- Revenue increased 20 percent powered by 9 percent same-store
sales growth and 7 percent net store growth
- Reaffirms fiscal 2023 guidance, reflecting continued market
shares gains and resilient needs-based category
CHARLOTTE, N.C., May 3, 2023
/PRNewswire/ -- Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven
Brands" or the "Company") today reported financial results for the
first quarter ended April 1, 2023.
For the first quarter, Driven Brands delivered revenue of
$562.5 million, up 20 percent versus
the prior year. System-wide sales were $1.5
billion, up 19 percent versus the prior year driven by 9
percent same-store sales growth and 7 percent net store growth.
Net Income decreased 14 percent versus the prior year to
$29.7 million or $0.17 per diluted share. Adjusted Net
Income1 decreased 11 percent to $42.3 million or $0.25 per diluted share1, while
Adjusted EBITDA1 increased 8 percent to $127.8 million.
"Our team delivered another quarter of strong results and market
share growth powered by our differentiated customer value
proposition in a needs-based service category. Our proven playbook,
track record of execution and pipeline for new store development
provide strong line of sight into future growth. We are leveraging
our scale and network benefits across our diversified platform to
capitalize on the continued momentum in our business," said
Jonathan Fitzpatrick, President and
Chief Executive Officer. "We continue to be well positioned to
deliver sustainable, profitable long-term growth providing more
services to more customers."
First Quarter 2023 Highlights
Comparisons are first
quarter of 2023 ended April 1, 2023
versus first quarter of 2022 ended March 26,
2022 unless otherwise noted
- Revenue increased 20 percent to $562.5
million, driven by same-store sales and net store
growth.
- Consolidated same-store sales increased 9 percent.
- The Company added 59 net new stores during the quarter.
- Net Income decreased 14 percent to $29.7
million or $0.17 per diluted
share.
- Adjusted Net Income1 decreased 11 percent to
$42.3 million or $0.25 per diluted share1.
- Adjusted EBITDA1 increased 8 percent to $127.8 million.
|
First Quarter 2023
Key Performance Indicators by Segment
|
|
System-wide
Sales
(in millions)
|
Store
Count
|
Same-Store
Sales
|
Revenue
(in
millions)
|
Segment Adjusted
EBITDA1
(in
millions)
|
|
Maintenance
|
$
441.9
|
1,666
|
12.6 %
|
$
227.7
|
$
73.0
|
|
Car
Wash
|
155.0
|
1,116
|
(11.3 %)
|
157.0
|
44.3
|
|
Paint, Collision
& Glass
|
816.0
|
1,877
|
14.1 %
|
120.8
|
35.7
|
|
Platform
Services
|
90.0
|
205
|
(5.0 %)
|
52.0
|
17.0
|
|
Corporate /
Other
|
N/A
|
N/A
|
N/A
|
5.0
|
|
|
Total
|
$
1,502.9
|
4,864
|
9.0 %
|
$
562.5
|
|
*Car Wash same-store
sales declined 11.3% in the first quarter. Foreign exchange rate
movement had a 230 basis point negative impact. The impact of
foreign exchange rate movement on the remaining segments was not
significant.
|
Capital and Liquidity
The Company ended the first
quarter with total liquidity of $466.3 million, consisting of $190.8 million in cash and cash equivalents, and
$275.5 million of undrawn
capacity on its variable funding securitization senior notes and
revolving credit facility. This does not include the additional
$135 million Series 2022 Class A-1
Notes that expand its variable funding note borrowing capacity when
the Company elects to exercise it, assuming certain conditions
continue to be met.
Fiscal Year 2023 Guidance
The Company reiterates its
expectations for fiscal year 2023 reflecting continued market
shares gains driven by both robust same-store sales and net store
growth:
- Revenue of approximately $2.35
billion.
- Adjusted EBITDA1 of approximately $590 million.
- Adjusted Earnings Per Share1 of approximately
$1.21.
