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Jun 30, 2021
Valvoline Q3 2021 Earnings Report
Valvoline's third quarter results were marked by substantial growth in net income, EPS, adjusted EPS, adjusted EBITDA, and sales, driven by the Retail Services segment and overall strategic transformation.
Key Takeaways
Valvoline reported a strong third quarter with significant growth across key financial metrics. Net income increased by 64%, EPS by 66%, adjusted EPS by 112%, and adjusted EBITDA by 75%. Sales also saw a substantial rise of 53%, primarily fueled by the Retail Services segment's impressive same-store sales growth of 40.5%.
Net income grew 64% to $97 million, and EPS increased 66% to $0.53.
Adjusted EPS rose 112% to $0.55, and adjusted EBITDA increased 75% to $173 million.
Sales increased 53% to $792 million, driven by strong performance in the Retail Services segment.
Retail Services system-wide same-store sales grew 40.5%.
Forward Guidance
Valvoline is tightening its adjusted EBITDA guidance to $620 million to $640 million and expects to continue returning excess cash to shareholders via dividends and share repurchases using its recently announced $300 million share repurchase authorization.
Positive Outlook
- Sales growth of 25 - 26%
- Retail Services system-wide store additions of 140 - 160
- Retail Services system-wide SSS growth of 19 - 21%
- Normalized system-wide SSS growth of 10 - 12%
- Free cash flow of $250 - $270 million
Challenges Ahead
- Adjusted effective tax rate of 25 - 26%
- Adjusted EPS of $1.86 - $1.96
- Capital expenditures of $160 - $170 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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