Driven Brands Holdings, Inc. - A securities fraud class action complaint against Driven Brands has survived the defendants' motion to dismiss, indicating that the allegations were sufficiently pleaded [1][4] - The complaint alleges that certain officers and directors made materially false and misleading statements regarding the company's ability to integrate acquired businesses and the performance of its car wash segment [3] - Long-term shareholders who held Driven Brands shares since before October 27, 2021, can seek corporate reforms and a court-approved incentive award at no cost [2][5] Mercury Systems, Inc. - A securities fraud class action complaint against Mercury Systems has also survived the motion to dismiss, with key allegations being adequately pleaded [6][9] - The complaint claims that the company misled investors about its growth by using improper revenue recognition practices and misrepresenting the status of its projects [8] - Current shareholders who held shares since before February 3, 2021, can seek corporate reforms and a court-approved incentive award at no cost [7][9] Playstudios, Inc. - A securities fraud class action complaint against Playstudios has survived the motion to dismiss and has reached a settlement [10][14] - The complaint alleges that shareholders paid artificially inflated prices for their securities due to the defendants' wrongful conduct [13] - Shareholders who purchased or acquired Playstudios shares prior to August 11, 2021, can seek corporate reforms and a court-approved incentive award at no cost [11][15] Sage Therapeutics, Inc. - An investigation is underway regarding claims against Sage Therapeutics, focusing on whether certain officers and directors breached their fiduciary duties [15] - The underlying complaint alleges that the company made materially false and misleading statements about the effectiveness of its treatments and the prospects for FDA approval [17] - Shareholders who purchased Sage Therapeutics shares prior to April 12, 2021, can seek corporate reforms and a court-approved incentive award at no cost [16][18]

Group 1 - The article discusses Driven Brands Holdings (NASDAQ: DRVN) and recommends a buy rating based on expectations of improved growth as the company overcomes previous challenges [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets rather than just low multiples [1] - It is noted that while investing in successful companies carries risks, the potential for significant growth can make immediate price considerations less critical [1]

Financial Obligations and Restrictions - The company relies on cash dividends and distributions from subsidiaries to meet its obligations, which may be restricted by debt agreements [180]. - Legal and contractual restrictions may limit the ability to obtain cash from subsidiaries, impacting financial flexibility [180]. - The company made aggregate payments of $38 million under the Tax Receivable Agreement in 2024, with future payments expected to total between $130 million and $150 million [186]. - The company expects to repay the majority of its Tax Receivable Agreement obligations by the end of the 2034 fiscal year [186]. - The realization of tax benefits under the Tax Receivable Agreement is contingent on future taxable income, affecting payment obligations [183]. Corporate Governance and Control - Principal Stockholders hold approximately 62% of the outstanding shares, significantly influencing corporate decisions [193]. - The company is classified as a "controlled company" under NASDAQ rules, allowing it to utilize exemptions from certain corporate governance requirements [194]. - The company’s Principal Stockholders control at least 40% of the voting power of the outstanding common stock, allowing them to influence all matters requiring stockholder approval, including director elections and amendments to the certificate of incorporation [205]. - The company has provisions that may restrict stockholder actions, such as prohibiting stockholders from calling special meetings if less than 40% of the voting power is owned by Principal Stockholders [201]. - The company’s organizational documents may impede or discourage takeovers, potentially depriving investors of premium opportunities [195]. - The issuance of preferred stock could delay or prevent a change in control without further action by stockholders [198]. - The company’s certificate of incorporation allows for the issuance of "blank check" preferred stock, which could delay or prevent a change in control [204]. - The company has a provision in its certificate of incorporation that designates the Court of Chancery of the State of Delaware as the exclusive forum for certain types of lawsuits, which may limit stockholders' ability to choose a favorable judicial forum [200]. Financial Risks - The company is exposed to interest rate risk, with a hypothetical 1% increase or decrease in variable debt resulting in a change of $5 million in interest expense [335]. - The company has issued fixed-rate debt instruments for most of its securitization senior notes, but still has variable rate debt that is subject to interest rate fluctuations [334]. - The company is also exposed to foreign exchange risk due to operations in Canada, Europe, and Australia, which can adversely impact net income and cash flows [339]. - The company has exposure to commodity price volatility, particularly for products like motor oil and paint, which could lead to supplier-imposed price increases [338]. - Inflation did not significantly affect the company's annual results during 2024, 2023, or 2022, but severe inflation increases could impact the business negatively [340]. Stock Market and Trading - The company’s common stock began trading on The Nasdaq Global Select Market on January 15, 2021, and future sales of common stock could reduce its stock price [210]. - The company has a provision in its certificate of incorporation that designates the Court of Chancery of the State of Delaware as the exclusive forum for certain types of lawsuits, which may limit stockholders' ability to choose a favorable judicial forum [200].

