Driven Brands (US:DRVN)2025-02-25 13:01Financial 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].