Driven Brands Holdings Inc (DRVN) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Driven Brands Inc. Q2 '24 earnings call. (Operator Instructions) This call is being recorded on August 1, 2024.

早安，女士們、先生們，歡迎參加 Driven Brands Inc. '24 年第 2 季財報電話會議。（操作員說明）此通話錄音時間為 2024 年 8 月 1 日。

I would now like to turn the conference over to Mr. [Chris Thompson], Senior Director of Treasury and Investor Relations. Please go ahead.

我現在想將會議交給財務和投資者關係高級總監 [Chris Thompson] 先生主持。請繼續。

Good morning, and welcome to Driven Brands' second-quarter of 2024 earnings conference call. The earnings release and the leverage ratio reconciliation are available for download on our website at investors.drivenbrands.com.

早安，歡迎參加 Driven Brands 2024 年第二季財報電話會議。收益報告和槓桿率調節表可在我們的網站 Investors.drivenbrands.com 下載。

On the call with me today are Jonathan Fitzpatrick, President and Chief Executive Officer; Danny Rivera, Executive Vice President and Chief Operating Officer; and Joel Arnao, Senior Vice President and Interim Chief Financial Officer. In a moment, Jonathan, Danny and Joel will walk you through our financial and operating performance for the quarter.

今天與我通話的是總裁兼執行長喬納森·菲茨帕特里克 (Jonathan Fitzpatrick)；丹尼·裡維拉（Danny Rivera），執行副總裁兼營運長；以及高級副總裁兼臨時財務長 Joel Arnao。稍後，喬納森、丹尼和喬爾將向您介紹我們本季的財務和營運業績。

Before we begin our remarks, I'd like to remind you that management will refer to certain non-GAAP financial measures. You can find the reconciliations to the most directly comparable GAAP financial measures on the company's Investor Relations website and in its filings with the Securities and Exchange Commission. During the course of this call, we may often make forward-looking statements in regards to our current plans, beliefs, and expectations.

在我們開始演講之前，我想提醒您，管理階層將參考某些非公認會計準則財務指標。您可以在該公司的投資者關係網站及其向美國證券交易委員會提交的文件中找到最直接可比較的公認會計準則財務指標的調節表。在這次電話會議期間，我們可能經常就我們目前的計劃、信念和期望做出前瞻性陳述。

These statements are not guarantees of future performance and are subject to a number of risks and uncertainties and other factors that could cause actual results and events to differ materially from results and events contemplated by these forward-looking statements. Please see our earnings release and our filings with the Securities and Exchange Commission for more information.

這些陳述並非對未來績效的保證，並受到許多風險和不確定性以及其他因素的影響，這些因素可能導致實際結果和事件與這些前瞻性陳述預期的結果和事件有重大差異。請參閱我們的收益報告以及我們向美國證券交易委員會提交的文件以了解更多資訊。

Today's prepared remarks will be followed up by a question-and-answer session. We ask you to limit yourself to one question and one follow-up. Now I'll turn it over to Jonathan.

今天準備好的發言之後將進行問答環節。我們要求您只提出一個問題和一項後續行動。現在我會把它交給喬納森。

Good morning. We appreciate everyone joining us today to discuss Driven Brands second-quarter 2024 financial results. To begin, I want to acknowledge the hard work and strong execution by our more than 10,000 Driven Brands team members and our amazing franchisees for how they continue to navigate an extremely dynamic macroeconomic environment.

早安.我們感謝今天大家加入我們討論 Driven Brands 2024 年第二季財務表現。首先，我要感謝我們 10,000 多名 Driven Brands 團隊成員和我們出色的特許經營商的辛勤工作和強大執行力，感謝他們如何繼續駕馭極其活躍的宏觀經濟環境。

After a very thorough national search, I'm delighted to announce that Mike Diamond has joined Driven as our CFO. Although Mike will officially start in a couple of weeks, he is here with me today. Mike has a terrific background in multi-unit businesses and was most recently CFO at The Michaels Companies. And you can read about Mike's background in our earnings release. We're super excited to have him join the team. I also want to take a moment to recognize and thank Joel Arnao, our Senior President of Finance, who has done such a terrific job as Interim CFO over this past quarter.

經過非常徹底的全國搜索後，我很高興地宣布 Mike Diamond 已加入 Driven 擔任我們的財務長。儘管麥克將在幾週後正式開始工作，但他今天和我在一起。Mike 在多部門業務方面擁有出色的背景，最近擔任 The Michaels Companies 的財務長。您可以在我們的財報中了解麥克的背景。我們非常高興他加入我們的團隊。我還想花點時間向我們的高級財務總裁 Joel Arnao 表示認可和感謝，他在上個季度作為臨時財務長的工作非常出色。

My focus continues to be on delivering our outlook for 2024 and using excess free cash flow to pay down debt with a year-end target of less than 4.5 times levered and a year-end 2026 target of less than 3 times, and finally, active portfolio management. I will start with a review of some of our second-quarter 2024 highlights and corporate initiatives, and then turn it over to Danny, who will discuss our operating segments, and then Joe, who will detail our second quarter financial results and full-year outlook.

我的重點仍然是展望 2024 年，並利用過剩的自由現金流來償還債務，年底目標槓桿率低於 4.5 倍，2026 年年底目標槓桿率低於 3 倍，最後，積極主動投資組合管理。我將首先回顧我們2024 年第二季度的一些亮點和企業舉措，然後將其交給丹尼，他將討論我們的營運部門，然後交給喬，他將詳細介紹我們第二季度的財務業績和全年業績前景。

For Q2 2024, we delivered revenue of $612 million, up 1% versus the prior year, supported by a 115 net new stores and 0.5% same-store sales growth, our 14th consecutive quarter of positive same-store sales growth, and adjusted EBITDA of $152.2 million, resulting in diluted adjusted EPS of $0.35. We continue to be pleased by the performance of our Take 5 Oil Change and franchise businesses, all being key contributors to a solid Q2 2024. And it is worth noting that on a two-year basis, driven delivered 8.1% same-store sales growth. Our PC&G segment, which represents more than 50% of that comp, delivered a two-year comp of 11.7% and Take 5 Oil Change, our biggest and fastest growing business, delivered a two-year comp of 23.5%.

2024 年第二季度，我們營收 6.12 億美元，比上年增長 1%，這得益於 115 家淨新店和 0.5% 同店銷售增長，我們連續 14 個季度實現同店銷售正增長，以及調整後 EBITDA 1.522 億美元，攤薄調整後每股收益為0.35 美元。我們仍然對 Take 5 Oil Change 和特許經營業務的表現感到滿意，所有這些業務都是 2024 年第二季業績穩健的關鍵貢獻者。而值得注意的是，以兩年為基礎，帶動了同店銷售實現8.1%的成長。我們的 PC&G 部門佔該公司的 50% 以上，兩年的公司成長率為 11.7%，我們最大且成長最快的業務 Take 5 Oil Change 的兩年公司成長率為 23.5%。

Now as I mentioned on Q1 earnings call, we still believe that the ongoing inflationary environment will likely continue to pressure consumer spending throughout the balance of 2024, and that lower income households will be the most impacted. We saw that it impacted our Q2 results, and we are taking this into account in our updated expectations. And we believe that this pressure will be somewhat offset by strength in our commercial business and our needs-based businesses.

現在，正如我在第一季財報電話會議上提到的那樣，我們仍然認為，持續的通膨環境可能會在2024 年餘下的時間裡繼續給消費者支出帶來壓力，而低收入家庭將受到最大的影響。我們看到它影響了我們第二季的業績，我們在更新的預期中考慮到了這一點。我們相信，這種壓力將在一定程度上被我們商業業務和基於需求的業務的實力所抵消。

We remain focused on delivering our 2024 outlook despite this ongoing consumer uncertainty. Joel will provide more details on our 2024 outlook shortly.

儘管消費者存在持續的不確定性，但我們仍專注於實現 2024 年展望。Joel 很快就會提供有關我們 2024 年展望的更多詳細資訊。

I'd now like to spend a few minutes on some key corporate initiatives. We began the migration to our new ERP platform at the start of Q3. And so far, we're pleased with the progress of the implementation. This is testament to the hard work and extensive preparation from the entire team led by our Chief Information Officer, Karen Conrad. The team is continuing to make good progress on divesting US car wash pipeline properties.

我現在想花幾分鐘時間討論一些關鍵的企業舉措。我們在第三季初開始遷移到新的 ERP 平台。到目前為止，我們對實施進展感到滿意。這證明了我們的資訊長 Karen Conrad 領導的整個團隊的辛勤工作和廣泛準備。該團隊在剝離美國洗車管道資產方面繼續取得良好進展。

In Q1, we received approximately $33 million of proceeds, and in Q2, we received an incremental approximate $66 million for a total of approximately $100 million. Year to date, we are now at $107 million of proceeds. Our previous target was at least $100 million for fiscal 2024. Now that we've achieved that, we're confident in delivering at least another $50 million in US car wash divestitures in the second half of 2024.

