DrivenBrands Results Presentation Deck
Reconciliation of Net Income to Last Twelve Months ("LTM") Proforma Adjusted EBITDA
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
Reconciliation of Net Income to Last Twelve Months Proforma Adjusted EBITDA for Leverage Ratio
Net income
Income tax expense
Interest expense, net
Depreciation and amortization
EBITDA
Acquisition related costs(a)
Non-core items and project costs, net(b)
Sponsor management fees (c)
Straight-line rent adjustment(d)
Equity-based compensation expense(e)
Foreign currency transaction (gain) / loss, net(f)
Bad debt expense(g)
Asset impairment and closed store expenses(h)
Loss on debt extinguishment(i)
Adjusted EBITDA
Year ended
December 26,
2015
$ 2,725,000
2,866,000
21,082,000
10,035,000
36,708,000
3,683,000
708,000
276,000
11,589,000
$ 52,964,000
Three months
ended
December 26,
2020
$ (7,471,000)
5,263,000
30,673,000
29,458,000
57,923,000
2,395,000
6,962,000
543,000
4,026,000
815,000
(13,618,000)
359,000
1,690,000
4,817,000
$ 65,912,000
Nine months
ended
September 25,
2021
$ 48,321,000
24,445,000
52,390,000
78,722,000
203,878,000
2,674,000
3,910,000
8,391,000
2,944,000
6,356,000
3,005,000
45,576,000
$276,734,000
Twelve months
ended
September 25,
2021
$ 40,850,000
29,708,000
83,063,000
108,180,000
261,801,000
5,069,000
10,872,000
543,000
12,417,000
3,759,000
(7,262,000)
359,000
4,695,000
50,393,000
$342,646,000
a) Consists of acquisition costs as reflected within the consolidated statement of operations, including legal, consulting and other fees and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory
rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.
b) Consists of discrete items and project costs, including (i) third-party consulting and professional fees associated with strategic transformation initiatives, (ii) wage subsidies received directly attributable to the COVID-19 pandemic and (iii) other miscellaneous
expenses, including non-capitalizable expenses relating to the Company's initial public offering and other strategic transactions.
c) Includes management fees paid to Roark Capital Management, LLC.
d) Consists of the non-cash portion of rent expense, which reflects the extent to which our straight-line rent expense recognized under U.S. GAAP exceeds or is less than our cash rent payments.
e) Represents non-cash equity-based compensation expense.
d) Represents foreign currency transaction gains/losses, net that primarily related to the remeasurement of our intercompany loans. For the nine months ended September 25, 2021, these losses are offset by unrealized gains on remeasurement of cross
currency swaps.
g) Represents bad debt expense related to uncollectible receivables outside of normal operations.
h) Relates to the impairment of certain fixed assets and operating lease right-of-use assets related to closed locations. Also represents lease exit costs and other costs associated with stores that were closed prior to their respective lease termination dates.
i) Represents the write-off of debt issuance costs associated with early termination of debt.View entire presentation