Driven Brands reports record year of revenue and profitability in fiscal 2022
Fiscal 2023 guidance reflects powerful customer value proposition and resilient needs-based industry
- Fiscal 2022 revenue increased 39 percent powered by 14 percent same-store sales growth and 9 percent net store growth
- Momentum continued in fourth quarter with the seventh consecutive quarter of double-digit same store-sales growth
- Fiscal 2023 guidance reflects powerful customer value proposition and resilient needs-based industry
Driven Brands Holdings Inc. (NASDAQ: DRVN) today reported financial results for the fourth quarter and fiscal year ended December 31, 2022.
For the fiscal year, Driven Brands delivered revenue of $2.0 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 Income1 increased 41 percent to $207.9 million or $1.22 per diluted share1, while Adjusted EBITDA1 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 Chief Executive Officer. “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 Income1 increased 35 percent to $42.2 million or $0.25 per diluted share1, while Adjusted EBITDA1 increased 54 percent from the prior year to $130.5 million.
Fiscal Year 2022 Highlights
Comparisons are fiscal year 2022 ended December 31, 2022 versus fiscal year 2021 ended December 25, 2021 unless otherwise noted.
- Revenue increased 39 percent to $2.0 billion, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 14 percent.
- 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 Income1 increased 41 percent to $207.9 million or $1.22 per diluted share1.
- Adjusted EBITDA1 increased 42 percent to $513.8 million.
Fourth Quarter 2022 Highlights
Comparisons are fourth quarter 2022 ended December 31, 2022 versus fourth quarter 2021 ended December 25, 2021 unless otherwise noted.
- Revenue increased 38 percent to $539.7 million, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 11 percent.
- 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 Income1 increased 35 percent to $42.2 million or $0.25 per diluted share1.
- Adjusted EBITDA1 increased 54 percent to $130.5 million.
Read the entire press release on the Driven Brands Investor Relations website.
1 Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted Earnings Per Share are made in a manner consistent with the relevant definitions and assumptions noted herein.
2 The fourth quarter and fiscal year 2022 results include the impact of the 53rd week in fiscal year 2022, which contributed $25 million in revenue, $6 million in Adjusted EBITDA1 and $0.02 in Adjusted Earnings Per Share1.