In This Article:
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Revenue: $516 million, up 7.1% year-over-year.
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Same-Store Sales Growth: 0.7%, marking the 17th consecutive quarter of positive growth.
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Net New Stores: 177 net new stores over the past 12 months.
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Adjusted EPS: $0.27 from continuing operations.
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Adjusted EBITDA: $125 million, a 1.9% increase year-over-year.
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Debt Repayment: Nearly $290 million paid down since the beginning of the year.
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Take 5 Oil Change Revenue Growth: 15% year-over-year.
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Take 5 Oil Change Same-Store Sales Growth: 8% for the quarter.
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Take 5 Oil Change Adjusted EBITDA Margin: 34%.
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Franchise Segment Adjusted EBITDA Margin: 62%.
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International Car Wash Same-Store Sales Growth: 26%.
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International Car Wash Revenue Growth: 25% year-over-year.
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International Car Wash Adjusted EBITDA Margin: 36%, with a 280 basis point improvement.
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Operating Income: $61.3 million, a decline of $6.8 million year-over-year.
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Net Income from Continuing Operations: $17.5 million.
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Adjusted Net Income from Continuing Operations: $44.2 million.
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Net Interest Expense: $36.5 million, $7.2 million lower than the previous year.
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Free Cash Flow: $27.6 million for the quarter.
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Net Leverage: 4.3 times net debt-to-adjusted EBITDA.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Driven Brands Holdings Inc (NASDAQ:DRVN) reported a revenue increase of 7.1% year-over-year, reaching $516 million for Q1 2025.
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The company achieved its 17th consecutive quarter of positive same-store sales growth, with a 0.7% increase.
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Take 5 Oil Change demonstrated strong performance with 8% same-store sales growth and 15% revenue growth.
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The sale of the U.S. car wash business allowed Driven Brands Holdings Inc (NASDAQ:DRVN) to pay down nearly $290 million in debt since the beginning of the year.
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The International Car Wash segment posted a strong quarter with 26% same-store sales growth and a 36% increase in adjusted EBITDA.
Negative Points
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Operating income declined by $6.8 million to $61.3 million for Q1 2025.
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The Franchise segment experienced a 2.9% decline in same-store sales, primarily driven by softness in Maaco.
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Adjusted EBITDA margin decreased by 120 basis points to 24.2% due to increased store expenses and SG&A.
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Operating expenses increased by $41 million year-over-year, driven by higher sales volumes and more stores.
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The company faces potential impacts from tariffs, which could affect margins and demand.
Q & A Highlights
Q: Can you explain the factors affecting Take 5's EBITDA margin, and if same-store sales slow, could margins improve? A: Michael Diamond, CFO, explained that the margin pressure was due to increased repair, maintenance, and rent expenses. These are strategic investments to ensure appealing locations. Despite this, the team is managing costs well, and they are confident in maintaining strong performance even if sales moderate.