DRVN Driven Brands Holdings Inc

--Fiscal 2024 Revenue increased 2% powered by 1% same store sales growth and 4% net store growth--

--16th consecutive quarter of same store sales growth--

--Take 5 Oil Change delivers full year revenue growth of 16% and same store sales growth of 7%--

--Announces definitive agreement to sell U.S. car wash business--

--Announces CEO transition--

--Issues fiscal year 2025 outlook excluding U.S. car wash--

Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the fourth quarter and fiscal year ending December 28, 2024.

For fiscal year 2024, Driven Brands delivered revenue of $2.3 billion, an increase of 2% versus the prior year. System-wide sales increased 4% to $6.5 billion, driven by a 1% increase in same-store sales and 4% increase in store count.

Net loss for fiscal 2024 was $292 million or $1.82 loss per diluted share versus a net loss of $745 million or $4.53 loss per diluted share in the prior year. Adjusted Net Income1 was $186 million or $1.14 per diluted share versus $142 million or $0.85 per diluted share in the prior year. Adjusted EBITDA1 was $553 million, up 7% versus the prior year.

“Fiscal year 2024 was a year of growth and strong execution for Driven Brands, led by our flagship brand Take 5 Oil Change. We are proud of the results, as we delivered Adjusted EBITDA and same store sales in line with our full-year outlook, while also achieving our full-year leverage target. These results are directly attributable to more than 10,000 Driven Brands team members and franchisees who consistently deliver an exceptional customer experience,” said Jonathan Fitzpatrick, President and Chief Executive Officer.

“Looking ahead to 2025 our focus is clear: delivering on our outlook, reducing debt and active portfolio management,” Fitzpatrick concluded.

Sale of U.S. Car Wash Business

In a separate release today, Driven Brands announced that it has entered into a definitive agreement to sell its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash.

Fourth Quarter 2024 Highlights

For the fourth quarter, Driven Brands delivered revenue of $564 million, up 2% versus the prior year. System-wide sales were $1.6 billion, up 5% versus the prior year primarily driven by 3% same store sales growth and 191 net new units.

Net loss for the fourth quarter was $312 million or $1.94 loss per diluted share versus a net loss of $13 million or $0.08 loss per diluted share in the prior year. Adjusted Net Income1 was $48 million or $0.30 per diluted share versus $28 million or $0.17 per diluted share in the prior year. Adjusted EBITDA1 was $131 million, up 5% versus the prior year.

Fiscal Year 2024 Key Performance Indicators by Segment

 

System-wide Sales

(in millions)

Store Count

Same-Store

Sales2

Revenue

(in millions)

Adjusted EBITDA

(in millions)

Maintenance

$

2,104.0

1,960

4.5

%

$

1,104.1

$

385.9

 

Car Wash

 

580.6

1,102

(0.9

)%

 

587.2

 

117.1

 

Paint, Collision & Glass

 

3,450.7

1,912

0.8

%

 

424.6

 

133.5

 

Platform Services

 

374.2

205

N/A

 

 

207.5

 

83.9

 

Corporate / Other

 

N/A

N/A

N/A

 

 

16.1

 

(167.7

)

Total

$

6,509.3

5,179

1.3

%

$

2,339.6

 

552.7

 

Fourth Quarter 2024 Key Performance Indicators by Segment

 

System-wide Sales

(in millions)

Store Count

Same-Store

Sales2

Revenue

(in millions)

Adjusted EBITDA

(in millions)

Maintenance

$

532.9

1,960

6.0

%

$

286.3

 

$

98.3

 

Car Wash

 

141.4

1,102

7.9

%

 

143.4

 

 

28.7

 

Paint, Collision & Glass

 

849.2

1,912

1.0

%

 

97.3

 

 

33.0

 

Platform Services

 

72.2

205

N/A

 

 

40.2

 

 

16.3

 

Corporate / Other

 

N/A

N/A

N/A

 

 

(3.1

)

 

(45.6

)

Total

$

1,595.6

5,179

2.9

%

 

564.1

 

 

130.7

 

Capital and Liquidity

The Company ended the fourth quarter with total liquidity of $648.7 million consisting of $170.0 million in cash and cash equivalents and $478.7 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This did not include the additional $135.0 million Series 2022 Class A-1 Notes that expand the Company’s variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.

