Driven Brands Holdings has reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2022.
For the fiscal year, Driven Brands delivered revenue of $2 billion, up 39 percent versus the prior year. System-wide sales were $5.6 billion, up 24 percent versus the prior year with 14 percent same-store sales growth and 9 percent net store growth.
Net income increased $33.6 million versus the prior year to $43.2 million or $0.25 per diluted share inclusive of a $125.5 million one-time non-cash impairment charge related to intangible assets in the second quarter as a result of the company’s decision to re-brand its U.S. car wash business. Adjusted Net Income increased 41 percent to $207.9 million or $1.22 per diluted share1, while Adjusted EBITDA increased 42 percent from the prior year to $513.8 million.
“2022 was a year of record performance and significant strategic progress for Driven Brands. We deepened our competitive moat as our differentiated offering resonated with our customers,” said Jonathan Fitzpatrick, president, and CEO. “We gained significant market share in this large and growing $350 billion, needs-based automotive services category, and we are leveraging our proven playbook to drive long-term, sustainable growth.
“Building on our strong performance last year, we entered the first quarter of 2023 with momentum, excellent visibility into our expense base and a robust development pipeline that provides us with strong line of sight to multi-year growth. Our guidance reflects that momentum, our continued confidence in our business model, the resilience of the category, and a track record of execution.”
For the fourth quarter, Driven Brands delivered revenue of $539.7 million, up 38 percent versus the prior year. System-wide sales were $1.5 billion, up 24 percent versus the prior year with 11 percent same-store sales growth and 9 percent net store growth.
Net income increased $66.2 million versus the prior year to $27.4 million or $0.16 per diluted share. Adjusted Net Income increased 35 percent to $42.2 million or $0.25 per diluted share1, while Adjusted EBITDA increased 54 percent from the prior year to $130.5 million.
Fiscal Year 2023 Guidance
The following guidance reflects the company’s expectations for fiscal year 2023 ending Dec. 30, 2023:
- Revenue of approximately $2.35 billion.
- Adjusted EBITDA1 of approximately $590 million.
- Adjusted Earnings Per Share1 of approximately $1.21.
- The Company also expects:
- Same-store sales growth of 5 to7 percent.
- Net store growth of approximately 365:
- Maintenance: approximately 170 stores of which 70% will be franchised and 30% will be Company-operated
- Car Wash: approximately 65 stores which will be company-operated
- Paint, Collision & Glass: approximately 130 stores of which 25% will be franchised and 75% will be Company-operated.
The Company has not included future M&A in its guidance for fiscal year 2023.
