NASDAQ$DRVN

Driven Brands Holdings Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Driven Brands reported an increase in revenue and system-wide sales, driven by net store growth and the acquisition of ICWG, but same-store sales declined due to the COVID-19 pandemic.

Driven Brands Holdings Inc. reported strong fourth-quarter results, with a 58% increase in revenue to $288.5 million and a 24% increase in system-wide sales to $935.1 million. The company added 42 net new stores and experienced a decline in same-store sales of 3.4%. The acquisition of ICWG significantly contributed to the revenue growth.

  • System-wide sales increased by 24% to $935.1 million, driven by 36% net store growth.
  • Revenue increased by 58% to $288.5 million, primarily due to the acquisition of International Car Wash Group (ICWG).
  • The company added 42 net new stores during the quarter, with growth in Maintenance, Car Wash, and Paint, Collision, and Glass segments.
  • Same-store sales declined by 3.4%, with increases in Maintenance and Platform Services segments offset by a decline in Paint, Collision, and Glass segment due to reduced traffic from the COVID-19 pandemic.

Headline financials

Total Revenue

$289M

Previous: $600M-51.9%
EPS (adj)

$0.01

Previous: $0.00+999900.0%
Total same store sales growth

-3.4%

Previous: 5.4%-163.0%
Auto Glass Now store count

952

No prior period
Total store count

4.2K

Previous: 3.1K+36.1%
Net Income

-$7.47M

Previous: $7.73M-196.6%
Operating Income

$19.7M

Previous: $70M-71.9%
Gross Profit

$162M

Previous: $600M-73.0%
Cash & Equivalents

$173M

Previous: $34.9M+394.1%
Total Assets

$4.66B

No prior period

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$289M

Q4 2020-51.9%vs Q4 2019
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Driven Brands · $289M total across 5 segments · Q4 2020

  • Company-operated store sales
    $166M+76.6%
  • Supply and other revenue
    $45.8M+31.1%
  • Independently-operated store sales
    $36.6M
  • Franchise royalties and fees
    $22.9M-5.7%
  • Advertising contributions
    $17.2M-41.5%

Forward guidance

Driven Brands provided guidance for the fiscal year ending December 25, 2021, including net store growth targets for Maintenance, Car Wash, and Paint, Collision, and Glass segments, positive same-store sales growth, and Adjusted EBITDA as a percentage of revenue of approximately 23%.

Tailwinds

  • Maintenance: 80 to 90 stores; driven by roughly equal parts franchise and company-operated store growth
  • Car Wash: 20 to 30 stores; driven primarily by company-operated store growth
  • Paint, Collision, and Glass: 60 to 70 stores; driven by franchise store growth
  • Positive same-store sales growth
  • Adjusted EBITDA as a percentage of revenue of approximately 23%, consistent with fiscal year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-3.4%

Avg return

Earnings day

-1.8%

Avg return

5 days after

+0.6%

Avg return

30 days after

46%

11 / 24 earnings

Positive

+10.4%

Q1 2022

Best reaction

-37.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-36.4%+3.9%
Q3 2025+5.5%-2.8%+7.6%
Q2 2025+1.9%-2.4%+13.1%
Q1 2025+6.8%+2.0%+1.3%
Q4 2024+2.1%+14.4%+16.8%
Q3 2024+3.9%+7.3%+18.7%
Q2 2024+1.0%-0.4%+6.7%
Q1 2024-20.9%-21.6%-21.6%
Q4 2023-7.6%-6.3%+5.2%
Q3 2023+2.6%+1.3%+20.3%
Q2 2023-37.7%-40.4%-42.5%
Q1 2023-4.5%-7.1%-16.1%
Q4 2022-0.5%+1.4%+0.7%
Q3 2022-4.6%-0.9%-4.6%
Q2 2022+2.0%+6.7%+8.0%
Q1 2022+10.4%+9.1%+12.9%
Q4 2019-3.8%-4.5%-6.8%
Q4 2021-1.2%-4.3%-5.6%
Q3 2020-1.9%+2.4%+3.2%
Q3 2021-2.0%+4.3%-0.6%
Q2 2020-0.1%-0.9%+5.2%
Q2 2021+3.3%+2.7%-4.0%
Q1 2021+6.9%+3.0%+7.7%
Q4 2020-5.8%-10.4%-12.1%
Q1 2020
Q1 2019

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