Fiscal Year 2025 Outlook

The following guidance reflects the Company’s expectations for fiscal year 2025 ending December 27, 2025.

 

2024 Results

2025 Outlook excluding

U.S. car wash business

Revenue

$2.34 billion

~$2.05 - $2.15 billion

Adjusted EBITDA1

$552.7 million

~$520 - $550 million

Adjusted EPS1

$1.14

~$1.15 - $1.25

The Company also expects:

• Same-store sales growth of 1% - 3%
• Net store growth of approximately 175 - 200

Note: 2025 Outlook excludes the impact of any potential M&A and divestitures other than the sale of the U.S. car wash business.

Chief Executive Officer Transition

In a separate release today, the Company announced that the Board has appointed Daniel Rivera as the Company’s President and Chief Executive Officer (“CEO”) effective as of May 9, 2025. The Board has also appointed Mr. Rivera to serve on the Board following his appointment as President and CEO. Mr. Fitzpatrick will remain on the Board and has been appointed as Non-Executive Chair as of May 9, 2025, and has also agreed to serve as a Special Advisor to Mr. Rivera for the remainder of 2025 to ensure a smooth transition. Neal Aronson, the current Chairman of the Board, will continue to serve as a director.

Re-segmentation

In the first quarter of 2025, the Company changed its operating segments, which will result in a change to its reportable segments. As a result, and as it will report in its first quarter 2025 Quarterly Report on Form 10-Q filing, the Company will have the following reportable segments: Take 5, Franchise Brands, International Car Wash, and Corporate and Other.

The Take 5 segment will be comprised primarily of both our company and franchise-operated Take 5 Oil Change business.

The Franchise Brands segment will be comprised of the Company’s portfolio of franchised brands, which include CARSTAR, Meineke, Maaco, 1-800 Radiator, along with other smaller brands. The Franchise Brands segment will be over 99% franchised.

The International Car Wash segment will be comprised of our remaining car wash business based outside of North America.

The Corporate and Other segment will be comprised of our U.S. glass businesses, including the retail, commercial, and insurance components of this business, and the Company’s Third Party Administrator services, along with certain corporate shared services costs.

In mid-March, the Company plans to issue a recast of fiscal 2024 quarters to assist in the analysis of fiscal 2025 results on its Investor Relations website.

1 Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most 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.

2 The Company does not provide same store sales results for the Platform Services segment because it only applied to the 1-800-Radiator brand which is not a representative indicator of the segment’s performance. 1-800-Radiator’s same store sales performance is included in the Company’s overall same store sales results.

Conference Call

Driven Brands will host a conference call to discuss fourth quarter and fiscal year 2024 results today, Tuesday, February 25, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months.

About Driven Brands

Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. Driven Brands has approximately 5,200 locations across 13 countries, and services approximately 70 million vehicles annually. Driven Brands’ network generates approximately $2.3 billion in annual revenue from approximately $6.5 billion in system-wide sales.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Press Release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, trends, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) the completion of the sale of our U.S. Car Wash business, including the purchaser’s ability to obtain the required financing; (ii) our ability to realize the value of the note received in connection with the sale of the U.S. Car Wash business; (iii) potential post-closing obligations and liabilities we may have following the sale of our U.S. Car Wash business; (iv) our strategy, outlook and growth prospects; (v) our operational and financial targets and dividend policy; (vi) general economic trends and trends in the industry and markets; (vii) the risks and costs associated with the integration of, and our ability to integrate, our stores and business units successfully; (viii) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments and (ix) the competitive environment in which we operate. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These 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.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

Three Months Ended

 

Year Ended

(in thousands, except per share amounts)

December 28,

2024

 

December 30,

2023

 

December 28,

2024

 

December 30,

2023

Net Revenue:

 

 

 

 

 

 

 

Franchise royalties and fees

$

44,085

 

 

$

49,685

 

 

$

188,634

 

 

$

190,367

 

Company-operated store sales

 

387,663

 

 

 

366,668

 

 

 

1,544,932

 

 

 

1,526,353

 

Independently-operated store sales

 

49,110

 

 

 

38,748

 

 

 

212,396

 

 

 

196,395

 

Advertising contributions

 

25,512

 

 

 

25,303

 

 

 

101,316

 