The Company has not included future M&A in its guidance for
fiscal year 2023.
|
___________
|
|
1
|
Adjusted EBITDA,
Adjusted Net Income and Adjusted Earnings Per Share 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 Earnings
Per Share are made in a manner consistent with the relevant
definitions and assumptions noted herein.
|
Conference Call
Driven Brands will host a conference
call to discuss first quarter 2023 results today, Wednesday, May 3, 2023, at 8:30am 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 until August 1, 2023.
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®, Take 5 Car Wash®, Meineke Car Care
Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and
CARSTAR®. Driven Brands has more than 4,800 locations across 14
countries, and services over 70 million vehicles annually. Driven
Brands' network generates approximately $2.1
billion in annual revenue from more than $5.8 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,
plans, objectives of management, and expected market growth are
forward-looking statements. In particular, forward-looking
statements include, among other things, statements relating to: (i)
our strategy, outlook and growth prospects; (ii) our operational
and financial targets and dividend policy; (iii) general economic
trends and trends in the industry and markets; and (iv) 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 31, 2022 and 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.
Forward-looking statements represent our estimates and
assumptions only as of the date on which they are made, and we
undertake no obligation to update or review publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
|
DRIVEN BRANDS
HOLDINGS INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
Three months
ended
|
|
(in thousands,
except per share amounts)
|
|
April 1,
2023
|
|
March 26,
2022
|
|
Revenue:
|
|
|
|
|
|
Franchise royalties
and fees
|
|
$
43,515
|
|
$
37,888
|
|
Company-operated store
sales
|
|
376,066
|
|
292,391
|
|
Independently-operated
store sales
|
|
52,532
|
|
63,089
|
|
Advertising
contributions
|
|
21,677
|
|
19,698
|
|
Supply and other
revenue
|
|
68,677
|
|
55,257
|
|
Total
revenue
|
|
562,467
|
|
468,323
|
|
Operating
expenses:
|
|
|
|
|
|
Company-operated store
expenses
|
|
243,409
|
|
177,867
|
|
Independently-operated
store expenses
|
|
29,364
|
|
33,299
|
|
Advertising
expenses
|
|
21,677
|
|
19,698
|
|
Supply and other
expenses
|
|
37,266
|
|
32,774
|
|
Selling, general and
administrative expenses
|
|
112,328
|
|
92,220
|
|
Acquisition
costs
|
|
1,847
|
|
4,318
|
|
Store opening
costs
|
|
1,025
|
|
506
|
|
Depreciation and
amortization
|
|
38,198
|
|
33,023
|
|
Asset impairment
charges and lease terminations
|
|
167
|
|
898
|
|
Total operating
expenses
|
|
485,281
|
|
394,603
|
|
Operating
income
|
|
77,186
|
|
73,720
|
|
Other expenses,
net:
|
|
|
|
|
|
Interest expense,
net
|
|
38,141
|
|
25,353
|
|
(Gain) loss on foreign
currency transactions, net
|
|
(1,675)
|
|
971
|
|
Total other
expenses, net
|
|
36,466
|
|
26,324
|
|
Net income before
taxes
|
|
40,720
|
|
47,396
|
|
Income tax
expense
|
|
10,971
|
|
12,968
|
|
Net
income
|
|
29,749
|
|
34,428
|
|
Net loss attributable
to non-controlling interests
|
|
$
—
|
|
$
(15)
|
|
Net income
attributable to Driven Brands Holdings Inc.
