Segment Information (Tables)

9 Months Ended

Sep. 24, 2022

Segment results for the three and nine months ended September 24, 2022 and September 25, 2021 are as follows:


	Three months ended September 24, 2022
(in thousands)	Maintenance		Car Wash		Paint, Collision & Glass		Platform Services		Corporate and Other		Total
Franchise royalties and fees	$	11,625	$	—	$	24,055	$	9,882	$	—	$	45,562
Company-operated store sales	172,162		98,235		69,413		1,431		(30)		341,211
Independently-operated store sales	—		40,469		—		—		—		40,469
Advertising fund contributions	—		—		—		—		22,018		22,018
Supply and other revenue	17,035		1,599		19,782		40,686		(11,768)		67,334
Total revenue	$	200,822	$	140,303	$	113,250	$	51,999	$	10,220	$	516,594
Segment Adjusted EBITDA	$	68,763	$	39,098	$	38,919	$	19,765	$	(36,437)	$	130,108


	Three months ended September 25, 2021
(in thousands)	Maintenance		Car Wash		Paint, Collision & Glass		Platform Services		Corporate and Other		Total
Franchise royalties and fees	$	9,635	$	—	$	20,280	$	9,038	$	—	$	38,953
Company-operated store sales	125,561		74,105		12,723		1,465		(99)		213,755
Independently-operated store sales	—		47,941		—		—		—		47,941
Advertising fund contributions	—		—		—		—		19,762		19,762
Supply and other revenue	9,261		1,516		17,572		31,558		(9,170)		50,737
Total revenue	$	144,457	$	123,562	$	50,575	$	42,061	$	10,493	$	371,148
Segment Adjusted EBITDA	$	47,894	$	37,999	$	22,039	$	16,254	$	(25,558)	$	98,628


	Nine months ended September 24, 2022
(in thousands)	Maintenance		Car Wash		Paint, Collision & Glass		Platform Services		Corporate and Other		Total
Franchise royalties and fees	$	32,586	$	—	$	69,025	$	26,689	$	—	$	128,300
Company-operated store sales	497,638		294,526		161,531		3,975		(183)		957,487
Independently-operated store sales	—		158,500		—		—		—		158,500
Advertising fund contributions	—		—		—		—		63,807		63,807
Supply and other revenue	43,645		5,131		57,577		117,704		(38,610)		185,447
Total revenue	$	573,869	$	458,157	$	288,133	$	148,368	$	25,014	$	1,493,541
Segment Adjusted EBITDA	$	185,324	$	148,495	$	100,847	$	54,471	$	(103,922)	$	385,215


	Nine months ended September 25, 2021
(in thousands)	Maintenance		Car Wash		Paint, Collision & Glass		Platform Services		Corporate and Other		Total
Franchise royalties and fees	$	26,651	$	—	$	57,578	$	23,011	$	—	$	107,240
Company-operated store sales	365,735		196,858		37,672		3,911		(368)		603,808
Independently-operated store sales	—		160,483		—		—		—		160,483
Advertising fund contributions	—		—		—		—		56,665		56,665
Supply and other revenue	25,231		4,800		49,791		94,576		(27,199)		147,199
Total revenue	$	417,617	$	362,141	$	145,041	$	121,498	$	29,098	$	1,075,395
Segment Adjusted EBITDA	$	132,895	$	115,223	$	61,534	$	44,864	$	(76,422)	$	278,094

Schedule of Reconciliation of Segment Adjusted EBITDA to Income Before Taxes

The reconciliations of Income (loss) before taxes to Segment Adjusted EBITDA for the three and nine months ended September 24, 2022 and September 25, 2021 are as follows:


	Three months ended				Nine months ended
(in thousands)	September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Income (loss) before taxes	$	52,863	$	44,966	$	24,367	$	72,766
Depreciation and amortization	36,518		28,447		107,628		78,722
Interest expense, net	27,323		17,688		78,946		52,390
Acquisition related costs(a)	2,325		636		9,981		2,674
Non-core items and project costs, net(b)	851		1,357		3,436		3,910
Store opening costs	753		666		1,925		1,360

Straight-line rent adjustment(c)	3,220		2,548		11,530		8,391
Equity-based compensation expense(d)	5,308		933		12,159		2,944
Foreign currency transaction (gain) / loss, net(e)	15,582		1,074		30,490		6,356
Bad debt expense	(449)		—		(449)		—
Trade name impairment(f)	—		—		125,450		—
Asset sale leaseback (gain) loss, impairment and closed store expenses(g)	(14,186)		313		(20,248)		3,005
Loss on debt extinguishment(h)	—		—		—		45,576
Segment Adjusted EBITDA	$	130,108	$	98,628	$	385,215	$	278,094

(a) Consists of acquisition costs as reflected within the consolidated statements 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 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 and (ii) other miscellaneous expenses, including non-capitalizable expenses relating to the Company’s initial public offering and other strategic transactions.

(c) Consists of the non-cash portion of rent expense, which reflects the extent to which our straight-line rent expense recognized under GAAP exceeds or is less than our cash rent payments.

(d) Represents non-cash equity-based compensation expense.

(e) Represents foreign currency transaction net gains and losses primarily related to the remeasurement of our intercompany loans which are partially offset by unrealized gains and losses on remeasurement of cross currency swaps and forward contracts.

(f) Relates to an impairment of certain Car Wash trade names for which the Company elected to discontinue their use.

(g) Relates to (gain) loss on sale leasebacks, 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 the respective lease termination dates.

(h) Represents the write-off of unamortized discount associated with the repayment of the Car Wash Senior Credit Facilities.