Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CORRECTING and REPLACING Mister Car Wash Announces Fourth Quarter and Fiscal Year 2023 Financial Results By: Mister Car Wash, Inc. via Business Wire February 21, 2024 at 20:00 PM EST Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook In the Fiscal 2024 Outlook table, the "Comparable-store sales growth %" row under the "2024 Initial Outlook" column should read: 0.5% to 2.5% (instead of -0.5% to 2.5%). The updated release reads: MISTER CAR WASH ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2023 FINANCIAL RESULTS Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook Mister Car Wash, Inc. (the “Company”) (NYSE: MCW), the nation’s largest car wash brand, today announced its financial results for the quarter and fiscal year ended December 31, 2023. “Fourth quarter and full-year results reflect continued strong performance. In line with our expectations, we generated positive comparable-store sales and opened a record 35 new greenfields, while simultaneously implementing our new Titanium offering," said John Lai, Chairman and CEO of Mister Car Wash. “Our team has entered 2024 with positive momentum and a commitment to expand the Mister brand. As always, we will do this with a clear focus on managing our business to deliver quality, profitable growth that will create lasting shareholder value.” Fourth Quarter 2023 Highlights: Net revenues increased 7.4% to $230.1 million, up from $214.3 million in the fourth quarter of 2022. Comparable-store sales increased 0.7%. Unlimited Wash Club® (“UWC”) sales represented 73.8% of total wash sales compared to 70.9% in the fourth quarter of 2022. The Company added six thousand net new UWC members in the fourth quarter and had approximately 2.1 million members as of December 31, 2023. The Company opened 14 new greenfield locations in the fourth quarter of 2023, a quarterly record, bringing the total number of car wash locations operated to 476 as of December 31, 2023, compared to 436 car wash locations as of December 31, 2022, an increase of 9.2%. Net income and net income per diluted share were $12.4 million and $0.04, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $24.0 million and $0.07, respectively. Adjusted EBITDA(1) increased 5.0% to $69.5 million from $66.2 million in the fourth quarter of 2022. Full Year Highlights: Net revenues increased 5.8% to $927.1 million, up from $876.5 million in the prior year. Comparable-store sales increased 0.3%. The Company added approximately 194 thousand UWC members and UWC membership increased 10.3% on a year-over-year basis. The Company opened a record 35 new greenfield locations during 2023. Net income and net income per diluted share were $80.1 million and $0.24, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $105.2 million and $0.32, respectively. Adjusted EBITDA(1) increased approximately 1.5% to $285.9 million from $281.6 million in the prior 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 December 31, Year Ended December 31, 2023 2022 2023 Beginning location count 462 420 436 Locations acquired - 3 6 Greenfield locations opened 14 13 35 Closures - - 1 Ending location count 476 436 476 Balance Sheet and Cash Flow Highlights As of December 31, 2023, cash and cash equivalents totaled $19.0 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 December 31, 2023 and 2022. Net cash provided by operating activities totaled $204.7 million for the fiscal year 2023, compared to $229.2 million for the fiscal year 2022. Sale-Leasebacks and Rent Expense In the fourth quarter of 2023, the Company completed five separate sale-leaseback transactions involving a total of five car wash locations for aggregate consideration of $23.8 million. With 427 car wash leases at the end of the year versus 382 leases at the end of the prior year, rent expense increased 14.7% to $27.5 million, compared to the fourth quarter of 2022. Fiscal 2024 Outlook The Company’s initial outlook for the fiscal year ending December 31, 2024 compared to actual results of fiscal 2023 is as follows: 2024 Initial Outlook 2023 Actual Net revenues $988 to $1,016 million $927.1 million Comparable-store sales growth % 0.5% to 2.5% 0.3% Adjusted net income $99 to $111 million $105.2 million Adjusted EBITDA $291.5 to $308 million $285.9 million Diluted adjusted net income per share $0.30 to $0.34 $0.32 Interest expense, net $81 million $75.1 million Rent expense, net Approx. $111 million $100.3 million Weighted average common shares outstanding, diluted, full year 330 million 328.2 million New greenfield locations Approx. 