Core Insights - Driven Brands Holdings Inc. (DRVN) reported revenue of $611.57 million for the quarter ended June 2024, marking a year-over-year increase of 0.8% and an EPS of $0.35, up from $0.29 a year ago [1] Revenue Performance - The reported revenue was a surprise of -2.76% compared to the Zacks Consensus Estimate of $628.9 million [1] - The EPS exceeded the consensus estimate of $0.27 by +29.63% [1] Same-Store Sales - Same-store sales increased by 0.5%, falling short of the average estimate of 2.6% from four analysts [3] - Maintenance same-store sales were reported at 4.3%, slightly below the estimated 4.5% [4] - Car Wash same-store sales decreased by 4.1%, better than the estimated decline of 5.2% [5] Store Count - Total store count was reported at 5,053, slightly below the estimated 5,062 [6] Revenue Breakdown - Franchise royalties and fees generated $50.03 million, below the estimated $52.26 million, with a year-over-year change of +0.5% [7] - Company-operated store sales were $394.68 million, compared to the average estimate of $405.87 million, showing no change year over year [8] - Independently-operated store sales were $60.28 million, below the estimated $62.02 million, representing a -2% change year over year [9] - Advertising contributions totaled $24.91 million, below the estimated $25.96 million, with a year-over-year change of +0.7% [10] - Supply and other revenue reached $81.67 million, below the estimated $83.37 million, with a year-over-year increase of +7.2% [11] - Maintenance revenue was reported at $277.90 million, slightly above the estimated $277.24 million, reflecting a +14.7% year-over-year change [12] - Car Wash revenue was $156.90 million, exceeding the estimated $152.87 million, with a year-over-year decline of -4.8% [13] - Paint, Collision and Glass revenue was $112 million, below the estimated $123.15 million, showing a -15.9% year-over-year change [14] Stock Performance - Shares of Driven Brands Holdings have returned +2.9% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [14] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [14]

Core Viewpoint - Driven Brands Holdings Inc. reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.29 per share a year ago, representing an earnings surprise of 29.63% [1][2] Financial Performance - The company posted revenues of $611.57 million for the quarter ended June 2024, which was 2.76% below the Zacks Consensus Estimate, and a slight increase from $606.85 million year-over-year [2] - Over the last four quarters, Driven Brands has surpassed consensus EPS estimates four times but has only topped revenue estimates once [2] Stock Performance - Driven Brands shares have declined approximately 5.8% since the beginning of the year, contrasting with the S&P 500's gain of 15.8% [3] - The current Zacks Rank for Driven Brands is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $613.04 million, and for the current fiscal year, it is $0.93 on revenues of $2.4 billion [7] - The estimate revisions trend for Driven Brands is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Automotive - Original Equipment industry, to which Driven Brands belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Driven Brands may be influenced by the overall outlook for the industry, as higher-ranked industries tend to outperform lower-ranked ones significantly [8]

