Driven Brands Holdings Inc. has reported financial results for the second quarter ended June 26, 2021.

For the second quarter, revenue was $374.8 million, an increase of 123% versus the prior year. System-wide sales hit a record $1.2 billion, an increase of 65% versus the prior year, with 34% net store growth and an increase in consolidated same-store sales of 38.7%. On a two-year basis, same-store sales increased 19.1%.

Earnings per share was $0.21 for the second quarter, an increase of 600% versus the prior year.

Adjusted earnings per share2 was $0.25, an increase of 79% versus the prior year.

“The power of Driven Brands is evident in our continued strong operating results,” said Jonathan Fitzpatrick, president and CEO. “While this quarter laps the depths of COVID-19 in the prior year, our strong two-year trend indicates continued momentum in the fundamentals of our business.

“Initiatives we implemented last year, coupled with strong execution from employees and franchisees drove compounding same-store sales and store growth. We continued to capitalize on opportunities as consumers drove more in the second quarter,” Fitzpatrick added.

“Given our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation, our business model remains well-positioned to maximize long-term value for all of our stakeholders.”

Second Quarter Highlights

• Revenue increased 123% versus the prior year, driven primarily by the acquisition of International Car Wash Group (“ICWG”) in the third quarter of 2020 as well as organic growth across all segments from positive same-store sales growth and net store growth.
• Consolidated same-store sales increased 38.7% for the quarter and increased 19.1% on a two-year basis.
• Same-store sales increased across all segments on both a one- and two-year basis.
• The company added 70 net new stores during the quarter.
• The company recorded net income in the second quarter of $35.2 million, an increase of 1051% versus the prior year.
• Adjusted Net Income1 was $41.9 million, an increase of 233% versus the prior year.
• Adjusted EBITDA3 was $100.8 million, an increase of 152% versus the prior year.

Capital and Liquidity

In May 2021, the company closed on a new $300 million revolving credit facility. Borrowings under this facility, in conjunction with the variable funding note associated with the company’s whole business securitization and cash on hand, will be utilized to fuel further growth and for general corporate purposes. From time-to-time, the company expects to supplement liquidity with long-term borrowings under its whole business securitization structure.

Driven Brands ended the second quarter with total liquidity of $468.2 million, which includes $147.4 million in cash, cash equivalents, and restricted cash, as well as $320.8 million of undrawn capacity on its revolving credit facilities.

Guidance

The company has raised its guidance for fiscal year 2021 to account for the strong operating performance in the second quarter and an updated outlook for the remainder of the year. The following guidance reflects the company’s current expectations for the fiscal year ending December 25, 2021:

• Revenue of approximately $1.4 billion
• Adjusted EBITDA3 of approximately $345 million
• Adjusted Earnings per Share2 of approximately $0.83
• Low double-digit same-store sales growth with positive same-store sales across all segments
• Net Store Growth: 
• Maintenance: 80 to 90 stores; driven by roughly equal parts franchise and company-operated store growth;
• Car Wash: 20 to 30 stores; driven by company-operated store growth; and
• Paint, Collision & Glass: 60 to 70 stores; driven by franchise store growth.