | |||||||||||||||||||
| Total operating expenses | 552,172 | 1,487,891 | 1,596,939 | 2,482,430 | |||||||||||||||||||
| Operating income (loss) | 39,507 | (906,857) | 178,532 | (732,078) | |||||||||||||||||||
| Other expenses, net: | |||||||||||||||||||||||
| Interest expense, net | 43,677 | 41,292 | 119,245 | 120,304 | |||||||||||||||||||
| Foreign currency transaction loss, net | 765 | 2,980 | 5,767 | 3 | |||||||||||||||||||
| Loss on debt extinguishment | 205 | — | 205 | — | |||||||||||||||||||
| Other expense, net | 44,647 | 44,272 | 125,217 | 120,307 | |||||||||||||||||||
| Income (loss) before taxes | (5,140) | (951,129) | 53,315 | (852,385) | |||||||||||||||||||
| Income tax expense (benefit) | 9,807 | (151,818) | 33,842 | (120,572) | |||||||||||||||||||
| Net (loss) income | (14,947) | (799,311) | 19,473 | (731,813) | |||||||||||||||||||
| (Loss) Earnings per share: | |||||||||||||||||||||||
| Basic | $ | (0.09) | $ | (4.82) | $ | 0.12 | $ | (4.40) | |||||||||||||||
| Diluted | $ | (0.09) | $ | (4.83) | $ | 0.12 | $ | (4.41) | |||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic | 159,804 | 162,398 | 159,743 | 162,698 | |||||||||||||||||||
| Diluted | 159,804 | 162,398 | 160,713 | 162,698 | |||||||||||||||||||
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DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts) | September 28, 2024 | December 30, 2023 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 204,181 | $ | 176,522 | |||||||
| Restricted cash | 4,414 | 657 | |||||||||
| Accounts and notes receivable, net | 171,887 | 151,259 | |||||||||
| Inventory | 69,857 | 83,171 | |||||||||
| Prepaid and other assets | 37,483 | 46,714 | |||||||||
| Income tax receivable | 18,429 | 15,928 | |||||||||
| Assets held for sale | 185,985 | 301,229 | |||||||||
| Advertising fund assets, restricted | 54,939 | 45,627 | |||||||||
| Total current assets | 747,175 | 821,107 | |||||||||
| Other assets | 116,046 | 56,565 | |||||||||
| Property and equipment, net | 1,418,352 | 1,438,496 | |||||||||
| Operating lease right-of-use assets | 1,362,917 | 1,389,316 | |||||||||
| Deferred commissions | 6,955 | 6,312 | |||||||||
| Intangibles, net | 677,277 | 739,402 | |||||||||
| Goodwill | 1,427,467 | 1,455,946 | |||||||||
| Deferred tax assets | 3,627 | 3,660 | |||||||||
| Total assets | $ | 5,759,816 | $ | 5,910,804 | |||||||
| Liabilities and shareholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 78,759 | $ | 67,526 | |||||||
| Accrued expenses and other liabilities | 254,341 | 242,171 | |||||||||
| Income tax payable | 1,016 | 5,404 | |||||||||
| Current portion of long-term debt | 32,872 | 32,673 | |||||||||
| Income tax receivable liability | — | 56,001 | |||||||||
| Advertising fund liabilities | 26,668 | 23,392 | |||||||||
| Total current liabilities | 393,656 | 427,167 | |||||||||
| Long-term debt | 2,732,572 | 2,910,812 | |||||||||
| Deferred tax liabilities | 164,713 | 154,742 | |||||||||
| Operating lease liabilities | 1,311,895 | 1,332,519 | |||||||||
| Income tax receivable liability | 133,611 | 117,915 | |||||||||
| Deferred revenue | 31,750 | 30,507 | |||||||||
| Long-term accrued expenses and other liabilities | 28,812 | 30,419 | |||||||||
| Total liabilities | 4,797,009 | 5,004,081 | |||||||||
Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding | — | — | |||||||||
Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,113,794 and 163,965,231 shares outstanding; respectively | 1,641 | 1,640 | |||||||||
| Additional paid-in capital | 1,687,948 | 1,652,401 | |||||||||
| Accumulated deficit | (690,614) | (710,087) | |||||||||
| Accumulated other comprehensive loss | (36,168) | (37,875) | |||||||||
| Total shareholders’ equity attributable to Driven Brands Holdings Inc. | 962,807 | 906,079 | |||||||||
| Non-controlling interests | — | 644 | |||||||||
| Total shareholders' equity | 962,807 | 906,723 | |||||||||
| Total liabilities and shareholders' equity | $ | 5,759,816 | $ | 5,910,804 | |||||||
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DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Nine Months Ended | |||||||||||
| (in thousands) | September 28, 2024 | September 30, 2023 | |||||||||
| Net income (loss) | $ | 19,473 | $ | (731,813) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 131,219 | 129,256 | |||||||||