Financial Performance - Driven Brands reported Q2 2024 revenue of $612 million, a 1% increase year-over-year[1] - Net income for Q2 2024 was $30.2 million, down from $37.7 million in the prior year, with adjusted net income of $58.0 million, up from $45.7 million[2] - Same-store sales growth was 0.5% for the quarter, with system-wide sales reaching $1.7 billion, also a 1% increase year-over-year[1] - Net income for the six months ended June 29, 2024, was $34,420 thousand, compared to $67,498 thousand for the same period in the previous year, indicating a decrease of approximately 48%[14] - Net income for the three months ended June 29, 2024, was $30,159,000, a decrease of 20% compared to $37,749,000 for the same period in 2023[21] - Adjusted net income for the three months ended June 29, 2024, was $58,009,000, up 27% from $45,703,000 in the prior year[21] - The diluted earnings per share for the three months ended June 29, 2024, was $0.18, compared to $0.22 for the same period in 2023, reflecting a decrease of 18%[21] Operational Highlights - Take 5 Oil Change achieved 19% year-over-year unit growth and 6% same-store sales growth, contributing to overall revenue growth of 16%[2] - The company has over 5,000 locations across 13 countries, servicing approximately 70 million vehicles annually[10] - The company operated 1,298 stores as of June 29, 2024, compared to 1,274 stores as of July 1, 2023, indicating a net increase in store count[28] - The total store count increased to 5,053, with franchise stores numbering 3,035 and company-operated stores totaling 1,298[29] Liquidity and Financial Position - The company ended Q2 2024 with total liquidity of $316.1 million, including $148.8 million in cash and cash equivalents[4] - Cash and cash equivalents decreased from $176,522 thousand to $148,814 thousand, a reduction of about 15.7%[15] - Total assets decreased from $5,910,804 thousand as of December 30, 2023, to $5,826,207 thousand as of June 29, 2024, representing a decline of approximately 1.4%[13] - Total current liabilities decreased from $427,167 thousand to $359,204 thousand, a reduction of approximately 15.9%[13] - Long-term debt decreased from $2,910,812 thousand to $2,855,823 thousand, a decline of about 1.9%[13] - The company reported an accumulated deficit of $(675,667) thousand as of June 29, 2024, improving from $(710,087) thousand at the end of the previous period[13] - Total shareholders' equity attributable to Driven Brands Holdings Inc. increased from $906,079 thousand to $942,790 thousand, an increase of approximately 4%[13] Future Outlook - Driven Brands updated its fiscal year 2024 outlook, projecting revenue of approximately $2.35 to $2.45 billion[7] - Adjusted EBITDA for fiscal year 2024 is expected to be in the range of $535 to $565 million, with adjusted EPS projected at $0.88 to $1.00[7] - The company anticipates same-store sales growth of 1% to 3%, revised from the original outlook of 3% to 5%[9] - The company plans to expand its market presence through new store openings and potential acquisitions[29] - Future outlook includes continued investment in new product development and technology enhancements[29] - The company aims to improve user data analytics to enhance customer experience and operational efficiency[29] - Strategic initiatives will focus on increasing sales through enhanced marketing efforts and customer engagement[29] Segment Performance - Adjusted EBITDA for the three months ended June 29, 2024, was $152,218,000, an increase of 4% compared to $146,370,000 for the same period in 2023[24] - The Maintenance segment reported Adjusted EBITDA of $102,935,000 for the three months ended June 29, 2024, up 21% from $84,812,000 in the prior year[27] - The Car Wash segment's Adjusted EBITDA decreased to $33,772,000 for the three months ended June 29, 2024, down 15% from $39,761,000 in the same period last year[27] Other Financial Metrics - Cash provided by operating activities for the six months ended June 29, 2024, was $107,224 thousand, compared to $114,583 thousand for the same period in the previous year, a decrease of approximately 6.5%[14] - Capital expenditures for the six months ended June 29, 2024, were $155,920 thousand, down from $320,071 thousand in the prior year, a reduction of about 51.2%[14] - The company expects to incur acquisition-related costs in future periods, which are expensed as incurred under U.S. GAAP[26] - The company reported a foreign currency transaction loss of $681,000 for the three months ended June 29, 2024, compared to a gain of $(1,302,000) in the same period last year[21] System-wide Sales - Total system-wide sales reached $3,271,937,000, with franchise stores contributing $1,389,473,000[29] - The company-operated stores generated $769,137,000 in sales, while independently operated stores accounted for $113,327,000[29] - For the month ended July 2023, total system-wide sales were $3,161,977, with franchise stores contributing $2,277,268[29] - The company-operated stores reported sales of $770,644, while independently operated stores generated $114,065[29] - The total store count for July 2023 was 4,938, with franchise stores at 2,948 and company-operated stores at 1,274[29]

Group 1 - Driven Brands Holdings Inc. is under investigation by the Portnoy Law Firm for potential claims against its board of directors regarding breaches of fiduciary duties and mismanagement [1][2]. - The company operates in the automotive services sector, providing a range of vehicle maintenance and repair services through a franchise model [3]. - Driven Brands generates revenue by selling franchises and offering support to franchisees, while also directly managing some locations [3]. Group 2 - The Portnoy Law Firm has a history of recovering over $5.5 billion for investors affected by corporate wrongdoing [4]. - Investors who purchased Driven Brands shares prior to 2022 are encouraged to contact the law firm for discussions regarding their rights and interests [2][4].

Core Insights - Clear Blue Technologies International Inc. reported significant financial growth in Q1 2024, with a 208% increase in revenue compared to Q1 2023, driven by strong performance across all product lines [2][3]. Financial Performance - On a Trailing Four Quarter (TFQ) basis, revenue reached $5,950,005, marking a 255% increase from $1,674,003 in the previous period [2]. - Recurring revenue for TFQ was $1,120,838, a 29% increase from $865,610 [2]. - Gross profit increased to $2,716,412, a 373% rise from $574,296, with a gross margin percentage of 46%, up from 34% [2]. - For Q1 2024, revenue was $808,553, a 208% increase from $262,137 in Q1 2023 [3]. - Recurring revenue for Q1 2024 was $300,786, a 42% increase from $212,004 in Q1 2023 [3]. - Gross profit for Q1 2024 was $338,339, a 263% increase from $93,272 in Q1 2023, with a gross margin of 42%, up from 36% [3]. - Adjusted EBITDA improved to $(712,325) in Q1 2024 from $(1,042,209) in Q1 2023, reflecting a 32% improvement [3]. Bookings and Shipments - As of March 31, 2024, bookings increased to $2,848,424, a 15% rise from $2,469,846 as of December 31, 2023 [3]. - The company shipped 388 power control devices across 10 orders during the quarter [3]. Product Developments - Clear Blue launched the Esite version of its Illumience Smart Power service, which has processed over 1 trillion transactions and holds the largest repository of Smart Off-Grid power performance data across 37 countries [4]. Future Outlook - The company maintains its guidance for 2024, expecting revenue to be significantly greater than the $5.4 million and $2.6 million reported in 2023 and 2022, respectively [5].

