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]

Core Viewpoint - Kaskela Law LLC is investigating Driven Brands Holdings Inc. for potential securities fraud related to misleading statements made by the company and its executives regarding key growth initiatives and financial performance [2][3]. Summary by Relevant Sections Securities Fraud Allegations - A securities fraud complaint has been filed against Driven Brands on behalf of investors who purchased shares between October 27, 2021, and August 1, 2023, alleging that the company made materially false and misleading statements and omitted critical information regarding its auto-glass business and car wash operations [2]. - The complaint highlights that Driven's executives assured investors of progress in their growth strategies, which were later revealed to be significantly behind schedule, leading to a 24% reduction in guidance on August 2, 2023 [2]. Financial Impact - Following the announcement of the guidance cut, Driven disclosed a substantial decline in same-store car wash sales and a nearly $1 billion write-down in its car wash segment, representing over 10% of the company's total asset value as of the end of 2022 [2]. - The stock price of Driven fell by $10.63, or over 41%, closing at $15.20 per share on August 2, 2023, amid unusually high trading volume [2]. Investigation Focus - The investigation aims to determine if Driven's board of directors violated securities laws or breached fiduciary duties in connection with the alleged misconduct [3].

A robust vehicle sales market bodes well for the auto maintenance market since consumers will need to service their cars to keep them operating efficiently. Even during contractions in the auto/tires/trucks sector, maintenance is always a constant. Whether this entails replacing tire parts or getting repairs, car washes, and oil changes, auto maintenance is a fact of life for any automobile owner. Here are two auto maintenance and service industry stocks that could gain more in 2025. Get Goodyear Tire & Rub ...

Driven Brands Holdings Inc. (NASDAQ: DRVN ) has been around since 1972 and is based in Charlotte, North Carolina. They're a big name in the car service world across North America. With more than 5,000 locations spread over 13 countries and handling about 70The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companie ...

Financial Data and Key Metrics Changes - For Q3 2024, Driven Brands reported revenue of $592 million, a 2% increase year-over-year, with adjusted EBITDA of $138.8 million and diluted adjusted EPS of $0.26 per share [11][54] - The company achieved its 15th consecutive quarter of positive same-store sales growth, with a growth rate of 1.1% [11][50] - Operating income for Q3 was $40 million, with adjusted EBITDA margin increasing by approximately 250 basis points to 23.5% [53] Business Line Data and Key Metrics Changes - The Take 5 Oil Change segment saw revenue growth of 15% and adjusted EBITDA growth of 14% compared to Q3 2023, marking its 17th consecutive quarter of positive same-store sales growth [17][34] - The PC&G segment reported revenue of $109 million and adjusted EBITDA of $34.7 million, with same-store sales up 1.3% [40] - The Car Wash segment generated $142.2 million in revenue and $25.6 million in adjusted EBITDA, with same-store sales increasing by 1.8% despite weather challenges [43] Market Data and Key Metrics Changes - The company faced significant challenges from four hurricanes in Q3, impacting over 500 locations and resulting in an estimated system-wide sales loss of up to $10 million [32][44] - The international Car Wash business performed well, helping to offset the negative impacts faced by the U.S. Car Wash business [43] Company Strategy and Development Direction - The company is focused on three key priorities: delivering the 2024 outlook, utilizing excess free cash flow to reduce debt, and active portfolio management [9][28] - Driven Brands aims to achieve a net leverage ratio of less than three times by the end of 2026, having already reached a leverage ratio of 4.5 times in Q3 [16][56] - The company is actively evaluating opportunities for portfolio management, including the divestiture of non-core businesses [15][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflationary pressures affecting consumer spending, particularly among lower-income households, but expressed confidence in the strength of their commercial business [13][28] - The