Driven Brands Holdings Inc. on Feb. 22 reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2022.
For the fiscal year, Driven Brands delivered revenue of $2.0 billion, up 39% versus the prior year. System-wide sales were $5.6 billion, up 24% versus the prior year with 14% same-store sales growth and 9% 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% to $207.9 million or $1.22 per diluted share, while adjusted EBITDA increased 42% 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% versus the prior year. System-wide sales were $1.5 billion, up 24% versus the prior year with 11% same-store sales growth and 9% 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% to $42.2 million or $0.25 per diluted share, while adjusted EBITDA increased 54% from the prior year to $130.5 million.
Fiscal Year 2022 Highlights
Comparisons are fiscal year 2022 ended Dec. 31, 2022, versus fiscal year 2021 ended Dec. 25, 2021, unless otherwise noted.
- Revenue increased 39% to $2.0 billion, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 14%.
- The company added 393 net new stores during the year.
- Net income increased $33.6 million to $43.2 million or $0.25 per diluted share.
- Adjusted net income increased 41% to $207.9 million or $1.22 per diluted share.
- Adjusted EBITDA increased 42% to $513.8 million.
Fourth Quarter 2022 Highlights
Comparisons are fourth quarter 2022 ended Dec. 31, 2022, versus fourth quarter 2021 ended Dec. 25, 2021, unless otherwise noted.
- Revenue increased 38% to $539.7 million, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 11%.
- The company added 98 net new stores during the quarter.
- Net income increased $66.2 million to $27.4 million or $0.16 per diluted share.
- Adjusted net income increased 35% to $42.2 million or $0.25 per diluted share.
- Adjusted EBITDA increased 54% to $130.5 million.
Driven Brands Holdings Inc. Reports Record Year of Revenue and Profitability in 2022 (article continued)
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 EBITDA of approximately $590 million.
- Adjusted earnings per share of approximately $1.21.
The company also expects:
- Same-store sales growth of 5% to7%.
- 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.
Source: Driven Brands Holdings Inc.
