Driven Brands Holdings has reported financial results for the first quarter ended April 1, 2023.
For the first quarter, Driven Brands delivered revenue of $562.5 million, up 20 percent versus the prior year. System-wide sales were $1.5 billion, up 19 percent versus the prior year driven by 9 percent same-store sales growth and 7 percent net store growth.
Net Income decreased 14 percent versus the prior year to $29.7 million or $0.17 per diluted share. Adjusted Net Income decreased 11 percent to $42.3 million or $0.25 per diluted share, while Adjusted EBITDA increased 8 percent to $127.8 million.
“Our team delivered another quarter of strong results and market share growth powered by our differentiated customer value proposition in a needs-based service category. Our proven playbook, track record of execution and pipeline for new store development provide strong line of sight into future growth. We are leveraging our scale and network benefits across our diversified platform to capitalize on the continued momentum in our business,” said Jonathan Fitzpatrick, president and CEO. “We continue to be well-positioned to deliver sustainable, profitable long-term growth providing more services to more customers.”
First Quarter 2023 Highlights
Comparisons are first quarter of 2023 ended April 1, 2023, versus first quarter of 2022 ended March 26, 2022, unless otherwise noted.
- Revenue increased 20 percent to $562.5 million, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 9 percent.
- The Company added 59 net new stores during the quarter.
- Net Income decreased 14 percent to $29.7 million or $0.17 per diluted share.
- Adjusted Net Income1 decreased 11 percent to $42.3 million or $0.25 per diluted share1.
- Adjusted EBITDA1 increased 8 percent to $127.8 million.
Capital and Liquidity
The company ended the first quarter with total liquidity of $466.3 million, consisting of $190.8 million in cash and cash equivalents, and $275.5 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This does not include the additional $135 million Series 2022 Class A-1 Notes that expand its variable funding note borrowing capacity when the company elects to exercise it, assuming certain conditions continue to be met.
Fiscal Year 2023 Guidance
The company has reiterated its expectations for fiscal year 2023 reflecting continued market shares gains driven by both robust same-store sales and net store growth:
- Revenue of approximately $2.35 billion.
- Adjusted EBITDA1 of approximately $590 million.
- Adjusted Earnings Per Share1 of approximately $1.21.
The company has not included future M&A in its guidance for fiscal year 2023.
