Driven Brands Holdings Inc. has reported financial results for the first quarter ended March 27, 2021.

For the first quarter, revenue was $329.4 million, an increase of 83% versus the prior year. System-wide sales hit a record $1.0 billion, an increase of 28% versus the prior year, with 37% net store growth and an increase in consolidated same-store sales of 0.5%.

Loss per share was $(0.13) for the first quarter, driven by a $(0.23) per share impact from the one-time non-cash loss on debt extinguishment from proceeds associated with the Company’s initial public offering.

Adjusted earnings per share2 was $0.19, an increase of 138% versus the prior year.

“The power of Driven Brands is evident in our strong operating results this quarter,” said Jonathan Fitzpatrick, president and chief executive officer. “Our employees and franchisees were well-positioned to capitalize on the beginning of reopening trends in the first quarter and I am confident that we will continue to do so throughout 2021 as consumers drive more.

“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.”

First Quarter Highlights

Revenue increased 83% versus the prior year, primarily driven by the acquisition of International Car Wash Group (“ICWG”) in the third quarter of 2020, as well as organic growth from positive same-store sales and net store growth.

The Company recorded a net loss in the first quarter of $(19.9) million, driven by a $45.5 million one-time non-cash loss on debt extinguishment from proceeds associated with the Company’s initial public offering. This compares to a net loss of $(3.8) million in the prior year.

Adjusted Net Income1 was $30.4 million, an increase of $23.4 million versus the prior year.

Adjusted EBITDA3 was $77.9 million, more than double that of the prior year.

The Company added 22 net new stores during the quarter.

Consolidated same-store sales increased 0.5% for the quarter, increasing 2.7% on a two-year basis.

Same-store sales increased 16.5% in the Maintenance segment and 22.0% in the Platform Services segment. Same-store sales declined (9.4)% in the Paint, Collision & Glass segment, as roadways continued to be less congested year-over-year, which resulted in fewer accidents and therefore fewer collision repairs.

The Company ended the first quarter with $185.5 million in cash, cash equivalents, and restricted cash, as well as $99.8 million of undrawn capacity on its revolving credit facility.

First Quarter 2021 Key Performance Indicators by Segment

	System-wide Sales (in millions)	Store Count*	Same-Store Sales	Revenue (in millions)	Segment Adjusted EBITDA4 (in millions)
Maintenance	$	277.9		1,470		16.5	%	$	128.2		$	40.4
Car Wash	114.8		954		27.8	%	114.7		34.2
Paint, Collision & Glass	542.4		1,627		(9.4	)%	43.9		17.6
Platform Services	69.4		198		22.0	%	34.6		11.0
Corporate / Other	N/A		N/A		N/A		8.0
Total	$	1,004.5		4,249		0.5	%**	$	329.4

*62 stores were reclassified from Paint, Collision & Glass to Maintenance in the first quarter of 2021.

**Car Wash will not be included in consolidated same-store sales until the one-year anniversary of the ICWG acquisition in the third quarter of 2021.

Guidance

The Company has raised its guidance for fiscal year 2021 to account for the strong operating performance in the first quarter. The following guidance reflects the Company’s current expectations for the fiscal year ending December 25, 2021:

• Revenue of approximately $1.3 billion
• Adjusted EBITDA3 of approximately $305 million
• Adjusted Earnings per Share2 of approximately $0.65
• Positive same-store sales growth 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 primarily by company-operated store growth; and
• Paint, Collision & Glass: 60 to 70 stores; driven by franchise store growth.