40 35 Capital expenditures $364 to $405 million $328.1 million Sale leasebacks $135 to $150 million $123.5 million Other outlook related commentary: Total capital expenditures for the fiscal year ending December 31, 2024 are expected to consist of approximately $314 million to $350 million of new store growth capital expenditures and $50 million to $55 million of other capital expenditures related to store-level maintenance, productivity improvements and the integration of acquired locations. Conference Call Details A conference call to discuss the Company’s financial results for the fourth quarter and fiscal year ended December 31, 2023 and to provide a business update is scheduled for today, February 21, 2024, 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 2024 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 those 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Net revenues $ 230,140 $ 214,352 $ 927,070 $ 876,506 Cost of labor and chemicals 68,999 65,350 279,375 268,467 Other store operating expenses 93,400 83,241 363,717 322,414 General and administrative 27,270 24,815 105,708 98,855 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Total costs and expenses 193,264 175,793 748,925 688,787 Operating income 36,876 38,559 178,145 187,719 Other expense: Interest expense, net 19,961 14,867 75,104 41,895 Total other expense 19,961 14,867 75,104 41,895 Income before taxes 16,915 23,692 103,041 145,824 Income tax provision 4,538 5,936 22,911 32,924 Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Total comprehensive income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Net income per share: Basic $ 0.04 $ 0.06 $ 0.26 $ 0.37 Diluted $ 0.04 $ 0.05 $ 0.24 $ 0.34 Weighted-average common shares outstanding: Basic 314,550,061 305,545,143 311,035,122 303,372,095 Diluted 328,122,154 326,903,609 328,239,604 327,560,407 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) December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 19,047 $ 65,152 Restricted cash 72 70 Accounts receivable, net 6,304 3,941 Other receivables 14,714 15,182 Inventory, net 8,952 9,174 Prepaid expenses and other current assets 11,805 12,618 Total current assets 60,894 106,137 Property and equipment, net 725,121 560,874 Operating lease right of use assets, net 833,547 776,689 Other intangible assets, net 117,667 123,615 Goodwill 1,134,734 1,109,815 Other assets 9,573 9,102 Total assets $ 2,881,536 $ 2,686,232 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 33,641 $ 25,649 Accrued payroll and related expenses 19,771 17,218 Other accrued expenses 38,738 41,196 Current maturities of operating lease liability 43,979 40,367 Current maturities of finance lease liability 746 668 Deferred revenue 32,686 29,395 Total current liabilities 169,561 154,493 Long-term debt, net 897,424 895,830 Operating lease liability 809,409 759,775 Financing lease liability 14,033 14,779 Long-term deferred tax liabilities 71,657 53,395 Other long-term liabilities 4,417 6,832 Total liabilities 1,966,501 1,885,104 Stockholders’ equity: Common stock, $0.01 par value, 1,000,000,000 shares authorized, 315,192,401 and 306,626,530 shares outstanding as of December 31, 2023 and 2022, respectively 3,157 3,072 Additional paid-in capital 817,271 783,579 Accumulated other comprehensive income — — Retained earnings 94,607 14,477 Total stockholders’ equity 915,035 801,128 Total liabilities and stockholders’ equity $ 2,881,536 $ 2,686,232 Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 80,130 $ 112,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 69,991 61,580 Stock-based compensation expense 24,001 22,305 Loss (gain) on sale of assets, net 125 (949 ) Amortization of deferred debt issuance costs 1,698 1,698 Non-cash lease expense 45,084 41,099 Non-cash interest income — (302 ) Deferred income tax 18,137 29,382 Changes in assets and liabilities: Accounts receivable, net (2,363 ) (2,668 ) Other receivables 960 7,640 Inventory, net 357 (2,661 ) Prepaid expenses and other current assets 810 (4,324 ) Accounts payable (113 ) 5,633 Accrued expenses 6,065 2,387 Deferred revenue 3,195 1,129 Operating lease liability (40,434 ) (42,637 ) Other noncurrent assets and liabilities (2,990 ) (3,011 ) Net cash provided by operating activities $ 204,653 $ 229,201 Cash flows from investing activities: Purchases of property and equipment (328,124 ) (191,615 ) Acquisition of car wash operations, net of cash (51,218 ) (86,703 ) Proceeds from sale of property and equipment 119,977 88,187 Net cash used in investing activities $ (259,365 ) $ (190,131 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee plans 9,777 8,971 Payments on debt borrowings — (2,100 ) Principal payments on finance lease obligations (668 ) (577 ) Other financing activities (500 ) — Net cash provided by financing activities $ 8,609 $ 6,294 Net change in cash and cash equivalents, and restricted cash during period (46,103 ) 45,364 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 $ 19,119 $ 65,222 Supplemental disclosure of cash flow information: Cash paid for interest $ 75,737 $ 40,605 Cash paid for income taxes $ 4,221 $ 2,221 Supplemental disclosure of non-cash investing and financing activities: Property and equipment in accounts payable $ 17,907 $ 9,816 Property and equipment accrued in other accrued expenses $ 13,303 $ 18,772 Stock option exercise proceeds in other receivables $ - $ 25 GAAP to Non-GAAP Reconciliations (Amounts in thousands, except share and per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted EBITDA: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Interest expense, net 19,961 14,867 75,104 41,895 Income tax provision 4,538 5,936 22,911 32,924 Depreciation and amortization expense 18,573 16,306 69,991 61,580 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Adjusted EBITDA $ 69,490 $ 66,189 $ 285,924 $ 281,646 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted Net Income: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Income tax impact of stock award exercises 1,058 (342 ) (3,274 ) (6,338 ) Tax impact of adjustments to net income (3,510 ) (2,831 ) (9,447 ) (8,087 ) Adjusted Net Income $ 23,966 $ 25,907 $ 105,197 $ 130,822 Diluted Adjusted Net Income per Share $ 0.07 $ 0.08 $ 0.32 $ 0.40 Adjusted weighted-average common shares outstanding - diluted 328,122,154 326,903,609 328,239,604 327,560,407 View source version on businesswire.com: https://www.businesswire.com/news/home/20240221051221/en/Contacts Investors John Rouleau ICR IR@mistercarwash.com Media media@mistercarwash.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CORRECTING and REPLACING Mister Car Wash Announces Fourth Quarter and Fiscal Year 2023 Financial Results By: Mister Car Wash, Inc. via Business Wire February 21, 2024 at 20:00 PM EST Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook In the Fiscal 2024 Outlook table, the "Comparable-store sales growth %" row under the "2024 Initial Outlook" column should read: 0.5% to 2.5% (instead of -0.5% to 2.5%). The updated release reads: MISTER CAR WASH ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2023 FINANCIAL RESULTS Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook Mister Car Wash, Inc. (the “Company”) (NYSE: MCW), the nation’s largest car wash brand, today announced its financial results for the quarter and fiscal year ended December 31, 2023. “Fourth quarter and full-year results reflect continued strong performance. In line with our expectations, we generated positive comparable-store sales and opened a record 35 new greenfields, while simultaneously implementing our new Titanium offering," said John Lai, Chairman and CEO of Mister Car Wash. “Our team has entered 2024 with positive momentum and a commitment to expand the Mister brand. As always, we will do this with a clear focus on managing our business to deliver quality, profitable growth that will create lasting shareholder value.” Fourth Quarter 2023 Highlights: Net revenues increased 7.4% to $230.1 million, up from $214.3 million in the fourth quarter of 2022. Comparable-store sales increased 0.7%. Unlimited Wash Club® (“UWC”) sales represented 73.8% of total wash sales compared to 70.9% in the fourth quarter of 2022. The Company added six thousand net new UWC members in the fourth quarter and had approximately 2.1 million members as of December 31, 2023. The Company opened 14 new greenfield locations in the fourth quarter of 2023, a quarterly record, bringing the total number of car wash locations operated to 476 as of December 31, 2023, compared to 436 car wash locations as of December 31, 2022, an increase