U.S. Markets closed
  • S&P 500

    4,397.94
    -84.79 (-1.89%)
     
  • Dow 30

    34,265.37
    -450.03 (-1.30%)
     
  • Nasdaq

    13,768.92
    -385.08 (-2.72%)
     
  • Russell 2000

    1,987.92
    -36.12 (-1.78%)
     
  • Crude Oil

    84.83
    -0.72 (-0.84%)
     
  • Gold

    1,836.10
    -6.50 (-0.35%)
     
  • Silver

    24.34
    -0.37 (-1.50%)
     
  • EUR/USD

    1.1348
    +0.0031 (+0.2724%)
     
  • 10-Yr Bond

    1.7470
    -0.0860 (-4.69%)
     
  • Vix

    28.85
    +3.26 (+12.74%)
     
  • GBP/USD

    1.3555
    -0.0045 (-0.3321%)
     
  • USD/JPY

    113.6500
    -0.4500 (-0.3944%)
     
  • BTC-USD

    35,271.23
    -439.91 (-1.23%)
     
  • CMC Crypto 200

    870.86
    +628.18 (+258.85%)
     
  • FTSE 100

    7,494.13
    -90.88 (-1.20%)
     
  • Nikkei 225

    27,522.26
    -250.64 (-0.90%)
     

Driven Brands Holdings Inc. Reports Third Quarter Results

  • Oops!
    Something went wrong.
    Please try again later.
·21 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • DRVN

Delivers Strong Same-Store Sales Growth and Adds 53 Net New Stores

Reports Robust Operating Income and Earnings per Share Growth

Raises Fiscal Year 2021 Guidance

CHARLOTTE, N.C., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or “the Company”) today reported financial results for the third quarter ended September 25, 2021.

For the third quarter, revenue was $371.1 million, an increase of 39% versus the prior year. System-wide sales were $1.2 billion, an increase of 28% versus the prior year, with 4% net store growth and an increase in consolidated same-store sales of 12.8%.

Earnings per share was $0.19 for the third quarter, an increase of 375% versus the prior year.

Adjusted earnings per share2 was $0.26, an increase of 30% versus the prior year.

“This is our third quarter as a public company and we have consistently outperformed expectations,” said Jonathan Fitzpatrick, president and CEO. “Our employees and franchisees have shown tremendous flexibility and a relentless focus on operational excellence, and I am proud of our entire team.” Fitzpatrick added.

“We expect to end fiscal year 2021 strong, and with 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.”

Third Quarter Highlights

  • Revenue increased 39% versus the prior year, driven by positive same-store sales growth and net store growth.

  • Consolidated same-store sales increased 12.8% for the quarter, and all segments posted positive same-store sales growth.

  • The Company added 53 net new stores during the quarter.

  • The Company recorded net income in the third quarter of $33.1 million, an increase of 712% versus the prior year.

  • Adjusted Net Income1 was $43.5 million, an increase of 96% versus the prior year.

  • Adjusted EBITDA3 was $98.0 million, an increase of 42% versus the prior year.

Third 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

$

333.8

1,506

17.0

%

$

144.5

$

47.9

Car Wash

122.0

1,018

6.2

%

123.6

38.0

Paint, Collision & Glass

620.3

1,647

10.8

%

50.6

22.0

Platform Services

120.3

201

15.8

%

42.1

16.3

Corporate / Other

N/A

N/A

N/A

10.3

Total

$

1,196.4

4,372

12.8

%

$

371.1

*Car Wash same-store sales reflects performance for the full quarter. Total same-store sales includes Car Wash performance on a pro-rata basis beginning in August.

Capital and Liquidity

The Company ended the third quarter with total liquidity of $268.3 million, which included $115.5 million in cash, cash equivalents and restricted cash, and $152.8 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility.

Subsequent to quarter end, the Company closed on a $450 million whole business securitization issuance. The proceeds from the issuance were used to repay the outstanding balance on the revolving credit facility and the remainder will be used for general corporate purposes, including future acquisitions.

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

  • Revenue of approximately $1.4 billion

  • Adjusted EBITDA3 of approximately $350 million

  • Adjusted Earnings per Share2 of approximately $0.84

  • Approximately 15% same-store sales growth, with positive same-store sales across all segments

  • Net store growth of approximately 200, driven by franchise and company-operated store growth as well as tuck-in acquisitions completed through the third quarter.

