Driven Brands Holdings Inc. has reported financial results for the first quarter ended March 26, 2022.
For the first quarter, revenue was $468.3 million, an increase of 42% versus the prior year. System-wide sales were $1.3 billion, an increase of 26% versus the prior year, with 8% net store growth and an increase in consolidated same-store sales of 15.6%. Earnings per diluted share was $0.20 for the first quarter. Adjusted earnings per diluted share was $0.28, an increase of 47% versus the prior year.
“Driven Brands posted strong first quarter results despite a challenging macroeconomic landscape. Our scale and sophistication allowed us to navigate continued supply chain challenges and an accelerating inflationary environment. This scale and sophistication, coupled with our proven playbook for growth, allowed us to once again outperform expectations,” said Jonathan Fitzpatrick, president and CEO. “This would not be possible without the hard work of the entire team, from our employees to franchisees. Their relentless focus on operational excellence delivered quality results,” Fitzpatrick added.
“We continue to be enthusiastic about fiscal 2022. With our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation engine, our business model remains well-positioned to maximize long-term value for all of our stakeholders,” he said.
First Quarter Highlights
Revenue increased 42% versus the prior year, driven by same-store sales and net store growth.
Consolidated same-store sales increased 15.6% for the quarter, and all segments posted positive same-store sales.
The company added 114 net new stores during the quarter.
Net income in the first quarter was $34.4 million.
Adjusted Net Income1 was $47.8 million, an increase of 57% versus the prior year.
Adjusted EBITDA3 was $118.5 million, an increase of 52% versus the prior year.
First Quarter 2022 Key Performance Indicators by Segment
|Paint, Collision & Glass||659.0||1,730||13.7||%||79.4||29.0|
|Corporate / Other||N/A||N/A||N/A||7.7|
Capital and Liquidity
The Company ended the first quarter with total liquidity of $667.9 million, consisting of $270.7 million in cash and cash equivalents, and $397.2 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility.
Fiscal Year 2022 Guidance
The Company provided the following guidance for the fiscal year ending December 31, 2022 on February 16, 2022 and will provide updated guidance in connection with the release of its second quarter results:
Revenue of approximately $1.9 billion.
Adjusted EBITDA3 of approximately $465 million.
Adjusted Earnings per Share2 of approximately $1.04.
The above guidance includes the impact of the 79 acquired Auto Glass Now stores and the 53rd week in fiscal year 2022. The impact of the extra week is expected to yield approximately $16 million in revenue, $4 million in Adjusted EBITDA3 and approximately $0.02 in Adjusted Earnings Per Share.
The Company also expects:
Mid-single-digit same-store sales growth.
Net store growth of approximately 225:
Maintenance: approximately 145 stores of which 65% will be franchised and 35% will be company-operated
Car Wash: approximately 45 stores which will be company-operated
Paint, Collision & Glass: approximately 35 stores which will be company-operated.
The company has not included future M&A in its guidance for fiscal year 2022.