Jonathan Fitzpatrick: Other than our sort of less discretionary Car Wash business in the US Chris, as Gary mentioned earlier, obviously the maintenance business is performing exceptionally well. And the rest of our franchise businesses are continuing to generate very good returns. So I would say at this point in time outside of US Car Wash and self-inflicted integration challenges with US Glass, we are not seeing a trajectory change in terms of the consumer deferring service.
Christian Carlino: Got it. Thank you very much.
Operator: Your next question comes from the line of Peter Keith from Piper Sandler. Please go ahead.
Peter Keith: Hi. Thanks. Good morning guys. I just was trying to think more about that $850 million goodwill charge on car wash. And you were talking about you around your DCF, but it certainly seems like you’ve taken down the long-term value of that segment. So I guess here as investors, how should we think about the real opportunity to drive growth there with that type of write-down?
Gary Ferrera: Yeah, Peter. So as we said at Investor Day, we gave our long-term guidance for the entire company including US Car Wash and said on that call that we did not expect much of that to be driven by US Car Wash. And so when you take that model and put higher interest rates on it and multiples coming down in the sector when you got to do your impairment analysis that’s what kicks out. I don’t think we said anything about not believing in the space over the longer term. It’s just when we do the math that’s where we come out to.
Jonathan Fitzpatrick: Hey and Peter it’s Jonathan. I would just follow-up and say nothing has changed in terms of our multiyear strategy with US Car Wash. We still think it’s a very, very good sector to be in. However, what we stated at Investor Day and I’ll state it again today is we will not be deploying incremental capital into that business until we’ve got the base business performing to a level that we believe it deserves incremental capital. So more to come there. And, obviously, we’re working incredibly hard, Danny and his team to control the things that we can control in that US Car Wash business and we’re optimistic that we can get it back to the point that it deserves incremental capital.
Peter Keith: Okay. Very good. And then I want to pivot over to the PC&G segment. So the comp growth is strong, but it did step down sequentially nearly by four points. So I was wondering, if you could help unpack that a little bit because we do hear about very strong trends in collision particularly with ticket growth. And I’m guessing now you have some of your glass business that’s rolled into the comp base. So is it the glass businesses that you’ve acquired are comping negative? Or what’s driven the slowdown overall?
Jonathan Fitzpatrick: Yeah. Look I think the theme is very similar to what Gary said at the start of the call Peter is that our P&C sub-segments are performing very well. We’re very pleased with our collision business. And you mentioned we’re seeing strong demand from our insurance partners in that space. The only negative in the PC&G segment is the US glass business which you’re right, some of those businesses are coming into the concept right now. Our focus is getting that integration challenges behind us, primarily in the rearview mirror by the end of Q1. So, I think we’re very pleased with many parts of our business, but we’ve got two soft spots right now, which is kind of the beauty of driven brands is that we’re still able to deliver top line revenue EBITDA growth, despite not having all parts of the business working at one point. So, we’re excited about 2024 and getting the US glass challenges behind us.
Peter Keith: Okay. Very good. Thanks so much, guys.
Operator: Your next question comes from the line of Chris O’Cull from Stifel. Please go ahead.
Chris O’Cull: Thanks. First Gary, if the company sells assets, what are the requirements under its debt agreements to use the proceeds? And maybe how many locations are included in that $271 million of assets held for sale?
Gary Ferrera: Yes. So obviously, our debt structure is multifaceted. So different things fall in different buckets. US Car Wash is very much tied to the term loan. So, I mean the thought process here is we’ll either use it to pay down debt or general corporate purposes, but it’s not overly specific depending like every sale we make. So, it’s very covenant light on that term loan.
Jonathan Fitzpatrick: And I would just follow up Chris. None of those — the vast majority of that pipeline are not open and operating stores. So there is no debt obligations in terms of where the proceeds would have to go from the sale of pipeline. So just to confirm that.
Chris O’Cull: Okay. And then how many locations were there in that $271 million?
Gary Ferrera: Over $130 million.
Chris O’Cull: Okay. Thanks. And then Danny you mentioned, focusing on improving margin at the car wash with fewer promotions and pricing changes which would seem to create some problems for the top line. Are you expecting the comp trend to weaken, as you reduce promotions and try to improve the margin?
Danny Rivera: So Chris, thanks for the question. Look ultimately, when it comes to the car wash business I’ll just reiterate, we’re focused on operations and improving margins. We discussed a series of things that we’re focused on. I mentioned in my prepared remarks. And don’t see that being tied to declining sales. We’re just focused on like I said improving the operations and improving the margins of the business and making sure that we drive both of those.
Chris O’Cull: Okay. Great. Thanks, guys.
Operator: There are no further questions at this time. I would now like to turn the call back over to Mr. Jonathan Fitzpatrick, CEO for any closing remarks.
Jonathan Fitzpatrick: Thanks, everyone and I appreciate you joining us today. And just a reminder that our short-term focus is on delivering 2023 guidance and then obviously setting Driven up for a really strong 2024. So, thank you all. We look forward to talking to you on our Q4 earnings call.
Operator: Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.