Conference Call
Driven Brands will host a conference call to discuss third quarter 2021 results today, Wednesday, October 27, 2021 at 9:00am ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available until February 15, 2022.

About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, and CARSTAR®. Driven Brands has more than 4,300 locations across 15 countries, and services over 50 million vehicles annually. Driven Brands’ network generates more than $1 billion in revenue from more than $4 billion in system-wide sales.

Contacts

Shareholder/Analyst inquiries:
Rachel Webb
rachel.webb@drivenbrands.com
(704) 644-8125

Media inquiries:
Media
media@drivenbrands.com
(704) 644-8129

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) our strategy, outlook and growth prospects; (ii) our operational and financial targets and dividend policy; (iii) general economic trends and trends in the industry and markets; and (iv) the competitive environment in which we operate. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 26, 2020, as supplemented by the “Risk Factors” section in our Quarterly Report on Form 10-Q for the quarter ended June 26, 2021, and in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Forward-looking statements represent our estimates and assumptions only as of the date on which they are made, and we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Disclosure Regarding Non-GAAP Financial Measures

In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company has included certain non-GAAP financial measures in this release, including Adjusted Net Income1, Adjusted Earnings Per Share2, and Adjusted EBITDA3. Management believes these non-GAAP financial measures are useful because they enable management, investors, and others to assess the operating performance of the Company and its segments. Please refer to the Reconciliation of Non-GAAP Financial Information tables located in the financial supplement in this release.

This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted Earnings Per Share2 and Adjusted EBITDA3. These measures will differ from net income, determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We do not provide guidance for net income, determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA3 to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income.

___________
1 “Adjusted Net Income” is calculated by eliminating from net income the adjustments described for Adjusted EBITDA, amortization related to acquired intangible assets and the tax effect of the adjustments. Please refer to Non-GAAP reconciliation tables located in the financial supplement in this release.
2 “Adjusted Earnings Per Share” represents Adjusted Net Income divided by weighted average shares (basic and diluted). Please refer to Non-GAAP reconciliation tables located in the financial supplement in this release.
3 “Adjusted EBITDA” represents earnings before interest expense, income tax expense, and depreciation and amortization, with further adjustments for acquisition-related costs, straight-line rent, equity compensation, loss on debt extinguishment and certain non-recurring, non-core, infrequent or unusual charges. Please refer to Non-GAAP reconciliation tables located in the financial supplement in this release.
4 “Segment Adjusted EBITDA” is defined as Adjusted EBITDA with a further adjustment for store opening costs. Corporate & Other costs are not allocated across segments. Segment Adjusted EBITDA is a supplemental measure of operating performance of our segments and may not be comparable to similar measures reported by other companies. Please refer to reconciliation to Adjusted EBITDA located in the financial supplement in this release.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three months ended

Nine months ended

(in thousands, except per share amounts)

September 25, 2021

September 26, 2020

September 25, 2021

September 26, 2020

Revenue:

Franchise royalties and fees

$

38,953

$

36,520

$

107,240

$

94,214

Company-operated store sales

213,755

140,788

603,808

323,339

Independently-operated store sales

47,941

30,595

160,483

30,595

Advertising contributions

19,762

14,927

56,665

42,429

Supply and other revenue

50,737

44,932

147,199

125,115

Total revenue

371,148

267,762

1,075,395

615,692

Operating expenses:

Company-operated store expenses

130,520

85,668

367,095

202,333

Independently-operated store expenses

27,764

17,995

89,664

17,995

Advertising expenses

19,762

14,927

56,665

42,429

Supply and other expenses

28,330

25,813

80,417

70,167

Selling, general and administrative expenses

71,565

56,586

218,549

153,107

Acquisition costs

636

12,076

2,674

13,287

Store opening costs

666

119

1,360

1,921

Depreciation and amortization

28,447

16,221

78,722

32,656

Asset impairment charges and lease terminations

(270

)

321

3,161

6,732

Total operating expenses

307,420

229,726

898,307

540,627

Operating income

63,728

38,036

177,088

75,065

Other expenses, net:

Interest expense, net

17,688

29,594

52,390

64,973

(Gain) loss on foreign currency transactions, net

1,074

(2,230

)

6,356

55

Loss on debt extinguishment

673

45,576

673

Total other expenses, net

18,762

28,037

104,322

65,701

Net income before taxes

44,966

9,999

72,766

9,364

Income tax expense

11,880

5,888

24,445

6,109

Net income

$

33,086

$

4,111

$

48,321

$

3,255

Net income (loss) attributable to non-controlling interests

$

(38

)

$

32

$

(68

)

$

(34

)

Net income attributable to Driven Brands Holdings Inc.

