Meineke parent Driven Brands increases Q2 sales

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CHARLOTTE, N.C. — Driven Brands Holdings Inc., the franchisor of quite a few automotive support chains — such as Meineke Motor vehicle Care Facilities and Acquire 5 Oil Change — boosted systemwide profits by 22% to $1.4 billion, with 7% internet-shop development and an improve in consolidated similar-shop product sales of 13.2% for the quarter ended June 25.

Pushed Manufacturers supplies a assortment of buyer and business automotive products and services, such as paint, collision, glass, automobile fix, oil improve, servicing and auto wash. The corporation oversees more than 4,500 places in 15 countries.

Second-quarter systemwide profits of its 1,559 upkeep-targeted stores, which incorporate co-owned and franchised places, totaled $399.2 million, with a identical-retail outlet product sales boost of 15%, and EBITDA of $64.1 million for the next quarter, in comparison with the 12 months-in the past time period.

Driven Brand’s 1,001 routine maintenance-concentrated franchised suppliers produced gross sales of $230.5 million for the quarter, an 18.2% raise, while the 558 corporation-owned destinations described a 33.7% bounce in product sales to $168.6 million.

For the first half, the franchised stores boosted profits 20% to $430.8 million even though the firm-owned merchants greater profits 35.5% to $325.5 million. The corporation pointed out that 62 Drive N Design and style outlets included in the results in 2021 are not bundled in the 2022 figures for the reason that they are held for sale.

Business revenues elevated 35.7% to $508.6 million for the 2nd quarter but the business reported an working decline of $35.7 million and a web decline of $57 million.

The profits increase was pushed by a similar-shop product sales raise of 13.2% for the quarter and net-retail outlet growth of 80 places, the company explained. The decline was attributed to a $125.5 million one-time non-money impairment demand related to intangible belongings due to re-branding its U.S. auto clean small business.

For the 1st half, the firm’s running revenue fell 66.4% to $38 million in spite of a 38.7% improve in total revenue to $976.9 million, when compared with the year-ago period of time. The organization documented a web decline of $22.6 million for the interval.

“We shipped solid success in the next quarter. These outcomes are a testament to the resilience of our requires-based support offering and our potential to generate sustainable development and dollars flow leveraging a verified playbook,” President and CEO Jonathan Fitzpatrick reported.

“We have considerable momentum across our business capitalizing on the gains of our scale, the excellent of our choices, the energy of our makes, our ideal-in-class details and marketing capabilities, and our capability to crank out robust funds circulation. We are providing in opposition to our Desire Large plan of at least $850 million of adjusted EBITDA by the close of 2026, demonstrating our capability to drive important shareholder benefit in excess of time.”

The firm stated it has lifted its steering for the fiscal calendar year to account for its potent running efficiency and M&A activity in the very first 50 percent of 2022, as well as an up to date outlook for the remainder of the 12 months. This involves income of about $2 billion for the 12 months, with modified EBITDA of about $495 million.

The enterprise mentioned it also expects lower-double-digit exact-keep gross sales advancement and internet keep advancement of about 340 — such as about 140 maintenance shops, of which 70% will be franchised and 30% will be firm-operated.

The business did not present gross sales or earnings for the specific corporations/brand names.

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