Driven Brands Reports Q4, Fiscal Year 2020 Results

Driven Brands Reports Q4, Fiscal Year 2020 Results

For the fourth quarter, system-wide sales were $935.1 million, an increase of 24% versus the prior year.

Driven Brands Holdings Inc. has reported financial results for the fourth quarter and fiscal year ended Dec. 26, 2020.

For the fourth quarter, system-wide sales were $935.1 million, an increase of 24% versus the prior year, with 36% net store growth and a decline in same-store sales of 3.4%. Revenue was $288.5 million, an increase of 58% versus the prior year. Loss per share was $(0.06) for the fourth quarter, while adjusted earnings per share2 was $0.01.

For fiscal year 2020, system-wide sales were $3.4 billion, an increase of 16% versus the prior year, with 36% net store growth and a decline in same-store sales of 5.6%. Revenue was $904.2 million, an increase of 51% versus the prior year. Loss per share was $(0.04) for the fiscal year, while adjusted earnings per share2 was $0.42.

“Our fourth quarter results are a testament to the strength and diversity of the Driven Brands portfolio and the hard work the team has demonstrated throughout 2020,” said Jonathan Fitzpatrick, president and CEO. “Our employees and franchisees continued to adapt to the ever-changing needs of the past year, meeting our expectations and delivering industry-leading results.

“Given our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation, I am confident that we are well positioned for growth in 2021 and to maximize long-term value for all of our stakeholders.”

Fourth Quarter Highlights

The company added 42 net new stores during the quarter, with the addition of 23 stores in the Maintenance segment, 13 stores in the Car Wash segment, and six stores in the Paint, Collision, and Glass segment.  

Same-store sales declined 3.4% for the quarter. Same-store sales increased in the Maintenance and Platform Services segments, while same-store sales declined in the Paint, Collision, and Glass segment as roadways were less congested due to the COVID-19 pandemic, which resulted in fewer accidents and therefore fewer collision repairs. This compares with consolidated same-store sales growth of 5.4% in the fourth quarter of 2019.

Revenue increased 58% versus the prior year, primarily driven by the acquisition of International Car Wash Group (“ICWG”) in the third quarter of 2020, which added 939 stores to the portfolio.

The company recorded a net loss in the fourth quarter of $(7.5) million. Adjusted Net Income was $1.6 million, an increase of 3% versus the prior year. Adjusted EBITDA3 was $65.9 million, more than double that of the prior year.

Capital and Liquidity
The company ended the fourth quarter with $188.4 million in cash, cash equivalents, and restricted cash, as well as $155.8 million of undrawn capacity on its revolving credit facilities.

In January 2021, the company sold 31.8 million shares of its common stock in its initial public offering and received net proceeds of $651.6 million. Those proceeds, together with cash on hand, were used to repay $721.9 million of outstanding debt assumed in the ICWG acquisition. The remaining long-term debt portfolio totals $1.5 billion and has a weighted average fixed annual interest rate of 4.0% and a weighted average remaining term of six years.

In February 2021, the company’s underwriters exercised their over-allotment option to purchase 4.8 million additional shares of common stock. The company received net proceeds of $99.2 million, and used $43 million of such proceeds to purchase 2.1 million shares of common stock from existing stockholders. The company intends to use the remaining net proceeds of $56.2 million for general corporate purposes.

You May Also Like

Valvoline Reports Second-Quarter Results

Completed sale of Global Products business on March 1 generated $2.38 billion of net proceeds.

Valvoline Inc. today reported financial results for its second fiscal quarter ended March 31, 2023. 

"With the sale of the Global Products business complete, Valvoline is wholly focused on driving long-term value to shareholders through our best-in-class retail platform by growing system-wide store sales, increasing units through both company-operated and franchised additions, and evolving the service portfolio over time," said Sam Mitchell, CEO. "Valvoline continues to see resiliency and strength in the demand for the quick, easy and trusted preventive maintenance service we provide to our customers, demonstrated by 26% adjusted EBITDA growth on 19% adjusted sales growth1 year over year for the quarter."

LKQ Acquisition of Uni-Select Receives Final Approval

The deal, first announced on Feb 27, is expected to generate approximately $55 million in run-rate cost synergies and incremental revenue upside opportunities.

BorgWarner Expects 2023 eProduct Sales of $2.3B to $2.6B

First quarter net sales were $4,180 million for the first quarter 2023, an increase of 8% compared with $3,874 million for the first quarter 2022.

ITW Reports First Quarter 2023 Results

The company reports $4 billion in revenue, an increase of 2% with organic growth of 5%.

Myers Industries Announces Q1 2023 Results

The company reiterates full-year fiscal 2023 revenue and earnings outlook.

Other Posts

Driven Brands Collision Group Holds First EPG Meeting

More than 100 locations from the CARSTAR and ABRA networks were represented at the event.

Driven Brands Announces Executive Appointment

Gary W. Ferrera has been appointed executive vice president and chief financial officer, effective May 10, 2023. Reports Q1 Sales of $175.5M

First quarter 2023 sales were up 6% year-over-year.

Driven Brands Holdings Reports Strong First Quarter Results

Net income decreased 14 percent versus the prior year to $29.7 million or $0.17 per diluted share.