第一季度，我們收到了約 3,300 萬美元的收益，第二季度，我們收到了約 6,600 萬美元的增量收益，總計約 1 億美元。今年迄今為止，我們的收益已達 1.07 億美元。我們先前的目標是 2024 財年至少 1 億美元。既然我們已經實現了這個目標，我們有信心在 2024 年下半年再剝離至少 5,000 萬美元的美國洗車業務。

As I previously mentioned, reducing our overall leverage is one of my primary objectives. Our goal is to finish the year at less than 4.5 times. While we saw a moderate reduction from Q1 to Q2, we remain on target to achieve our goal by the end of 2024, and we'll continue to focus on paying down debt towards our long-term target of less than three times levered by year-end 2026.

正如我之前提到的，降低我們的整體槓桿率是我的主要目標之一。我們的目標是今年完成時次數低於 4.5 次。雖然我們看到第一季到第二季略有下降，但我們仍然致力於在 2024 年底之前實現我們的目標，我們將繼續專注於償還債務，以實現每年槓桿率低於三倍的長期目標- 2026 年底。

I'm pleased to report that we successfully refinanced 258 million of WBS notes, which were coming due in April 2025 by issuing new 275 million seven-year notes, essentially, leverage neutral. We also increased our liquidity through the addition of $400 million of variable funding notes, which replaced our $115 million variable funding notes from 2019. Our variable funding notes remains fully undrawn.

我很高興地報告，我們透過發行新的2.75 億張七年期票據（本質上是槓桿中性的），成功為2.58 億張WBS 票據進行了再融資，這些票據將於2025 年4 月到期。我們也透過增加 4 億美元的可變融資票據來增加流動性，取代了 2019 年 1.15 億美元的可變融資票據。我們的可變融資票據仍然完全未提取。

Our debt stack is comprised of approximately 80% WBS notes with a blended fixed rate of 4.5% and a weighted average maturity of 3.6 years. There are no maturities coming due until Q2 2026.

我們的債務組合由約 80% 的 WBS 票據組成，混合固定利率為 4.5%，加權平均期限為 3.6 年。2026 年第二季之前沒有到期日。

Now let me spend a few minutes on our growth priorities: Take 5 Oil Change, Auto Glass Now, and Driven Advantage. Take 5 continued to deliver very strong results. Q2 2024 marks the 16th consecutive quarter of positive same-store sales growth. Revenue grew by 16%, and EBITDA grew by 22% compared to Q2 '23.

現在讓我花幾分鐘時間討論我們的成長重點：Take 5 Oil Change、Auto Glass Now 和 Driven Advantage。Take 5 持續取得非常強勁的成果。2024 年第二季標誌著同店銷售連續第 16 季實現正成長。與 2023 年第二季相比，營收成長了 16%，EBITDA 成長了 22%。

Additionally, Mo Khalid and the team grew margins by approximately 170 basis points over Q1. The team remains focused on executing the Take 5 playbook to drive sales while maintaining strong operational efficiency and satisfied customers manifested in our Net Promoter Score of 77%. Take 5 Oil Change has seen robust to unit growth, adding 68 new units year to date, a majority of which are asset-light franchises. We also expect to add approximately 100 additional stores in the second half.

此外，Mo Khalid 和團隊的利潤率比第一季成長了約 170 個基點。團隊仍專注於執行 Take 5 策略來推動銷售，同時保持強勁的營運效率和滿意的客戶，這體現在我們 77% 的淨推薦值上。Take 5 Oil Change 的單位成長強勁，今年迄今新增 68 個單位，其中大部分是輕資產特許經營單位。我們也預計下半年將新增約 100 家門市。

At the end of the quarter, 37% of Take 5 stores are franchised. Over a two-year period, our franchise store count has almost doubled, and we anticipate franchisees to account for approximately 50% of total locations over time. Our unit economics continue to attract new franchisees and drive our existing franchisees to sign new development agreements.

截至本季末，Take 5 商店中有 37% 是特許經營店。在兩年的時間裡，我們的特許經營店數量幾乎增加了一倍，我們預計隨著時間的推移，特許經營商將佔總店面數量的 50% 左右。我們的單位經濟效益繼續吸引新的特許經營商，並推動我們現有的特許經營商簽署新的開發協議。

Now looking at the last eight quarters for Take 5 Oil Change, some KPIs measured on a two-year CAGR include franchise unit growth of 39.9%, company unit growth of 10.1% for a combined unit growth of 18.8%, system wide sales growth of 24.8%, and net revenue growth of 20.3%. In summary, very strong performance across all metrics.

現在看看 Take 5 Oil Change 的過去八個季度，根據兩年複合年增長率衡量的一些 KPI 包括特許經營單位增長 39.9%、公司單位增長 10.1%（綜合單位增長 18.8%）、全系統銷售增長24.8 %，淨收入成長20.3%。總之，所有指標的表現都非常強勁。

Now switching to our US glass business, Auto Glass Now. We remain excited of a medium- and longer-term prospects for this business and know that it will take time to build scale and momentum. Earning insurance and commercial business can take time, and we want to do it right because of the importance of long-term sustainable partnerships.

現在轉向我們的美國玻璃業務，Auto Glass Now。我們對這項業務的中長期前景仍然感到興奮，並且知道建立規模和動力需要時間。贏得保險和商業業務需要時間，我們希望做得正確，因為長期可持續合作夥伴關係的重要性。

The revenue for AGN is blended, approximately one-third retail, one-third commercial, and one-third insurance. And over time, we expect to grow the commercial and insurance revenue faster than our retail business.

AGN 的收入是混合收入，約三分之一來自零售業，三分之一來自商業業，三分之一來自保險業。隨著時間的推移，我們預期商業和保險收入的成長速度將快於零售業務。

So let's start with our retail customers. These are typically out-of-pocket pay with an average check of approximately $300. Our in order to capture additional retail revenue, we rolled out the online estimator in late Q2, allowing customers to avoid coming to the shops for quotes, and we are very pleased with the early adoption rates.

讓我們從零售客戶開始。這些通常是自付費用，平均支票約為 300 美元。為了獲得額外的零售收入，我們在第二季末推出了線上估算器，使客戶無需前往商店獲取報價，我們對早期採用率感到非常滿意。

Next, our commercial customers, who are owners and managers of large fleets of vehicles. The average check is approximately $400 with a calibration attachment rate of approximately 31%. We're pleased to have signed contracts with two major national car rental companies in Q2, and we'll start seeing that volume materialize in the second half of 2024. Finally, our insurance customers have an average check of approximately $650 and calibration attachment rate of approximately 42%.

接下來是我們的商業客戶，他們是大型車隊的所有者和管理者。平均支票金額約為 400 美元，校準附件率約為 31%。我們很高興在第二季度與兩家主要的全國汽車租賃公司簽署了合同，我們將在 2024 年下半年開始看到這一數量的實現。最後，我們的保險客戶的平均支票約為 650 美元，校準附件率約為 42%。

I'm also pleased to report that we finalized six new agreements with regional partners in Q2, and this volume will start flowing in the second half of 2024. We also have a growing pipeline of regional and national carriers and are currently in multiple RFPs. The momentum and interest continued to build with carriers presenting increasing medium- and long-term opportunities.

我還很高興地報告，我們在第二季度與區域合作夥伴敲定了六項新協議，這一數量將於 2024 年下半年開始流動。我們還擁有不斷成長的區域和國家營運商管道，目前正在多個 RFP 中。隨著航空公司提供越來越多的中長期機會，這種勢頭和興趣繼續增強。

And as I have mentioned multiple times over the past several quarters, it will take time to build this business. However, we remain very optimistic about the future of this nascent category.

正如我在過去幾個季度中多次提到的，建立這項業務需要時間。然而，我們對這個新興類別的未來仍然非常樂觀。

Driven Advantage is our online marketplace, where our company stores, franchisees, and affiliates can purchase over 90,000 skews from more than 50 vendor partners, ranging from office supplies to paint oil and equipment. Since its launch in Q1 2023, approximately, 80% of eligible locations have already begun purchasing products and services on the platform.

Driven Advantage 是我們的線上市場，我們的公司商店、特許經營商和附屬公司可以從 50 多個供應商合作夥伴那裡購買 90,000 多種斜品，範圍從辦公用品到油漆油和設備。自 2023 年第一季推出以來，大約 80% 的符合條件的地點已開始在該平台上購買產品和服務。

While the majority of revenue and contribution benefits from Driven Advantage show up in our operating segments, some highlights from the first half of 2024 include -- we've added 1,500 customers in the first half of 2024 almost entirely from our franchisees and affiliates. Sales in the first half of 2024 were up approximately $170 million, up from $70 million in the first half of 2023.

雖然Driven Advantage 的大部分收入和貢獻收益體現在我們的營運部門，但2024 年上半年的一些亮點包括——我們在2024 年上半年增加了1,500 名客戶，幾乎全部來自我們的特許經營商和附屬公司。2024 年上半年的銷售額從 2023 年上半年的 7,000 萬美元增加了約 1.7 億美元。

We launched new capabilities to further increase sales like automatic reordering, vendor promotions, and are now generating advertising revenue from our vendor partners. We also see a growing interest in the industry is more third parties see the platform, both from automotive suppliers looking to sell on Driven Advantage and from other automotive companies looking to use Driven Advantage at their own locations. This is a uniquely powerful platform that we have created that benefits our franchisees, company stores, vendor partners and Driven.