Nextracker, Inc. (NASDAQ:NXT) - Grabar Law Office is investigating claims on behalf of long-term shareholders regarding potential breaches of fiduciary duties by certain officers of Nextracker [1] - A securities fraud class action complaint alleges that Nextracker failed to disclose severe impacts of project delays on its business and financial results, including permitting and interconnection delays that impaired revenue conversion [3] - The complaint also claims that Nextracker could not offset negative impacts from project delays through increased client demand as previously represented [3] Driven Brands Holdings, Inc. (NASDAQ:DRVN) - Grabar Law Office is investigating claims on behalf of long-term shareholders concerning potential breaches of fiduciary duties by certain officers of Driven Brands [5] - A securities fraud class action complaint alleges that Driven Brands made materially false statements regarding its ability to integrate acquired businesses and the performance of its car wash segment [7] Extreme Networks, Inc. (NASDAQ:EXTR) - Grabar Law Office is investigating claims on behalf of shareholders regarding potential breaches of fiduciary duties by certain officers of Extreme Networks [9] - A securities fraud class action complaint alleges that Extreme Networks made false statements about adverse client demand trends and the status of its backlog, which was decreasing faster than represented [10] MGP Ingredients, Inc. (NASDAQ:MGPI) - Grabar Law Office is investigating claims on behalf of shareholders concerning potential breaches of fiduciary duties by certain officers of MGP Ingredients [12] - A securities fraud class action complaint alleges that MGP Ingredients made misleading statements about strong demand and inventory levels, while there was actually a slowdown in consumption and oversupply [14]

Financial Data and Key Metrics Changes - For Q4 2024, Driven Brands reported revenue of $564 million, a 2% increase year-over-year, with adjusted EBITDA of $130.7 million and diluted adjusted EPS of $0.30 [10][11][50] - For the full fiscal year 2024, revenue reached $2.3 billion, with adjusted EBITDA of $553 million, reflecting a 2% and 7% increase respectively compared to the previous year [11][56] - The company achieved a net leverage ratio of 4.4x in Q4, down from 4.5x in Q3, with a total debt paydown of approximately $248 million for the year [19][54] Business Line Data and Key Metrics Changes - The Take 5 Oil Change segment experienced 9.2% same-store sales growth in Q4, contributing to a total of 174 net new stores for the fiscal year [21][43] - The Paint, Collision & Glass segment generated revenue of $97.3 million with adjusted EBITDA of $33 million, while the Platform Services segment reported revenue of $40.2 million and adjusted EBITDA of $16.3 million [39][40] - The Car Wash segment reported revenue of $143.4 million and adjusted EBITDA of $28.7 million, with same-store sales growth of 7.9% [40] Market Data and Key Metrics Changes - Driven Brands noted that the ongoing inflationary environment is expected to pressure consumer spending, particularly among lower-income households, but anticipates some mitigation from strong performance in commercial and needs-based businesses [12][60] - The company reported system-wide sales growth of 3.6% to $6.5 billion for the full year, driven by same-store sales growth of 1.3% and net unit growth of 191 units [56] Company Strategy and Development Direction - The company plans to focus on three key priorities for 2025: delivering the 2025 outlook, utilizing cash flow to reduce debt, and active portfolio management [9][27] - A definitive agreement has been made to sell the U.S. car wash business, with the transaction expected to close in Q2 2025 [13][41] - The company will adopt a simplified segment structure starting Q1 2025, with Take 5 Oil Change as a stand-alone segment to enhance clarity for investors [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, emphasizing the strength of the Take 5 Oil Change brand as a growth engine [12][27] - The company anticipates a more normalized level of same-store sales growth in 2025, following a particularly strong Q4 [36][86] - Management highlighted the importance of investing in frontline employees and maintaining high customer loyalty through service excellence [37][102] Other Important Information - The company has sold approximately $208 million in assets during fiscal year 2024, with over 75% of the divestiture process completed [18][54] - The company plans to provide quarterly unaudited pro forma results for FY 2024 in the new segment structure starting in mid-March 2025 [68] Q&A Session Summary Question: Can you provide color on the 2025 outlook and expected growth? - Management indicated that the U.S. car wash business contributed approximately $50 million of