| Goodwill impairment | — | 850,970 | |||||||||
| Equity-based compensation expense | 35,641 | 9,730 | |||||||||
| Loss on foreign denominated transactions | 8,744 | 3,706 | |||||||||
| Gain on foreign currency derivatives | (2,977) | (3,704) | |||||||||
| Gain on sale and disposal of businesses, fixed assets, and sale-leaseback transactions | (4,102) | 1,730 | |||||||||
| Reclassification of interest rate hedge to income | (1,560) | (1,358) | |||||||||
| Bad debt expense | 5,759 | 1,244 | |||||||||
Asset impairment charges and lease terminations | 55,934 | 117,450 | |||||||||
| Amortization of deferred financing costs and bond discounts | 5,877 | 6,287 | |||||||||
| Amortization of cloud computing | 3,436 | 991 | |||||||||
| Provision for deferred income taxes | 13,571 | (134,266) | |||||||||
| Loss on extinguishment of debt | 205 | — | |||||||||
| Other, net | (19,489) | 23,441 | |||||||||
| Changes in assets and liabilities, net of acquisitions: | |||||||||||
| Accounts and notes receivable, net | (37,752) | 2,464 | |||||||||
| Inventory | 1,337 | (12,531) | |||||||||
| Prepaid and other assets | 7,648 | (3,909) | |||||||||
| Advertising fund assets and liabilities, restricted | (4,209) | (10,923) | |||||||||
| Other assets | (63,015) | (29,210) | |||||||||
| Deferred commissions | 642 | 658 | |||||||||
| Deferred revenue | 1,248 | 1,961 | |||||||||
| Accounts payable | 11,504 | 24,913 | |||||||||
| Accrued expenses and other liabilities | 13,754 | (29,442) | |||||||||
| Income tax receivable | (8,234) | (5,612) | |||||||||
| Cash provided by operating activities | 174,654 | 212,033 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (185,453) | (482,633) | |||||||||
| Cash used in business acquisitions, net of cash acquired | (2,759) | (53,641) | |||||||||
| Proceeds from sale leaseback transactions | 17,944 | 172,230 | |||||||||
| Proceeds from sale or disposal of businesses and fixed assets | 255,548 | 2,837 | |||||||||
| Cash provided by (used in) investing activities | 85,280 | (361,207) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payment of debt extinguishment and issuance costs | (9,646) | — | |||||||||
| Proceeds from the issuance of long-term debt | 274,794 | — | |||||||||
| Repayment of long-term debt | (422,492) | (20,969) | |||||||||
| Proceeds from revolving lines of credit and short-term debt | 46,000 | 335,000 | |||||||||
| Repayments of revolving lines of credit and short-term debt | (71,000) | (120,000) | |||||||||
| Repayment of principal portion of finance lease liability | (4,301) | (2,020) | |||||||||
| Payment of Tax Receivable Agreement | (38,374) | — | |||||||||
| Acquisition of non-controlling interest | (644) | — | |||||||||
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| Share repurchases | — | (49,956) | |||||||||
| Tax obligations for share-based compensation | (998) | — | |||||||||
| Stock option exercises | — | 6,117 | |||||||||
| Other, net | — | (322) | |||||||||
| Cash (used in) provided by financing activities | (226,661) | 147,850 | |||||||||
| Effect of exchange rate changes on cash | 71 | 365 | |||||||||
| Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted | 33,344 | (959) | |||||||||
| Cash and cash equivalents, beginning of period | 176,522 | 227,110 | |||||||||
| Cash included in advertising fund assets, restricted, beginning of period | 38,537 | 32,871 | |||||||||
| Restricted cash, beginning of period | 657 | 792 | |||||||||
| Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period | 215,716 | 260,773 | |||||||||
| Cash and cash equivalents, end of period | 204,181 | 211,280 | |||||||||
| Cash included in advertising fund assets, restricted, end of period | 40,465 | 47,877 | |||||||||
| Restricted cash, end of period | 4,414 | 657 | |||||||||
| Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period | $ | 249,060 | $ | 259,814 | |||||||
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Non-GAAP Financial Measures in Outlook
Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) and Adjusted Earnings per Share (“Adjusted EPS”) in the Company’s Fiscal Year 2024 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands’ core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.