 

 

98,850

 

Supply and other revenue

 

57,747

 

 

 

73,273

 

 

 

292,310

 

 

 

292,064

 

Total net revenue

 

564,117

 

 

 

553,677

 

 

 

2,339,588

 

 

 

2,304,029

 

Operating Expenses:

 

 

 

 

 

 

 

Company-operated store expenses

 

254,790

 

 

 

241,741

 

 

 

993,090

 

 

 

1,004,472

 

Independently-operated store expenses

 

30,632

 

 

 

21,983

 

 

 

121,325

 

 

 

109,078

 

Advertising expenses

 

25,813

 

 

 

23,743

 

 

 

101,617

 

 

 

97,290

 

Supply and other expenses

 

27,098

 

 

 

40,248

 

 

 

139,658

 

 

 

158,436

 

Selling, general, and administrative expenses

 

162,346

 

 

 

118,924

 

 

 

554,775

 

 

 

462,117

 

Depreciation and amortization

 

48,893

 

 

 

46,040

 

 

 

180,112

 

 

 

175,296

 

Goodwill impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

850,970

 

Asset impairment charges and lease terminations

 

333,308

 

 

 

15,453

 

 

 

389,242

 

 

 

132,903

 

Total operating expenses

 

882,880

 

 

 

508,132

 

 

 

2,479,819

 

 

 

2,990,562

 

Operating (loss) income

 

(318,763

)

 

 

45,545

 

 

 

(140,231

)

 

 

(686,533

)

Other expenses, net:

 

 

 

 

 

 

 

Interest expense, net

 

37,719

 

 

 

43,892

 

 

 

156,964

 

 

 

164,196

 

Foreign currency transaction loss (gain), net

 

14,472

 

 

 

(3,081

)

 

 

20,239

 

 

 

(3,078

)

Loss on debt extinguishment

 

—

 

 

 

—

 

 

 

205

 

 

 

—

 

Other expense, net

 

52,191

 

 

 

40,811

 

 

 

177,408

 

 

 

161,118

 

(Loss) income before taxes

 

(370,954

)

 

 

4,734

 

 

 

(317,639

)

 

 

(847,651

)

Income tax (benefit) expense

 

(58,985

)

 

 

17,883

 

 

 

(25,143

)

 

 

(102,689

)

Net loss

 

(311,969

)

 

 

(13,149

)

 

 

(292,496

)

 

 

(744,962

)

 

 

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

 

 

Basic

$

(1.91

)

 

$

(0.08

)

 

$

(1.79

)

 

$

(4.50

)

Diluted

$

(1.94

)

 

$

(0.08

)

 

$

(1.82

)

 

$

(4.53

)

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

160,424

 

 

 

159,573

 

 

 

160,319

 

 

 

161,917

 

Diluted

 

160,424

 

 

 

159,573

 

 

 

160,319

 

 

 

161,917

 

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

(in thousands, except share and per share amounts)

December 28,

2024

 

December 30,

2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

169,954

 

 

$

176,522

 

Restricted cash

 

358

 

 

 

657

 

Accounts and notes receivable, net

 

179,609

 

 

 

151,259

 

Inventory

 

67,527

 

 

 

83,171

 

Prepaid and other assets

 

42,271

 

 

 

46,714

 

Income tax receivable

 

13,706

 

 

 

15,928

 

Assets held for sale

 

134,297

 

 

 

301,229

 

Advertising fund assets, restricted

 

49,716

 

 

 

45,627

 

Total current assets

 

657,438

 

 

 

821,107

 

Other assets

 

125,422

 

 

 

56,565

 

Property and equipment, net

 

1,024,168

 

 

 

1,438,496

 

Operating lease right-of-use assets

 

1,370,355

 

 

 

1,389,316

 

Deferred commissions

 

7,246

 

 

 

6,312

 

Intangibles, net

 

665,896

 

 

 

739,402

 

Goodwill

 

1,403,056

 

 

 

1,455,946

 

Deferred tax assets

 

8,206

 

 

 

3,660

 

Total assets

$

5,261,787

 

 

$

5,910,804

 

Liabilities and shareholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

95,260

 

 

$

67,526

 

Accrued expenses and other liabilities

 

253,880

 

 

 

242,171

 

Income tax payable

 

