Net revenues increased 7.6% Unlimited Wash Club
memberships increased 11.3% Opened eight new greenfield locations
and acquired five locations Adjusting capital expenditure range and
reiterating outlook for all other financial projections for
2023
Mister Car Wash, Inc. (the “Company”) (NYSE: MCW), the nation’s
largest car wash brand, today announced its financial results for
the quarter ended September 30, 2023.
“We had a solid third quarter and feel good about the upward
momentum in our business. Comparable store sales were positive and
continued to move in the right direction, our new build openings
are on schedule and performing nicely, the implementation of our
Titanium and other tunnel enhancements is moving full steam ahead
and we are encouraged by the early results, and our Unlimited Wash
Club® (“UWC”) program remains our most loyal and steadfast customer
base,” commented John Lai, Chairperson and CEO of Mister Car Wash.
“We continue to manage our expenses while simultaneously investing
for the future, and are on track to hit our full-year store opening
target of approximately 35 new greenfields.”
Third Quarter 2023 Highlights:
- Net revenues increased 7.6% to $234.1 million from $217.6
million in the third quarter of 2022.
- Comparable stores sales increased 1.7%, compared to a 2.9%
increase in the third quarter of 2022.
- UWC sales represented 71.5% of total wash sales and UWC
membership increased 11.3% on a year-over-year basis. The Company
added six thousand net new UWC members in the third quarter and had
approximately 2.1 million members as of September 30, 2023.
- The Company opened eight new greenfield locations and acquired
five locations in the third quarter of 2023, bringing the total
number of car wash locations operated to 462 as of September 30,
2023, compared to 420 car wash locations as of September 30, 2022,
an increase of 10.0%.
- Net income and net income per diluted share were $19.5 million
and $0.06, respectively.
- Adjusted net income(1) and diluted adjusted net income per
share(1) were $25.5 million and $0.08, respectively.
- Adjusted EBITDA(1) increased 8.3% to $71.6 million from $66.1
million in the third quarter of 2022.
Nine Month 2023 Highlights:
- Net revenues increased 5.3% to $696.9 million from $662.2
million in the comparable period last year.
- Comparable stores sales increased 0.1% compared to a 5.3%
increase in the comparable period last year.
- The Company added approximately 187 thousand UWC Members.
- Net income and net income per diluted share were $67.8 million
and $0.21, respectively.
- Adjusted net income(1) and diluted adjusted net income per
share(1) were $81.2 million and $0.25, respectively.
- Adjusted EBITDA(1) increased approximately 0.5% to $216.4
million from $215.5 million comparable period last year.
(1) See Use of Non-GAAP Financial Measures and GAAP to Non-GAAP
Reconciliations disclosures included below in this press
release.
Store Count
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
Beginning location count
449
409
436
Locations acquired
5
3
6
Greenfield locations opened
8
8
21
Closures
-
-
1
Ending location count
462
420
462
Balance Sheet and Cash Flow Highlights
- As of September 30, 2023, cash and cash equivalents totaled
$62.1 million, compared to cash and cash equivalents of $65.2
million as of December 31, 2022. There were no borrowings under the
Company’s Revolving Commitment as of September 30, 2023 or December
31, 2022
- Net cash provided by operating activities totaled $165.5
million during the first nine months of 2023, compared to $185.5
million during the first nine months of 2022.
Sale-Leasebacks and Rent Expense
- In the third quarter of 2023, the Company completed two
separate sale-leaseback transactions involving a total of two car
wash locations for aggregate consideration of $10.5 million.
- With 422 car wash leases at the end of the third quarter versus
372 leases at the end of the third quarter last year, rent expense
increased 16.4% to $27.0 million, compared to the third quarter of
2022.