company reiterated its guidance for the remainder of 2024, expecting revenue between $2.33 billion and $2.43 billion, and adjusted EBITDA between $529 million and $559 million [60][61] Other Important Information - Driven Brands has sold approximately $160 million in assets year-to-date, exceeding its previous full-year estimate of $150 million [55] - The company has a robust pipeline of approximately 1,000 sites for future growth, with a target of at least 2,000 locations for Take 5 Oil Change [19][20] Q&A Session Summary Question: Can you speak to ticket versus traffic in car wash specifically and within ticket, how is pricing trending there? - Management indicated satisfaction with both ticket and traffic growth, with Take 5 Oil Change delivering strong performance [63] Question: Can you talk about the retail flow post-hurricane within the U.S. car wash business? - Management emphasized a focus on membership growth, noting that they have surpassed one million members in the U.S. [68][69] Question: Can you discuss the maintenance segment margins and trends around mature store comps in Take 5 Oil? - Management acknowledged some margin degradation due to hurricanes but expressed satisfaction with both mature and new store performance [70][72] Question: How do you think about ticket and an opportunity to add more services in Take 5? - Management sees significant potential for ticket growth and plans to introduce more services in the future [76][78] Question: Can you provide context on the glass business and its growth potential? - Management clarified that they are focused on building the glass business and have secured new partnerships that will contribute to growth [80][88] Question: What is the current competitive landscape and trends in the commercial side? - Management noted ongoing consolidation in the industry and emphasized the importance of long-term commercial partnerships [100][101] Question: How much of the strategy to reach three times leverage by 2026 is dependent on debt paydown versus EBITDA growth? - Management indicated that both debt paydown and EBITDA growth will contribute to achieving the leverage target [102]

For the quarter ended September 2024, Driven Brands Holdings Inc. (DRVN) reported revenue of $591.68 million, up 1.8% over the same period last year. EPS came in at $0.26, compared to $0.20 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $603.84 million, representing a surprise of -2.01%. The company delivered an EPS surprise of +13.04%, with the consensus EPS estimate being $0.23.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Group 1: Earnings Performance - Driven Brands Holdings Inc. reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and up from $0.20 per share a year ago, representing an earnings surprise of 13.04% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - The revenue for the quarter ended September 2024 was $591.68 million, which missed the Zacks Consensus Estimate by 2.01%, compared to $581.03 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Driven Brands Holdings shares have decreased by approximately 0.5% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $576.94 million, and for the current fiscal year, it is $1.03 on revenues of $2.36 billion [7] Group 3: Industry Context - The Automotive - Original Equipment industry, to which Driven Brands Holdings belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2024 Financial Highlights](index=1&type=section&id=Q3%202024%20Financial%20Highlights) Driven Brands achieved its **15th consecutive quarter of same-store sales growth**, with **revenue up 2% to $592 million** and **Adjusted EBITDA up 14%**, significantly reducing net loss - **15th consecutive quarter of same-store sales growth**[1](index=1&type=chunk)[3](index=3&type=chunk) | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | | Revenue | $592 | $581 | 2% | | System-wide Sales | $1,641.8 | $1,609.0 | 2% | | Net Loss | $(14.9) | $(799.3) | N/A | | Adjusted Net Income | $41.8 | $29.9 | 40% | | Adjusted EBITDA | $138.8 | $122.1 | 14% | | Diluted EPS | $(0.09) | $(4.83) | N/A | | Adjusted Diluted EPS | $0.26 | $0.18 | 44% | [Operational Highlights](index=1&type=section&id=Operational%20Highlights) Take 5 Oil Change drove growth with **15% revenue** and **5% same-store sales growth**, supported by steady legacy franchise brands - Take 5 Oil Change delivered **15% revenue growth** and **5% same-store sales