6,860

 

 

 

5,404

 

Current portion of long-term debt

 

33,189

 

 

 

32,673

 

Income tax receivable liability

 

22,676

 

 

 

56,001

 

Advertising fund liabilities

 

22,030

 

 

 

23,392

 

Total current liabilities

 

433,895

 

 

 

427,167

 

Long-term debt

 

2,660,355

 

 

 

2,910,812

 

Deferred tax liabilities

 

87,485

 

 

 

154,742

 

Operating lease liabilities

 

1,303,033

 

 

 

1,332,519

 

Income tax receivable liability

 

110,935

 

 

 

117,915

 

Deferred revenue

 

31,314

 

 

 

30,507

 

Long-term accrued expenses and other liabilities

 

27,436

 

 

 

30,419

 

Total liabilities

 

4,654,453

 

 

 

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 163,842,248 and 163,965,231 shares outstanding; respectively

 

1,638

 

 

 

1,640

 

Additional paid-in capital

 

1,699,851

 

 

 

1,652,401

 

Accumulated deficit

 

(1,002,583

)

 

 

(710,087

)

Accumulated other comprehensive loss

 

(91,572

)

 

 

(37,875

)

Total shareholders’ equity attributable to Driven Brands Holdings Inc.

 

607,334

 

 

 

906,079

 

Non-controlling interests

 

—

 

 

 

644

 

Total shareholders' equity

 

607,334

 

 

 

906,723

 

Total liabilities and shareholders' equity

$

5,261,787

 

 

$

5,910,804

 

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

Year Ended

(in thousands)

December 28,

2024

 

December 30,

2023

Net loss

$

(292,496

)

 

$

(744,962

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

180,112

 

 

 

175,296

 

Goodwill impairment

 

—

 

 

 

850,970

 

Share-based compensation expense

 

48,139

 

 

 

15,300

 

Loss (gain) on foreign denominated transactions

 

29,413

 

 

 

(2,022

)

Gain on foreign currency derivatives

 

(9,174

)

 

 

(1,056

)

Loss on sale and disposal of businesses, fixed assets, and sale-leaseback transactions

 

35,722

 

 

 

4,909

 

Reclassification of interest rate hedge to income

 

(2,094

)

 

 

(2,077

)

Bad debt expense

 

6,672

 

 

 

1,938

 

Asset impairment charges and lease terminations

 

389,242

 

 

 

132,903

 

Amortization of deferred financing costs and bond discounts

 

9,759

 

 

 

10,307

 

Amortization of cloud computing

 

8,270

 

 

 

1,923

 

Provision for deferred income taxes

 

(66,594

)

 

 

(125,804

)

Loss on extinguishment of debt

 

205

 

 

 

—

 

Other, net

 

(22,648

)

 

 

22,320

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

Accounts and notes receivable, net

 

(48,190

)

 

 

13,561

 

Inventory

 

2,618

 

 

 

(11,731

)

Prepaid and other assets

 

3,467

 

 

 

(6,877

)

Advertising fund assets and liabilities, restricted

 

(5,031

)

 

 

(16,861

)

Other assets

 

(85,491

)

 

 

(39,814

)

Deferred commissions

 

934

 

 

 

418

 

Deferred revenue

 

832

 

 

 

1,937

 

Accounts payable

 

29,397

 

 

 

7,390

 

Accrued expenses and other liabilities

 

17,588

 

 

 

(52,854

)

Income tax receivable

 

10,795

 

 

 

53

 

Cash provided by operating activities

 

241,447

 

 

 

235,167

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(288,504

)

 

 

(596,478

)

Cash used in business acquisitions, net of cash acquired

 

(2,990

)

 

 

(59,574

)

Proceeds from sale leaseback transactions

 

51,371

 

 

 

194,658

 

Proceeds from sale or disposal of businesses and fixed assets

 

299,142

 

 

 

9,987

 

Cash provided by (used in) investing activities

 

59,019

 

 

 

(451,407

)

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

 

(465,443

)

 

 

(27,971

)

Proceeds from revolving lines of credit and short-term debt

 

46,000

 

 

 

378,000

 

Repayment of revolving lines of credit and short-term debt

 

(104,000

)

 

 

(130,000

)

Repayment of principal portion of finance lease liability

 

(3,931

)

