Driven Brands reports third quarter results

Driven Brands reports third quarter results

CHARLOTTE, N.C. — Revenue increased 12% powered by 6% same-store sales growth and 6% net store growth.

CHARLOTTE, N.C. — Driven Brands Holdings Inc. reported via press release its financial results for the third quarter ended Sept. 30, 2023.

For the third quarter, Driven Brands delivered revenue of $581.0 million, up 12% versus the prior year.

System-wide sales were $1.6 billion, up 10% versus the prior year driven by 6% same-store sales growth and 6% net store growth.

The company added 55 net new stores in the quarter.

During the third quarter, we had an $851 million non-cash goodwill impairment in the Carwash segment as well as $111 million in non-cash asset impairment charges and lease terminations.

This drove a Net Loss of $799.3 million or a Net Loss of $4.83 per diluted share versus Net Income of $38.4 million in the prior year.

Adjusted Net Income1 decreased 39% to $33.7 million or $0.20 per diluted share1, and Adjusted EBITDA1 decreased 2% to $127.2 million.

Cash provided by operating activities for the nine months ended Sept. 30, 2023, increased 26% to $212.0 million compared to $167.7 million in the prior year.

“This quarter, we continued to see meaningful growth and strong operational performance across our portfolio excluding our U.S. carwash and glass businesses. I’m delighted to report we recently opened our 300th franchised Take 5 Oil Change location and I’m looking forward to celebrating our 1,000th location in the fourth quarter,” said Jonathan Fitzpatrick, president and CEO.

“As discussed at our Investor Day on Sept. 20, we remain focused on operational improvements in the U.S. Carwash business, while making steady progress on the U.S. Glass integration. Given continued weak consumer demand and increasing competition in the U.S. Carwash sector, we are strategically pausing capital investment in this business. Looking ahead to 2024, the Driven Brands team is prioritizing continued progress in our U.S. Carwash and U.S. Glass businesses, disciplined deployment of capital, and generating free cash flow, which will primarily be used to pay down debt.”

Third Quarter 2023 Key Performance Indicators by Segment

System-wide Sales
(in millions)
Store CountSame-Store
Sales
Revenue (in millions)Segment Adjusted
EBITDA
1 (in millions)
Maintenance$                          502.51,7329.1 %$                  244.4$                            86.5
Car Wash141.71,133(4.0) %142.824.4
Paint, Collision & Glass845.61,9208.6 %129.432.8
Platform Services119.2208(4.6) %55.922.4
Corporate / OtherN/AN/AN/A8.5
Total$                       1,609.04,9936.4 %$                  581.0
      

For more, visit drivenbrands.com.

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