Driven Brands Holdings Inc. reported financial results for the fourth quarter and fiscal year ended December 25, 2021.

For the fourth quarter, revenue was $391.9 million, an increase of 36% versus the prior year. System-wide sales were $1.2 billion, an increase of 26% versus the prior year, with 6% net store growth and an increase in consolidated same-store sales of 16.4%.

All figures in USD.

The $(0.23) loss per diluted share in the fourth quarter was driven by a $56 million one-time transaction expense associated with the acquisition of Auto Glass Now, which closed on December 30, 2021.

Adjusted earnings per diluted share² was $0.18 for the fourth quarter.

For fiscal year 2021, revenue was $1.5 billion, an increase of 62% versus the prior year. System-wide sales were $4.5 billion, an increase of 35% versus the prior year, with 6% net store growth and an increase in consolidated same-store sales of 17.1%.

Earnings per diluted share was $0.06 for the fiscal year.

Adjusted earnings per diluted share² was $0.88 for the fiscal year.

“Our results are a testament to the strength and diversity of the Driven Brands portfolio and the hard work the team has demonstrated throughout 2021,” said Jonathan Fitzpatrick, president and chief executive officer

. “Our employees and franchisees continued to adapt to an ever-changing landscape, exceeding our expectations and delivering industry-leading results.

“We are pleased to release our fiscal 2022 guidance⁵ of approximately $465 million of Adjusted EBITDA. With our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation, we are well positioned to maximize long-term value for all of our stakeholders.”

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⁵ See Disclosure Regarding Non-GAAP Financial Measures

Fourth Quarter Highlights

• Revenue increased 36% versus the prior year, driven by same-store sales growth and net store growth.
• Consolidated same-store sales increased 16.4% for the quarter and all segments posted positive same-store sales.
• The Company added 102 net new stores during the quarter.
• The Company recorded a net loss in the fourth quarter of $(38.8) million, driven by a $56 million one-time transaction expense associated with the acquisition of AGN.
• Adjusted Net Income¹ was $31.2 million.
• Adjusted EBITDA³ was $85.0 million.

Fourth 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	$330.8	1,505	25.7	159.5	46.2
Car Wash	124.0	1,058	6.2	125.3	37.8
Paint, Collision & Glass	643.4	1,648	11.4	59.6	21.2
Platform Services	84.0	201	35.2	40.3	12.1
Corporate / Other	N/A	N/A	N/A	7.2
Total	$1,182.2	4,412	16.4	391.9

Capital and Liquidity

During the fourth quarter, the Company closed on a $500 million term loan. The proceeds from this issuance will be used for general corporate purposes, including acquisitions.

The Company ended the fourth quarter with total liquidity of $920.6 million, which included $523.4 million in cash and cash equivalents and $397.2 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility.

Fiscal Year 2022 Guidance

The Company is providing the following guidance⁵ for the fiscal year ending December 31, 2022:

• Revenue of approximately $1.9 billion.
• Adjusted EBITDA³ of approximately $465 million.
• Adjusted Earnings per Share² of approximately $1.04.

The above guidance includes the impact of the 79 acquired AGN stores and the impact of the 53rd week in fiscal year 2022. The impact of the extra week is expected to yield approximately $16 million in revenue, $4 million in Adjusted EBITDA³ and approximately $0.02 in Adjusted Earnings Per Share².

The Company also expects:

• Mid-single-digit same-store sales growth.
• Net store growth of approximately 225:
  • Maintenance: approximately 145 stores of which 65% will be franchised and 35% will be company-operated
  • Car Wash: approximately 45 stores which will be company-operated
  • Paint, Collision & Glass: approximately 35 stores which will be company-operated.

The Company has not included future M&A in its guidance for fiscal year 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 4,400 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.