我們推出了新功能來進一步增加銷售量，例如自動重新訂購、供應商促銷，並且現在正在從我們的供應商合作夥伴產生廣告收入。我們還看到，隨著越來越多的第三方看到該平台，該行業的興趣日益濃厚，包括希望在Driven Advantage 上進行銷售的汽車供應商以及希望在自己的地點使用Driven Advantage 的其他汽車公司。這是我們創建的一個獨特的強大平台，有利於我們的特許經營商、公司商店、供應商合作夥伴和 Driven。

Now my focus in 2024 again, is on delivering our outlook, reducing debt, and actively managing the portfolio. We have a platform that generates high steady-state returns with a long runway for reinvestment at attractive returns. And we're incredibly motivated to see our valuation mirror our results over time.

現在我再次將 2024 年的重點放在實現我們的前景、減少債務和積極管理投資組合上。我們擁有一個能夠產生高穩態回報的平台，並且有很長的跑道可以以有吸引力的回報進行再投資。我們非常有動力看到我們的估值隨著時間的推移反映我們的結果。

Let me hand it over to my partner, Danny, our Chief Operating Officer, to discuss our key business segments.

讓我把它交給我的合作夥伴，我們的營運長丹尼，來討論我們的關鍵業務部門。

Thanks, Jonathan. Before diving into our results, I want to acknowledge our Driven employees and franchisees, who embody our model dream big, work hard, and continue to deliver results for our shareholders and our brand leaders. While the team here works to strategically position Driven for future growth, Driven's success is ultimately defined by the boots on the ground employees and franchisees that are in more than 5,000 locations who worked tirelessly to delight our customers.

謝謝，喬納森。在深入探討我們的業績之前，我要感謝我們的 Driven 員工和加盟商，他們體現了我們的模式遠大夢想，努力工作，並繼續為我們的股東和品牌領導者帶來成果。雖然這裡的團隊致力於為 Driven 的未來發展進行戰略定位，但 Driven 的成功最終取決於遍布 5,000 多個地點的當地員工和特許經營商，他們孜孜不倦地努力讓我們的客戶滿意。

I'd like to begin by restating that my priority for 2024 remain unchanged: ensure Take 5 continue to deliver against our (technical difficulty), improve the trajectory of Auto Glass Now and our US car wash business, continue to grow Driven Advantage, and make certain that our legacy franchise brands generate consistent growth that continues to produce EBITDA margins in excess of 50%.

首先，我想重申我 2024 年的首要任務保持不變：確保 Take 5 繼續克服我們的（技術困難），改善 Auto Glass Now 和我們美國洗車業務的發展軌跡，繼續發展 Driven Advantage，以及確保我們的傳統特許經營品牌產生持續成長，持續產生超過50% 的EBITDA 利潤率。

Turning to our Q2 results, I am happy with the results the team delivered. We achieved year-over-year growth in revenue, adjusted EBITDA, and adjusted EBITDA margin, while continuing our streak of 14 straight quarters of positive same-store sales. Take 5 continues to deliver against our expectations and is the major driver of our revenue and adjusted EBITDA growth in Q2.

談到我們第二季的結果，我對團隊交付的結果感到滿意。我們實現了營收、調整後 EBITDA 和調整後 EBITDA 利潤率的同比增長，同時繼續保持連續 14 個季度同店銷售正增長的勢頭。Take 5 的業績持續超越我們的預期，是我們第二季營收和調整後 EBITDA 成長的主要推動力。

Our B2B channel also remained strong with consistent, steady, and predictable business from our commercial insurance partners. As a reminder, about 50% of our system wide sales come from commercial B2B customers. While Auto Glass Now and our US car wash business are not yet fully firing on all cylinders, the businesses are steadily moving in the right direction.

我們的 B2B 通路也保持強勁，來自商業保險合作夥伴的業務持續、穩定且可預測。提醒一下，我們系統範圍內約 50% 的銷售額來自商業 B2B 客戶。雖然 Auto Glass Now 和我們的美國洗車業務尚未全力以赴，但這些業務正在朝著正確的方向穩步前進。

Both businesses saw sequential growth in revenue and adjusted EBITDA for the past two quarters. Our legacy franchise brands like Meineke, Maaco, CARSTAR, and 1-800 Radiator, all continued to steadily perform and drive adjusted EBITDA margins in excess of 50%.

過去兩個季度，這兩項業務的收入和調整後的 EBITDA 均實現環比成長。我們的傳統特許經營品牌，如 Meineke、Maaco、CARSTAR 和 1-800 Radiator，均繼續穩定表現並推動調整後 EBITDA 利潤率超過 50%。

Turning now to our maintenance segment, which had year-over-year and sequential increases in system-wide sales, revenue, adjusted EBITDA, and adjusted EBITDA margin. Performance in our maintenance segment continues to be driven by the strength of Take 5 Oil Change. In Q2 versus the prior year, Take 5 achieved a 15.6% increase in revenue and a 22.3% increase in adjusted EBITDA, while adjusted EBITDA margin expanded 191 basis points.

現在轉向我們的維護部門，該部門的全系統銷售額、收入、調整後 EBITDA 和調整後 EBITDA 利潤率同比連續增長。Take 5 Oil Change 的實力持續推動我們維修領域的表現。第二季與去年同期相比，Take 5 的營收成長了 15.6%，調整後 EBITDA 成長了 22.3%，調整後 EBITDA 利潤率擴大了 191 個基點。

In the quarter, we opened 40 units split between 15 company-owned and 25 franchise. Over the past 12 months, we have grown the number of Take 5 units by about 20% and remain on track for our target of 150 openings each year for the next three years.

本季度，我們開設了 40 個單位，其中 15 個為公司自營單位，25 個為特許經營單位。在過去 12 個月中，我們的 Take 5 單位數量增加了約 20%，並且仍有望實現未來三年每年 150 個職缺的目標。

Additionally, we achieved positive same-store sales of 5.7%, resulting in a two-year, same-store sales stack of 23.5%. This business continues to grow sales through natural ticket growth in premium oil and our low-pressure selling environment. In the quarter, we achieved a record premium mix and continued to see year-over-year growth in ancillary attachment rates. Mo Khalid, President of Take 5, and the team continued to deliver strong financial results while simultaneously delighting our customers with NPS scores in the upper 70s.

此外，我們的同店銷售額實現了 5.7% 的正成長，兩年同店銷售額累計達到 23.5%。該業務透過優質石油的自然門票成長和我們的低壓銷售環境繼續增加銷售。本季度，我們實現了創紀錄的保費組合，並且輔助附加費率繼續同比增長。Take 5 總裁 Mo Khalid 和團隊繼續創造強勁的財務業績，同時以 70 多分的 NPS 分數讓我們的客戶滿意。

Looking to our PC&G segment, Q2 delivered revenue of $112 million, adjusted EBITDA of $35 million, and adjusted EBITDA margin of 31.4%, all of which represents sequential improvement versus the prior quarter. Q2 same-store sales were down 0.5%. However, our two-year same-store sales stack is 11.7%, demonstrating strong and consistent execution. The softness in revenue is mostly due to the refranchising of 12 company-owned locations and comping over a record quarter in 2023, caused by the hail storms that disproportionately grew our business.

就我們的 PC&G 部門而言，第二季實現營收 1.12 億美元，調整後 EBITDA 為 3,500 萬美元，調整後 EBITDA 利潤率為 31.4%，所有這些都比上一季有所改善。第二季同店銷售額下降 0.5%。然而，我們的兩年同店銷售堆疊為 11.7%，表現出強大且一致的執行力。收入疲軟主要是由於對 12 個公司擁有的地點進行了重新特許經營，並在 2023 年創下了創紀錄的季度業績，而冰雹風暴導致我們的業務增長不成比例。

Moving over to Auto Glass Now, our company-owned North American glass business. As we've previously stated, Auto Glass Now is a multi-year journey. That being said, I'm happy with the progress and momentum with team is building. In Q2, we sequentially we grew revenue and adjusted EBITDA while seeing meaningful margin expansion.

現在轉向汽車玻璃，這是我們公司擁有的北美玻璃業務。正如我們之前所說，Auto Glass Now 是一個多年的旅程。話雖這麼說，我對團隊正在建立的進展和勢頭感到高興。在第二季度，我們連續增加了收入並調整了 EBITDA，同時看到了有意義的利潤率擴張。

As part of our growth strategy, we continue to focus on signing the insurance carriers as well as major commercial partners. In just Q2, Auto Glass Now added six regional insurance carriers to its portfolio while also signing agreements with two national rental car providers. We remain bullish on this business and industry and feel good about the momentum and sequential improvements Michael Macaluso and the team are delivering.

作為我們成長策略的一部分，我們繼續專注於與保險公司以及主要商業夥伴簽約。僅在第二季度，Auto Glass Now 就在其投資組合中增加了六家地區保險公司，同時也與兩家全國性租車提供商簽署了協議。我們仍然看好這個業務和行業，並對 Michael Macaluso 和團隊正在實現的勢頭和連續改進感到滿意。

Shifting to our platform services segment, this segment continues to deliver year-over-year growth as revenue and adjusted EBITDA increased 6.8% and 12.4% respectively, while adjusted EBITDA margins increased 206 basis points to 41.3%.

轉向我們的平台服務部門，該部門繼續實現同比增長，收入和調整後 EBITDA 分別增長 6.8% 和 12.4%，而調整後 EBITDA 利潤率增長 206 個基點，達到 41.3%。

As Jonathan mentioned, Driven Advantage, our in-house procurement platform continues to grow as well. This quarter we saw total of $89 million in sales to go through the platform, which represents sequential growth of 14%. This growth is driven by the expansion of our offerings and continued adoption from our franchisees with approximate roughly 80% of all eligible franchisees using the platform. Many thanks to Kyle Marshall and his team for the continued strong performance.