 

 

(5,165

)

Payment of Tax Receivable Agreement

 

(38,374

)

 

 

—

 

Acquisition of non-controlling interest

 

(644

)

 

 

—

 

Share repurchases

 

—

 

 

 

(49,956

)

Tax obligations for share-based compensation

 

(1,593

)

 

 

—

 

Stock option exercises

 

—

 

 

 

6,117

 

Other, net

 

—

 

 

 

(326

)

Cash (used in) provided by financing activities

 

(302,837

)

 

 

170,699

 

Effect of exchange rate changes on cash

 

(4,103

)

 

 

484

 

Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted

 

(6,474

)

 

 

(45,057

)

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

 

169,954

 

 

 

176,522

 

Cash included in advertising fund assets, restricted, end of period

 

38,930

 

 

 

38,537

 

Restricted cash, end of period

 

358

 

 

 

657

 

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period

$

209,242

 

 

$

215,716

 

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 2025 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 months and year ended December 28, 2024, compared to the three months and year ended December 30, 2023.

Net Loss to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)

 

Three Months Ended

 

Year Ended

(in thousands, except per share data)

December 28,

2024

 

December 30,

2023

 

December 28,

2024

 

December 30,

2023

Net loss

$

(311,969

)

 

$

(13,149

)

 

$

(292,496

)

 

$

(744,962

)

Acquisition related costs(a)

 

866

 

 

 

5,910

 

 

 

2,325

 

 

 

13,174

 

Non-core items and project costs, net(b)

 

2,140

 

 

 

1,230

 

 

 

18,403

 

 

 

7,343

 

Cloud computing amortization(c)

 

4,834

 

 

 

932

 

 

 

8,270

 

 

 

1,923

 

Share-based compensation expense(d)

 

12,498

 

 

 

5,570

 

 

 

48,139

 

 

 

15,300

 

Foreign currency transaction loss (gain), net(e)

 

14,472

 

 

 

(3,081

)

 

 

20,239

 

 

 

(3,078

)

Asset sale leaseback (gain) loss, net, impairment and closed store expenses(f)

 

380,238

 

 

 

19,777

 

 

 

435,703

 

 

 

990,384

 

Loss on debt extinguishment (g)

 

—

 

 

 

—

 

 

 

205

 

 

 

—

 

Amortization related to acquired intangible assets(h)

 

6,162

 

 

 

5,192

 

 

 

25,690

 

 

 

28,756

 

Provision for uncertain tax positions(i)

 

—

 

 

 

(354

)

 

 

—

 

 

 

(354

)

Valuation allowance for deferred tax asset(j)

 

41,990

 

 

 

17,729

 

 

 

51,186

 

 

 

17,729

 

Adjusted net income before tax impact of adjustments

 

151,231

 

 

 

39,756

 

 

 

317,664

 

 

 

326,215

 

Tax impact of adjustments(k)

 

(102,794

)

 

 

(11,971

)

 

 

(131,337

)

 

 

(183,754

)

Adjusted net income

 

48,437

 

 

 

27,785

 

 

 

186,327

 

 

 

142,461

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

Basic

$

(1.91

)

 

$

(0.08

)

 

$

(1.79

)

 

$

(4.50

)

Diluted

$

(1.94

)

 

$

(0.08

)

 

$

(1.82

)

 

$

(4.53

)

 

 

 

 

 

 

 

 

Adjusted earnings per share(1)

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

0.17

 

 

$

1.14

 

 

$

0.86

 

Diluted

$

0.30

 

 

$

0.17

 

 

$

1.14

 

 

$

0.85

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

160,424

 

 

 

159,573

 

 

 

160,319

 

 

 

161,917

 

Diluted

 

160,424

 

 

 

159,573

 

 

 

160,319

 

 

 

161,917

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding for Adjusted Net Income

 

 

 

 

 

 

 

Basic

 

160,424

 

 

 

159,573

 

 

 

160,319

 

 

 

161,917

 

Diluted

 

161,778

 

 

 

161,361

 

 

 

161,210

 

 

 

164,100

 

(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 months and year ended December 28, 2024, respectively. Adjusted Net Income attributable to participating securities used in the diluted earnings per share calculations was less than $1 million for both the three months and year ended December 28, 2024.

