Q2 2024 Valvoline Inc Earnings Call Transcript
Key Points
- Valvoline Inc (VVV) reported a 13% increase in system-wide store sales, reaching $746 million.
- Adjusted EBITDA improved by 21% to $105 million, and adjusted EPS increased by over 60% to $0.37 per share.
- The company added 38 net new stores in the quarter, bringing the year-to-date total to 76 new additions.
- Valvoline Inc (VVV) completed a $1.6 billion share repurchase authorization, returning significant capital to shareholders.
- System-wide same-store sales growth was strong at 7.7%, with non-oil-change revenue being the largest contributor to this growth.
- The company experienced a choppy start to January due to weather events, impacting business operations.
- Year-to-date cash flows from operating activities declined by $81 million compared to the previous year.
- Implementation of a new ERP system caused delays in billings and increased accounts receivable, expected to normalize in the second half of the year.
- Valvoline Inc (VVV) expects to report a material weakness related to the ERP system implementation, with remediation planned by fiscal year-end.
- While adjusted net income and EPS showed significant growth, the company noted that gross margin labor leverage is expected to moderate in the second half of the year.
Hello, and welcome to Valvoline's 2Q 2024 Earnings Conference Call and Webcast. My name is Elliot, and I'll be coordinating your call today. (Operator Instructions) I'd now like to hand over to Elizabeth Russell, the floor is yours. Please go ahead.
Thank you. Good morning, and welcome to Valvoline's Second Quarter Fiscal 2024 Conference Call and Webcast.This morning, Valvoline released results for the second quarter ended March 31, 2024. This presentation should be viewed in conjunction with that earnings release, a copy of which is available on our Investor Relations website at investors.valvoline.com.
Please note that these results are preliminary until we file our Form 10-Q with the Securities and Exchange Commission. On this morning's call is Lori Flees, our CEO and President; and Mary Meixelsperger, our CFO. As shown on Slide 2, any of our remarks today that are not statements of historical facts are forward-looking statements. These forward-looking statements are based on current assumptions as of the date of this presentation and are
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