Driven Brands Holdings Inc. Files 10-Q for Period Ending March 30, 2024

TL;DR

<b>Driven Brands Holdings Inc. filed its Q1 2024 10-Q report on May 8, 2024.</b>

AI Summary

Driven Brands Holdings Inc. (DRVN) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Driven Brands Holdings Inc. filed a 10-Q report for the period ending March 30, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 28th. Driven Brands Holdings Inc. is in the Services-Automotive Repair, Services & Parking industry. The company's headquarters are located in Charlotte, NC.

Why It Matters

For investors and stakeholders tracking Driven Brands Holdings Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Driven Brands Holdings Inc. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, growth trajectory, and potential risks moving forward.

Risk Assessment

Risk Level: medium — Driven Brands Holdings Inc. shows moderate risk based on this filing. The company's financial performance is subject to various market and operational factors inherent in the automotive repair and services industry, as detailed in their risk factors section (though specific details are not provided in this snippet).

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand revenue drivers, cost structures, and any significant changes from the previous period.

Key Numbers

• 2024-03-30 — Reporting Period End Date (10-Q filing)
• 2024-05-08 — Filing Date (10-Q filing)
• 2024-01-01 to 2024-03-30 — Q1 2024 Period (Financial reporting period)
• 2023-01-01 to 2023-04-01 — Q1 2023 Period (Financial reporting period)

Key Players & Entities

• Driven Brands Holdings Inc. (company) — Filer name
• RC Driven Holdings LLC (company) — Former company name
• Charlotte, NC (location) — Business and mail address

FAQ

Industry Context

Driven Brands Holdings Inc. operates within the automotive repair, services, and parking sector, a segment characterized by consistent demand for vehicle maintenance and repair.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze revenue streams and growth across different segments (franchise, company-operated, independently operated stores).
2. Examine operating expenses and any significant changes impacting profitability.
3. Review balance sheet items for changes in assets, liabilities, and equity.

Key Dates

• 2024-03-30: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending March 30, 2024, following the previous reporting period.

Key Financial Figures

• $0.01 — 55 Title of each class Common Stock, $0.01 par value Trading Symbol DRVN Name

Filing Documents

• drvn-20240330.htm (10-Q) — 1166KB
• exhibit311-q12024ceo302cer.htm (EX-31.1) — 10KB
• exhibit312-q12024cfo302cer.htm (EX-31.2) — 10KB
• exhibit321-q12024ceo906cer.htm (EX-32.1) — 5KB
• exhibit322-q12024cfo906cer.htm (EX-32.2) — 5KB
• drvn-20240330_g1.jpg (GRAPHIC) — 112KB
• 0001804745-24-000015.txt (&nbsp;) — 6223KB
• drvn-20240330.xsd (EX-101.SCH) — 42KB
• drvn-20240330_cal.xml (EX-101.CAL) — 73KB
• drvn-20240330_def.xml (EX-101.DEF) — 181KB
• drvn-20240330_lab.xml (EX-101.LAB) — 550KB
• drvn-20240330_pre.xml (EX-101.PRE) — 380KB
• drvn-20240330_htm.xml (XML) — 730KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income (Loss) 4 Consolidated Balance Sheets 5 Consolidated Statements of Shareholders'/Members' Equity 6 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 35

. OTHER INFORMATION

PART II . OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 37

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Quarterly Report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, trends, plans, objectives of management, impact of accounting standards and guidance, impairments, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) our strategy, outlook, and growth prospects; (ii) our operational and financial targets and dividend policy; (iii) general economic trends and trends in the industry and markets; (iv) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (v) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (vi) the competitive environment in which we operate. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy, and other future conditions, and involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expre

Financial Information

Part I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended (in thousands, except per share amounts) March 30, 2024 April 1, 2023 Net revenue: Franchise royalties and fees $ 45,045 $ 43,515 Company-operated store sales 374,456 376,066 Independently-operated store sales 53,047 52,532 Advertising contributions 24,070 21,677 Supply and other revenue 75,608 68,677 Total net revenue 572,226 562,467 Operating Expenses: Company-operated store expenses 242,053 243,409 Independently-operated store expenses 29,355 29,364 Advertising expenses 24,070 21,677 Supply and other expenses 36,216 37,266 Selling, general, and administrative expenses 116,402 112,328 Acquisition related costs 1,794 1,847 Store opening costs 1,263 1,025 Depreciation and amortization 43,229 38,198 Asset impairment charges and lease terminations 19,326 167 Total operating expenses 513,708 485,281 Operating income 58,518 77,186 Other expenses, net: Interest expense, net 43,772 38,141 Loss (gain) on foreign currency transactions 4,321 ( 1,675 ) Other expense, net 48,093 36,466 Income before taxes 10,425 40,720 Income tax expense 6,164 10,971 Net income 4,261 29,749 Net income attributable to non-controlling interest — — Net income attributable to Driven Brands Holdings Inc. $ 4,261 $ 29,749 Earnings per share: Basic $ 0.03 $ 0.18 Diluted $ 0.03 $ 0.17 Weighted average shares outstanding Basic 159,631 162,784 Diluted 160,604 166,874 The accompanying notes are an integral part of these unaudited consolidated financial statements. 3 DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Net income $ 4,261 $ 29,749 Other comprehensive (loss) income: Foreign currency translation adjustments ( 15,907 ) 11,351 Unrealized loss from cash flow hedges, n

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1— Description of Business Description of Business Driven Brands Holdings Inc. together with its subsidiaries (collectively, the "Company") is a Delaware corporation and is the parent holding company of Driven Brands, Inc. and Shine Holdco (UK) Limited (collectively, "Driven Brands"). Driven Brands is the largest automotive services company in North America with a growing and highly-franchised base of more than 5,000 franchised, independently-operated, and company-operated locations across 49 U.S. states and 13 other countries. The Company has a portfolio of highly recognized brands, including Take 5 Oil Change , Take 5 Car Wash , Meineke Car Care Centers , MAACO , CARSTAR , Auto Glass Now , and 1-800-Radiator & A/C that compete in the automotive services industry. Tax Receivable Agreement The Company expects to be able to utilize certain tax benefits which are related to periods prior to the effective date of the Company's IPO and are attributed to current and former shareholders. The Company previously entered into a Tax Receivable Agreement which provides our pre-IPO shareholders with the right to receive payment of 85 % of the amount of cash savings, if any, in U.S. and Canadian federal, state, local, and provincial income tax that the Company will actually realize. The Tax Receivable Agreement was effective as of the date of the Company's IPO. The Company recorded a current tax receivable liability of $ 41 million and $ 56 million as of March 30, 2024 and December 30, 2023, respectively, and a non-current tax receivable liability of $ 108 million and $ 118 million as of March 30, 2024 and December 30, 2023, respectively, on the consolidated balance sheets. We made an initial payment of approximately $ 25 million under the Tax Receivable Agreement in January 2024. Note 2— Summary of Significant Accounting Policies Fiscal Year The Company operates and reports financial information on a 52- or 5

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View this 10-Q filing on SEC EDGAR