$

33,124

$

4,079

$

48,389

$

3,289

Earnings per share(1):

Basic

$

0.20

$

0.04

$

0.30

$

0.03

Diluted

$

0.19

$

0.04

$

0.29

$

0.03

Weighted average shares outstanding(1):

Basic

162,635

111,950

160,030

96,643

Diluted

166,630

111,950

163,968

96,643

(1) Share and per share amounts for the three and nine months ended September 26, 2020 have been adjusted to reflect an implied 88,990-for-one stock split that became effective on January 14, 2021.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

September 25, 2021

December 26, 2020

Assets

Current assets:

Cash and cash equivalents

$

115,365

$

172,611

Restricted cash

135

15,827

Accounts and notes receivable, net

110,907

84,805

Inventory

44,259

43,039

Prepaid and other assets

26,022

25,070

Income tax receivable

2,619

3,055

Advertising fund assets, restricted

39,698

29,276

Total current assets

339,005

373,683

Notes receivable, net

2,748

3,828

Property and equipment, net

1,121,204

827,392

Operating lease right-of-use assets

905,527

884,927

Deferred commissions

9,878

8,661

Intangibles, net

817,665

829,308

Goodwill

1,810,085

1,727,351

Total assets

$

5,006,112

$

4,655,150

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

$

72,458

$

67,802

Accrued expenses and other liabilities

217,589

190,867

Income taxes payable

2,791

3,513

Current portion of long-term debt

18,342

22,988

Advertising fund liabilities

25,457

20,276

Total current liabilities

336,637

305,446

Long-term debt, net

1,677,337

2,102,219

Deferred tax liability

261,906

249,043

Operating lease liabilities

843,925

818,001

Income tax receivable liability

155,970

Deferred revenue

24,770

20,757

Accrued expenses and other long-term liabilities

30,070

53,324

Total liabilities

3,330,615

3,548,790

Common stock

1,674

565

Additional paid-in capital

1,604,342

1,055,172

Retained earnings

80,364

31,975

Accumulated other comprehensive income (loss)

(12,047

)

16,528

Total shareholders' equity attributable to Driven Brands Holdings Inc.

1,674,333

1,104,240

Non-controlling interests

1,164

2,120

Total shareholders' equity

1,675,497

1,106,360

Total liabilities and shareholders' equity

$

5,006,112

$

4,655,150

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine months ended

(in thousands)

September 25, 2021

September 26, 2020

Net income

$

48,321

$

3,255

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

78,722

32,656

Non-cash lease cost

56,563

26,254

Gain on foreign denominated transactions

9,301

55

Loss on derivatives not designed as hedges

(2,945

)

Bad debt expense

2,535

4,829

Asset impairment costs

3,161

6,732

Amortization of deferred financing costs and bond discounts

5,139

7,176

Benefit (provision) for deferred income taxes

15,898

(4,524

)

Loss on extinguishment of debt

45,576

Other, net

4,257

2,239

Changes in assets and liabilities, net of acquisitions:

Accounts and notes receivable, net

(28,787

)

(12,349

)

Inventory

(3,279

)

(1,328

)

Prepaid and other assets

(18,414

)

1,755

Advertising fund assets and liabilities, restricted

5,818

(554

)

Deferred commissions

(1,205

)

(1,810

)

Deferred revenue

3,983

3,438

Accounts payable

(2,405

)

10,311

Accrued expenses and other liabilities

23,397

8,926

Income tax receivable

(320

)

7,551

Operating lease liabilities

(47,821

)

(28,157

)

Cash provided by operating activities

197,495

66,455

Cash flows from investing activities:

Capital expenditures

(91,294

)

(35,124

)

Cash used in business acquisitions, net of cash acquired

(444,121

)

8,575

Proceeds from sale-leaseback transactions

66,391

Proceeds from sale of At-Pac business

1,532

Proceeds from disposal of property and equipment

5,471

Cash used in investing activities

(462,021

)

(26,549

)

Cash flows from financing activities:

Payment of contingent consideration related to acquisitions

(2,783

)

Payment of debt extinguishment and issuance costs

(2,153

)

(12,639

)

Proceeds from the issuance of long-term debt

175,000

Repayment of long-term debt

(716,542

)

(11,619

)