Fiscal 2023 Outlook
With the exception of capital expenditures, the Company is
reiterating its outlook for all financial projections for the
fiscal year ending December 31, 2023, as outlined below:
2023 Outlook
Net revenues
$913 to $936 million
Comparable stores sales growth %
-1.0% to 1.0%
Adjusted net income
$94 to $103 million
Adjusted EBITDA
$270 to $283 million
Diluted adjusted net income per share
$0.28 to $0.32
Interest expense, net
$75 million
Rent expense, net
Approx. $100 million
Weighted average common shares
outstanding, diluted, full year
330 million
New greenfield locations
Approx. 35
Sale leasebacks
$110 to $130 million
The Company revises the capital expenditures guidance previously
provided for fiscal year ending December 31, 2023:
Current
Previous
Capital expenditures(1)
$312 to $335 million
$227 to $312 million
(1)
Total capital expenditures for the fiscal
year ending December 31, 2023 are expected to consist of
approximately $252 million to $265 million of growth capital
expenditures related to the opening of new stores and $60 million
to $70 million of other capital expenditures related to store
maintenance, growth and the expenditures to integrate acquired
locations.
Conference Call Details
A conference call to discuss the Company’s financial results for
the third quarter of 2023 and to provide a business update is
scheduled for today, November 2, 2023, at 4:30 p.m. Eastern Time.
Investors and analysts interested in participating in the call are
invited to dial 855-209-8213 (international callers please dial
1-412-542-4146) approximately 10 minutes prior to the start of the
call. A live audio webcast of the conference call will be available
online at https://ir.mistercarwash.com/.
A recorded replay of the conference call will be available
within approximately three hours of the conclusion of the call and
can be accessed online at https://ir.mistercarwash.com/ for 90
days.
About Mister Car Wash® | Inspiring People to Shine®
Headquartered in Tucson, Arizona, Mister Car Wash, Inc. (NYSE:
MCW) operates over 450 locations and has the largest car wash
subscription program in North America. With a passionate team of
professionals, advanced technology, and a commitment to exceptional
customer experiences, Mister Car Wash is dedicated to providing a
clean, shiny, and dry vehicle every time. The Mister brand is
deeply rooted in delivering quality service, fostering
friendliness, and demonstrating a genuine commitment to the
communities it serves while prioritizing responsible environmental
practices and resource management. To learn more visit
www.mistercarwash.com.
Use of Non-GAAP Financial Measures
This press release includes references to non-GAAP financial
measures, including Adjusted EBITDA, Adjusted net income, and
Diluted adjusted net income per share (the “Company’s Non-GAAP
Financial Measures”). These non-GAAP financial measures are not
based on any comprehensive set of accounting rules or principles
and should not be considered a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and may be
different from similarly titled non-GAAP financial measures used by
other companies. In addition, the Company’s Non-GAAP Financial
Measures should be read in conjunction with the Company’s financial
statements prepared in accordance with GAAP. The reconciliations of
the Company’s Non-GAAP Financial Measures to the corresponding GAAP
measures should be carefully evaluated.
The Company’s Non-GAAP Financial Measures are non-GAAP measures
of the Company’s operating performance and should not be considered
as an alternative to net income as a measure of financial
performance or any other performance measure derived in accordance
with U.S. GAAP and should not be construed as an inference that the
Company’s future results will be unaffected by unusual or
nonrecurring items. Adjusted EBITDA is defined as net income before
interest expense, net, income tax provision, depreciation and
amortization expense, (gain) loss on sale of assets, net,
stock-based compensation expense and related taxes, acquisition
expenses, non-cash rent expense, expenses associated with the
Company’s initial public offering (the “IPO”), and other
nonrecurring charges. Adjusted net income is defined as net income
before (gain) loss on sale of assets, net, stock-based compensation
expense, acquisition expenses, non-cash rent expense, expenses
associated with the IPO, other nonrecurring charges, income tax
impact of stock award exercises and the tax impact of adjustments
to net income. Adjusted net income per share is defined as basic
net income per share before (gain) loss on sale of assets, net,
stock-based compensation expense and related taxes, acquisition
expenses, non-cash rent expense, expenses associated with the IPO,
other nonrecurring charges, income tax impact of stock award
exercises and the tax impact of adjustments to basic net income per
share. Diluted adjusted net income per share is defined as diluted
net income per share before (gain) loss on sale of assets, net,
stock-based compensation expense, acquisition expenses, non-cash
rent expense, expenses associated with the IPO, other nonrecurring
charges, income tax impact of stock award exercises and the tax
impact of adjustments to basic net income per share.