|
|
$
29,749
|
|
$
34,443
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
|
$
0.18
|
|
$
0.21
|
|
Diluted
|
|
$
0.17
|
|
$
0.20
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
|
162,784
|
|
162,762
|
|
Diluted
|
|
166,874
|
|
166,748
|
|
DRIVEN BRANDS
HOLDINGS INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
|
(in thousands,
except share and per share amounts)
|
April 1,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
190,841
|
|
$
227,110
|
|
Restricted
cash
|
792
|
|
792
|
|
Accounts and notes
receivable, net
|
216,621
|
|
179,888
|
|
Inventory
|
77,848
|
|
72,040
|
|
Prepaid and other
assets
|
54,149
|
|
40,084
|
|
Income tax
receivable
|
12,715
|
|
15,075
|
|
Advertising fund
assets, restricted
|
48,618
|
|
36,421
|
|
Total current
assets
|
601,584
|
|
571,410
|
|
Other assets
|
22,773
|
|
30,561
|
|
Property and equipment,
net
|
1,710,057
|
|
1,545,738
|
|
Operating lease
right-of-use assets
|
1,312,568
|
|
1,299,189
|
|
Deferred
commissions
|
6,691
|
|
7,121
|
|
Intangibles,
net
|
761,597
|
|
765,903
|
|
Goodwill
|
2,287,960
|
|
2,277,065
|
|
Deferred tax
assets
|
2,925
|
|
2,911
|
|
Total
assets
|
$
6,706,155
|
|
$
6,499,898
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
88,862
|
|
$
60,606
|
|
Accrued expenses and
other liabilities
|
300,813
|
|
317,318
|
|
Income tax
payable
|
2,617
|
|
4,454
|
|
Current portion of
long-term debt
|
33,263
|
|
32,986
|
|
Income tax receivable
liability
|
53,554
|
|
53,328
|
|
Advertising fund
liabilities
|
47,572
|
|
36,726
|
|
Total current
liabilities
|
526,681
|
|
505,418
|
|
Long-term
debt
|
2,816,493
|
|
2,705,281
|
|
Deferred tax
liabilities
|
282,709
|
|
276,749
|
|
Operating lease
liabilities
|
1,202,359
|
|
1,177,501
|
|
Income tax receivable
liability
|
117,915
|
|
117,915
|
|
Deferred
revenue
|
29,506
|
|
30,046
|
|
Long-term accrued
expenses and other liabilities
|
31,450
|
|
33,419
|
|
Total
liabilities
|
5,007,113
|
|
4,846,329
|
|
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 167,560,449 and
167,404,047 shares outstanding; respectively
|
1,675
|
|
1,674
|
|
Additional paid-in
capital
|
1,633,460
|
|
1,628,904
|
|
Retained
earnings
|
114,544
|
|
84,795
|
|
Accumulated other
comprehensive loss
|
(51,267)
|
|
(62,435)
|
|
Total shareholders'
equity attributable to Driven Brands Holdings Inc.
|
1,698,412
|
|
1,652,938
|
|
Non-controlling
interests
|
630
|
|
631
|
|
Total shareholders'
equity
|
1,699,042
|
|
1,653,569
|
|
Total liabilities
and shareholders' equity
|
$
6,706,155
|
|
$
6,499,898
|
|
DRIVEN BRANDS
HOLDINGS INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
Three Months
Ended
|
|
(in
thousands)
|
April 1,
2023
|
|
March 26,
2022
|
|
Net
income
|
$
29,749
|
|
$
34,428
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
38,198
|
|
33,023
|
|
Equity-based
compensation expense
|
2,564
|
|
2,618
|
|
Loss on foreign
denominated transactions
|
161
|
|
970
|
|
(Gain) loss on foreign
currency derivatives
|
(1,836)
|
|
2,702
|
|
Loss (gain) on sale of
businesses, fixed assets, and sale-leaseback
transactions
|
1,671
|
|
(618)
|
|
Amortization of
interest rate hedge
|
(519)
|
|
—
|
|
Bad debt
expense
|
82
|
|
372
|
|
Asset impairment
costs
|
167
|
|
898
|
|
Amortization of
deferred financing costs and bond discounts
|
1,850
|
|
2,224
