CHARLOTTE, N.C. — Driven Brands Holdings Inc., franchisor of the Meineke Car Care, Take 5 Oil Change and other auto repair businesses, reported 80%-plus gains in operating earnings and sales revenue for the quarter ended March 27.
The Charlotte-based company, which went public earlier this year, reported adjusted pre-tax operating income (EBITDA) of $40.4 million on revenue of $329.4 million, gains of 88.4% and 82.9%, respectively.
The sales gain was driven by a near doubling (93.8%) of revenue from the firm's company-operated stores business to $183.9 million, reflecting the purchase in late 2020 of International Car Wash Group (ICWG) and additional "tuck-in" acquisitions.
Franchise royalties, by comparison, rose 3.4% to $30.4 million, reflecting the addition of 168 franchised stores related primarily to the purchase of Fix Auto in April 2020.
The net result was a loss of $19.9 million.
"The power of Driven Brands is evident in our strong operating results this quarter," President and CEO Jonathan Fitzpatrick said.
"Our employees and franchisees were well-positioned to capitalize on the beginning of reopening trends in the first quarter and I am confident that we will continue to do so throughout 2021 as consumers drive more.
"Given our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation, our business model remains well-positioned to maximize long-term value for all of our stakeholders," he added.
At quarter's end, Driven Brands operated 495 company-owned stores and had 975 franchised locations in operation as well, gains of 27 and 12, respectively, over the 2020 first quarter.