正如 Jonathan 所提到的，我們的內部採購平台 Driven Advantage 也在不斷發展。本季度，我們透過該平台實現的銷售額總計 8,900 萬美元，季增 14%。這一成長是由我們產品的擴展和加盟商的持續採用推動的，大約 80% 的合格加盟商使用該平台。非常感謝凱爾·馬歇爾和他的團隊持續的強勁表現。

Lastly, I would like to discuss our car wash segment. We continue to work hard to turn this segment around and continue to see progress and momentum. In the quarter, we sequentially grew revenue and adjusted EBITDA by 8.4% and 15.9% respectively, while also growing adjusted EBITDA margins by 139 basis points.

最後，我想談談我們的洗車業務。我們將繼續努力扭轉這一領域的局面，並繼續看到進展和勢頭。本季度，我們的營收和調整後 EBITDA 分別較上季成長 8.4% 和 15.9%，調整後 EBITDA 利潤率也成長 139 個基點。

Q2 presented some strong headwinds, particularly for US car wash business with 44% of the calendar days in the quarter experiencing heavy rain. We were able to overcome some of these headwinds with our continued focus on membership. As I've mentioned before, Tim Austin and our US carwash team remain extremely focused on growing our membership business, and we've seen significant improvement throughout the year.

第二季出現了一些強勁的阻力，特別是對於美國洗車業務來說，該季度 44% 的日曆天遭遇大雨。透過繼續關注會員資格，我們能夠克服其中一些阻力。正如我之前提到的，蒂姆·奧斯汀和我們的美國洗車團隊仍然非常專注於發展我們的會員業務，並且我們在這一年中看到了顯著的進步。

Year to date, we've nearly tripled our conversion rate of retail customers to members and have added over 200,000 new members. Our international carwash business, led by Tracy Gehlan, delivered sequential margin expansion and continues to deliver solid financial results across the board.

今年迄今為止，我們的零售客戶向會員的轉換率幾乎增加了兩倍，並增加了超過 20 萬名新會員。我們的國際洗車業務在 Tracy Gehlan 的領導下實現了利潤率的連續成長，並繼續全面實現穩健的財務表現。

Overall, I am pleased with the progress that we made this quarter, particularly considering the softer consumer environment. We delivered another strong quarter with year-over-year growth in same-store sales, revenue, EBITDA, and EBITDA margins.

總體而言，我對本季的進展感到滿意，特別是考慮到消費環境趨於疲軟。我們再次實現了強勁的季度業績，同店銷售額、營收、EBITDA 和 EBITDA 利潤率均較去年同期成長。

When it comes to our business priorities, Take 5 Oil Change continues to deliver exceptional results. Auto Glass Now and US car wash continue to show sequential momentum. Driven Advantage continues to grow and is on track to deliver our 2026 EBITDA plans. And our legacy franchise businesses continue to predictably grow and generate cash. I'd, once again, like to thank the thousands of employees and franchisees that worked hard to put together a strong quarter.

當談到我們的業務重點時，Take 5 Oil Change 繼續提供卓越的成果。Auto Glass Now 和美國洗車公司持續呈現連續成長動能。Driven Advantage 持續成長，並有望實現我們的 2026 年 EBITDA 計畫。我們的傳統特許經營業務繼續按預期增長並產生現金。我要再次感謝成千上萬的員工和加盟商，他們努力工作，創造了一個強勁的季度。

With that, I will turn it over to my partner. Joel?

有了這個，我會把它交給我的夥伴。喬爾？

Thanks, Danny, and good morning, everyone. I'd like to start by thanking Jonathan, Danny, and the entire Driven Brands team for their support the past three months. It's been an incredible opportunity to lead the Driven Brands finance team. I'm extremely proud of what we have accomplished this quarter.

謝謝丹尼，大家早安。首先，我要感謝喬納森、丹尼和整個 Driven Brands 團隊在過去三個月的支持。這是領導 Driven Brands 財務團隊的絕佳機會。我對我們本季所取得的成就感到非常自豪。

In addition, that had the opportunity to meet Mike several times, and I'm confident he will be a great addition to the team. I'm looking forward to working with him to deliver strong results in 2024 and beyond.

此外，我有機會多次見到麥克，我相信他將成為團隊的重要補充。我期待與他合作，在 2024 年及以後取得強勁成果。

First, I will discuss second-quarter results before moving on to the full-year outlook. On a consolidated basis, we delivered our 14th straight quarter of positive same-store sales. Our system-wide sales reached $1.7 billion, representing a 0.6% increase for the previous year. This growth is driven by a 0.5% increase in same-store sales and 2% net store growth.

首先，我將討論第二季的業績，然後再討論全年展望。綜合來看，我們的同店銷售額連續第 14 季實現正成長。我們的全系統銷售額達到 17 億美元，比上年成長 0.6%。這一增長是由同店銷售額增長 0.5% 和店鋪淨增長 2% 推動的。

Total revenue for the quarter increased 0.8% to $611.6 million, and adjusted EBITDA increased 4% to $152.2 million. Adjusted EBITDA margin increased 77 basis points to 24.9%, primarily driven by margin improvement and maintenance.

該季度總營收成長 0.8%，達到 6.116 億美元，調整後 EBITDA 成長 4%，達到 1.522 億美元。調整後 EBITDA 利潤率成長 77 個基點，達到 24.9%，主要是由於利潤率改善和維持所致。

Now I will discuss performance at each of our segments. In our Maintenance segment, system-wide sales increased 10.5% to $535 million, driven by a 4.3% increase in same-store sales and a 159 new-store openings versus the second quarter 2023.

現在我將討論我們每個細分市場的績效。與 2023 年第二季相比，在同店銷售額成長 4.3% 和新開 159 家新店的推動下，我們的維修部門的全系統銷售額成長了 10.5%，達到 5.35 億美元。

Take 5's continued sales execution, including same-store sales of 5.7%, were underscored by record premium oil mix of approximately 90% in year-over-year improvement in attachment rates. We added 40 net new Take 5 Oil Change stores during the quarter with 25 franchise in 15 company-owned stores.

Take 5 的持續銷售執行力（包括 5.7% 的同店銷售額）得益於創紀錄的優質油組合約 90% 的附著率同比改善。本季我們淨新增 40 家 Take 5 Oil Change 商店，其中 15 家公司自有商店擁有 25 家特許經營店。

The Maintenance segment sales growth, coupled with disciplined operational improvements, led to a 21.4% increase in adjusted EBITDA to $102.9 million. Adjusted EBITDA margin expanded 203 basis points to 37%, driven primarily by Take 5 Oil Change.

維修部門銷售成長，加上嚴格的營運改進，導致調整後 EBITDA 成長 21.4%，達到 1.029 億美元。調整後的 EBITDA 利潤率擴大了 203 個基點，達到 37%，這主要是受到 Take 5 石油變化的推動。

In our car wash segment, same-store sales declined 4.1% due to retail softness and inclement weather in our US carwash business. For the quarter, sales were $156.9 million, and adjusted EBITDA was $33.8 million. Although the decrease in revenue and adjusted EBITDA versus Q2 2023 was driven by our US car wash operations, we saw comp trends improved sequentially quarter over quarter due to our new membership pricing strategy. As Danny mentioned earlier, year to date, our membership count grew by over 200,000 new members.

在我們的洗車業務中，由於美國洗車業務的零售疲軟和惡劣天氣，同店銷售額下降了 4.1%。該季度銷售額為 1.569 億美元，調整後 EBITDA 為 3,380 萬美元。儘管與 2023 年第二季相比，收入和調整後 EBITDA 的下降是由我們的美國洗車業務推動的，但由於我們新的會員定價策略，我們看到比較趨勢逐季改善。正如丹尼之前提到的，今年迄今為止，我們的會員數量增加了超過 20 萬名新會員。

In our PCG segment system wide sales were $862.2 million, a decrease of 3.4% versus the prior-year period. Same-store sales declined 0.5%. Revenue for the segment was $112 million and adjusted EBITDA was $35.2 million, a decrease of 15.9% and 14.3%, respectively. These results were primarily driven by our collision business.

在我們的 PCG 部門，全系統銷售額為 8.622 億美元，比去年同期下降 3.4%。同店銷售額下降 0.5%。該部門的收入為 1.12 億美元，調整後 EBITDA 為 3,520 萬美元，分別下降 15.9% 和 14.3%。這些結果主要是由我們的碰撞業務所推動的。

The decrease in same-store sales was driven by two main factors, lapping Q2 2023 hailstorms in 2024 industry softness. The decrease in revenue was additionally impacted by refranchising of 12 company-owned locations, which lowered revenue by approximately $13 million and adjusted EBITDA by approximately $2 million.

同店銷售額下降主要由兩個因素驅動，一是 2023 年第二季的冰雹，二是 2024 年產業疲軟。收入下降也受到公司自有 12 個地點的重新特許經營的影響，收入減少了約 1300 萬美元，調整後的 EBITDA 減少了約 200 萬美元。

In our platform services segment, sales grew 6.8% to $61.2 million and adjusted EBITDA increase 12.4% to $25.3 million. Adjusted EBITDA margin increased 206 basis points to 41.3%, which was due to improved variable cost management.