The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three and nine months ended September 28, 2024, compared to the three and nine months ended September 30, 2023.
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Net (Loss) Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (in thousands, except per share data) | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||||||||
| Net (loss) income | $ | (14,947) | $ | (799,311) | $ | 19,473 | $ | (731,813) | |||||||||||||||
Acquisition related costs(a) | (606) | 1,667 | 1,459 | 7,264 | |||||||||||||||||||
Non-core items and project costs, net(b) | 6,426 | 1,486 | 16,263 | 6,113 | |||||||||||||||||||
Cloud computing amortization(c) | 1,022 | 991 | 3,436 | 991 | |||||||||||||||||||
Share-based compensation expense(d) | 12,798 | 2,681 | 35,641 | 9,730 | |||||||||||||||||||
Foreign currency transaction loss , net(e) | 765 | 2,980 | 5,767 | 3 | |||||||||||||||||||
Goodwill impairment(f) | — | 850,970 | — | 850,970 | |||||||||||||||||||
Asset sale leaseback (gain) loss, net, impairment and closed store expenses(g) | 36,275 | 125,473 | 55,465 | 119,637 | |||||||||||||||||||
Loss on debt extinguishment (h) | 205 | — | 205 | — | |||||||||||||||||||
Amortization related to acquired intangible assets(i) | 5,980 | 9,252 | 19,528 | 23,564 | |||||||||||||||||||
Valuation allowance for deferred tax asset(j) | 7,941 | — | 9,196 | — | |||||||||||||||||||
| Adjusted net income before tax impact of adjustments | 55,859 | 196,189 | 166,433 | 286,459 | |||||||||||||||||||
Tax impact of adjustments(k) | (14,100) | (166,320) | (28,543) | (171,783) | |||||||||||||||||||
| Adjusted net income | 41,759 | 29,869 | 137,890 | 114,676 | |||||||||||||||||||
| (Loss) earnings per share | |||||||||||||||||||||||
| Basic | $ | (0.09) | $ | (4.82) | $ | 0.12 | $ | (4.40) | |||||||||||||||
| Diluted | $ | (0.09) | $ | (4.83) | $ | 0.12 | $ | (4.41) | |||||||||||||||
Adjusted earnings per share(1) | |||||||||||||||||||||||
| Basic | $ | 0.27 | $ | 0.18 | $ | 0.84 | $ | 0.69 | |||||||||||||||
| Diluted | $ | 0.26 | $ | 0.18 | $ | 0.84 | $ | 0.68 | |||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic | 159,804 | 162,398 | 159,743 | 162,698 | |||||||||||||||||||
| Diluted | 159,804 | 162,398 | 160,713 | 162,698 | |||||||||||||||||||
| Weighted average shares outstanding for Adjusted Net Income | |||||||||||||||||||||||
| Basic | 159,804 | 162,398 | 159,743 | 162,698 | |||||||||||||||||||
| Diluted | 161,113 | 165,850 | 160,713 | 166,557 | |||||||||||||||||||
(1)Adjusted Earnings Per Share is calculated under the two-class method. Under the two-class method, adjusted earnings per share is calculated using adjusted net income attributable to common shares, which is derived by reducing adjusted net income by the amount attributable to participating securities. Adjusted Net Income attributable to participating securities used in the basic earnings per share calculation was $1 million and $3 million for the three and nine months ended September 28, 2024, respectively. Adjusted Net Income attributable to participating securities used in the diluted earnings per share calculations was $1 million and $2 million for the three and nine months ended September 30, 2023.
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Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (“SEC”) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period.
Please see the company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, filed with the SEC on February 28, 2024, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three and nine months ended September 28, 2024, compared to the three and nine months ended September 30, 2023.