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 months and year ended December 28, 2024, compared to the three months and year ended December 30, 2023.

Net Loss to Adjusted EBITDA Reconciliation (Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

(in thousands)

December 28,

2024

 

December 30,

2023

 

December 28,

2024

 

December 30,

2023

Net loss

$

(311,969

)

 

$

(13,149

)

 

$

(292,496

)

 

$

(744,962

)

Income tax (benefit) expense

 

(58,985

)

 

 

17,883

 

 

 

(25,143

)

 

 

(102,689

)

Interest expense, net

 

37,719

 

 

 

43,892

 

 

 

156,964

 

 

 

164,196

 

Depreciation and amortization

 

48,893

 

 

 

46,040

 

 

 

180,112

 

 

 

175,296

 

EBITDA

 

(284,342

)

 

 

94,666

 

 

 

19,437

 

 

 

(508,159

)

Acquisition related costs(a)

 

866

 

 

 

5,910

 

 

 

2,325

 

 

 

13,174

 

Non-core items and project costs, net(b)

 

2,140

 

 

 

1,230

 

 

 

18,403

 

 

 

7,343

 

Cloud computing amortization(c)

 

4,834

 

 

 

932

 

 

 

8,270

 

 

 

1,923

 

Share-based compensation expense(d)

 

12,498

 

 

 

5,570

 

 

 

48,139

 

 

 

15,300

 

Foreign currency transaction loss (gain), net(e)

 

14,472

 

 

 

(3,081

)

 

 

20,239

 

 

 

(3,078

)

Asset sale leaseback (gain) loss, net, impairment and closed store expenses(f)

 

380,238

 

 

 

19,777

 

 

 

435,703

 

 

 

990,384

 

Loss on debt extinguishment (g)

 

—

 

 

 

—

 

 

 

205

 

 

 

—

 

Adjusted EBITDA

$

130,706

 

 

$

125,004

 

 

$

552,721

 

 

$

516,887

 

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 share-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 (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, lease exit costs and other costs associated with stores that were closed prior to the respective lease termination dates, as well as goodwill impairment within the Car Wash segment.

(g)

Represents charges incurred related to the Company’s partial repayment of Senior Secured Notes in conjunction with the sale of its Canadian distribution business.

(h)

Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the unaudited consolidated statement of operations.

(i)

Represents amounts recorded for uncertain tax positions, inclusive of interest and penalties.

(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 Loss 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.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION (UNAUDITED)

 

 

Three Months Ended

 

Year Ended

(in thousands)

December 28,

2024

 

December 30,

2023

 

December 28,

2024

 

December 30,

2023

Maintenance

$

98,305

 

 

$

85,279

 

 

$

385,853

 

 

$

325,593

 

Car Wash

 

28,673

 

 

 

27,501

 

 

 

117,140

 

 

 

128,050

 

Paint, Collision & Glass

 

33,013

 

 

 

31,346

 

 

 

133,519

 

 

 

139,590

 

Platform Services

 

16,270

 

 

 

18,568

 

 

 

83,918

 

 

 

80,492

 

Corporate and other

 

(45,555

)

 

 

(37,690

)

 

 

(167,709

)

 

 

(156,838

)

Adjusted EBITDA

$

130,706

 

 

$

125,004

 

 

$

552,721

 

 

$

516,887

 

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)

 

 

Three Months Ended December 28, 2024

(in thousands)

Maintenance

 

Car Wash

 

Paint,

Collision &

Glass

 

Platform

Services

 

Total

System-wide Sales

 

 

 

 

 

 

 

 

 

Franchise stores

$

295,090

 

$

—

 

$

792,420

 

$

71,342

 

$

1,158,852

Company-operated stores

 

237,818

 

 

92,269

 

 

56,750

 

 

826

 

 

387,663

Independently operated stores

 

—

 

 

49,110

 

 

—

 

 

—

 

 

49,110

Total System-wide Sales

$

532,908

 

$

141,379

 

$

849,170

 

$

72,168

 

$

1,595,625

 

 

 

 

 

 

 

 

 

 

Store Count (in whole numbers)

 

 

 

 

 

 

 

 

 

Franchise stores

 

1,242

 

 

—

 

 

1,683

 

 

204

 

 

3,129

Company-operated stores

 

718

 

 

382

 

 

