Driven Brands Holdings Inc. reported financial results for the second quarter ended June 26, 2021, with same store sales growth nearing 40% year over year for the diversified auto service company.

For the second quarter, revenue was $374.8 million, an increase of 123% versus the prior year. System-wide sales hit a record $1.2 billion, an increase of 65% versus the prior year, with 34% net store growth and an increase in consolidated same-store sales of 38.7%. On a two-year basis, same-store sales increased 19.1%.

All figures in USD.

Earnings per share was $0.21 for the second quarter, an increase of 600% versus the prior year.

Adjusted earnings per share was $0.25, an increase of 79% versus the prior year.

“The power of Driven Brands is evident in our continued strong operating results,” said Jonathan Fitzpatrick, president and chief executive officer. “While this quarter laps the depths of COVID-19 in the prior year, our strong two-year trend indicates continued momentum in the fundamentals of our business.

“Initiatives we implemented last year, coupled with strong execution from employees and franchisees drove compounding same-store sales and store growth. We continued to capitalize on opportunities as consumers drove more in the second quarter,” Fitzpatrick added.

“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.”

Second Quarter Highlights

• Revenue increased 123% versus the prior year, driven primarily by the acquisition of International Car Wash Group (“ICWG”) in the third quarter of 2020 as well as organic growth across all segments from positive same-store sales growth and net store growth.
• Consolidated same-store sales increased 38.7% for the quarter and increased 19.1% on a two-year basis.
• Same-store sales increased across all segments on both a one- and two-year basis.
• The Company added 70 net new stores during the quarter.
• The Company recorded net income in the second quarter of $35.2 million, an increase of 1051% versus the prior year.
• Adjusted Net Income¹ was $41.9 million, an increase of 233% versus the prior year.
• Adjusted EBITDA³ was $100.8 million, an increase of 152% versus the prior year.

Second 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	$321.2	1,485	41.9%	$145.0	$44.6
Car Wash	122.1	979	35.2%	$123.9	$43.1
Paint, Collision & Glass	597.6	1,655	37.3%	$50.6	$21.9
Platform Services	117.5	200	37.2%	$44.8	$17.6
Corporate / Other	N/A	N/A	N/A	$10.5
Total	$1,158.3	4,319	38.7 %	$374.8

Capital and Liquidity

In May 2021, the Company closed on a new $300 million revolving credit facility. Borrowings under this facility, in conjunction with the variable funding note associated with the Company’s whole business securitization and cash on hand, will be utilized to fuel further growth and for general corporate purposes. From time-to-time, the Company expects to supplement liquidity with long-term borrowings under its whole business securitization structure.

The Company ended the second quarter with total liquidity of $468.2 million, which includes $147.4 million in cash, cash equivalents, and restricted cash, as well as $320.8 million of undrawn capacity on its revolving credit facilities.

Guidance

The Company has raised its guidance for fiscal year 2021 to account for the strong operating performance in the second quarter and an updated outlook for the remainder of the year. 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 $345 million
• Adjusted Earnings per Share² of approximately $0.83
• Low double-digit same-store sales growth with positive same-store sales 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 by company-operated store growth; and
  • Paint, Collision & Glass: 60 to 70 stores; driven by franchise store growth.

Conference Call
Driven Brands will host a conference call to discuss second quarter 2021 results , Wednesday, July 28, 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 October 26, 2021.

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 $3 billion in system-wide sales.