Driven Brands Holdings Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

--Fiscal 2024 Revenue increased 2% powered by 1% same store sales growth and 4% net store growth--

--16th consecutive quarter of same store sales growth--

--Take 5 Oil Change delivers full year revenue growth of 16% and same store sales growth of 7%--

--Announces definitive agreement to sell U.S. car wash business--

--Announces CEO transition--

--Issues fiscal year 2025 outlook excluding U.S. car wash--

CHARLOTTE, N.C.--(BUSINESS WIRE)--February 25, 2025-- 

Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or the "Company") today reported financial results for the fourth quarter and fiscal year ending December 28, 2024.

For fiscal year 2024, Driven Brands delivered revenue of $2.3 billion, an increase of 2% versus the prior year. System-wide sales increased 4% to $6.5 billion, driven by a 1% increase in same-store sales and 4% increase in store count.

Net loss for fiscal 2024 was $292 million or $1.82 loss per diluted share versus a net loss of $745 million or $4.53 loss per diluted share in the prior year. Adjusted Net Income(1) was $186 million or $1.14 per diluted share versus $142 million or $0.85 per diluted share in the prior year. Adjusted EBITDA(1) was $553 million, up 7% versus the prior year.

"Fiscal year 2024 was a year of growth and strong execution for Driven Brands, led by our flagship brand Take 5 Oil Change. We are proud of the results, as we delivered Adjusted EBITDA and same store sales in line with our full-year outlook, while also achieving our full-year leverage target. These results are directly attributable to more than 10,000 Driven Brands team members and franchisees who consistently deliver an exceptional customer experience," said Jonathan Fitzpatrick, President and Chief Executive Officer.

"Looking ahead to 2025 our focus is clear: delivering on our outlook, reducing debt and active portfolio management," Fitzpatrick concluded.

Sale of U.S. Car Wash Business

In a separate release today, Driven Brands announced that it has entered into a definitive agreement to sell its U.S. car wash business to Express Wash Operations, LLC dba Whistle Express Car Wash.

Fourth Quarter 2024 Highlights

For the fourth quarter, Driven Brands delivered revenue of $564 million, up 2% versus the prior year. System-wide sales were $1.6 billion, up 5% versus the prior year primarily driven by 3% same store sales growth and 191 net new units.

Net loss for the fourth quarter was $312 million or $1.94 loss per diluted share versus a net loss of $13 million or $0.08 loss per diluted share in the prior year. Adjusted Net Income(1) was $48 million or $0.30 per diluted share versus $28 million or $0.17 per diluted share in the prior year. Adjusted EBITDA(1) was $131 million, up 5% versus the prior year.

Fiscal Year 2024 Key Performance Indicators by Segment

 
                System-wide 
                 Sales (in     Store   Same-Store       Revenue       Adjusted EBITDA 
                 millions)     Count    Sales(2)     (in millions)     (in millions) 
------------  ---------------  -----  ------------  ---------------  ----------------- 
Maintenance      $    2,104.0  1,960    4.5%           $    1,104.1    $    385.9 
------------  ----  ---------  -----  -----   ----  ----  ---------  ---  -------  --- 
Car Wash                580.6  1,102   (0.9)%                 587.2         117.1 
------------  ----  ---------  -----  -----    ---  ----  ---------  ---  -------  --- 
Paint, 
 Collision & 
 Glass                3,450.7  1,912    0.8%                  424.6         133.5 
------------  ----  ---------  -----  -----   ----  ----  ---------  ---  -------  --- 
Platform 
 Services               374.2    205    N/A                   207.5          83.9 
------------  ----  ---------  -----  -----  -----  ----  ---------  ---  -------  --- 
Corporate / 
 Other                    N/A    N/A    N/A                    16.1        (167.7) 
------------  ----  ---------  -----  -----  -----  ----  ---------  ---  ------- 
Total            $    6,509.3  5,179    1.3%           $    2,339.6         552.7 
------------  ----  ---------  -----  -----   ----  ----  ---------  ---  -------  --- 
 