adjusted EBITDA, and the growth in 2025 will primarily come from Take 5 Oil Change, which has a strong unit pipeline and customer engagement [73][74] Question: What is the expected breakdown of unit growth between segments? - The majority of the expected net unit growth of 175 to 200 units will come from the Take 5 pipeline, with a historical trend of 2/3 being franchise stores and 1/3 company-owned [105][108] Question: What drove the increase in corporate costs in Q4? - The increase was attributed to performance-based compensation and share-based compensation related to IPO grants, reflecting strong company performance [102][103] Question: What is the plan for the International Car Wash segment? - The International Car Wash business will continue to be owned and operated, with stable performance expected, and management remains active in assessing its components [126] Question: Is there an appetite for M&A following the car wash sale? - While historically acquisitive, the company is currently focused on organic growth but remains open to accretive opportunities in the automotive aftermarket space [128]

Financial Data and Key Metrics Changes - For Q4 2024, Driven Brands reported revenue of $564 million, a 2% increase year-over-year, with adjusted EBITDA of $130.7 million and diluted adjusted EPS of $0.30 [10][11] - For the full fiscal year 2024, revenue reached $2.3 billion, with adjusted EBITDA of $553 million, reflecting a 2% and 7% increase respectively compared to the previous year [11][57] - The company achieved a net leverage ratio of 4.4x in Q4, improving from 4.5x in Q3, and paid down approximately $248 million of debt throughout the year [19][54] Business Line Data and Key Metrics Changes - The Take 5 Oil Change segment experienced 9.2% same-store sales growth in Q4, marking the 18th consecutive quarter of positive growth, with a total of 174 net new stores opened in fiscal year 2024 [21][43] - The Paint, Collision & Glass segment generated revenue of $97.3 million and adjusted EBITDA of $33 million in Q4, with same-store sales increasing by 1% despite a 7% decline in industry-wide collision repair estimates [39] - The Platform Services segment reported revenue of $40.2 million and adjusted EBITDA of $16.3 million in Q4 [40] Market Data and Key Metrics Changes - System-wide sales for Driven Brands grew by 5.5% in Q4 to $1.6 billion, with total revenue for the quarter increasing by 1.9% year-over-year [49] - The company noted that lower-income households are most affected by ongoing inflationary pressures, which may impact consumer spending in 2025 [12][60] Company Strategy and Development Direction - The company plans to focus on three key priorities for 2025: delivering the 2025 outlook, utilizing cash flow to reduce debt, and active portfolio management [9][27] - A definitive agreement has been made to sell the U.S. car wash business, with the transaction expected to close in Q2 2025 [13][41] - The company will adopt a simplified segment structure starting Q1 2025, with Take 5 Oil Change becoming a stand-alone segment to better reflect its growth potential [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, despite anticipated pressures on consumer spending [12][60] - The company expects a more normalized level of same-store sales growth in 2025, while still maintaining a strong growth outlook for Take 5 Oil Change [37][86] - Management highlighted the importance of investing in frontline employees and maintaining high levels of customer loyalty [36][38] Other Important Information - The company has sold approximately $208 million of assets in fiscal year 2024, with over 75% of the divestiture process completed [18][54] - The company plans to provide quarterly unaudited pro forma results for FY 2024 in the new segment structure by mid-March 2025 [68] Q&A Session Summary Question: Can you provide color on the 2025 outlook and expected growth? - Management indicated that the U.S. car wash business contributed approximately $50 million of adjusted EBITDA, and the growth in 2025 will primarily come from Take 5 Oil Change, which has a strong unit pipeline and customer engagement [73][74] Question: What is the expected breakdown of unit growth between segments? - The majority of the expected net unit growth of 175 to 200 units will come from the Take 5 pipeline, with a historical trend of 2/3 being franchise stores and 1/3 company-owned [105][108] Question: What drove the increase in corporate costs in Q4? - The increase was attributed to performance-based compensation and share-based compensation related to IPO grants, reflecting strong company performance [102][103] Question: What is the plan for the Auto Glass Now segment? - Management confirmed that the TPA deal signed in Q4 2024 will start generating revenue in Q1 2025, with a focus on growing regional and national insurance partnerships [117][118] Question: Is there an appetite for M&A following the car wash sale? - Management stated that while they have historically been acquisitive, the focus will be on organic growth, but they remain open to accretive opportunities in the automotive aftermarket space [128]

