Driven Brands Holdings Inc

For the period ended Mar 30, 2024. Filed May 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 30, 2024 · Filed May 8, 2024

DRVN$12.10-1.3%Stored close · as of Nov 10, 2026

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Contents

Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended
(in thousands)	March 30, 2024	April 1, 2023
Net income	$4,261	$29,749
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43,229	38,198
Equity-based compensation expense	11,861	2,564
Loss on foreign denominated transactions	7,574	161
Gain on foreign currency derivatives	(3,253)	(1,836)
Loss (gain) on sale and disposal of businesses, fixed assets, and sale-leaseback transactions	(12,913)	1,671
Reclassification of interest rate hedge to income	(519)	(519)
Bad debt expense	2,070	82
Asset impairment charges and lease terminations	19,326	167
Amortization of deferred financing costs and bond discounts	1,954	1,850
Amortization of cloud computing	1,345	—
(Benefit) provision for deferred income taxes	(2,807)	4,650
Other, net	10,669	4,043
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable, net	(17,351)	(44,084)
Inventory	(1,005)	(5,473)
Prepaid and other assets	(4,270)	(13,867)
Advertising fund assets and liabilities, restricted	7,650	906
Other assets	(33,300)	(7,382)
Deferred commissions	(331)	455
Deferred revenue	1,659	161
Accounts payable	14,165	25,597
Accrued expenses and other liabilities	6,293	(960)
Income tax receivable	3,976	659
Cash provided by operating activities	60,283	36,792
Cash flows from investing activities:
Capital expenditures	(89,483)	(169,155)
Cash used in business acquisitions, net of cash acquired	(2,024)	(29,307)
Proceeds from sale-leaseback transactions	4,550	16,772
Proceeds from sale or disposal of businesses and fixed assets	52,677	—
Cash used in investing activities	(34,280)	(181,690)
Cash flows from financing activities:
Repayment of long-term debt	(7,616)	(7,002)
Proceeds from revolving lines of credit and short-term debt	46,000	140,000
Repayment of revolving lines of credit and short-term debt	(46,000)	(25,000)
Repayment of principal portion of finance lease liability	(886)	(854)

Payment of Tax Receivable Agreement	(24,718)	—
Stock option exercises	—	1,380
Other, net	—	(32)
Cash (used in) provided by financing activities	(33,220)	108,492
Effect of exchange rate changes on cash	1,133	2,392
Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted	(6,084)	(34,014)
Cash and cash equivalents, beginning of period	176,522	227,110
Cash included in advertising fund assets, restricted, beginning of period	38,537	32,871
Restricted cash, beginning of period	657	792
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period	215,716	260,773
Cash and cash equivalents, end of period	165,513	190,841
Cash included in advertising fund assets, restricted, end of period	43,462	35,126
Restricted cash, end of period	657	792
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period	$209,632	$226,759

Supplemental cash flow disclosures - non-cash items:
Capital expenditures included in accrued expenses and other liabilities	$24,060	$39,534
Deferred consideration included in accrued expenses and other liabilities	2,955	$19,069
Supplemental cash flow disclosures - cash paid for:
Interest	$41,784	$37,942
Income taxes	3,721	$5,671

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.