growth**[1](index=1&type=chunk)[3](index=3&type=chunk) - Performance was supplemented by steady results of legacy franchise brands[3](index=3&type=chunk) [Strategic Outlook and Deleveraging](index=1&type=section&id=Strategic%20Outlook%20and%20Deleveraging) Achieved **net leverage target of 4.5x ahead of schedule**, the company commits to further deleveraging and continued growth - Achieved **net leverage target of 4.5x ahead of schedule** and committed to further deleveraging[4](index=4&type=chunk) - Company looks to continue momentum by delivering financial outlook and positioning for continued growth[4](index=4&type=chunk) [Third Quarter 2024 Financial Results](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Results) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Total net revenue increased **2% to $591.7 million**, with operating income improving to **$39.5 million** from a prior-year loss | Metric (in thousands) | Q3 2024 | Q3 2023 | Change (%) | | :------------------------------ | :---------- | :------------ | :--------- | | Total Net Revenue | $591,679 | $581,034 | 1.8% | | Operating Income (Loss) | $39,507 | $(906,857) | N/A | | Net (Loss) Income | $(14,947) | $(799,311) | N/A | | Basic EPS | $(0.09) | $(4.82) | N/A | | Diluted EPS | $(0.09) | $(4.83) | N/A | - Significant improvement in Net (Loss) Income from **$(799.3) million** in Q3 2023 to **$(14.9) million** in Q3 2024, largely due to the absence of a goodwill impairment charge (**$850.97 million** in Q3 2023)[3](index=3&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) All segments contributed to system-wide sales growth, with Maintenance leading in Adjusted EBITDA, driven by Take 5 Oil Change | Segment | System-wide Sales (Q3 2024, millions) | Same-Store Sales (Q3 2024) | Revenue (Q3 2024, millions) | Segment Adjusted EBITDA (Q3 2024, millions) | | :------------------------- | :------------------------------------ | :------------------------- | :-------------------------- | :------------------------------------------ | | Maintenance | $535.9 | 3.0% | $278.2 | $96.7 | | Car Wash | $140.4 | 1.8% | $142.2 | $25.6 | | Paint, Collision & Glass | $857.2 | 1.3% | $109.0 | $34.7 | | Platform Services | $108.2 | N/A | $52.2 | $22.5 | | Total | $1,641.8 | 1.1% | $591.7 | $138.8 | - Take 5 Oil Change, a key brand in the Maintenance segment, delivered **15% revenue growth** and **5% same-store sales growth**[1](index=1&type=chunk)[3](index=3&type=chunk) [Capital and Liquidity](index=1&type=section&id=Capital%20and%20Liquidity) The company maintained **strong liquidity of $655.3 million** at Q3 2024, comprising cash and undrawn capacity on credit facilities | Metric (in millions) | Q3 2024 | | :------------------- | :------ | | Total Liquidity | $655.3 | | Cash & Equivalents | $204.2 | | Undrawn Capacity | $451.1 | - Additional **$135.0 million Series 2022 Class A-1 Notes** available to expand borrowing capacity if conditions are met[6](index=6&type=chunk) [Fiscal Year 2024 Outlook](index=2&type=section&id=Fiscal%20Year%202024%20Outlook) [Revised Financial Outlook](index=2&type=section&id=Revised%20Financial%20Outlook) FY24 outlook adjusted for Canadian distribution business sale, expecting **revenue $2.33-$2.43 billion** and **Adjusted EBITDA $529-$559 million** - Sale of Canadian distribution business expected to reduce full-year revenue by **~$18 million** and Adjusted EBITDA by **~$6 million**[7](index=7&type=chunk) | Metric | Original Outlook | Outlook Adjusted for Disposition | Current Range Expectations | | :------------------ | :------------------------- | :------------------------------- | :------------------------- | | Revenue | ~$2.35 - $2.45 billion | ~$2.33 - $2.43 billion | Low-end | | Adjusted EBITDA | ~$535 - $565 million | ~$529 - $559 million | Mid - to High-end | | Adjusted EPS | ~$0.88 - $1.00 | ~$0.88 - $1.00 | High-end | [Operational Expectations](index=2&type=section&id=Operational%20Expectations) For FY24, the company anticipates **same-store sales growth of 1% to 3%** and **net store growth of approximately 205 to 220 units** - Same-store sales growth expected to be **1% to 3%**[8](index=8&type=chunk) - Net store growth expected to be approximately **205 to 220 units**[8](index=8&type=chunk) - Outlook does not include potential future M&A[8](index=8&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About Driven Brands](index=3&type=section&id=About%20Driven%20Brands) North America's largest automotive services company, operating **over 5,100 locations** across 14 countries, servicing **~70 million vehicles annually** - Largest automotive services company in North America, providing paint, collision, glass, vehicle repair, oil change, maintenance, and car wash services[10](index=10&type=chunk) - Operates **over 5,100 locations** across 14 countries, servicing **~70 million vehicles annually**[10](index=10&type=chunk) - Generates approximately **$2.3 billion in annual revenue** from **~$6.4 billion in system-wide sales**[10](index=10&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Driven Brands hosted a conference call on **October 31, 2024**, to discuss Q3 2024 results, with webcast and replay available online - Conference call held on **October 31, 2024**, at 8:30 a.m. ET[9](index=9&type=chunk) - Webcast and replay available on investors.drivenbrands.com for at least three months[9](index=9&type=chunk) [Forward-Looking Statements & Contacts](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Contacts) Press release includes forward-looking statements subject to risks detailed in SEC filings, with contact information for inquiries provided - Press release contains forward-looking statements identified by terms like 'anticipate,' 'expect,' 'will,' etc., subject to risks outlined in SEC filings[11](index=11&type=chunk)[12](index=12&type=chunk) - Shareholder/Analyst inquiries: Dawn Francfort, ICR, Inc. (investors@drivenbrands.com, (203) 682-8200)[13](index=13&type=chunk) - Media inquiries: Taylor Blanchard (taylor.blanchard@drivenbrands.com, (704) 644-8129)[13](index=13&type=chunk) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total net revenue increased to **$591.7 million**, operating income improved to **$39.5 million** (from a loss), with a net loss of **$14.9 million** | Metric (in thousands) | Three Months Ended Sep 28, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 28, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Net Revenue | $591,679 | $581,034 | $1,775,471 | $1,750,352 | | Operating Income (Loss) | $39,507 | $(906,857) | $178,532 | $(732,078) | | Net (Loss) Income | $(14,947) | $(799,311) | $19,473 | $(731,813) | | Diluted Earnings Per Share | $(0.09) | $(4.83) | $0.12 | $(4.41) | - Goodwill impairment charge of **$850.97 million** in Q3 2023 was absent in Q3 2024, significantly impacting operating income and net loss[13](index=13&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$5.76 billion** due to reduced assets held for sale and goodwill, while total shareholders' equity increased | Metric (in thousands) | Sep 28, 2024 | Dec 30, 2023 | | :-------------------------------- | :----------- | :----------- | | Total Assets | $5,759,816 | $5,910,804 | | Total Liabilities | $4,797,009 | $5,004,081 | | Total Shareholders' Equity | $962,807 | $906,723 | | Cash and Cash Equivalents | $204,181 | $176,522 | | Assets Held for Sale | $185,985 | $301,229 | | Long-term Debt | $2,732,572 | $2,910,812 | - Decrease in Assets held for sale from **$301.2 million** to **$186.0 million**[14](index=14&type=chunk) - Decrease in Goodwill from **$1,455.9 million** to **$1,427.5 million**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$174.7 million**, investing activities provided **$85.3 million**, and financing used **$226.7 million** | Metric (in thousands) | Nine Months Ended Sep 28, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $174,654 | $212,033 | | Cash Provided by (Used in) Investing Activities | $85,280 | $(361,207) | | Cash (Used in) Provided by Financing Activities | $(226,661) | $147,850 | | Net Change in Cash, Cash Equivalents, etc. | $33,344 | $(959) | - Proceeds from sale or disposal of businesses and fixed assets significantly increased to **$255.5 million** (YTD 2024) from **$2.8 million** (YTD 2023)[15](index=15&type=chunk) - Repayment of long-term debt increased to **$422.5 million** (YTD 2024) from **$21.0 million** (YTD 2023)[15](index=15&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Adjusted Net Income and Adjusted EPS Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20EPS%20Reconciliation) Adjusted Net Income was **$41.8 million** (up from $29.9 million) and Adjusted Diluted EPS was **$0.26** (up from $0.18) - Adjusted Net Income and Adjusted EPS are non-GAAP measures used to facilitate comparison of core earnings performance[19](index=19&type=chunk) | Metric (in thousands, except per share) | Three Months Ended Sep 28, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 28, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net (Loss) Income | $(14,947) | $(799,311) | $19,473 | $(731,813) | | Adjustments (Total) | $55,859 | $196,189 | $166,433 | $286,459 | | Tax Impact of Adjustments | $(14,100) | $(166,320) | $(28,543) | $(171,783) | | Adjusted Net Income | $41,759 | $29,869 | $137,890 | $114,676 | | Adjusted Diluted EPS | $0.26 | $0.18 | $0.84 | $0.68 | [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA increased **14% to $138.8 million** for Q3 2024, and to **$422.0 million** for the nine months - Adjusted EBITDA is a non-GAAP measure to assess core operating performance and facilitate period-over-period comparison[22](index=22&type=chunk) | Metric (in thousands) | Three Months Ended Sep 28, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 28, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net (Loss) Income | $(14,947) | $(799,311) | $19,473 | $(731,813) | | EBITDA | $81,894 | $(864,198) | $303,779 | $(602,825) | | Total Adjustments | $56,885 | $986,248 | $118,236 | $994,708 | | Adjusted EBITDA | $138,779 | $122,050 | $422,015 | $391,883 | [Footnotes for Non-GAAP Adjustments](index=13&type=section&id=Footnotes%20for%20Non-GAAP%20Adjustments) Detailed explanations for non-GAAP adjustments include acquisition costs, share-based compensation, goodwill impairment, and amortization of acquired intangibles - Adjustments include acquisition-related costs, non-core items, cloud computing amortization, share-based compensation, foreign currency transaction loss, goodwill impairment, asset sale leaseback (gain) loss, loss on debt extinguishment, amortization of acquired intangible assets, and valuation allowance for deferred tax assets[25](index=25&type=chunk) - Tax impact of adjustments is calculated using statutory income tax rates ranging from **9% to 36%**[25](index=25&type=chunk) [Additional Key Performance Indicators](index=15&type=section&id=Additional%20Key%20Performance%20Indicators) [System-wide Sales and Store Count by Segment (Q3)](index=15&type=section&id=System-wide%20Sales%20and%20Store%20Count%20by%20Segment%20%28Q3%29) Total system-wide sales increased to **$1.64 billion**, driven by Maintenance and Paint, Collision & Glass, with store count at **5,109** | Segment | Q3 2024 System-wide Sales (thousands) | Q3 2023 System-wide Sales (thousands) | Q3 2024 Store Count | Q3 2023 Store Count | | :------------------------- | :------------------------------------ | :------------------------------------ | :------------------ | :------------------ | | Maintenance | $535,942 | $502,482 | 1,899 | 1,732 | | Car Wash | $140,410 | $141,714 | 1,107 | 1,133 | | Paint, Collision & Glass | $857,210 | $845,644 | 1,897 | 1,920 | | Platform Services | $108,194 | $119,199 | 206 | 208 | | Total | $1,641,756 | $1,609,039 | 5,109 | 4,993 | - Total store count increased by **116 units** year-over-year in Q3[29](index=29&type=chunk)[30](index=30&type=chunk) [System-wide Sales and Store Count by Segment (YTD)](index=16&type=section&id=System-wide%20Sales%20and%20Store%20Count%20by%20Segment%20%28YTD%29) Total system-wide sales reached **$4.91 billion** for the nine months, driven by Maintenance and Paint, Collision & Glass, with **5,109** stores | Segment | YTD 2024 System-wide Sales (thousands) | YTD 2023 System-wide Sales (thousands) | YTD 2024 Store Count | YTD 2023 Store Count | | :------------------------- | :------------------------------------- | :------------------------------------- | :------------------- | :------------------- | | Maintenance | $1,571,046 | $1,429,049 | 1,899 | 1,732 | | Car Wash | $439,175 | $459,840 | 1,107 | 1,133 | | Paint, Collision & Glass | $2,601,490 | $2,554,216 | 1,897 | 1,920 | | Platform Services | $301,982 | $327,911 | 206 | 208 | | Total | $4,913,693 | $4,771,016 | 5,109 | 4,993 | - Total system-wide sales for the nine months increased by **3%** year-over-year[32](index=32&type=chunk)[34](index=34&type=chunk)

Interest rates shouldn't be the main focus, but they can help these businesses that are already doing well. On Sept. 18, the Federal Reserve voted to lower interest rates for the first time in four years. There are certain stocks that can benefit from this move. But first, I should temper expectations. For starters, investors shouldn't get too hung up on interest rates because they aren't predictable. Even voting members of the Federal Reserve are often wrong when it comes to forecasting interest rates a ye ...