Driven Brands (US:DRVN)2024-08-01 11:30Financial 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]