Driven Brands (US:DRVN)2024-05-02 12:02Financial 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]