|
|
Benefit for deferred
income taxes
|
4,650
|
|
132
|
|
Other, net
|
4,043
|
|
5,231
|
|
Changes in assets
and liabilities, net of acquisitions:
|
|
|
|
|
Accounts and notes
receivable, net
|
(44,084)
|
|
(21,123)
|
|
Inventory
|
(5,473)
|
|
(1,787)
|
|
Prepaid and other
assets
|
(13,867)
|
|
6,133
|
|
Advertising fund assets
and liabilities, restricted
|
906
|
|
(1,204)
|
|
Other Assets
|
(7,382)
|
|
(5,736)
|
|
Deferred
commissions
|
455
|
|
(39)
|
|
Deferred
revenue
|
161
|
|
455
|
|
Accounts
payable
|
25,597
|
|
509
|
|
Accrued expenses and
other liabilities
|
(960)
|
|
(61,624)
|
|
Income tax
receivable
|
659
|
|
11,476
|
|
Cash provided by
operating activities
|
36,792
|
|
9,040
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(169,155)
|
|
(68,967)
|
|
Cash used in business
acquisitions, net of cash acquired
|
(29,307)
|
|
(224,526)
|
|
Proceeds from
sale-leaseback transactions
|
16,772
|
|
37,781
|
|
Proceeds from sale or
disposal of businesses and fixed assets
|
—
|
|
2,380
|
|
Cash used in
investing activities
|
(181,690)
|
|
(253,332)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repayment of long-term
debt
|
(7,002)
|
|
(4,820)
|
|
Proceeds from revolving
lines of credit and short-term debt
|
195,000
|
|
—
|
|
Repayments of revolving
lines of credit and short-term debt
|
(80,000)
|
|
—
|
|
Repayment of principal
portion of finance lease liability
|
(854)
|
|
(879)
|
|
Stock option
exercises
|
1,380
|
|
—
|
|
Other, net
|
(32)
|
|
(20)
|
|
Cash provided by
(used in) financing activities
|
108,492
|
|
(5,719)
|
|
Effect of exchange rate
changes on cash
|
2,392
|
|
(592)
|
|
Net change in cash,
cash equivalents, restricted cash, and cash included in advertising
fund
assets, restricted
|
(34,014)
|
|
(250,603)
|
|
Cash and cash
equivalents, beginning of period
|
227,110
|
|
523,414
|
|
Cash included in
advertising fund assets, restricted, beginning of period
|
32,871
|
|
38,586
|
|
Restricted cash,
beginning of period
|
792
|
|
792
|
|
Cash, cash
equivalents, restricted cash, and cash included in advertising fund
assets,
restricted, beginning of period
|
260,773
|
|
562,792
|
|
Cash and cash
equivalents, end of period
|
190,841
|
|
270,681
|
|
Cash included in
advertising fund assets, restricted, end of period
|
35,126
|
|
40,716
|
|
Restricted cash, end of
period
|
792
|
|
792
|
|
Cash, cash
equivalents, restricted cash, and cash included in advertising fund
assets,
restricted, end of period
|
$
226,759
|
|
$
312,189
|
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 Guidance
Driven Brands includes Adjusted EBITDA and Adjusted EPS in the
Company's Fiscal Year 2023 Guidance. Adjusted EBITDA and
Adjusted EPS are non-GAAP financial measures and have not been
reconciled to the most comparable GAAP outlook 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 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 attributable to Driven Brands Holdings Inc.
("Adjusted Net Income") and Adjusted diluted earnings per share
attributable to Driven Brands common stockholders ("Adjusted
Earnings Per Share") 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 Earnings Per Share 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 first quarter ended
April 1, 2023 compared to the first
quarter ended March 26, 2022.