Management believes the Company’s Non-GAAP Financial Measures
assist investors and analysts in comparing the Company’s operating
performance across reporting periods on a consistent basis by
excluding items that management does not believe are indicative of
the Company’s ongoing operating performance. Investors are
encouraged to evaluate these adjustments and the reasons the
Company considers them appropriate for supplemental analysis. In
evaluating the Company’s Non-GAAP Financial Measures, investors
should be aware that in the future the Company may incur expenses
that are the same as or similar to some of the adjustments in the
Company’s presentation of the Company’s Non-GAAP Financial
Measures. There can be no assurance that the Company will not
modify the presentation of the Company’s Non-GAAP Financial
Measures in future periods, and any such modification may be
material.
Management believes that the Company’s Non-GAAP Financial
Measures are helpful in highlighting trends in the Company’s core
operating performance compared to other measures, which can differ
significantly depending on long-term strategic decisions regarding
capital structure, the tax jurisdictions in which the Company
operates and capital investments. Management also uses Adjusted
EBITDA in connection with establishing discretionary annual
incentive compensation; to supplement U.S. GAAP measures of
performance in the evaluation of the effectiveness of the Company’s
business strategies; to make budgeting decisions; and because the
Company’s credit facilities use measures similar to Adjusted EBITDA
to measure the Company’s compliance with certain covenants.
The Company’s Non-GAAP Financial Measures have limitations as
analytical tools, and investors should not consider these measures
in isolation or as substitutes for analysis of the Company’s
results as reported under U.S. GAAP. Some of these limitations
include, for example, Adjusted EBITDA does not reflect: the
Company’s cash expenditure or future requirements for capital
expenditures or contractual commitments; the Company’s cash
requirements for the Company’s working capital needs; the interest
expense and the cash requirements necessary to service interest or
principal payments on the Company’s debt; cash requirements for
replacement of assets that are being depreciated and amortized; and
the impact of certain cash charges or cash receipts resulting from
matters management does not find indicative of the Company’s
ongoing operations.
The Company is not providing a reconciliation of the fiscal 2023
outlook for Adjusted EBITDA, Adjusted net income and Diluted
adjusted net income per share because we are unable to predict with
reasonable certainty the reconciling items that may affect the most
directly comparable GAAP financial measures without unreasonable
efforts. The amounts that are necessary for such reconciliations,
including acquisition expenses, other expenses and the other
adjustments reflected are uncertain, depend on various factors and
could significantly impact, either individually or in the
aggregate, the GAAP measures.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements contained in this press release other than statements of
historical fact, including, without limitation, statements
regarding Mister Car Wash’s expansion efforts and expected growth
and financial and operational results for fiscal 2023 are
forward-looking statements. Words including “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “seek,” or
“should,” or the negative thereof or other variations thereon or
comparable terminology are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions. In addition, any statements or information
that refer to expectations, beliefs, plans, projections,
objectives, performance or other characterizations of future events
or circumstances, including any underlying assumptions, are
forward-looking.
These forward-looking statements are based on management’s
current expectations and beliefs. These statements are neither
promises nor guarantees, but involve known and unknown risks,
uncertainties and other important factors that may cause the
Company’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements, including, but not limited to: our inability to attract
new customers, retain existing customers and maintain or grow the
number of UWC members, which could adversely affect our business,
financial condition and results of operations and rate of growth;
our failure to acquire, or open and operate new locations in a
timely and cost-effective manner, and enter into new markets or
leverage new technologies, may materially and adversely affect our
competitive advantage or financial performance; our inability to
successfully implement our growth strategies on a timely basis or
at all; we are subject to a number of risks and regulations related
to credit card and debit card payments we accept; an overall
decline in the health of the economy and other factors impacting
consumer spending, such as natural disasters and fluctuations in
inflation, may affect consumer purchases, reduce demand for our
services and materially and adversely affect our business, results
of operations and financial condition; inflation, supply chain
disruption and other increased operating costs could materially and
adversely affect our results of operations; our locations may
experience difficulty hiring and retaining qualified personnel,
resulting in higher labor costs; we lease or sublease the land and
buildings where a number of our locations are situated, which could
expose us to possible liabilities and losses; our indebtedness
could adversely affect our financial health and competitive
position; our business is subject to various laws and regulations
and changes in such laws and regulations, or failure to comply with
existing or future laws and regulations, may result in litigation,
investigation or claims by third parties or employees that could
adversely affect our business; our locations are subject to certain
environmental laws and regulations; we are subject to data security
and privacy risks that could negatively impact our results of
operations or reputation; we may be unable to adequately protect,
and we may incur significant costs in enforcing or defending, our
intellectual property and other proprietary rights; stockholders’
ability to influence corporate matters may be limited because a
small number of stockholders beneficially own a substantial amount
of our common stock and continue to have substantial control over
us; our stock price may be volatile or may decline regardless of
our operating performance, resulting in substantial losses for
investors purchasing shares of our common stock; and the other
important factors discussed under the caption “Risk Factors” in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, as such factors may be updated from time to time
in its other filings with the SEC accessible on the SEC’s website
at www.sec.gov and the Investors Relations section of the Company’s
website at www.mistercarwash.com.