在我們的平台服務部門，銷售額成長 6.8% 至 6,120 萬美元，調整後 EBITDA 成長 12.4% 至 2,530 萬美元。調整後 EBITDA 利潤率成長 206 個基點，達到 41.3%，這得益於變動成本管理的改善。

Now I will focus on key components below adjusted EBITDA. Depreciation and amortization expenses totaled $45 million for the quarter, reflecting a $1 million decrease from the prior year as we dispose of our US car wash assets held for sale.

現在我將重點放在調整後 EBITDA 下方的關鍵組成部分。本季折舊和攤銷費用總計 4,500 萬美元，比前一年減少 100 萬美元，因為我們處置了待售的美國洗車資產。

Interest expense declined to $32 million, primarily due to a one-time reduction in the estimated interest on our tax receivable agreement liability and improved interest rates on our cash deposits. Net income for the second quarter was $30.2 million versus $37.7 million in Q2 2023. Adjusted net income was $58 million for the quarter, resulting in an adjusted diluted EPS for the quarter of $0.35. Both are up versus prior year due to strong EBITDA growth and continued debt reduction.

利息支出下降至 3,200 萬美元，主要是由於我們的應收稅款協議負債的預計利息一次性減少以及現金存款利率提高。第二季淨利為 3,020 萬美元，而 2023 年第二季淨利為 3,770 萬美元。該季度調整後淨利潤為 5,800 萬美元，調整後攤薄每股收益為 0.35 美元。由於 EBITDA 強勁成長和債務持續減少，兩者均較上年有所成長。

At the end of the second quarter, we had $316 million in liquidity, comprised of $149 million in cash and cash equivalents, along with $167 million of undrawn capacity under our variable funding securitization senior notes [in a] our revolving credit facility. On Monday, we closed an offering of $275 million in Series 2024 Class A-2 senior notes to refinance our Series 2018-1 Class A-2 senior notes. In conjunction with these notes, we increased our total variable funding note capacity to over $500 million.

截至第二季末，我們的流動資金為 3.16 億美元，其中包括 1.49 億美元的現金和現金等價物，以及循環信貸安排中可變融資證券化優先票據下的 1.67 億美元的未提取能力。週一，我們完成了 2.75 億美元的 2024 系列 A-2 級高級票據發行，為我們的 2018-1 系列 A-2 級高級票據再融資。結合這些票據，我們將可變融資票據總額增加到超過 5 億美元。

As a reminder, our debt stack is comprised of approximately 8% whole business securitization notes with a blended fixed rate of 4.5% and a weighted average maturity of 3.6 years. There are no maturities coming due until Q2 2026. Throughout the quarter, we continued to make meaningful progress paying down our credit facilities.

提醒一下，我們的債務組合由約 8% 的整體業務證券化票據組成，混合固定利率為 4.5%，加權平均期限為 3.6 年。2026 年第二季之前沒有到期日。整個季度，我們在償還信貸額度方面繼續取得有意義的進展。

In addition to a $25 billion reduction in our drawn revolver balance, we chose to make a $20 million prepayment to our term loan principal balance to reduce our higher interest rate debt. As of Q2, we paid down $80 million of principal across our revolver and term loan from our inter-quarter peak in Q1.

除了減少循環貸款餘額 250 億美元外，我們還選擇提前償還定期貸款本金餘額 2,000 萬美元，以減少利率較高的債務。截至第二季度，我們透過左輪手槍和定期貸款償還了 8,000 萬美元的本金，較第一季的季度間高峰還清了 8,000 萬美元。

But we haven't stopped there. In July, we were able to make another $20 million of offshore prepayments to our term loan principal balance and expect to build on this momentum in the second half of the year as we focus on getting our net leverage below 4.5 times.

但我們並沒有就此止步。7 月份，我們能夠向定期貸款本金餘額再支付 2000 萬美元的離岸預付款，並預計在下半年繼續保持這一勢頭，因為我們致力於將淨槓桿率降至 4.5 倍以下。

At the end of the quarter, our net leverage ratio improved sequentially from the prior quarter. As of Q2 '24, our net leverage was 4.8 times, down from 4.9 times in Q1 and 5 times at the end of 2023. We plan to convey to de-lever throughout the year, thanks to improved cash flow from organic adjusted EBITDA growth and proceeds from the sale of US car wash pipeline sites.

截至本季末，我們的淨槓桿比率較上季較上季有所改善。截至 2024 年第二季度，我們的淨槓桿率為 4.8 倍，低於第一季的 4.9 倍和 2023 年底的 5 倍。我們計劃全年實現去槓桿化，這要歸功於有機調整後的 EBITDA 成長帶來的現金流改善以及出售美國洗車管道站點的收益。

In the second quarter, we generated $66 million of assets held for sale, bringing our total through Q2 to $100 million. As Jonathan mentioned, year to date, we have sold $107 million in assets held for sale and expect to sell an additional $50 million in 2024.

第二季度，我們產生了 6,600 萬美元的待售資產，使第二季的資產總額達到 1 億美元。正如喬納森所提到的，今年迄今為止，我們已出售了 1.07 億美元的待售資產，預計 2024 年將再出售 5,000 萬美元。

Now I will provide a brief update on our ERP implementation. I'm happy to share that our new ERP system went live in July. We are taking an incremental approach to the implementation. We will continue to shift our brands under the new system.

現在我將簡要介紹我們 ERP 實施的最新情況。我很高興地告訴大家，我們的新 ERP 系統已在 7 月上線。我們正在採取漸進的方法來實施。我們將在新的體系下繼續進行品牌轉型。

Now I would like to update our full-year outlook. Based primarily on continued softness in the US car wash business, collision industry trends and macroeconomic uncertainty. We are adjusting our same-store sales growth outlook for the year to 1% to 3% from 3% to 5%.

現在我想更新我們的全年展望。主要基於美國洗車業務的持續疲軟、碰撞產業趨勢和宏觀經濟的不確定性。我們將今年同店銷售成長預期從 3% 至 5% 調整為 1% 至 3%。

We also expect to come in at the lower end of our original revenue outlook of $2.35 billion to $2.45 billion. Maintenance and platform services segments drove adjusted EBITDA growth through the first half of 2024. We expect these trends to continue in the back half of 2024, along with moderate improvement in our other segments.

我們也預期該收入將達到最初營收預期的下限，即 23.5 億美元至 24.5 億美元。維護和平台服務部門推動了 2024 年上半年調整後 EBITDA 的成長。我們預計這些趨勢將在 2024 年下半年持續下去，同時我們的其他細分市場也將出現適度改善。

For the full year, we now expect adjusted EBITDA to come in at the mid to upper end of the original range of $535 million to $565 million. We expect adjusted diluted EPS to come in at the higher end of our original range of $0.88 to $1. We are reaffirming our original outlook, a net store growth of approximately 205 to 220 stores during the year.

對於全年，我們現在預計調整後的 EBITDA 將達到原定範圍 5.35 億至 5.65 億美元的中上端。我們預計調整後的攤薄每股收益將達到我們最初範圍 0.88 美元至 1 美元的上限。我們重申最初的預期，即年內淨店成長約 205 至 220 家。

We continue to expect depreciation and amortization expenses of approximately $175 million and interest expenses of approximately $170 million. Our effective tax rate is expected to be approximately 35% in 2024, which is in line with our 2022 effective tax rate.

我們仍然預計折舊和攤提費用約為 1.75 億美元，利息費用約為 1.7 億美元。2024 年我們的有效稅率預計約為 35%，這與我們 2022 年的有效稅率一致。

We continue to expect [gross] capital investments to be approximately $260 million for the full year with approximately $40 million sale of leasebacks. This resulted in net CapEx of approximately $220 million. For the rest of the year, as Jonathan mentioned before, we are focused on generating free cash flow and reducing debt. We continue to expect net leverage to be below 4.5 times by year end.

我們仍預計全年資本投資總額約為 2.6 億美元，其中回租銷售約為 4,000 萬美元。這導致淨資本支出約為 2.2 億美元。在今年剩下的時間裡，正如喬納森之前提到的，我們的重點是產生自由現金流和減少債務。我們仍預計到年底淨槓桿率將低於 4.5 倍。

Now we'd like to provide more color on the third quarter. We expect our third-quarter year-over-year revenue growth to be in the low single digits and our adjusted EBITDA growth to be in the low double digits.

現在我們想在第三季提供更多的色彩。我們預計第三季營收年增將處於較低的個位數，調整後的 EBITDA 成長將處於較低的兩位數。

Now I will turn it back over to the operator.

現在我將把它轉回給操作員。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，我們現在開始問答環節。（操作員說明）

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Good morning, everyone. I wanted to ask and start with car wash. It's about 20-ish -- 20% to 25% of EBITDA. Curious what your thoughts are. It's been a long and winding road. It seems like it's stabilizing a bit. Wonder how strategic it is to the overall portfolio and EBITDA growth going forward.