of 9.2%. Net income and net income per diluted share were $12.4 million and $0.04, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $24.0 million and $0.07, respectively. Adjusted EBITDA(1) increased 5.0% to $69.5 million from $66.2 million in the fourth quarter of 2022. Full Year Highlights: Net revenues increased 5.8% to $927.1 million, up from $876.5 million in the prior year. Comparable-store sales increased 0.3%. The Company added approximately 194 thousand UWC members and UWC membership increased 10.3% on a year-over-year basis. The Company opened a record 35 new greenfield locations during 2023. Net income and net income per diluted share were $80.1 million and $0.24, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $105.2 million and $0.32, respectively. Adjusted EBITDA(1) increased approximately 1.5% to $285.9 million from $281.6 million in the prior 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 December 31, Year Ended December 31, 2023 2022 2023 Beginning location count 462 420 436 Locations acquired - 3 6 Greenfield locations opened 14 13 35 Closures - - 1 Ending location count 476 436 476 Balance Sheet and Cash Flow Highlights As of December 31, 2023, cash and cash equivalents totaled $19.0 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 December 31, 2023 and 2022. Net cash provided by operating activities totaled $204.7 million for the fiscal year 2023, compared to $229.2 million for the fiscal year 2022. Sale-Leasebacks and Rent Expense In the fourth quarter of 2023, the Company completed five separate sale-leaseback transactions involving a total of five car wash locations for aggregate consideration of $23.8 million. With 427 car wash leases at the end of the year versus 382 leases at the end of the prior year, rent expense increased 14.7% to $27.5 million, compared to the fourth quarter of 2022. Fiscal 2024 Outlook The Company’s initial outlook for the fiscal year ending December 31, 2024 compared to actual results of fiscal 2023 is as follows: 2024 Initial Outlook 2023 Actual Net revenues $988 to $1,016 million $927.1 million Comparable-store sales growth % 0.5% to 2.5% 0.3% Adjusted net income $99 to $111 million $105.2 million Adjusted EBITDA $291.5 to $308 million $285.9 million Diluted adjusted net income per share $0.30 to $0.34 $0.32 Interest expense, net $81 million $75.1 million Rent expense, net Approx. $111 million $100.3 million Weighted average common shares outstanding, diluted, full year 330 million 328.2 million New greenfield locations Approx. 40 35 Capital expenditures $364 to $405 million $328.1 million Sale leasebacks $135 to $150 million $123.5 million Other outlook related commentary: Total capital expenditures for the fiscal year ending December 31, 2024 are expected to consist of approximately $314 million to $350 million of new store growth capital expenditures and $50 million to $55 million of other capital expenditures related to store-level maintenance, productivity improvements and the integration of acquired locations. Conference Call Details A conference call to discuss the Company’s financial results for the fourth quarter and fiscal year ended December 31, 2023 and to provide a business update is scheduled for today, February 21, 2024, 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 2024 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 those 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Net revenues $ 230,140 $ 214,352 $ 927,070 $ 876,506 Cost of labor and chemicals 68,999 65,350 279,375 268,467 Other store operating expenses 93,400 83,241 363,717 322,414 General and administrative 27,270 24,815 105,708 98,855 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Total costs and expenses 193,264 175,793 748,925 688,787 Operating income 36,876 38,559 178,145 187,719 Other expense: Interest expense, net 19,961 14,867 75,104 41,895 Total other expense 19,961 14,867 75,104 41,895 Income before taxes 16,915 23,692 103,041 145,824 Income tax provision 4,538 5,936 22,911 32,924 Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Total comprehensive income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Net income per share: Basic $ 0.04 $ 0.06 $ 0.26 $ 0.37 Diluted $ 0.04 $ 0.05 $ 0.24 $ 0.34 Weighted-average common shares outstanding: Basic 314,550,061 305,545,143 311,035,122 303,372,095 Diluted 328,122,154 326,903,609 328,239,604 327,560,407 