Financial Data and Key Metrics Changes - For Q3 2021, revenue increased by 39% to $371 million compared to Q3 2020, with adjusted EBITDA rising by 42% to $98 million and adjusted EPS increasing by 30% to $0.26 per share [9][36][42] - Consolidated same-store sales grew by 13% year-over-year, driven by a healthy balance of new customers and increased repeat rates [10][36] Business Line Data and Key Metrics Changes - The maintenance segment posted positive same-store sales growth of 17%, benefiting from targeted digital marketing and increased car count [43] - The car wash segment achieved a same-store sales growth of 6%, with wash club subscriptions increasing to over 49% of sales [45] - The Paint, Collision & Glass segment reported positive same-store sales growth of 11%, supported by improved direct repair programs with insurance customers [48] Market Data and Key Metrics Changes - System-wide sales reached $1.2 billion for the quarter, with a strong performance across all segments contributing to growth [36][37] - Vehicle miles traveled (VMT) showed a positive trend, rebounding in September after a slight dip in August due to concerns over the Delta variant [11] Company Strategy and Development Direction - The company aims for organic double-digit revenue growth and adjusted EBITDA growth, leveraging its asset-light business model to generate significant cash for acquisitions [8][34] - The company has a robust pipeline for new unit openings, with over 1,000 units identified for future growth, including 250 expected openings in 2022 [17][20] - M&A is a core strength, with the company having acquired 70 car wash units in 2021, contributing to a total of 288 units in the U.S. [22][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the consumer outlook for 2022, expecting VMT to return to pre-pandemic levels [12] - The company raised its full-year adjusted EBITDA guidance to $350 million, reflecting strong performance in Q3 [31][55] - Management acknowledged ongoing challenges from inflation and supply chain disruptions but emphasized confidence in the company's ability to navigate these issues [62][88] Other Important Information - The company closed a $450 million whole business securitization issuance, improving its debt portfolio and providing liquidity for strategic growth [52][53] - The company has a total liquidity of $268 million, which will support its growth initiatives [51] Q&A Session All Questions and Answers Question: Store growth and segment performance - Management confirmed that some underperforming operators were pruned from the coalition business, impacting net store growth in the short term, but emphasized the importance of maintaining strong relationships with insurance partners [59][60] Question: Full-year EBITDA guidance and conservatism - Management acknowledged a conservative approach to guidance, maintaining Q4 forecasts despite raising the full-year EBITDA estimate due to strong Q3 performance [61][63] Question: Car wash segment performance - Management noted that the car wash segment remains strong despite a slight slowdown, with confidence in long-term potential and ongoing unit growth [68] Question: Maintenance segment margins - Management indicated that improvements in labor trends are expected to continue, contributing to margin expansion as the business shifts more towards franchising [70][71] Question: Inflation impact - Management reported mid-single-digit cost inflation year-to-date but has successfully passed these costs to consumers, maintaining strong average ticket prices [80] Question: Market share gains - Management highlighted strong performance across all segments, particularly in maintenance and car wash, indicating significant market share gains [85][86]

Driven Brands Holdings, Inc. (NASDAQ:DRVN) Q2 2021 Earnings Conference Call July 28, 2021 9:00 AM ET Company Participants Jonathan Fitzpatrick - President and CEO Tiffany Mason - EVP and CFO Rachel Webb - VP, IR Conference Call Participants Chris Horvers - JPMorgan Simeon Gutman - Morgan Stanley Liz Suzuki - Bank of America Kate McShane - Goldman Sachs Peter Benedict - Baird Sharon Zackfia - William Blair Chris O'Cull - Stifel Lavesh Hemnani - Credit Suisse Karen Short - Barclays Peter Keith - Piper Sandler ...

Financial Data and Key Metrics Changes - Consolidated same-store sales increased by 0.5% compared to Q1 2020, exceeding expectations [10] - Revenue surged by 83% year-over-year, reaching $329 million [35] - Adjusted EBITDA more than doubled to $78 million, with a margin of nearly 24% [10][35] - Adjusted EPS was $0.19, significantly beating expectations [10] Business Line Data and Key Metrics Changes - Maintenance segment reported same-store sales growth of 16.5%, benefiting from a new advertising campaign and improved marketing strategies [45] - Car Wash segment achieved same-store sales growth of 27.8%, with Wash Club subscriptions contributing significantly to revenue [47] - Paint, Collision & Glass (PC&G) segment experienced a decline in same-store sales of 9.4%, attributed to reduced collision trends [50] - Platform Services saw the strongest same-store sales growth at 22%, driven by strong inventory levels and increased average selling prices [53] Market Data and Key Metrics Changes - System-wide sales reached a record $1 billion in Q1, driven by new store additions and franchise growth [35] - Vehicle miles traveled were down approximately 10%, yet same-store sales improved sequentially from Q4 [38] - The company added 1,157 net new stores since Q1 last year, with 22 new stores added in Q1 alone [37] Company Strategy and Development Direction - The company aims for consistent double-digit revenue and adjusted EBITDA growth, leveraging its asset-light business model [9] - Focus on expanding market share in a fragmented $300 billion industry, with plans to open 160 to 190 new stores in 2021 [59] - Emphasis on data analytics to drive marketing effectiveness and operational efficiencies [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of the year, citing strong consumer demand and confidence [11][29] - The reopening of markets is expected to drive increased vehicle usage, benefiting the company's services [18][31] - Despite regional variances in recovery, the company remains confident in its diversified business model [30][71] Other Important Information - The company ended Q1 with over $185 million in cash and approximately $100 million of undrawn capacity on its revolving credit facility [54] - A one-time noncash loss of $45 million on debt extinguishment was recognized in the quarter [44] Q&A Session Summary Question: Can you discuss the cadence through Q1 and the factors influencing sales? - Management noted strong growth in January, a low point in February due to weather impacts, and a strong recovery in March driven by vaccine distribution and consumer sentiment [62][64] Question: How do you expect trends to continue for the rest of the year? - Management confirmed that Q1 performance has been rolled into guidance, but they remain cautious about Q2 due to potential volatility [68][69] Question: Are there regional differences in segment performance? - Management indicated that southern markets are recovering faster than northern markets, correlating with increased driving activity [71][72] Question: What impact did weather have on performance? - Severe weather in Texas and Canada affected performance, with Texas representing about 14% of the company's footprint [80] Question: What is the outlook for the collision business? - Management emphasized a focus on market share gains rather than solely on miles driven, indicating confidence in continued growth [97][99] Question: How is advertising spend being managed? - The company utilizes a data-driven approach to marketing, allowing for targeted investments based on proven effectiveness [110] Question: Can you provide details on repeat rates for customers? - Management reported a 500 basis point improvement in repeat rates within the Take 5 business, driven by effective marketing and operational execution [108]