|
Net Income to
Adjusted Net Income and Adjusted Earnings Per Share
(Unaudited)
|
|
|
|
Three months
ended
|
|
(in thousands,
except per share amounts)
|
|
April 1,
2023
|
|
March 26,
2022
|
|
Net
income
|
|
$
29,749
|
|
$
34,428
|
|
Acquisition related
costs(a)
|
|
1,847
|
|
4,318
|
|
Non-core items and
project costs, net(b)
|
|
1,824
|
|
866
|
|
Straight-line rent
adjustment(c)
|
|
4,365
|
|
4,093
|
|
Equity-based
compensation expense(d)
|
|
2,564
|
|
2,618
|
|
Foreign currency
transaction (gain) loss, net(e)
|
|
(1,675)
|
|
971
|
|
Asset sale leaseback
loss (gain), impairment and closed store
expenses(f)
|
|
1,844
|
|
(124)
|
|
Amortization related to
acquired intangible assets(g)
|
|
6,036
|
|
5,142
|
|
Provision for uncertain
tax positions(h)
|
|
—
|
|
76
|
|
Adjusted net income
before tax impact of adjustments
|
|
46,554
|
|
52,388
|
|
Tax impact of
adjustments(i)
|
|
(4,213)
|
|
(4,612)
|
|
Adjusted net
income
|
|
42,341
|
|
47,776
|
|
Net income loss
attributable to non-controlling interest
|
|
—
|
|
(15)
|
|
Adjusted Net Income
attributable to Driven Brands Holdings Inc.
|
|
$
42,341
|
|
$
47,791
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
|
|
|
|
|
Basic1
|
|
$
0.25
|
|
$
0.29
|
|
Diluted1
|
|
$
0.25
|
|
$
0.28
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
Basic
|
|
162,784
|
|
162,762
|
|
Diluted
|
|
166,874
|
|
166,748
|
|
|
|
|
|
|
(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 $0.9 million for the three
months ended April 1, 2023, respectively, and Adjusted Net
Income
attributable to participating securities used in the diluted
earnings per share calculation was $0.8 million for the three
months
ended April 1, 2023, respectively.
|
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 31, 2022
filed with the SEC on March 1, 2023
for additional information on Adjusted EBITDA. The tables below
reflect the calculation of Adjusted EBITDA for the first quarter
ended April 1, 2023 compared to the
first quarter ended March 26,
2022.
|
Net Income to
Adjusted EBITDA Reconciliation (Unaudited)
|
|
|
|
|
|
|
|
Three months
ended
|
|
(in
thousands)
|
|
April 1,
2023
|
|
March 26,
2022
|
|
Net
income
|
|
$
29,749
|
|
$
34,428
|
|
Income tax
expense
|
|
10,971
|
|
12,968
|
|
Interest expense,
net
|
|
38,141
|
|
25,353
|
|
Depreciation and
amortization
|
|
38,198
|
|
33,023
|
|
EBITDA
|
|
117,059
|
|
105,772
|
|
Acquisition related
costs(a)
|
|
1,847
|
|
4,318
|
|
Non-core items and
project costs, net(b)
|
|
1,824
|
|
866
|
|
Straight-line rent
adjustment(c)
|
|
4,365
|
|
4,093
|
|
Equity-based
compensation expense(d)
|
|
2,564
|
|
2,618
|
|
Foreign currency
transaction (gain) loss, net(e)
|
|
(1,675)
|
|
971
|
|
Asset impairment and
closed store expenses(f)
|
|
1,844
|
|
(124)
|
|
Adjusted
EBITDA
|
|
$
127,828
|
|
$
118,514
|
|
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.
|
|
(c)
|
Consists of the
non-cash portion of rent expense, which reflects the extent to
which our straight-line rent expense recognized under U.S. GAAP
exceeds or is less than our cash rent payments.
|
|
(d)
|
Represents non-cash
equity-based compensation expense.
|
|
(e)
|
Represents foreign
currency transaction (gains)/losses, net that primarily related to
the remeasurement of our intercompany loans, which are partially
offset by unrealized (gains)/ losses on remeasurement of cross
currency swaps and forward contracts.
|
|
(f)
|
Relates to (gain)/loss,
net on sale leasebacks, impairment of certain fixed assets and
operating lease right-of-use assets related to closed locations,
lease exit costs and other costs associated with stores that were
closed prior to the respective lease termination dates.
