Driven Brands (US:DRVN)2024-02-21 16:00Financial Performance - Fiscal 2023 revenue increased 13% to $2.3 billion, driven by 7% same-store sales growth and 4% net store growth[2] - System-wide sales for fiscal 2023 reached $6.3 billion, up 12% year-over-year[2] - The company reported a net loss of $745 million, or $4.53 per diluted share, compared to a net income of $43.2 million, or $0.25 per diluted share in the prior year[3] - Adjusted EBITDA for fiscal 2023 was $535.1 million, a 4% increase from the previous year[3] - Fourth quarter revenue was $553.7 million, up 3% year-over-year, with system-wide sales of $1.5 billion, also up 3%[6] - Total revenue for the year ended December 30, 2023, was significantly impacted, resulting in a net loss of $744.962 million compared to a net income of $43.173 million in 2022[33] - Adjusted Net Income for the three months ended December 30, 2023, was $30.686 million, a decrease of 27.5% compared to $42.189 million for the same period in 2022[33] - Adjusted Earnings Per Share (EPS) for the three months ended December 30, 2023, was $0.19, down from $0.25 in the prior year, reflecting a 24% decline[33] - The company reported a basic loss per share of $0.08 for the three months ended December 30, 2023, compared to earnings of $0.16 per share in the same period of 2022[21] Store Growth and Expansion - The company added 183 net new stores during fiscal 2023, with a total store count of 4,988[2] - The total store count reached 4,988 as of December 30, 2023, an increase from 4,805 in the previous year, representing a growth of 3.8%[43] - The number of franchise stores increased to 2,986 as of December 30, 2023, compared to 2,882 a year earlier, reflecting a growth of 3.6%[43] - Company-operated stores totaled 1,285 as of December 30, 2023, compared to 1,202 in the previous year, marking a 6.9% increase[43] Future Projections - For fiscal 2024, the company projects revenue between $2.35 billion and $2.45 billion, with adjusted EBITDA expected to be between $535 million and $565 million[13] - Same-store sales growth is anticipated to be between 3% and 5% in fiscal 2024[14] - The company plans to focus on accelerating growth, reducing debt, and optimizing asset utilization in 2024[5] Operating Expenses and Debt - Operating expenses for the year increased to $2.99 billion, a significant rise from $1.83 billion in the previous year[21] - Long-term debt increased to $2.91 billion as of December 30, 2023, compared to $2.70 billion in the previous year[23] Segment Performance - The Maintenance segment generated Adjusted EBITDA of $87.549 million for the three months ended December 30, 2023, an increase from $77.284 million in the same period last year[40] - The Car Wash segment's Adjusted EBITDA decreased to $31.042 million for the three months ended December 30, 2023, down from $36.222 million in the prior year[40] - System-wide sales from franchise stores for the year ended December 30, 2023, were $4,560,980,000, compared to $4,086,891,000 in 2022, showing a growth of 11.6%[43] - The paint, collision, and maintenance segment saw sales of $1,899,813,000 for the year ended December 30, 2023, compared to $1,616,100,000 in 2022, indicating a significant increase of 17.5%[43] - The glass services segment generated $402,598,000 in sales for the year ended December 30, 2023, slightly down from $445,726,000 in 2022, a decrease of 9.7%[43] Cash Flow and Liquidity - The company ended Q4 2023 with total liquidity of $319 million, including $176.5 million in cash and cash equivalents[9] - Cash provided by operating activities for the year ended December 30, 2023, was $235.17 million, compared to $197.18 million in 2022[25] Acquisition Costs - The company incurred acquisition-related costs of $5.910 million for the three months ended December 30, 2023, compared to $5.323 million in the same period of 2022[37] - The company expects to continue incurring acquisition-related costs as it pursues further growth opportunities in the market[39]