In This Article:
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Revenue: $592 million, up 2% year-over-year.
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Same-Store Sales Growth: 1.1%, marking the 15th consecutive quarter of positive growth.
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Adjusted EBITDA: $138.8 million, a 13.7% increase year-over-year.
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Adjusted EBITDA Margin: 23.5%, an increase of approximately 250 basis points.
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Net Loss: $14.9 million for the quarter.
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Adjusted Net Income: $41.8 million.
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Adjusted Diluted EPS: $0.26 per share.
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Net Store Growth: 56 net new stores, including 45 new Take 5 Oil Change units.
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Take 5 Oil Change Revenue Growth: 15% year-over-year.
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Take 5 Oil Change Same-Store Sales Growth: 5.4% for the quarter.
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Take 5 Oil Change EBITDA Growth: 14% year-over-year.
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Operating Income: $40 million for Q3.
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Interest Expense: $43.7 million, $2.4 million higher than the previous year.
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Net Leverage: 4.5x net debt to adjusted EBITDA.
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System-Wide Sales: $1.6 billion, a 2.1% increase year-over-year.
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PC&G Segment Revenue: $109 million with a 31.9% adjusted EBITDA margin.
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Car Wash Segment Revenue: $142.2 million with an 18% adjusted EBITDA margin.
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Platform Services Segment Revenue: $52.2 million with a 43% adjusted EBITDA margin.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Driven Brands Holdings Inc (NASDAQ:DRVN) achieved its 15th consecutive quarter of positive same-store sales growth, with a 1.1% increase in Q3 2024.
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The company reported a revenue increase to $592 million, up 2% year-over-year, supported by 56 net new stores and 1.1% same-store sales growth.
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Take 5 Oil Change, a key brand for Driven Brands Holdings Inc (NASDAQ:DRVN), delivered its 17th consecutive quarter of positive same-store sales growth, with revenue growing by 15% and EBITDA by 14% compared to Q3 2023.
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Driven Brands Holdings Inc (NASDAQ:DRVN) successfully reduced its leverage ratio to 4.5x, achieving its year-end target a quarter early, with plans to further reduce it to less than 3x by 2026.
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The company has a robust pipeline for Take 5 Oil Change, with approximately 1,000 sites in development, providing clear visibility into future growth and expansion.
Negative Points
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Driven Brands Holdings Inc (NASDAQ:DRVN) faced significant weather-related challenges in Q3 2024, with four major hurricanes impacting operations and resulting in a system-wide sales loss of up to $10 million.
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The ongoing inflationary environment is expected to continue pressuring consumer spending, particularly affecting lower-income households.
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The company's US car wash business was notably impacted by the hurricanes, leading to lost occasions and affecting overall performance.
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Despite positive growth, the maintenance segment experienced a slight degradation in margins, partly due to inefficiencies related to hurricane disruptions.
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The sale of the Canadian distribution business, PH Vitres, is expected to impact 2024 sales by approximately $18 million and adjusted EBITDA by $6 million.