Fourth Quarter 2024 Key Performance Indicators by Segment

 
                System-wide 
                 Sales (in     Store   Same-Store        Revenue        Adjusted EBITDA 
                 millions)     Count    Sales(2)      (in millions)      (in millions) 
------------  ---------------  -----  ------------  -----------------  ----------------- 
Maintenance      $      532.9  1,960   6.0%           $   286.3           $    98.3 
------------  ----  ---------  -----  ----   -----  ---  ------  ----  ----  ------  --- 
Car Wash                141.4  1,102   7.9%               143.4                28.7 
------------  ----  ---------  -----  ----   -----  ---  ------  ----  ----  ------  --- 
Paint, 
 Collision & 
 Glass                  849.2  1,912   1.0%                97.3                33.0 
------------  ----  ---------  -----  ----   -----  ---  ------  ----  ----  ------  --- 
Platform 
 Services                72.2    205   N/A                 40.2                16.3 
------------  ----  ---------  -----  ----  ------  ---  ------  ----  ----  ------  --- 
Corporate / 
 Other                    N/A    N/A   N/A                 (3.1)              (45.6) 
------------  ----  ---------  -----  ----  ------  ---  ------   ---  ----  ------ 
Total            $    1,595.6  5,179   2.9%               564.1               130.7 
------------  ----  ---------  -----  ----   -----  ---  ------  ----  ----  ------  --- 
 

Capital and Liquidity

The Company ended the fourth quarter with total liquidity of $648.7 million consisting of $170.0 million in cash and cash equivalents and $478.7 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This did not include the additional $135.0 million Series 2022 Class A-1 Notes that expand the Company's variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.

Fiscal Year 2025 Outlook

The following guidance reflects the Company's expectations for fiscal year 2025 ending December 27, 2025.

 
                                     2025 Outlook excluding 
                      2024 Results    U.S. car wash business 
-------------------  --------------  ----------------------- 
      Revenue        $2.34 billion   $2.05 - $2.15 billion 
-------------------  --------------  ----------------------- 
Adjusted EBITDA(1)   $552.7 million   $520 - $550 million 
-------------------  --------------  ----------------------- 
  Adjusted EPS(1)        $1.14           $1.15 - $1.25 
-------------------  --------------  ----------------------- 
 

The Company also expects:

   -- 
 Same-store sales growth of 1% - 3% 
 
 
   -- 
 Net store growth of approximately 175 - 200 
 

Note: 2025 Outlook excludes the impact of any potential M&A and divestitures other than the sale of the U.S. car wash business.

Chief Executive Officer Transition

In a separate release today, the Company announced that the Board has appointed Daniel Rivera as the Company's President and Chief Executive Officer ("CEO") effective as of May 9, 2025. The Board has also appointed Mr. Rivera to serve on the Board following his appointment as President and CEO. Mr. Fitzpatrick will remain on the Board and has been appointed as Non-Executive Chair as of May 9, 2025, and has also agreed to serve as a Special Advisor to Mr. Rivera for the remainder of 2025 to ensure a smooth transition. Neal Aronson, the current Chairman of the Board, will continue to serve as a director.

Re-segmentation

In the first quarter of 2025, the Company changed its operating segments, which will result in a change to its reportable segments. As a result, and as it will report in its first quarter 2025 Quarterly Report on Form 10-Q filing, the Company will have the following reportable segments: Take 5, Franchise Brands, International Car Wash, and Corporate and Other.

The Take 5 segment will be comprised primarily of both our company and franchise-operated Take 5 Oil Change business.

The Franchise Brands segment will be comprised of the Company's portfolio of franchised brands, which include CARSTAR, Meineke, Maaco, 1-800 Radiator, along with other smaller brands. The Franchise Brands segment will be over 99% franchised.

The International Car Wash segment will be comprised of our remaining car wash business based outside of North America.

The Corporate and Other segment will be comprised of our U.S. glass businesses, including the retail, commercial, and insurance components of this business, and the Company's Third Party Administrator services, along with certain corporate shared services costs.

In mid-March, the Company plans to issue a recast of fiscal 2024 quarters to assist in the analysis of fiscal 2025 results on its Investor Relations website.

(1) Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein.

(2) The Company does not provide same store sales results for the Platform Services segment because it only applied to the 1-800-Radiator brand which is not a representative indicator of the segment's performance. 1-800-Radiator's same store sales performance is included in the Company's overall same store sales results.

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