Any forward-looking statement that the Company makes in this
press release speaks only as of the date hereof. Except as required
by law, the Company does not undertake any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise.
Condensed Consolidated Statements of
Operations and Comprehensive Income (Amounts in thousands,
except share and per share data) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net revenues
$
234,076
$
217,576
$
696,930
$
662,154
Cost of labor and chemicals
72,760
68,228
210,376
203,117
Other store operating expenses
90,514
82,343
270,317
239,173
General and administrative
26,426
24,743
78,438
74,040
(Gain) loss on sale of assets, net
1,321
(649
)
(3,470
)
(3,336
)
Total costs and expenses
191,021
174,665
555,661
512,994
Operating income
43,055
42,911
141,269
149,160
Other expense:
Interest expense, net
19,100
10,100
55,143
27,028
Total other expense
19,100
10,100
55,143
27,028
Income before taxes
23,955
32,811
86,126
122,132
Income tax provision
4,470
8,814
18,373
26,988
Net income
$
19,485
$
23,997
$
67,753
$
95,144
Other comprehensive income, net of
tax:
(Loss) gain on interest rate swap
-
(1,795
)
-
375
Total comprehensive income
$
19,485
$
22,202
$
67,753
$
95,519
Net income per share:
Basic
$
0.06
$
0.08
$
0.22
$
0.31
Diluted
$
0.06
$
0.07
$
0.21
$
0.29
Weighted-average common shares
outstanding:
Basic
312,883,586
304,290,590
309,850,600
302,641,749
Diluted
328,844,569
326,881,152
328,265,878
327,773,344
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
As of
(Amounts in thousands, except share and
per share data)
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
62,133
$
65,152
Restricted cash
107
70
Accounts receivable, net
5,816
3,941
Other receivables
14,987
15,182
Inventory, net
9,222
9,174
Prepaid expenses and other current
assets
13,026
12,618
Total current assets
105,291
106,137
Property and equipment, net
660,733
560,874
Operating lease right of use assets,
net
829,790
776,689
Other intangible assets, net
119,341
123,615
Goodwill
1,135,506
1,109,815
Other assets
9,013
9,102
Total assets
$
2,859,674
$
2,686,232
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
34,791
$
25,649
Accrued payroll and related expenses
22,200
17,218
Other accrued expenses
41,551
41,196
Current maturities of operating lease
liability
42,898
40,367
Current maturities of finance lease
liability
726
668
Deferred revenue
32,779
29,395
Total current liabilities
174,945
154,493
Long-term portion of debt, net
897,022
895,830
Operating lease liability
806,448
759,775
Financing lease liability
14,230
14,779
Deferred tax liability
68,268
53,395
Other long-term liabilities
6,044
6,832
Total liabilities
1,966,957
1,885,104
Stockholders’ equity:
Common stock, $0.01 par value,
1,000,000,000 shares authorized, 313,970,741 and 306,626,530 shares
outstanding as of September 30, 2023 and December 31, 2022,
respectively
3,145
3,072
Additional paid-in capital
807,342
783,579
Retained earnings
82,230
14,477
Total stockholders’ equity
892,717
801,128
Total liabilities and stockholders’
equity
$
2,859,674
$
2,686,232
Condensed Consolidated Statements of Cash
Flows (Amounts in thousands) (Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating
activities:
Net income
$
67,753
$
95,144
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense
51,418
45,274
Stock-based compensation expense
17,643
16,959
Gain on sale of assets, net
(3,470
)
(3,336
)
Amortization of debt issuance costs
1,270
1,270
Non-cash lease expense
33,337
29,602
Deferred income tax
