In its quarterly financial report, Auto Glass Now’s parent company, Driven Brands, announced slight financial growth for the second quarter of 2024 when compared to the same quarter last year. The company also announced a new chief financial officer (CFO) on a call it held with investors August 1, 2024.
Driven Brands is a Charlotte, North Carolina-based automotive services company that operates Auto Glass Now (AGN), a national auto glass repair and replacement company. During the call, the company reported revenue of $612 million in the second quarter of 2024, approximately 1% higher than in the same quarter of 2023. The company announced its system-wide sales were $1.7 billion in the second quarter, 1% more than in 2023. Driven Brands attributes this to 0.5% same-store sales growth and 115 net new units.
Driven Brands’ Paint, Collision & Glass (PC&G) segment, which includes auto glass, earned $112 million in revenue and $862.2 in system-wide sales during the second quarter of 2024.
During the call, Driven Brands’ executive vice president and chief operating officer, Danny Rivera, said he was pleased with the company’s financial results for the second quarter of 2024.
“I am happy with the results the team delivered,” he said, later adding, “Overall, I am pleased with the results this quarter, especially given the soft consumer market.”
“We remain excited about the medium and longer-term prospects for this business and know that it will take time to build scale and momentum,” said Jonathan Fitzpatrick, the company’s president and chief executive officer. “Earning insurance and commercial business can take time, and we want to do it right because of the importance of long-term sustainable partnerships.”
According to Fitzpatrick, the revenue from AGN is divided approximately into thirds among retail, commercial and insurance business
“Over time, we expect to grow the commercial and insurance revenue faster than our retail business,” Fitzpatrick said.
He said retail customers at AGN usually pay out of pocket, and the average payment is $300. In the second quarter of 2024, Fitzpatrick said AGN launched an online estimator tool, “allowing customers to avoid coming to the shops for quotes.” He says the company is pleased with the results so far.
AGN’s commercial customers own and manage vehicle fleets, Fitzpatrick says. He reports the average check from these vehicles is about $400, and they have a calibration rate of about 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.”
Fitzpatrick did not name the rental car companies.
AGN’s insurance customers pay about $650 per check on average and have a calibration rate of about 42%, according to Fitzpatrick.
“I’m also pleased to report that we finalized six new agreements with regional [insurance] partners in Q2, and this volume will start flowing in the second half of 2024,” he said.
Fitzpatrick added that AGN has a growing group of both regional and national carriers.
After several months with interim CFO Joel Arneo, Driven Brands has announced Michael Diamond as its new CFO. In the investors’ call, Arneo thanked the other executives for their support during his time filling the CFO roll and welcomed Diamond to the position.
Diamond previously served as CFO at both The Michaels Companies and Pizza Hut, U.S. Arneo will continue in his role as a senior vice president for Driven Brands.