大家早安。我想問一下，從洗車開始。大約是 EBITDA 的 20% 到 25%。好奇你的想法是什麼。這是一條漫長而曲折的道路。看起來好像有點穩定了。想知道它對整體投資組合和未來 EBITDA 成長有何策略意義。

Hi, Simeon. Jonathan here. Good question. I think a couple of things. One is, we're retaining the position from the Investor Day that we're not deploying incremental growth capital into that business. I'm very pleased with the progress that Tim Austin, our car wash President, and Danny, have done in sort of stabilizing that business, and we're starting to see sequential growth.

嗨，西蒙。喬納森在這裡。好問題。我認為有幾件事。一是，我們保留投資者日的立場，即我們不會將增量成長資本部署到該業務中。我對我們的洗車總裁蒂姆·奧斯汀（Tim Austin）和丹尼（Danny）在穩定該業務方面所取得的進展感到非常滿意，我們開始看到連續增長。

I've also mentioned that we are still in the process of evaluating the long-term sustainability of that car wash asset within our portfolio. We're not there yet in terms of a decision that we're willing to make publicly, but again, we're pleased with the stabilization that Danny and Tim have made on the business in 2024.

我還提到，我們仍在評估我們投資組合中洗車資產的長期可持續性。我們還沒有做出願意公開做出的決定，但我們再次對 Danny 和 Tim 在 2024 年業務上取得的穩定感到滿意。

Okay. And then switching to maintenance, two parts, the margins are exploding positively. Maybe I missed the commentary on what's helping to drive that. While the Take 5 looks like it slowed a little bit sequentially, maybe chalked up -- again, I may have missed some commentary, but what was the culprit? Was it temporal weather, et cetera?

好的。然後轉向維護，兩個部分，利潤爆炸性成長。也許我錯過了有關推動這一目標的因素的評論。雖然 Take 5 看起來連續放慢了一點，也許是用粉筆記錄下來的——再說一次，我可能錯過了一些評論，但罪魁禍首是什麼？是天氣原因還是其他原因？

Yeah, look, I think Mo Khalid and the Take 5 team are doing an exceptional job on margin expansion. I think there's multiple things driving that, Simeon. One is just great operational efficiency, continuing to drive premium oil mix, attachment rates, which are all margin-accretive. We've obviously got more franchise stores joining the mix as well, which obviously helps leverage.

是的，我認為 Mo Khalid 和 Take 5 團隊在利潤擴張方面做得非常出色。我認為有很多因素在推動這一點，西蒙。一是出色的營運效率，繼續推動優質油品組合和附著率，這些都會增加利潤。顯然我們也有更多的特許經營店加入其中，這顯然有助於槓桿作用。

In terms of your comment around Q1 to Q2 sequential same-store sales, there's really a de minimis move. We don't see any trajectory change in that business and are still very confident in the full-year outlook for Take 5 Oil Change.

就您對第一季至第二季同店連續銷售的評論而言，確實存在微不足道的舉動。我們認為該業務的軌跡不會發生任何變化，並且對 Take 5 Oil Change 的全年前景仍然非常有信心。

Justin Kleber, Baird.

賈斯汀·克萊伯，貝爾德。

Hey, guys. Good morning. Thanks for taking the question. First one was on car wash and the test you talked about last quarter, where you dropped the subscription price to be in line with a single wash. Curious if you're operating with that pricing structure across the chain today. Have you seen any response -- competitive response from those actions?

嘿，夥計們。早安.感謝您提出問題。第一個是關於洗車和您上季度談到的測試，您將訂閱價格降低到與單次洗車一致。很好奇您現在是否在整個供應鏈中採用這種定價結構。您是否看到了這些行動的任何反應—競爭性反應？

And then just longer-term, your view on this pricing strategy, is it sustainable or would you expect over time to reestablish a gap between subscription and retail?

從長遠來看，您對這種定價策略的看法是，它是否可持續，或者您是否期望隨著時間的推移重新建立訂閱和零售之間的差距？

Hey, Justin. This is Danny. Thanks for the question. So the short answer is yes. We've deployed that pricing strategy across the country. As I mentioned in my prepared remarks, we're really happy with the results we're seeing. We've tripled our conversion rate. We've added 200,000 members year to date to members. So it's working exactly as we'd hoped.

嘿，賈斯汀。這是丹尼。謝謝你的提問。所以簡短的回答是肯定的。我們已經在全國範圍內部署了這項定價策略。正如我在準備好的演講中所提到的，我們對所看到的結果感到非常滿意。我們的轉換率增加了兩倍。今年迄今為止，我們已增加了 20 萬名會員。所以它的工作原理完全符合我們的希望。

We're not seeing any response to what we're doing in any kind of scaled or meaningful way. As far as how long will we deploy a strategy like this, I'd say, look, for the short to medium term, this makes a lot of sense for us. We want to grow our membership base. It hedges against the natural sensitivity to weather in this business. And overall, it'll be margin-accretive to us as we keep our fixed costs in place, and we continue to grow our membership revenue.

我們沒有看到任何對我們正在做的事情以任何規模或有意義的方式做出的反應。至於我們將部署這樣的策略多久，我想說，從短期到中期來看，這對我們來說很有意義。我們希望擴大我們的會員基礎。它可以對沖該行業對天氣的自然敏感性。總的來說，隨著我們保持固定成本，並且我們繼續增加會員收入，這將為我們帶來利潤成長。

So the strategy is working exactly as we'd hoped. And we think it'll continue to add financial benefits in the back half of the year.

因此，該策略的效果正如我們所希望的那樣。我們認為今年下半年它將繼續增加財務收益。

Great. Thanks for that, Danny. And then just a question on the glass business. Jonathan, you talked about the six -- I think it was six regional insurance carriers and two rental car company contracts. Can you frame how many insurance and rental company contracts are out there as potential AGN customers, and maybe where you stand today from a penetration standpoint on commercial and insurance relative to kind of the end goal for that business? Thanks, guys.

偉大的。謝謝你，丹尼。然後是關於玻璃業務的問題。喬納森，你談到了六家 - 我認為這是六家地區保險公司和兩家汽車租賃公司的合約。您能否列出有多少保險和租賃公司合約作為潛在的 AGN 客戶，以及從商業和保險滲透率的角度來看，您目前所處的位置相對於該業務的最終目標？謝謝，夥計們。

Yeah, I'll do my best to frame that a little bit for you, Justin. The rental car business nationally is quite concentrated with very familiar names, and we're very pleased with the work that the team have done, which is to get two of those names added to our portfolio of AGN. And there's continued growth we expect in the future across multiple commercial lines, not just rental, but we think about commercial customers and then fleet management customers. So there's multiple layers within that commercial sector.

是的，我會盡力為你描述一下，賈斯汀。全國各地的租車業務相當集中，都是非常熟悉的名字，我們對團隊所做的工作非常滿意，即將其中兩個名字添加到我們的 AGN 投資組合中。我們預計未來多個商業領域將持續成長，不僅是租賃，我們還考慮商業客戶，然後是車隊管理客戶。因此，該商業部門內有多個層級。

Within regional insurance, very pleased with the signing of those six contracts -- six regional contracts in Q2. Once we sign, we then have to activate those contracts and then sort of bleed that revenue in over the course of the back half of the year. To put in perspective, there's approximately 300 regional insurance -- sorry -- over 3,000 regional insurance carriers out there. And so this is just the tip of the iceberg.

在區域保險領域，對這六份合約的簽署非常滿意——第二季的六份區域合約。一旦我們簽約，我們就必須激活這些合同，然後在今年下半年將收入註入其中。從長遠來看，大約有 300 家地區保險公司——抱歉——超過 3,000 家地區保險公司。這只是冰山一角。

So we feel good about the momentum we're building. Again, I would just point to, we're early in the innings of building that business. We think it's going to be a phenomenal business for us over time, but very pleased with the progress that we're making so far in 2024.

因此，我們對我們正在建立的勢頭感到滿意。我想再次指出，我們正處於建立該業務的早期階段。我們認為，隨著時間的推移，這對我們來說將是一項非凡的業務，但我們對 2024 年迄今所取得的進展感到非常滿意。

Robby Ohmes, Bank of America.

羅比·歐姆斯，美國銀行。

Thanks for taking my question. My question is on PCG, and I was wondering if you guys could give a little more color and commentary on how you're thinking about the back half and what the headwinds have been there, and any -- when you think the headwinds, whether it's big-ticket deferrals or what's happening in that space, and when we can see a return to growth in EBITDA there?

感謝您提出我的問題。我的問題是關於PCG的，我想知道你們是否可以就你們如何看待後半段以及存在的逆風以及任何——當你們想到逆風時，提供更多的色彩和評論這是大額延期或該領域正在發生的事情，我們什麼時候可以看到EBITDA 恢復成長？

Yeah, thanks, Robby. I'll start and Danny or Joel may actually jump in on top. But when we look at the little bit of softness that we've seen in really the second half -- sorry -- the second quarter in PC&G, I would say, that's primarily ring-fenced around the US collision, which is our 100% franchise business.

是的，謝謝，羅比。我先開始，丹尼或喬爾可能會插上去。但是，當我們看到我們在下半年看到的一點點疲軟時——抱歉——PC&G 第二季度，我想說，這主要是圍繞美國的碰撞，這是我們 100%特許經營業務。

Some of that softness could be attributed to industry-wide claims year-to-date are down mid-single digits. However, Driven’s claims are down low single digits. So we look at that as outperforming the broader market.