Key PointsAs the automotive industry sets up for a potential comeback, three stocks could give investors double-digit EPS growth and upside through price targets. Being the first to get paid in the industry's value chain, these OEM names have analysts jumping all over them. Despite trading well below their 52-week lows, P/E ratios show markets are placing a premium quality on the future.The latest ISM manufacturing PMI index suggests that the turning point for the automotive stock sector is imminent. Accord ...

Conference Call Participants Company Participants Simeon Gutman - Morgan Stanley Peter Benedict - Baird Robby Ohmes - Bank of America Seth Sigman - Barclays Madison Callinan - Canaccord Genuity Christian Carlino - JPMorgan Kate McShane - Goldman Sachs Chris O'Cull - Stifel Peter Keith - Piper Sandler Good morning. My name is Karina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Driven Brands Q1 2024 Earnings Call. All lines have been placed on mute to pr ...

Driven Brands Holdings Inc. (DRVN) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.19, delivering a surprise of 5.56%.Over the last four quarters, the ...

Financial Performance - Driven Brands reported Q1 2024 revenue of $572 million, a 2% increase year-over-year, with system-wide sales reaching $1.6 billion, up 7%[2] - Net income for Q1 2024 was $4.3 million, or $0.03 per diluted share, compared to $29.7 million, or $0.17 per diluted share in the prior year[3] - Adjusted EBITDA for the quarter was $131 million, reflecting a 6% increase from the previous year[3] - Cash provided by operating activities increased by $23.5 million, or 64%, to $60.3 million compared to $36.8 million in the prior year[3] - Adjusted net income for the three months ended March 30, 2024, was $38,122 thousand, slightly down from $39,104 thousand for the same period in 2023, a decrease of about 2.5%[32] - Diluted adjusted earnings per share remained stable at $0.23 for the three months ended March 30, 2024, compared to $0.23 for the same period in 2023[32] Segment Performance - The Maintenance segment achieved 5% same-store sales growth, driven by a 7% increase in Take 5 Oil Change[1][4] - The Maintenance segment generated $261.7 million in revenue, while the Car Wash segment reported a decline of 7.4% in same-store sales[6] - Maintenance segment adjusted EBITDA increased to $91,436,000, a rise of 26.6% compared to $72,233,000 in the previous year[39] - The car wash segment's adjusted EBITDA decreased to $29,134,000 from $41,048,000, reflecting a decline of 29.0% year-over-year[39] Liquidity and Assets - Total liquidity at the end of Q1 2024 was $308 million, including $165.5 million in cash and cash equivalents[7] - Total assets decreased to $5,890,329 thousand as of March 30, 2024, from $5,910,804 thousand as of December 30, 2023, representing a decline of approximately 0.34%[23] - Cash and cash equivalents at the end of the period were $165,513 thousand, down from $190,841 thousand at the end of the same period in 2023, a decrease of approximately 13.3%[26] - Total current liabilities rose to $439,052 thousand as of March 30, 2024, from $427,167 thousand as of December 30, 2023, marking an increase of approximately 2.0%[23] Company Outlook and Changes - The company reaffirmed its fiscal year 2024 outlook, projecting revenue between $2.35 billion and $2.45 billion and adjusted EBITDA of approximately $535 million to $565 million[13] - Driven Brands added 144 net new units during the quarter, contributing to a total store count of 5,008[2][6] - The company announced a CFO transition, with Gary W. Ferrera stepping down and Joel Arnao appointed as interim CFO[8][10] - The company expects to incur acquisition-related costs in the future, which are expensed as incurred under U.S. GAAP[38] Foreign Transactions and Tax Impacts - The company reported a loss on foreign denominated transactions of $7,574 thousand for the three months ended March 30, 2024, compared to a minimal loss of $161 thousand for the same period in 2023[25] - The company reported a net loss related to foreign currency transactions, primarily from intercompany loans and cross-currency swaps[38] - The tax impact of adjustments associated with reconciling items between net income and adjusted net income was calculated using statutory income tax rates ranging from 9% to 36%[38]

CHARLOTTE, N.C., March 5, 2024 /PRNewswire/ -- Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or the "Company") today announced that it will participate in the Bank of America 2024 Consumer & Retail Conference in Miami. The Company will participate in a fireside chat that is scheduled to begin at 1:50 p.m. EDT on Tuesday, March 12, 2024. The fireside chat will be webcast live from the Company's Investor Relations website at investors.drivenbrands.com on the Events & Presentations page. It will ...