CHARLOTTE, N.C., Oct. 27, 2021 (GLOBE NEWSWIRE) — Driven Brands Holdings Inc. (NASDAQ: DRVN) today reported financial results for the third quarter ended September 25, 2021.
For the third quarter, revenue was $371.1 million, an increase of 39% versus the prior year. System-wide sales were $1.2 billion, an increase of 28% versus the prior year, with 4% net store growth and an increase in consolidated same-store sales of 12.8%.
Earnings per share was $0.19 for the third quarter, an increase of 375% versus the prior year.
Adjusted earnings per share2 was $0.26, an increase of 30% versus the prior year.
“This is our third quarter as a public company and we have consistently outperformed expectations,” said Jonathan Fitzpatrick, president and CEO. “Our employees and franchisees have shown tremendous flexibility and a relentless focus on operational excellence, and I am proud of our entire team.” Fitzpatrick added.
“We expect to end fiscal year 2021 strong, and with our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation, our business model remains well-positioned to maximize long-term value for all of our stakeholders.”
Third Quarter Highlights
- Revenue increased 39% versus the prior year, driven by positive same-store sales growth and net store growth.
- Consolidated same-store sales increased 12.8% for the quarter, and all segments posted positive same-store sales growth.
- The Company added 53 net new stores during the quarter.
- The Company recorded net income in the third quarter of $33.1 million, an increase of 712% versus the prior year.
- Adjusted Net Income1 was $43.5 million, an increase of 96% versus the prior year.
- Adjusted EBITDA3 was $98.0 million, an increase of 42% versus the prior year.
Third Quarter 2021 Key Performance Indicators by Segment
| System-wide Sales (in millions) | Store Count | Same-Store Sales* | Revenue (in millions) |
Segment Adjusted EBITDA4 (in millions) |
||||||||
| Maintenance | $ | 333.8 | 1,506 | 17.0 | % | $ | 144.5 | $ | 47.9 | |||
| Car Wash | 122.0 | 1,018 | 6.2 | % | 123.6 | 38.0 | ||||||
| Paint, Collision & Glass | 620.3 | 1,647 | 10.8 | % | 50.6 | 22.0 | ||||||
| Platform Services | 120.3 | 201 | 15.8 | % | 42.1 | 16.3 | ||||||
| Corporate / Other | N/A | N/A | N/A | 10.3 | ||||||||
| Total | $ | 1,196.4 | 4,372 | 12.8 | % | $ | 371.1 | |||||
*Car Wash same-store sales reflects performance for the full quarter. Total same-store sales includes Car Wash performance on a pro-rata basis beginning in August.
Capital and Liquidity
The Company ended the third quarter with total liquidity of $268.3 million, which included $115.5 million in cash, cash equivalents and restricted cash, and $152.8 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility.
Subsequent to quarter end, the Company closed on a $450 million whole business securitization issuance. The proceeds from the issuance were used to repay the outstanding balance on the revolving credit facility and the remainder will be used for general corporate purposes, including future acquisitions.
Guidance
The Company has raised its guidance for fiscal year 2021 to account for the strong operating performance in the third quarter. The following guidance reflects the Company’s current expectations for the fiscal year ending December 25, 2021:
- Revenue of approximately $1.4 billion
- Adjusted EBITDA3 of approximately $350 million
- Adjusted Earnings per Share2 of approximately $0.84
- Approximately 15% same-store sales growth, with positive same-store sales across all segments
- Net store growth of approximately 200, driven by franchise and company-operated store growth as well as tuck-in acquisitions completed through the third quarter.
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 needs, 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®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, and CARSTAR®. Driven Brands has more than 4,300 locations across 15 countries, and services over 50 million vehicles annually. Driven Brands’ network generates more than $1 billion in revenue from more than $4 billion in system-wide sales.