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Net (Loss) Income to Adjusted EBITDA Reconciliation (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (in thousands) | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||||||||
| Net (loss) income | $ | (14,947) | $ | (799,311) | $ | 19,473 | $ | (731,813) | |||||||||||||||
| Income tax expense (benefit) | 9,807 | (151,818) | 33,842 | (120,572) | |||||||||||||||||||
| Interest expense, net | 43,677 | 41,292 | 119,245 | 120,304 | |||||||||||||||||||
| Depreciation and amortization | 43,357 | 45,639 | 131,219 | 129,256 | |||||||||||||||||||
| EBITDA | 81,894 | (864,198) | 303,779 | (602,825) | |||||||||||||||||||
Acquisition related costs(a) | (606) | 1,667 | 1,459 | 7,264 | |||||||||||||||||||
Non-core items and project costs, net(b) | 6,426 | 1,486 | 16,263 | 6,113 | |||||||||||||||||||
Cloud computing amortization(c) | 1,022 | 991 | 3,436 | 991 | |||||||||||||||||||
Share-based compensation expense(d) | 12,798 | 2,681 | 35,641 | 9,730 | |||||||||||||||||||
Foreign currency transaction loss, net(e) | 765 | 2,980 | 5,767 | 3 | |||||||||||||||||||
Goodwill impairment(f) | — | 850,970 | — | 850,970 | |||||||||||||||||||
Asset sale leaseback (gain) loss, net, impairment and closed store expenses(g) | 36,275 | 125,473 | 55,465 | 119,637 | |||||||||||||||||||
Loss on debt extinguishment (h) | $ | 205 | — | 205 | — | ||||||||||||||||||
| Adjusted EBITDA | $ | 138,779 | $ | 122,050 | $ | 422,015 | $ | 391,883 | |||||||||||||||
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Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes
(a) Consists of acquisition costs as reflected within the unaudited consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.
(b) Consists of discrete items and project costs, including third party consulting and professional fees associated with strategic transformation initiatives as well as non-recurring payroll-related costs.
(c) Includes non-cash amortization expenses relating to cloud computing arrangements.
(d) Represents non-cash shared-based compensation expense.
(e) Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross currency swaps and forward contracts.
(f) Relates to a goodwill impairment within the Car Wash segment.
(g) Relates to (gains) losses, net on sale leasebacks, impairment of certain fixed assets and operating lease right-of-use assets related to closed and underperforming locations, assets held for sale, and lease exit costs and other costs associated with stores that were closed prior to the respective lease termination dates.
(h) Represents charges incurred related to the Company’s partial repayment of Senior Secured Notes in conjunction with the sale of its Canadian distribution business.
(i) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the unaudited consolidated statement of operations.
(j) Represents valuation allowances on income tax carryforwards in certain domestic jurisdictions that are not more likely than not to be realized.
(k) Represents the tax impact of adjustments associated with the reconciling items between net income and Adjusted Net Income, excluding the provision for uncertain tax positions. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 9% to 36% depending upon the tax attributes of each adjustment and the applicable jurisdiction.
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DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND SEGMENT ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (in thousands) | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||||||||
| Segment Adjusted EBITDA: | |||||||||||||||||||||||
| Maintenance | $ | 96,666 | $ | 85,483 | $ | 291,037 | $ | 242,528 | |||||||||||||||
| Car Wash | 25,563 | 20,494 | 88,469 | 101,303 | |||||||||||||||||||
| Paint, Collision & Glass | 34,703 | 32,545 | 100,695 | 109,052 | |||||||||||||||||||
| Platform Services | 22,467 | 22,396 | 67,649 | 61,923 | |||||||||||||||||||
| Corporate and other | (39,144) | (37,497) | (122,156) | (119,149) | |||||||||||||||||||
| Store opening costs | (1,476) | (1,372) | (3,679) | (3,774) | |||||||||||||||||||
| Adjusted EBITDA | $ | 138,779 | $ | 122,049 | $ | 422,015 | $ | 391,883 | |||||||||||||||
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DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)
| Three Months Ended September 28, 2024 | |||||||||||||||||||||||||||||