14,748
21,526
Changes in assets and liabilities:
Accounts receivable, net
(1,874
)
(1,663
)
Other receivables
212
8,355
Inventory, net
88
(2,431
)
Prepaid expenses and other current
assets
(408
)
(2,458
)
Accounts payable
3,777
6,424
Accrued expenses
8,170
4,295
Deferred revenue
3,288
660
Operating lease liability
(29,689
)
(32,103
)
Other noncurrent assets and
liabilities
(777
)
(2,065
)
Net cash provided by operating
activities
$
165,486
$
185,453
Cash flows from investing
activities:
Purchases of property and equipment
(218,692
)
(132,014
)
Acquisition of car wash operations, net of
cash
(51,890
)
(65,533
)
Proceeds from sale of property and
equipment
96,930
63,763
Net cash used in investing activities
$
(173,652
)
$
(133,784
)
Cash flows from financing
activities:
Proceeds from issuance of common stock
under employee plans
6,176
5,941
Payments on debt borrowings
-
(2,100
)
Principal payments on finance lease
obligations
(492
)
(421
)
Other financing activities
(500
)
-
Net cash provided by financing
activities
$
5,184
$
3,420
Net change in cash and cash equivalents
and restricted cash during period
(2,982
)
55,089
Cash and cash equivalents and restricted
cash at beginning of period
65,222
19,858
Cash and cash equivalents and restricted
cash at end of period
$
62,240
$
74,947
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
56,164
$
25,900
Cash paid for income taxes
$
2,409
$
2,416
Supplemental disclosure of non-cash
investing and financing activities:
Property and equipment in accounts
payable
$
15,167
$
10,965
Property and equipment in other accrued
expenses
$
16,439
$
3,886
Stock option exercise proceeds in other
receivables
$
17
$
-
GAAP to Non-GAAP Reconciliations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Reconciliation of net income to Adjusted
EBITDA:
Net income
$
19,485
$
23,997
$
67,753
$
95,144
Interest expense, net
19,100
10,100
55,143
27,028
Income tax provision
4,470
8,814
18,373
26,988
Depreciation and amortization expense
17,599
15,193
51,418
45,274
(Gain) loss on sale of assets, net
1,321
(649
)
(3,470
)
(3,336
)
Stock-based compensation expense
6,522
5,461
17,876
16,959
Acquisition expenses
912
1,303
2,651
2,541
Non-cash rent expense
1,409
745
3,623
1,820
Expenses associated with initial public
offering
-
-
-
272
Other
780
1,168
3,067
2,767
Adjusted EBITDA
$
71,598
$
66,132
$
216,434
$
215,457
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Reconciliation of net income to Adjusted
Net Income:
Net income
$
19,485
$
23,997
$
67,753
$
95,144
(Gain) loss on sale of assets, net
1,321
(649
)
(3,470
)
(3,336
)
Stock-based compensation expense
6,522
5,461
17,876
16,959
Acquisition expenses
912
1,303
2,651
2,541
Non-cash rent expense
1,409
745
3,623
1,820
Expenses associated with initial public
offering
-
-
-
272
Other
780
1,168
3,067
2,767
Income tax impact of stock award
exercises
(2,159
)
(38
)
(4,332
)
(5,996
)
Tax impact of adjustments to net
income
(2,736
)
(2,007
)
(5,937
)
(5,256
)
Adjusted Net Income
$
25,534
$
29,980
$
81,231
$
104,915
Diluted Adjusted Net Income per Share
$
0.08
$
0.09
$
0.25
$
0.32
Adjusted weighted-average common shares
outstanding - diluted
328,844,569
326,881,152
328,265,878
327,773,344
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102786811/en/
Investors John Rouleau ICR IR@mistercarwash.com Media
media@mistercarwash.com
Grafico Azioni Mister Car Wash (NYSE:MCW)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Mister Car Wash (NYSE:MCW)
Storico
Da Dic 2023 a Dic 2024