229

 

 

1

 

 

1,330

Independently operated stores

 

—

 

 

720

 

 

—

 

 

—

 

 

720

Total Store Count

 

1,960

 

 

1,102

 

 

1,912

 

 

205

 

 

5,179

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 30, 2023

(in thousands)

Maintenance

 

Car Wash

 

Paint,

Collision &

Glass

 

Platform

Services

 

Total

System-wide Sales

 

 

 

 

 

 

 

 

 

Franchise stores

$

266,801

 

$

—

 

$

766,717

 

$

73,778

 

$

1,107,296

Company-operated stores

 

203,963

 

 

93,164

 

 

68,632

 

 

909

 

 

366,668

Independently operated stores

 

—

 

 

38,748

 

 

—

 

 

—

 

 

38,748

Total System-wide Sales

$

470,764

 

$

131,912

 

$

835,349

 

$

74,687

 

$

1,512,712

 

 

 

 

 

 

 

 

 

 

Store Count (in whole numbers)

 

 

 

 

 

 

 

 

 

Franchise stores

 

1,134

 

 

—

 

 

1,647

 

 

205

 

 

2,986

Company-operated stores

 

652

 

 

391

 

 

241

 

 

1

 

 

1,285

Independently operated stores

 

—

 

 

717

 

 

—

 

 

—

 

 

717

Total Store Count

 

1,786

 

 

1,108

 

 

1,888

 

 

206

 

 

4,988

 

 

Year Ended December 28, 2024

(in thousands)

 

Maintenance

 

Car Wash

 

Paint,

Collision &

Glass

 

Platform

Services

 

Total

System-wide Sales

 

 

 

 

 

 

 

 

 

 

Franchise stores

 

$

1,183,406

 

$

—

 

$

3,198,498

 

$

370,086

 

$

4,751,990

Company-operated stores

 

 

920,548

 

 

368,158

 

 

252,162

 

 

4,064

 

 

1,544,932

Independently operated stores

 

 

—

 

 

212,396

 

 

—

 

 

—

 

 

212,396

Total System-wide Sales

 

$

2,103,954

 

$

580,554

 

$

3,450,660

 

$

374,150

 

$

6,509,318

 

 

 

 

 

 

 

 

 

 

 

Store Count (in whole numbers)

 

 

 

 

 

 

 

 

 

 

Franchise stores

 

 

1,242

 

 

—

 

 

1,683

 

 

204

 

 

3,129

Company-operated stores

 

 

718

 

 

382

 

 

229

 

 

1

 

 

1,330

Independently operated stores

 

 

—

 

 

720

 

 

—

 

 

—

 

 

720

Total Store Count

 

 

1,960

 

 

1,102

 

 

1,912

 

 

205

 

 

5,179

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 30, 2023

(in thousands)

 

Maintenance

 

Car Wash

 

Paint,

Collision &

Glass

 

Platform

Services

 

Total

System-wide Sales

 

 

 

 

 

 

 

 

 

 

Franchise stores

 

$

1,090,457

 

$

—

 

$

3,072,137

 

$

398,386

 

$

4,560,980

Company-operated stores

 

 

809,356

 

 

395,357

 

 

317,428

 

$

4,212

 

 

1,526,353

Independently operated stores

 

 

—

 

 

196,395

 

 

—

 

 

—

 

 

196,395

Total System-wide Sales

 

$

1,899,813

 

$

591,752

 

$

3,389,565

 

$

402,598

 

$

6,283,728

 

 

 

 

 

 

 

 

 

 

 

Store Count (in whole numbers)

 

 

 

 

 

 

 

 

 

 

Franchise stores

 

 

1,134

 

 

—

 

 

1,647

 

 

205

 

 

2,986

Company-operated stores

 

 

652

 

 

391

 

 

241

 

 

1

 

 

1,285

Independently operated stores

 

 

—

 

 

717

 

 

—

 

 

—

 

 

717

Total Store Count

 

 

1,786

 

 

1,108

 

 

1,888

 

 

206

 

 

4,988

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225842070/en/

Shareholder/Analyst inquiries: Dawn Francfort ICR, Inc. investors@drivenbrands.com (203) 682-8200

Media inquiries: Taylor Blanchard taylor.blanchard@drivenbrands.com (704) 644-8129