| (in thousands) | Maintenance | Car Wash | Paint, Collision & Glass | Platform Services | Total | ||||||||||||||||||||||||
| System-wide Sales | |||||||||||||||||||||||||||||
| Franchise stores | $ | 304,892 | $ | — | $ | 791,830 | $ | 106,943 | $ | 1,203,665 | |||||||||||||||||||
| Company-operated stores | 231,050 | 90,451 | 65,380 | 1,251 | 388,132 | ||||||||||||||||||||||||
| Independently operated stores | — | 49,959 | — | — | 49,959 | ||||||||||||||||||||||||
| Total System-wide Sales | $ | 535,942 | $ | 140,410 | $ | 857,210 | $ | 108,194 | $ | 1,641,756 | |||||||||||||||||||
| Store Count (in whole numbers) | |||||||||||||||||||||||||||||
| Franchise stores | 1,204 | — | 1,669 | 205 | 3,078 | ||||||||||||||||||||||||
| Company-operated stores | 695 | 388 | 228 | 1 | 1,312 | ||||||||||||||||||||||||
| Independently operated stores | — | 719 | — | — | 719 | ||||||||||||||||||||||||
| Total Store Count | 1,899 | 1,107 | 1,897 | 206 | 5,109 | ||||||||||||||||||||||||
| Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||
| (in thousands) | Maintenance | Car Wash | Paint, Collision & Glass | Platform Services | Total | ||||||||||||||||||||||||
| System-wide Sales | |||||||||||||||||||||||||||||
| Franchise stores | $ | 298,022 | $ | — | $ | 760,437 | $ | 117,957 | $ | 1,176,416 | |||||||||||||||||||
| Company-operated stores | 204,460 | 98,132 | 85,207 | 1,242 | 389,041 | ||||||||||||||||||||||||
| Independently operated stores | — | 43,582 | — | — | 43,582 | ||||||||||||||||||||||||
| Total System-wide Sales | $ | 502,482 | $ | 141,714 | $ | 845,644 | $ | 119,199 | $ | 1,609,039 | |||||||||||||||||||
| Store Count (in whole numbers) | |||||||||||||||||||||||||||||
| Franchise stores | 1,108 | — | 1,662 | 207 | 2,977 | ||||||||||||||||||||||||
| Company-operated stores | 624 | 418 | 258 | 1 | 1,301 | ||||||||||||||||||||||||
| Independently operated stores | — | 715 | — | — | 715 | ||||||||||||||||||||||||
| Total Store Count | 1,732 | 1,133 | 1,920 | 208 | 4,993 | ||||||||||||||||||||||||
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| Nine Months Ended September 28, 2024 | ||||||||||||||||||||||||||||||||
| (in thousands) | Maintenance | Car Wash | Paint, Collision & Glass | Platform Services | Total | |||||||||||||||||||||||||||
| System-wide Sales | ||||||||||||||||||||||||||||||||
| Franchise stores | $ | 888,316 | $ | — | $ | 2,406,078 | $ | 298,744 | $ | 3,593,138 | ||||||||||||||||||||||
| Company-operated stores | 682,730 | 275,889 | 195,412 | 3,238 | 1,157,269 | |||||||||||||||||||||||||||
| Independently operated stores | — | 163,286 | — | — | 163,286 | |||||||||||||||||||||||||||
| Total System-wide Sales | $ | 1,571,046 | $ | 439,175 | $ | 2,601,490 | $ | 301,982 | $ | 4,913,693 | ||||||||||||||||||||||
| Store Count (in whole numbers) | ||||||||||||||||||||||||||||||||
| Franchise stores | 1,204 | — | 1,669 | 205 | 3,078 | |||||||||||||||||||||||||||
| Company-operated stores | 695 | 388 | 228 | 1 | 1,312 | |||||||||||||||||||||||||||
| Independently operated stores | — | 719 | — | — | 719 | |||||||||||||||||||||||||||
| Total Store Count | 1,899 | 1,107 | 1,897 | 206 | 5,109 | |||||||||||||||||||||||||||
| Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
| (in thousands) | Maintenance | Car Wash | Paint, Collision & Glass | Platform Services | Total | |||||||||||||||||||||||||||
| System-wide Sales | ||||||||||||||||||||||||||||||||
| Franchise stores | $ | 823,656 | $ | — | $ | 2,305,420 | $ | 324,608 | $ | 3,453,684 | ||||||||||||||||||||||
| Company-operated stores | 605,393 | 302,193 | 248,796 | $ | 3,303 | 1,159,685 | ||||||||||||||||||||||||||
| Independently operated stores | — | 157,647 | — | — | 157,647 | |||||||||||||||||||||||||||
| Total System-wide Sales | $ | 1,429,049 | $ | 459,840 | $ | 2,554,216 | $ | 327,911 | $ | 4,771,016 | ||||||||||||||||||||||
| Store Count (in whole numbers) | ||||||||||||||||||||||||||||||||
| Franchise stores | 1,108 | — | 1,662 | 207 | 2,977 | |||||||||||||||||||||||||||
| Company-operated stores | 624 | 418 | 258 | 1 | 1,301 | |||||||||||||||||||||||||||
| Independently operated stores | — | 715 | — | — | 715 | |||||||||||||||||||||||||||
| Total Store Count | 1,732 | 1,133 | 1,920 | 208 | 4,993 | |||||||||||||||||||||||||||
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