Driven Brands Holdings Inc. has announced its second-quarter financial results, with president and CEO Jonathan Fitzpatrick reporting a 36% revenue increase over 2021 alongside a net loss for the quarter. The company’s new glass sector grew throughout the first two quarters of the year and Driven Brands forecasts the growth to continue.
Driven Brands reported a second-quarter revenue of $508.6 million, an increase of 36% versus the prior year. System-wide sales totaled $1.4 billion, an increase of 22% versus the prior year, with 7% net store growth and an increase in consolidated same-store sales of 13.2%.
The company reported a net loss of $57 million for the second quarter, which it says was the result of a $125.5 million one-time non-cash impairment charge. The charge relates to intangible assets resulting from the decision to re-brand its U.S. car wash business, according to the release.
“We delivered strong results in the second quarter,” Fitzpatrick says. “These results are a testament to the resilience of our needs-based service offering and our ability to drive sustainable growth and cash flow leveraging a proven playbook.”
Driven Brands acquired Auto Glass Now (AGN) in December 2021. Fitzpatrick says the platform comes with low initial investments and a differentiated operating model. The company now has 120 stores, 350 mobile units and more than 750 employees in 27 states.
“AGN is a business where we can leverage our growth blueprint and significantly accelerate our presence in this segment,” he continues, noting the highly-fragmented $5 billion North American market. “There are tailwinds with increasing needs for calibration, glass replacement is required for all vehicle types, and we can leverage our unique same-store sales levers including our 27 million-plus unique retail customers, our insurance relationships and our fleet customers to grow this business.”
Driven Brands’ Paint, Collision and Glass segment posted positive same-store sales of 16.1% for the second quarter of 2022. Same-store sales is a figure used to determine the amount of sales growth attributable to new store openings. More than 195 direct repair programs with insurance carriers were added as well. System-wide sales totaled $724.7 million for the segment with a revenue of $95.4 million.
“We have significant momentum across our business capitalizing on the benefits of our scale, the quality of our offerings, the strength of our brands, our best-in-category data and marketing capabilities, and our ability to generate robust cash flow. We are delivering against our Dream Big plan of at least $850 million of adjusted EBITDA by the end of 2026, demonstrating our ability to drive significant shareholder value over time.”
Driven Brands forecasts the glass segment of its business to total 160 stores by the end of 2022, 5% of which will be franchised and 95% operated by the company.