Proceeds from revolving lines of credit and short-term debt

441,800

152,101

Repayments of revolving lines of credit and short-term debt

(212,800

)

(191,600

)

Repayment of principal portion of finance lease liability

(1,760

)

(731

)

Proceeds from failed sale-leaseback transactions

3,432

Proceeds from initial public offering, net of underwriting discounts

661,500

Net proceeds from underwriters' exercise of over-allotment option

99,225

Repurchases of common stock

(43,040

)

Payment for termination of interest rate swaps

(21,826

)

Stock option exercises

339

Other, net

102

Cash provided by financing activities

204,845

111,161

Effect of exchange rate changes on cash

(2,285

)

468

Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted

(61,966

)

151,535

Cash and cash equivalents, beginning of period

172,611

34,935

Cash included in advertising fund assets, restricted, beginning of period

19,369

23,091

Restricted cash, beginning of period

15,827

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period

207,807

58,026

Cash and cash equivalents, end of period

115,365

184,356

Cash included in advertising fund assets, restricted, end of period

30,341

25,205

Restricted cash, end of period

135

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period

$

145,841

$

209,561

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (UNAUDITED)

Adjusted Net Income and Adjusted Earnings Per Share

Three months ended

Nine months ended

(in thousands, except per share amounts)

September 25, 2021

September 26, 2020

September 25, 2021

September 26, 2020

Net income

$

33,086

$

4,111

$

48,321

$

3,255

Acquisition related costs(a)

636

12,076

2,674

13,287

Non-core items and project costs, net(b)

1,357

(2,690

)

3,910

(926

)

Sponsor management fees(c)

4,278

5,357

Straight-line rent adjustment(d)

2,548

485

8,391

3,124

Equity-based compensation expense(e)

933

(182

)

2,944

508

Foreign currency transaction (gain) loss, net(f)

1,074

(2,230

)

6,356

55

Bad debt expense(g)

2,842

Asset impairment and closed store expenses(h)

313

741

3,005

7,621

Loss on debt extinguishment(i)

673

45,576

673

Amortization related to acquired intangible assets(j)

4,665

4,043

13,875

11,693

Provision for uncertain tax positions(k)

(251

)

2,810

(251

)

2,810

Adjusted net income before tax impact of adjustments

44,361

24,115

134,801

50,299

Tax impact of adjustments(l)

(886

)

(1,839

)

(18,968

)

(8,461

)

Adjusted net income

43,475

22,276

115,833

41,838

Net (loss) income attributable to non-controlling interest

(38

)

32

(68

)

(34

)

Adjusted net income attributable to Driven Brands Holdings Inc.

$

43,513

$

22,244

$

115,901

$

41,872

Adjusted earnings per share(m)

Basic(2)

$

0.26

$

0.20

$

0.71

$

0.43

Diluted(2)

$

0.26

$

0.20

$

0.69

$

0.43

Weighted average shares outstanding(m)

Basic

162,635

111,950

160,030

96,643

Diluted

166,630

111,950

163,968

96,643

(1) Share and per share amounts have been adjusted to reflect an implied 88,990-for-one stock split that became effective on January 14, 2021.

(2) Adjusted earnings per share for the three and nine months ended September 25, 2021 is calculated under the two-class method. Under the two-class method, adjusted earnings per share is calculated using adjusted net income attributable to common shares, which is derived by reducing adjusted net income by the amount attributable to participating securities. Adjusted net income attributable to participating securities used in the basic earnings per share calculation was $0.9 million and $2.5 million for the three and nine months ended September 25, 2021, respectively, and adjusted net income attributable to participating securities used in the diluted earnings per share calculation was $0.8 million and $2.3 million for the three and nine months ended September 25, 2021, respectively.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (UNAUDITED)

Net Income to Adjusted EBITDA Reconciliation

Three months ended

Nine months ended

(in thousands)

September 25, 2021

September 26, 2020

September 25, 2021

September 26, 2020

Net income

33,086

$

4,111

$

48,321

$

3,255

Income tax expense

11,880

5,888

24,445

6,109

Interest expense, net

17,688

29,594

52,390

64,973

Depreciation and amortization

28,447

16,221

78,722

32,656

EBITDA

91,101

55,814

203,878

106,993

Acquisition related costs(a)

636

12,076

2,674

13,287

Non-core items and project costs, net(b)

1,357

(2,690

)

3,910

(926

)

Sponsor management fees(c)

4,278

5,357

Straight-line rent adjustment(d)

2,548

485

8,391

3,124

Equity-based compensation expense(e)

933

(182

)

2,944

508

Foreign currency transaction (gain)/loss, net(f)

1,074

(2,230

)

6,356

55

Bad debt expense(g)

2,842

Asset impairment and closed store expenses(h)

313

741

3,005

7,621

Loss on debt extinguishment(i)

673

45,576

673

Adjusted EBITDA

$

97,962

$

68,965

$

276,734

$

139,534

  1. Consists of acquisition costs as reflected within the consolidated statement of operations, including legal, consulting and other fees and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.