|
|
(g)
|
Consists of
amortization related to acquired intangible assets as reflected
within depreciation and amortization in the consolidated statements
of operations.
|
|
(h)
|
Represents uncertain
tax positions recorded for tax positions, inclusive of interest and
penalties.
|
|
(i)
|
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.
|
|
DRIVEN BRANDS
HOLDINGS INC. AND SUBSIDIARIES
|
|
ADJUSTED EBITDA AND
SEGMENT ADJUSTED EBITDA RECONCILIATION
(UNAUDITED)
|
|
|
|
Three months
ended
|
|
(in
thousands)
|
|
April 1,
2023
|
|
March 26,
2022
|
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
Maintenance
|
|
$
72,986
|
|
$
52,485
|
|
Car Wash
|
|
44,309
|
|
55,720
|
|
Paint, Collision &
Glass
|
|
35,712
|
|
28,930
|
|
Platform
Services
|
|
17,030
|
|
14,165
|
|
Corporate and
other
|
|
(41,184)
|
|
(32,280)
|
|
Store opening
costs
|
|
(1,025)
|
|
(506)
|
|
Adjusted
EBITDA
|
|
$
127,828
|
|
$
118,514
|
|
DRIVEN BRANDS
HOLDINGS INC. AND SUBSIDIARIES
|
|
ADDITIONAL
INFORMATION ON KEY PERFORMANCE INDICATORS
(UNAUDITED)
|
|
|
|
Three months ended
April 1, 2023
|
|
(in
thousands)
|
|
Maintenance
|
|
Car
Wash
|
|
Paint,
Collision
&
Glass
|
|
Platform
Services
|
|
Total
|
|
System-wide
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
stores
|
|
$
246,683
|
|
$
—
|
|
738,563
|
|
$
89,103
|
|
$
1,074,349
|
|
Company-operated
stores
|
|
195,260
|
|
102,446
|
|
77,479
|
|
881
|
|
376,066
|
|
Independently operated
Stores
|
|
—
|
|
52,532
|
|
—
|
|
—
|
|
52,532
|
|
Total System-wide
Sales
|
|
$
441,943
|
|
$
154,978
|
|
$
816,042
|
|
$
89,984
|
|
$
1,502,947
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Count (in
whole numbers)
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
stores
|
|
1,067
|
|
—
|
|
1,642
|
|
204
|
|
2,913
|
|
Company-operated
stores
|
|
599
|
|
400
|
|
235
|
|
1
|
|
1,235
|
|
Independently operated
Stores
|
|
—
|
|
716
|
|
—
|
|
—
|
|
716
|
|
Total Store
Count
|
|
1,666
|
|
1,116
|
|
1,877
|
|
205
|
|
4,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 26, 2022
|
|
(in
thousands)
|
|
Maintenance
|
|
Car
Wash
|
|
Paint,
Collision
&
Glass
|
|
Platform
Services
|
|
Total
|
|
System-wide
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
stores
|
|
$
200,284
|
|
$
—
|
|
$
618,969
|
|
$
89,643
|
|
$
908,896
|
|
Company-operated
stores
|
|
156,828
|
|
94,495
|
|
39,916
|
|
1,152
|
|
292,391
|
|
Independently operated
Stores
|
|
—
|
|
63,089
|
|
—
|
|
—
|
|
63,089
|
|
Total System-wide
Sales
|
|
$
357,112
|
|
$
157,584
|
|
$
658,885
|
|
$
90,795
|
|
$
1,264,376
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Count (in
whole numbers)
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
stores
|
|
982
|
|
—
|
|
1,611
|
|
201
|
|
2,794
|
|
Company-operated
stores
|
|
549
|
|
341
|
|
119
|
|
1
|
|
1,010
|
|
Independently operated
Stores
|
|
—
|
|
722
|
|
—
|
|
—
|
|
722
|
|
Total Store
Count
|
|
1,531
|
|
1,063
|
|
1,730
|
|
202
|
|
4,526
|
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SOURCE Driven Brands