Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the 2025 adjusted EBITDA growth expectations, especially considering the sale of the US car wash business? A: Michael Diamond, CFO, explained that the US car wash business contributed approximately $50 million to adjusted EBITDA. The growth in 2025 will primarily be driven by the Take 5 oil change business, which is expected to continue its strong performance with a robust unit pipeline and franchisee engagement.
Q: What is the expected impact of the US car wash business sale on leverage and the company's financial strategy? A: Michael Diamond, CFO, stated that the sale is expected to be largely leverage-neutral due to the structure of the transaction. The company plans to use proceeds to pay down debt and continue its strategy of systematic deleveraging, aiming for a net leverage target of 3 times by the end of 2026.
Q: How is the Take 5 oil change business performing, and what are the expectations for its growth in 2025? A: Daniel Rivera, COO, highlighted that Take 5 achieved its 18th consecutive quarter of positive same-store sales growth, with a strong performance in Q4 2024. The focus will be on new unit growth, enhancing ticket sales through non-oil change services, and optimizing the cost structure to sustain long-term success.
Q: What are the plans for the Auto Glass Now (AGN) business, and why is it not broken out as a separate segment? A: Michael Diamond, CFO, explained that AGN is currently incubated within the corporate and other segments due to its size and the nature of its business. The focus is on growing the business, particularly through insurance and commercial partnerships, before considering it as a standalone segment.
Q: Can you elaborate on the marketing initiatives for Take 5 and their impact on growth? A: Daniel Rivera, COO, described a two-part marketing strategy for Take 5, involving broad reach brand campaigns and data-driven local campaigns. This approach has been effective in driving customer acquisition and retention, contributing to sequential growth in transactions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.