Core Insights - Driven Brands Holdings Inc. (DRVN) reported revenue of $564.12 million for the quarter ended December 2024, reflecting a year-over-year increase of 1.9% but a revenue surprise of -1.18% compared to the Zacks Consensus Estimate of $570.83 million [1] - The company's EPS was $0.30, significantly higher than the $0.19 reported in the same quarter last year, resulting in an EPS surprise of +76.47% against the consensus estimate of $0.17 [1] Financial Performance Metrics - Same-store sales increased by 2.9%, surpassing the average estimate of 2.2% from four analysts [4] - The store count for Maintenance was 1,960, slightly above the estimate of 1,958 [4] - The store count for Car Wash was 1,102, below the estimate of 1,111 [4] - The store count for Paint, Collision, and Glass was 1,912, marginally below the estimate of 1,913 [4] - Revenue from Supply and other sources was $57.75 million, significantly lower than the average estimate of $75.42 million, representing a year-over-year decline of -21.2% [4] - Advertising contributions amounted to $25.51 million, slightly below the estimate of $27.07 million, with a year-over-year increase of +0.8% [4] - Independently-operated store sales reached $49.11 million, exceeding the estimate of $39.98 million, marking a +26.7% year-over-year increase [4] - Company-operated store sales were $387.66 million, above the estimate of $376.43 million, reflecting a +5.7% year-over-year increase [4] - Franchise royalties and fees totaled $44.09 million, below the estimate of $49.13 million, with a year-over-year decline of -11.3% [4] - Corporate / Other revenue was reported at -$3.10 million, significantly lower than the estimate of $8.17 million, representing a drastic change of -146.3% year over year [4] - Revenue from Platform Services was $40.20 million, slightly below the estimate of $41.88 million, indicating a year-over-year decline of -20.7% [4] - Revenue from Paint, Collision, and Glass was $97.30 million, below the estimate of $111.20 million, reflecting a year-over-year decrease of -16.8% [4] Stock Performance - Driven Brands Holdings' shares have returned -6.9% over the past month, compared to a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

分组1 - Driven Brands Holdings Inc. reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of 76.47% [1] - The company posted revenues of $564.12 million for the quarter ended December 2024, which was 1.18% below the Zacks Consensus Estimate, but an increase from $553.68 million year-over-year [2] - Driven Brands Holdings has surpassed consensus EPS estimates for the last four quarters, but has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has underperformed the market, losing about 5.1% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $611.28 million, and for the current fiscal year, it is $1.20 on revenues of $2.52 billion [7] - The Automotive - Retail and Wholesale - Parts industry, to which Driven Brands belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Fiscal 2024 revenue increased by 2% to $2.3 billion, driven by 1% same-store sales growth and 4% net store growth[2]. - Adjusted EBITDA for fiscal 2024 was $553 million, up 7% compared to the prior year[3]. - Net loss for fiscal 2024 was $292 million, or $1.82 loss per diluted share, an improvement from a net loss of $745 million, or $4.53 loss per diluted share in the prior year[3]. - Fourth quarter revenue was $564 million, a 2% increase year-over-year, with system-wide sales of $1.6 billion, up 5%[6]. - Adjusted Net Income for the fourth quarter was $48 million, or $0.30 per diluted share, compared to $28 million, or $0.17 per diluted share in the prior year[7]. - Total net revenue for the three months ended December 28, 2024, was $564,117,000, an increase of 1% compared to $553,677,000 for the same period in 2023[23]. - Adjusted Net Income for the year ended December 28, 2024, was $186.3 million, compared to $142.5 million for the year ended December 30, 2023, representing a 30.7% increase[33]. - Adjusted Earnings Per Share (EPS) for the year ended December 28, 2024, was $1.14, up from $0.86 for the year ended December 30, 2023, indicating a 32.6% growth[33]. - Adjusted EBITDA for the year ended December 28, 2024, was $552.7 million, compared to $516.9 million for the year ended December 30, 2023, reflecting a 6.9% increase[37]. - The net loss for the three months ended December 28, 2024, was $312.0 million, compared to a net loss of $13.1 million for the same period in 2023[33]. Operational Highlights - The company ended the fourth quarter with total liquidity of $648.7 million, including $170 million in cash and cash equivalents[10]. - Total operating expenses for the year ended December 28, 2024, were $2,479,819,000, down from $2,990,562,000 in 2023, indicating a reduction of approximately 17%[23]. - Cash provided by operating activities for the year ended December 28, 2024, was $241,447,000, compared to $235,167,000 in 2023, showing a slight increase of 3%[26]. - The company reported a basic loss per share of $1.91 for the three months ended December 28, 2024, compared to a loss of $0.08 per share in the same period of 2023[23]. - The company’s accumulated deficit increased to $1,002,583,000 as of December 28, 2024, from $710,087,000 in 2023[25]. - The company plans to continue focusing on cost reduction strategies and operational efficiencies to improve financial performance in the upcoming quarters[29]. Future Outlook - Fiscal year 2025 outlook projects revenue of approximately $2.05 - $2.15 billion, excluding the U.S. car wash business[12]. - Expected same-store sales growth for fiscal 2025 is between 1% and 3%, with net store growth of approximately 175 - 200[12]. - A CEO transition is set for May 9, 2025, with Daniel Rivera appointed as the new CEO[14]. - The company expects to continue incurring acquisition-related costs in future periods as part of its growth strategy[40]. Sales and Store Growth - Company-operated store sales reached $387,663,000 for the three months ended December 28, 2024, up from $366,668,000 in the prior year, reflecting a growth of 6%[23]. - The total store count increased to 5,179 as of December 28, 2024, up from 4,988 stores a year earlier, indicating a growth of approximately 3.8%[44]. - For the year ended December 28, 2024, total system-wide sales amounted to $6,509,318,000, compared to $6,283,728,000 for the year ended December 30, 2023, marking a year-over-year increase of about 3.6%[45]. - Company-operated stores contributed $1,544,932,000 to total system-wide sales for the year ended December 28, 2024, compared to $1,526,353,000 in the previous year, showing a slight increase of approximately 1.2%[45]. - Franchise stores generated system-wide sales of $1,158,852,000 in Q4 2024, compared to $1,107,296,000 in Q4 2023, reflecting a year-over-year increase of about 4.7%[44]. - The franchise store count remained stable at 3,129 as of December 28, 2024, consistent with the previous year, while independently operated stores totaled 720, unchanged from the prior year[45]. Segment Performance - The company reported a significant increase in paint, collision, and maintenance services, with total sales reaching $4,751,990,000 for the year ended December 28, 2024, compared to $4,560,980,000 in 2023, reflecting a growth of approximately 4.2%[45]. - The car wash segment saw total sales of $580,554,000 for the year ended December 28, 2024, compared to $591,752,000 in the previous year, indicating a decline of about 1.9%[45]. - The overall performance indicates a positive trend in system-wide sales and store expansion, positioning the company for continued growth in the upcoming fiscal year[45]. - The company plans to continue expanding its service offerings and store locations to drive future growth, focusing on enhancing customer experience and operational efficiency[44].

Driven Brands Holdings, Inc. (NASDAQ:DRVN) - Grabar Law Office is investigating claims regarding potential breaches of fiduciary duties by certain officers of Driven Brands [1] - A securities fraud class action complaint alleges that Driven Brands made materially false and misleading statements about its ability to integrate acquired businesses and the performance of its car wash segment [3] Extreme Networks, Inc. (NASDAQ:EXTR) - Grabar Law Office is investigating claims concerning breaches of fiduciary duties by certain officers of Extreme Networks [5] - A securities fraud class action complaint alleges that Extreme Networks made false statements regarding client demand trends and the status of its backlog, which was decreasing faster than represented [7] MGP Ingredients, Inc. (NASDAQ:MGPI) - Grabar Law Office is investigating claims related to potential breaches of fiduciary duties by certain officers of MGP Ingredients [9] - A securities fraud class action complaint alleges that MGP Ingredients made misleading statements about demand and inventory levels, failing to disclose a slowdown in consumption and oversupply of products [13] TaskUs, Inc. (NASDAQ:TASK) - Grabar Law Office is investigating claims regarding breaches of fiduciary duties by certain officers of TaskUs [15] - A federal securities fraud class action complaint alleges that TaskUs made materially false statements about its business performance, including overstating workforce size and revenue recognition [18]