  2. Consists of discrete items and project costs, including (i) third-party consulting and professional fees associated with strategic transformation initiatives, (ii) wage subsidies received directly attributable to the COVID-19 pandemic and (iii) other miscellaneous expenses, including non-capitalizable expenses relating to the Company’s initial public offering and other strategic transactions.

  3. Includes management fees paid to Roark Capital Management, LLC.

  4. Consists of the non-cash portion of rent expense, which reflects the extent to which our straight-line rent expense recognized under U.S. GAAP exceeds or is less than our cash rent payments.

  5. Represents non-cash equity-based compensation expense.

  6. Represents foreign currency transaction gains/losses, net that primarily related to the remeasurement of our intercompany loans. For the nine months ended September 25, 2021, these losses are offset by unrealized gains on remeasurement of cross currency swaps.

  7. Represents bad debt expense related to uncollectible receivables outside of normal operations.

  8. Relates to the impairment of certain fixed assets and operating lease right-of-use assets related to closed locations. Also represents lease exit costs and other costs associated with stores that were closed prior to their respective lease termination dates.

  9. Represents the write-off of debt issuance costs associated with early termination of debt.

  10. Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statements of operations.

  11. Represents uncertain tax positions recorded for Canadian tax positions, inclusive of interest and penalties.

  12. Represents the tax impact of adjustments associated with the reconciling items between net income and Adjusted Net Income, excluding the provision for uncertain tax positions and valuation allowance for certain deferred tax assets. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 9% to 38%, depending upon the tax attributes of each adjustment and the applicable jurisdiction.

  13. Share and per share amounts have been adjusted to reflect an implied 88,990-for-one stock split that became effective on January 14, 2021.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADJUSTED EBITDA AND SEGMENT ADJUSTED EBITDA RECONCILIATION (UNAUDITED)

Three months ended

Nine months ended

(in thousands)

September 25, 2021

September 26, 2020

September 25, 2021

September 26, 2020

Segment Adjusted EBITDA:

Maintenance

$

47,894

$

34,774

$

132,895

$

82,579

Car Wash

37,999

17,739

115,223

17,739

Paint, Collision & Glass

22,039

23,231

61,534

50,119

Platform Services

16,254

13,306

44,864

36,740

Corporate and other

(25,558

)

(19,966

)

(76,422

)

(45,722

)

Store opening costs

(666

)

(119

)

(1,360

)

(1,921

)

Adjusted EBITDA

$

97,962

$

68,965

$

276,734

$

139,534

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)

Three months ended September 25, 2021

(in thousands)

Maintenance

Car Wash

Paint, Collision
&
Glass

Platform
Services

Total

System-wide Store sales

Franchise stores

$

208,218

$

607,579

$

118,825

$

934,622

Company-operated stores

125,561

74,105

12,723

1,465

213,854

Independently Operated Stores

47,941

47,941

Total System-wide Sales

$

333,779

$

122,046

$

620,302

$

120,290

$

1,196,417

Store Count (in whole numbers)

Franchise stores

992

1,617

200

2,809

Company-operated stores

514

286

30

1

831

Independently Operated Stores

732

732

Total Store Count

1,506

1,018

1,647

201

4,372

Three months ended September 26, 2020

(in thousands)

Maintenance

Car Wash

Paint, Collision
&
Glass

Platform
Services

Total

System-wide Store sales

Franchise stores

$

166,302

$

$

496,812

$

102,171

$

765,285

Company-operated stores

101,023

28,586

$

9,556

$

1,686

140,851

Independently Operated Stores

30,595

30,595

Total System-wide Sales

$

267,325

$

59,181

$

506,368

$

103,857

$

936,731

Store Count (in whole numbers)

Franchise stores

896

1645

198

2,739

Company-operated stores

475

199

31

1

706

Independently Operated Stores

740

740

Total Store Count

1,371

939

1,676

199

4,185