Title of each class Common Stock, $0.01 par value Trading Symbol DRVN Name of each exchange on which registered The Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 26, 2020 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-39898 Driven Brands Ho ...

Financial Data and Key Metrics Changes - For Q4 2020, system-wide sales reached $935 million, with revenue of $289 million, representing a 58% increase year-over-year [15] - Adjusted EBITDA for Q4 was $66 million, more than double that of Q4 2019, with an adjusted EBITDA margin of 23% [15][17] - Fiscal 2020 revenue was over $904 million, a 51% increase compared to the prior year, with adjusted EBITDA of $205 million, up 72% [21][22] Business Line Data and Key Metrics Changes - Same store sales for the maintenance segment grew by 1.2%, while the platform services segment saw a 9.5% increase; however, the paint, collision, and glass segment declined by 7.3% [16][19] - The Car Wash segment's Wash Club subscriptions increased from 41% to 45% of sales, indicating a strong recurring revenue stream [10][19] - The company added 42 net new stores in Q4 alone, contributing to a total of 1,121 locations added in 2020, representing a net store growth of 36% [21][22] Market Data and Key Metrics Changes - Same store sales declined by 5.6% for the year, but the company outperformed the industry, gaining market share primarily from independents and small chains [6][21] - The company ended 2020 with over 4,200 locations, nearly 40% more than at the end of fiscal 2019, with significant growth potential in North America [11][12] Company Strategy and Development Direction - The company aims to capitalize on the recovery trends in the automotive services industry, focusing on consistent same store sales growth and leveraging its marketing and data analytics capabilities [14][24] - The long-term growth model includes adding new stores, growing same store sales, and maintaining stable margins, which translates into significant cash flow generation [24] - The company has a strong franchise pipeline with over 600 new store commitments, indicating confidence in future growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in consumer trends as mobility increases due to vaccine distribution and stimulus effects [25][59] - The company expects positive same store sales growth in fiscal 2021, with Q1 anticipated to be the low point and significant growth expected in Q2 [25][31] - Management highlighted the resilience of the business model during the pandemic and the ability to navigate challenges effectively [21][22] Other Important Information - The company ended the year with over $188 million in cash and cash equivalents, along with $156 million of undrawn capacity on revolving credit facilities [22] - The company anticipates depreciation and amortization of approximately $110 million for fiscal 2021, with a lower annual interest expense due to debt repayment [26] Q&A Session Summary Question: Impact of government support on M&A opportunities - Management noted that while there was some residual impact from PPP loans on smaller businesses, they remain confident in their M&A pipeline and opportunities moving forward [28] Question: Organic store growth opportunities - Management identified significant opportunities in the maintenance segment, particularly in quick lube, and expressed excitement about the Car Wash segment's growth potential [29] Question: Specifics on same store sales guidance - Management indicated that they expect positive same store sales across all segments, with a return to historical averages in the latter half of the year [31][33] Question: Segment performance and COVID impact - Management acknowledged that while the maintenance segment performed well, the paint, collision, and glass segment lagged due to lower congestion miles affecting collision trends [38][40] Question: Competitive environment in the Car Wash segment - Management expressed confidence in their competitive positioning and ability to execute M&A effectively in the Car Wash space, leveraging their experience from the Take 5 business [42][43] Question: Franchise renewal rates and interest - Management reported strong franchise renewal rates and an increasing interest in the automotive space, indicating a robust franchise pipeline [45] Question: Vehicle miles traveled and impact on paint, collision, and glass segment - Management projected that congestion miles would recover by September 2021, which would positively impact the paint, collision, and glass segment [48] Question: Stimulus impact on sales - Management expressed optimism that stimulus checks would benefit their core customer base, leading to increased mobility and spending in 2021 [59][60]