這種疲軟的部分原因可能是由於今年迄今全行業的業績下降了中個位數。然而，Driven 的索賠額卻下降了低個位數。因此，我們認為其表現優於大盤。

The second factor is that used car pricing has returned to more normal levels, increasing the frequency of total losses. That being said, we look at the collision tailwinds as dissipating in the back half of the year. So I think that's a fairly sort of short-term headwinds that we have there. So I'll stop there and --

第二個因素是二手車定價已恢復到更正常的水平，增加了全損的頻率。話雖這麼說，我們認為碰撞的順風將在今年下半年消散。所以我認為這是我們面臨的相當短期的阻力。所以我就到此為止--

And then maybe just a follow-up, can we get an update on cost pressures across your businesses? Has the wage outlook improved from here? Are there any cost pressures alleviating that could support better EBITDA growth in the back half?

然後也許只是後續行動，我們能否了解貴公司成本壓力的最新情況？工資前景是否有所改善？是否有任何成本壓力可以緩解，從而支持下半年 EBITDA 更好的成長？

Yeah, I think no major trajectory changes, Robbie. I mean, I think the labor environment has certainly sort of settled down compared to two, three, four quarters ago. Our input costs in terms of cost of goods are generally -- we've got good visibility in there. So we don't see any major moderation, but we don't see any likely increase in pricing there. So it feels like the back half of the year will be pretty similar to the first half in terms of just overall cost.

是的，我認為沒有重大的軌跡變化，羅比。我的意思是，我認為與兩個、三個、四個季度前相比，勞動力環境肯定已經穩定下來。我們在商品成本方面的投入成本通常是——我們在那裡有很好的可見度。因此，我們沒有看到任何重大的放緩，但我們也沒有看到價格有任何可能的上漲。因此，就整體成本而言，感覺今年下半年將與上半年非常相似。

Seth Sigman, Barclays.

塞思‧西格曼，巴克萊銀行。

Great. Good morning, everyone. Nice progress in the quarter. I wanted to talk a little bit about the guidance. So you narrowed the EBITDA guidance to the high end of the range, which is nice to see. Can you just elaborate on what's implied here for the second half of the year, maybe some of the underlying assumptions?

偉大的。大家早安。本季取得了不錯的進展。我想談談指導。因此，您將 EBITDA 指引縮小至範圍的高端，這是很高興看到的。您能否詳細說明下半年的情況，也許是一些基本假設？

Because if I recall, you previously assumed that most of the EBITDA growth -- I think 80% of the EBITDA growth is going to come in the second half of the year. It seems like first half came in better. So you're not really raising the second half. But then you also talked -- if I caught this right -- low double-digit EBITDA growth in Q3. So maybe just help us understand some of the assumptions in there. That would be a good start. Thanks.

因為如果我沒記錯的話，您之前假設大部分 EBITDA 成長——我認為 80% 的 EBITDA 成長將出現在今年下半年。看起來上半場表現更好。所以下半場你並沒有真正加註。但如果我沒聽錯的話，您也談到了第三季 EBITDA 的低兩位數成長。所以也許只是幫助我們理解其中的一些假設。這將會是一個好的開始。謝謝。

Hey, Seth. This is Joel. I'll just reaffirm what we said earlier in my script. Continued growth in the back half of the year in maintenance and in Platform Services. And we'll expect to see some improvement from our other segments, car wash and PC&G from the year-over-year comparison basis.

嘿，塞思。這是喬爾.我將重申我們之前在劇本中所說的話。下半年維護和平台服務持續成長。我們預計，與去年同期相比，我們的其他細分市場、洗車和 PC&G 業務將有所改善。

We're going to still see 80% of our growth in the back half of the year. So it's consistent with what we've messaged in Q4 and in Q1 but feel good about the outlook that we gave earlier.

今年下半年我們仍將看到 80% 的成長。因此，這與我們在第四季度和第一季傳達的訊息一致，但對我們之前給出的前景感到滿意。

Got it. Okay. And then I guess just one follow-up question on glass. I mean, if you could maybe spend a minute on the infrastructure that's been put in place here. Just help us understand exactly the timing of that.

知道了。好的。然後我想只有一個關於玻璃的後續問題。我的意思是，如果您能花一點時間了解這裡已經到位的基礎設施。只是幫助我們準確地了解這一時間。

And how would you categorize the second quarter for this segment? It seems like it was still a transition period, so we haven't seen the full potential yet. But is there a way to frame how that part of the segment accelerates in the back half of the year? I think that would be helpful. Thanks.

您如何對該細分市場的第二季進行分類？看起來這仍然是一個過渡期，所以我們還沒有看到全部的潛力。但有沒有辦法確定這部分細分市場在今年下半年如何加速？我認為這會有幫助。謝謝。

Yeah, Seth. We typically don't give any sort of sub-segment guidance, but I would say -- I would sort of point you to two things. One is that this is a long-term play for us, and we're in the early innings, and we are making great progress. Mike Macaluso, who's running that business, has got all the necessary people, process, and systems in place to now focus on growing revenue and generating really solid margins there.

是的，賽斯。我們通常不會提供任何類型的細分指導，但我想說 - 我會向您指出兩件事。一是這對我們來說是一場長期的比賽，我們正處於早期階段，並且正在取得很大的進步。負責該業務的 Mike Macaluso 已配備了所有必要的人員、流程和系統，現在可以專注於增加收入並創造真正可觀的利潤。

So I think, again, like I said on Q1 -- and I'll reiterate again today -- this is about future growth and future profits in the business, but it will take time. And we're pretty pleased with the progress so far in 2024.

因此，我再次認為，就像我在第一季所說的那樣——我今天將再次重申——這關係到業務的未來成長和未來利潤，但這需要時間。我們對 2024 年迄今的進展感到非常滿意。

Brian McNamara, Canaccord Genuity.

麥克納馬拉 (Brian McNamara)，Canaccord Genuity。

Good morning. This is Madison Callinan on for Brian. Thanks for taking our questions. So year-to-date, you have $9.8 million of consulting fees for strategic transformation initiatives. We're curious if this is related to any plans to try and sell or monetize car wash assets as a way to hasten the deleveraging process. Thanks.

早安.我是布萊恩的麥迪遜·卡利南。感謝您回答我們的問題。今年迄今為止，您有 980 萬美元用於策略轉型計畫的諮詢費。我們很好奇這是否與嘗試出售洗車資產或將洗車資產貨幣化以加速去槓桿化進程的計劃有關。謝謝。

Thanks, Madison, and good question. And I remain committed to active portfolio management in the organization. I think it's important that if and when we announce something publicly that we're very comfortable with the potential impact to our employees, to obviously our investors, and to any potential processes or hypothetical processes that we could be running.

謝謝，麥迪遜，這是個好問題。我仍然致力於組織中積極的投資組合管理。我認為重要的是，如果我們公開宣布某件事，我們對它對我們的員工、顯然對我們的投資者以及我們可能運行的任何潛在流程或假設流程的潛在影響感到非常滿意。

So just because we haven't announced anything, doesn't mean that we're not busy working in the background. And obviously, when the time is right, we will talk about those specifics.

因此，僅僅因為我們沒有宣布任何事情，並不意味著我們沒有忙於在後台工作。顯然，當時機成熟時，我們會討論這些細節。

Christian Carlino, JP Morgan.

克里斯蒂安‧卡利諾，摩根大通。

Hi. Good morning. Thanks for taking our question. How should we think about the potential lift to the glass units when you add these regional insurance agreements? And it's less of a question on this year and the recent agreements you've made, and it's more about what mature AUVs could look like just given on the website you speak to acquiring locations with about 3 million in AUVs. So is that where you expect things to shake out over time as you expand these insurance agreements?

你好。早安.感謝您提出我們的問題。當您添加這些區域保險協議時，我們應該如何考慮玻璃單位的潛在提升？這不是關於今年和最近達成的協議的問題，而是更多關於成熟的 AUV 可能會是什麼樣子的問題，正如您所說的收購擁有約 300 萬 AUV 的地點的網站上給出的那樣。那麼，隨著時間的推移，當您擴大這些保險協議時，您預計事情會發生變化嗎？

Yeah. Hey Chris, this is Danny. Look, I'm not going to get into how much incrementality we're going to see from any one or few regional agreements. I guess what I’d do is take a step back and say, we've said all along for the AGN business, now that we're kind of past integration, and we're building this business and we're building the momentum of this business, we've said that we want to really focus in on building out a regional insurance and commercial. And Q2 represents for us an opportunity to not just say that we want to do that, but in fact, we have done that, right?

是的。嘿克里斯，這是丹尼。看，我不會討論我們將從任何一項或幾項區域協議中看到多少增量。我想我要做的就是退一步說，我們一直在說 AGN 業務，現在我們已經完成了整合，我們正在建立這項業務，我們正在建立鑑於這項業務的勢頭，我們已經說過，我們希望真正專注於建立區域保險和商業。第二季度對我們來說是一個機會，不僅是說我們想要這樣做，而且事實上我們已經做到了，對吧？

So now we've landed six different regional insurance carriers in one quarter, two national car rental companies, and that's just momentum that we look to continue to grow into the future. So, we're happy with the progress. It's exactly what we said we're going to do and we're hoping to do, and we're just happy to announce that it's not theoretical anymore, but we're landing deals and we hope to continue to do so.

