On August 1, 2024, Driven Brands Holdings Inc (DRVN, Financial) released its 8-K filing for the second quarter ending June 29, 2024. Driven Brands Holdings Inc is an automotive services company in North America, providing a range of consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash services.
Performance Overview
Driven Brands Holdings Inc reported revenue of $612 million for Q2 2024, a 1% increase compared to the prior year but below the analyst estimate of $628.98 million. The company's system-wide sales reached $1.7 billion, also up 1% year-over-year, driven by 0.5% same-store sales growth and the addition of 115 net new units.
Net income for the quarter was $30.2 million, or $0.18 per diluted share, compared to $37.7 million, or $0.22 per diluted share, in the same period last year. Adjusted net income was $58.0 million, or $0.35 per diluted share, surpassing the analyst estimate of $0.32 per share. Adjusted EBITDA increased by 4% to $152.2 million.
Key Financial Achievements
Driven Brands Holdings Inc achieved its 14th consecutive quarter of same-store sales growth. The Take 5 Oil Change segment was a significant contributor, with a 19% year-over-year unit growth and 6% same-store sales growth, resulting in a 16% revenue increase for the segment.
“We are proud to report that the Driven platform delivered its 14th straight quarter of same store sales growth. Take 5 Oil Change led the charge once again this quarter, with revenue growth of 16% underpinned by 6% same store sales growth and 19% year-over-year unit growth,” said Jonathan Fitzpatrick, President and Chief Executive Officer.
Segment Performance
| Segment | System-wide Sales (in millions) | Store Count | Same-Store Sales | Revenue (in millions) | Segment Adjusted EBITDA (in millions) |
|---|---|---|---|---|---|
| Maintenance | $535.4 | 1,853 | 4.3% | $277.9 | $102.9 |
| Car Wash | $155.5 | 1,108 | (4.1%) | $156.9 | $33.8 |
| Paint, Collision & Glass | $862.2 | 1,887 | (0.5%) | $112.0 | $35.2 |
| Platform Services | $115.8 | 205 | N/A | $61.2 | $25.3 |
Financial Statements Highlights
From the income statement, total net revenue for Q2 2024 was $611.6 million, slightly up from $606.9 million in Q2 2023. Operating income decreased to $80.5 million from $97.6 million in the previous year. Net income also saw a decline to $30.2 million from $37.7 million.
The balance sheet shows total assets of $5.83 billion, with current assets at $757.6 million. Total liabilities stood at $4.88 billion, with long-term debt at $2.86 billion. Shareholders' equity was $942.8 million.
Cash flow from operating activities was $107.2 million for the first six months of 2024, compared to $114.6 million in the same period last year. Cash used in investing activities was $34.0 million, while cash used in financing activities was $102.1 million.
Capital and Liquidity
Driven Brands Holdings Inc ended the second quarter with total liquidity of $316.1 million, including $148.8 million in cash and cash equivalents. The company also closed an offering of $275.0 million in Series 2024 Class A-2 senior notes and $400.0 million in variable funding securitization senior notes, increasing total liquidity and undrawn capacity by $285.0 million.
Outlook and CFO Appointment
The company updated its fiscal year 2024 outlook, expecting revenue at the low end of $2.35-$2.45 billion, adjusted EBITDA at the mid-to-high end of $535-$565 million, and adjusted EPS at the high end of $0.88-$1.00.
Additionally, Driven Brands Holdings Inc announced the appointment of Michael Diamond as Chief Financial Officer, effective August 9, 2024. Mr. Diamond brings extensive financial and multi-unit retail experience from his previous role at The Michaels Companies.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Driven Brands Holdings Inc for further details.