因此，現在我們在一個季度內收購了六家不同的地區保險公司、兩家全國性汽車租賃公司，這正是我們希望在未來繼續發展的動力。因此，我們對進展感到滿意。這正是我們所說的我們要做的和我們希望做的，我們很高興地宣布這不再是理論上的，但我們正在達成交易，我們希望繼續這樣做。

Got it. And I guess just at a high level, how would you diagnose what you're seeing from the consumer? Did the consumer weaken versus the first quarter or stay flat? Do you expect things to get better? Any color on maintenance deferral? And I guess, to what extent are things like higher insurance premiums just pressuring vehicle spend broadly?

知道了。我想在較高的層面上，你會如何診斷你從消費者身上看到的情況？消費者與第一季相比是疲軟還是持平？你期望事情變得更好嗎？維護延期有什麼顏色嗎？我猜想，保費上漲之類的事情在多大程度上會對汽車支出造成廣泛壓力？

Yeah, Christian. Jonathan here. I'll take that one. We're not economists, but we'll tell you sort of our view on the world. We certainly don't see the second half of the year as massively changing from the first half of the year. I would say that's sort of how we think about things.

是的，克里斯蒂安。喬納森在這裡。我會接受那個。我們不是經濟學家，但我們會告訴你我們對世界的看法。我們當然不認為今年下半年與上半年相比有巨大變化。我想說這就是我們思考事物的方式。

When we look at -- obviously, the outlook that we gave on same-store sales and revenue, we think that's factoring in our view on sort of an unchanged consumer spending environment in the second half of the year. And then the other two pieces in there are continued sort of softness in our US car wash business and a little bit of the headwinds we saw in collision in Q2. So, I think that's our best estimate in terms of what we see for the back half of the year. So ultimately, no major change in consumer spending environment.

顯然，當我們看到我們對同店銷售和收入的展望時，我們認為這考慮到了我們對下半年消費者支出環境保持不變的看法。然後，另外兩件事是我們的美國洗車業務持續疲軟，以及我們在第二季的碰撞中看到的一些逆風。因此，我認為這是我們對今年下半年情況的最佳估計。所以最終消費者消費環境不會有重大改變。

Peter Keith, Piper Sandler.

彼得·基思，派珀·桑德勒。

Hey. Thanks. Good morning, everyone. So we've noticed that motor vehicle maintenance remains one of the more inflationary areas of the consumer economy. And I guess from the Driven portfolio, I'm curious, are you seeing, I guess, ticket increases just with general inflation and where might that be occurring to the greatest degree?

嘿。謝謝。大家早安。因此我們注意到，機動車輛維修仍然是消費經濟中通膨率較高的領域之一。我想從驅動投資組合中，我很好奇，你是否看到，我想，門票隨著一般通貨膨脹而增加，以及這種情況可能在哪裡發生最大程度？

We don't breakout, obviously, ticket in many of the subsegments, Peter, but I think it's well known that over the last number of years, we've seen ticket growth across almost all of our segments. And I think that's more from a complexity of vehicle, age of vehicle, complexity of repair than it is taking of price.

顯然，我們在許多子細分市場中的門​​票都沒有突破，彼得，但我認為眾所周知，在過去的幾年裡，我們幾乎所有細分市場的門票都在增長。我認為這更多來自於車輛的複雜性、車齡、維修的複雜性，而不是價格。

And as I've mentioned multiple times in the past, we don't see any change in that trajectory over the next couple of years, again, because of the miles driven, age of vehicles, and complexity of repair. So we think that growth in ARO or average order repair will continue as we look forward.

正如我過去多次提到的那樣，由於行駛里程、車輛的車齡和維修的複雜性，我們在未來幾年內看不到該軌跡有任何變化。因此，我們認為，正如我們所期望的那樣，ARO 或平均訂單修復量將繼續增長。

Okay. Fair enough. One thing I was hoping to get an update on would be Take 5 rewards and how you're thinking about that program across both quick lube and car wash. Just particularly given sort of the strategic evaluation of car wash today?

好的。很公平。我希望得到更新的一件事是 Take 5 獎勵以及您如何看待快速潤滑油和洗車項目。剛剛特別給了今天洗車的策略評估？

Yeah. Hey, Peter. So to your point, given the strategic evaluation and some of the things that Jonathan is thinking through from a portfolio management perspective, we've been quite prudent with that program. So nothing's changed in the sense that it's rolled out; it's in a few different markets. We're really happy with the results that we're seeing in those markets, both from an operational perspective and how the team's able to deploy that solution and how consumers are reacting to it. And we're just being methodical about that program moving forward.

是的。嘿，彼得。因此，就您的觀點而言，考慮到策略評估以及喬納森從投資組合管理角度思考的一些事情，我們對該計劃非常謹慎。因此，就其推出而言，一切都沒有改變。它位於幾個不同的市場。我們對在這些市場中看到的結果感到非常滿意，無論是從營運角度來看，還是從團隊如何部署該解決方案以及消費者對此的反應來看。我們只是有條不紊地推進該計劃。

Phillip Blee, William Blair.

菲利普·布萊爾，威廉·布萊爾。

Hi. This is Sabrina. Thanks for taking our question. I know we kind of just talked a little bit about the traffic versus check, but what are some of the ancillary categories customers will purchase other than oil, and then what's that frequency of this and then its impact on that average check?

你好。這是薩布麗娜。感謝您提出我們的問題。我知道我們只是討論了流量與支票的問題，但是除了石油之外，客戶還會購買哪些輔助類別，那麼這種情況的頻率是多少，然後它對平均支票的影響是什麼？

Yeah, I think I got your question, Sabrina. So I'll do my best to answer it. So if we look at our Take 5 Oil Change business, there's really sort of two major drivers to average check growth over the last number of years. One is a continued shift to what we call premium oil mix, which would be defined as either semi or full synthetic. I think in this quarter, we hit about 90% of our customers buying a premium oil mix.

是的，我想我明白了你的問題，薩布麗娜。所以我會盡力回答。因此，如果我們看看我們的 Take 5 換油業務，就會發現過去幾年平均支票成長確實有兩個主要驅動因素。一是繼續轉向我們所說的優質混合油，它被定義為半合成或全合成。我認為在本季度，我們大約 90% 的客戶購買了優質混合油。

The second component is what we call attachment rate of our big five ancillary products, and we're right around that sort of 40% attachment rate. That's really execution by our company and franchise stores. So I think we don't see any material change in those trajectory and those two sort of check-building pieces.

第二個組成部分是我們所謂的五大輔助產品的附著率，我們的附著率約為 40%。這實際上是我們公司和特許經營店的執行。因此，我認為我們沒有看到這些軌跡和這兩種檢查構建部件有任何實質變化。

Obviously, on the premium oil mix at 90%, there's not going to be massive growth on a go-forward basis, but we do think that there's opportunity to continue to build to the great 40-ish percent attachment rate on the big five.

顯然，在 90% 的優質石油組合中，未來不會大幅成長，但我們確實認為，五大石油公司有機會繼續實現 40% 左右的附加率。

(Operator Instructions)

（操作員說明）

William Staudinger, BMO Capital Markets.

William Staudinger，BMO 資本市場。

Hi, good morning. Can you just talk about the demand trends you're seeing from commercial customers versus retail customers?

嗨，早安。您能否談談您所看到的商業客戶與零售客戶的需求趨勢？

Yeah. William, welcome to the coverage universe of Driven, first of all. So good question. I think one of the beautiful things about Driven Brands is approximately 50% of our system sales come from our commercial partners. And it's a huge focus for us and has been for a number of years.

是的。William，首先歡迎來到 Driven 的報道世界。好問題。我認為 Driven Brands 的一大優點是我們系統銷售額的大約 50% 來自我們的商業合作夥伴。這對我們來說是一個巨大的焦點，多年來一直如此。

Inherently, that commercial customer is using their vehicle for revenue-generating purposes or to complete jobs that they have to do. So we generally see very sticky, predictable revenue demand from our commercial customers, and we've not seen anything to change that so far in 2024.

從本質上講，商業客戶使用他們的車輛是為了創造收入或完成他們必須做的工作。因此，我們通常會看到商業客戶的收入需求非常黏性、可預測，而且到 2024 年到目前為止，我們還沒有看到任何改變這一點的情況。

Okay, thanks. And then have any of your businesses experienced impacts from Hurricane Beryl, which hit Texas in July?

好的，謝謝。那麼，您的企業是否經歷過 7 月襲擊德克薩斯州的颶風「貝裡爾」的影響？

Yes. Hey, William. This is Danny. So we'll probably get into it more next earnings call, but the short answer is yes. I mean, we have heavy presence for multiple brands in the Houston and Texas area. And certainly, when Hurricane Beryl, no pun intended, barreled through there, we took store closures for multiple days across a variety of stores. So we'll give more of an update next earnings, but yes, there was a bit of an impact for us.

是的。嘿，威廉。這是丹尼。因此，我們可能會在下一次財報電話會議上對此進行更多討論，但簡短的答案是肯定的。我的意思是，我們在休士頓和德克薩斯地區擁有多個品牌的大量業務。當然，當颶風貝裡爾（沒有雙關語）席捲那裡時，我們的多家商店都關閉了多天。因此，我們將在下一次收益中提供更多更新，但是，是的，這對我們產生了一些影響。

No further questions at this time. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. You all have a good one.

目前沒有其他問題。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。你們都有一個很好的。