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) December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 19,047 $ 65,152 Restricted cash 72 70 Accounts receivable, net 6,304 3,941 Other receivables 14,714 15,182 Inventory, net 8,952 9,174 Prepaid expenses and other current assets 11,805 12,618 Total current assets 60,894 106,137 Property and equipment, net 725,121 560,874 Operating lease right of use assets, net 833,547 776,689 Other intangible assets, net 117,667 123,615 Goodwill 1,134,734 1,109,815 Other assets 9,573 9,102 Total assets $ 2,881,536 $ 2,686,232 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 33,641 $ 25,649 Accrued payroll and related expenses 19,771 17,218 Other accrued expenses 38,738 41,196 Current maturities of operating lease liability 43,979 40,367 Current maturities of finance lease liability 746 668 Deferred revenue 32,686 29,395 Total current liabilities 169,561 154,493 Long-term debt, net 897,424 895,830 Operating lease liability 809,409 759,775 Financing lease liability 14,033 14,779 Long-term deferred tax liabilities 71,657 53,395 Other long-term liabilities 4,417 6,832 Total liabilities 1,966,501 1,885,104 Stockholders’ equity: Common stock, $0.01 par value, 1,000,000,000 shares authorized, 315,192,401 and 306,626,530 shares outstanding as of December 31, 2023 and 2022, respectively 3,157 3,072 Additional paid-in capital 817,271 783,579 Accumulated other comprehensive income — — Retained earnings 94,607 14,477 Total stockholders’ equity 915,035 801,128 Total liabilities and stockholders’ equity $ 2,881,536 $ 2,686,232 Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 80,130 $ 112,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 69,991 61,580 Stock-based compensation expense 24,001 22,305 Loss (gain) on sale of assets, net 125 (949 ) Amortization of deferred debt issuance costs 1,698 1,698 Non-cash lease expense 45,084 41,099 Non-cash interest income — (302 ) Deferred income tax 18,137 29,382 Changes in assets and liabilities: Accounts receivable, net (2,363 ) (2,668 ) Other receivables 960 7,640 Inventory, net 357 (2,661 ) Prepaid expenses and other current assets 810 (4,324 ) Accounts payable (113 ) 5,633 Accrued expenses 6,065 2,387 Deferred revenue 3,195 1,129 Operating lease liability (40,434 ) (42,637 ) Other noncurrent assets and liabilities (2,990 ) (3,011 ) Net cash provided by operating activities $ 204,653 $ 229,201 Cash flows from investing activities: Purchases of property and equipment (328,124 ) (191,615 ) Acquisition of car wash operations, net of cash (51,218 ) (86,703 ) Proceeds from sale of property and equipment 119,977 88,187 Net cash used in investing activities $ (259,365 ) $ (190,131 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee plans 9,777 8,971 Payments on debt borrowings — (2,100 ) Principal payments on finance lease obligations (668 ) (577 ) Other financing activities (500 ) — Net cash provided by financing activities $ 8,609 $ 6,294 Net change in cash and cash equivalents, and restricted cash during period (46,103 ) 45,364 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 $ 19,119 $ 65,222 Supplemental disclosure of cash flow information: Cash paid for interest $ 75,737 $ 40,605 Cash paid for income taxes $ 4,221 $ 2,221 Supplemental disclosure of non-cash investing and financing activities: Property and equipment in accounts payable $ 17,907 $ 9,816 Property and equipment accrued in other accrued expenses $ 13,303 $ 18,772 Stock option exercise proceeds in other receivables $ - $ 25 GAAP to Non-GAAP Reconciliations (Amounts in thousands, except share and per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted EBITDA: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Interest expense, net 19,961 14,867 75,104 41,895 Income tax provision 4,538 5,936 22,911 32,924 Depreciation and amortization expense 18,573 16,306 69,991 61,580 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Adjusted EBITDA $ 69,490 $ 66,189 $ 285,924 $ 281,646 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted Net Income: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Income tax impact of stock award exercises 1,058 (342 ) (3,274 ) (6,338 ) Tax impact of adjustments to net income (3,510 ) (2,831 ) (9,447 ) (8,087 ) Adjusted Net Income $ 23,966 $ 25,907 $ 105,197 $ 130,822 Diluted Adjusted Net Income per Share $ 0.07 $ 0.08 $ 0.32 $ 0.40 Adjusted weighted-average common shares outstanding - diluted 328,122,154 326,903,609 328,239,604 327,560,407 View source version on businesswire.com: https://www.businesswire.com/news/home/20240221051221/en/Contacts Investors John Rouleau ICR IR@mistercarwash.com Media media@mistercarwash.com
Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook
In the Fiscal 2024 Outlook table, the "Comparable-store sales growth %" row under the "2024 Initial Outlook" column should read: 0.5% to 2.5% (instead of -0.5% to 2.5%). The updated release reads: MISTER CAR WASH ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2023 FINANCIAL RESULTS Net revenues increased 7.4% during the quarter Comparable-store sales increased 0.7% during the quarter Unlimited Wash Club memberships increased 10.3% Opened a record 35 new greenfield locations in 2023 Provides Fiscal 2024 Initial Outlook Mister Car Wash, Inc. (the “Company”) (NYSE: MCW), the nation’s largest car wash brand, today announced its financial results for the quarter and fiscal year ended December 31, 2023. “Fourth quarter and full-year results reflect continued strong performance. In line with our expectations, we generated positive comparable-store sales and opened a record 35 new greenfields, while simultaneously implementing our new Titanium offering," said John Lai, Chairman and CEO of Mister Car Wash. “Our team has entered 2024 with positive momentum and a commitment to expand the Mister brand. As always, we will do this with a clear focus on managing our business to deliver quality, profitable growth that will create lasting shareholder value.” Fourth Quarter 2023 Highlights: Net revenues increased 7.4% to $230.1 million, up from $214.3 million in the fourth quarter of 2022. Comparable-store sales increased 0.7%. Unlimited Wash Club® (“UWC”) sales represented 73.8% of total wash sales compared to 70.9% in the fourth quarter of 2022. The Company added six thousand net new UWC members in the fourth quarter and had approximately 2.1 million members as of December 31, 2023. The Company opened 14 new greenfield locations in the fourth quarter of 2023, a quarterly record, bringing the total number of car wash locations operated to 476 as of December 31, 2023, compared to 436 car wash locations as of December 31, 2022, an increase of 9.2%. Net income and net income per diluted share were $12.4 million and $0.04, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $24.0 million and $0.07, respectively. Adjusted EBITDA(1) increased 5.0% to $69.5 million from $66.2 million in the fourth quarter of 2022. Full Year Highlights: Net revenues increased 5.8% to $927.1 million, up from $876.5 million in the prior year. Comparable-store sales increased 0.3%. The Company added approximately 194 thousand UWC members and UWC membership increased 10.3% on a year-over-year basis. The Company opened a record 35 new greenfield locations during 2023. Net income and net income per diluted share were $80.1 million and $0.24, respectively. Adjusted net income(1) and diluted adjusted net income per share(1) were $105.2 million and $0.32, respectively. Adjusted EBITDA(1) increased approximately 1.5% to $285.9 million from $281.6 million in the prior 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 December 31, Year Ended December 31, 2023 2022 2023 Beginning location count 462 420 436 Locations acquired - 3 6 Greenfield locations opened 14 13 35 Closures - - 1 Ending location count 476 436 476 Balance Sheet and Cash Flow Highlights As of December 31, 2023, cash and cash equivalents totaled $19.0 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 December 31, 2023 and 2022. Net cash provided by operating activities totaled $204.7 million for the fiscal year 2023, compared to $229.2 million for the fiscal year 2022. Sale-Leasebacks and Rent Expense In the fourth quarter of 2023, the Company completed five separate sale-leaseback transactions involving a total of five car wash locations for aggregate consideration of $23.8 million. With 427 car wash leases at the end of the year versus 382 leases at the end of the prior year, rent expense increased 14.7% to $27.5 million, compared to the fourth quarter of 2022. Fiscal 2024 Outlook The Company’s initial outlook for the fiscal year ending December 31, 2024 compared to actual results of fiscal 2023 is as follows: 2024 Initial Outlook 2023 Actual Net revenues $988 to $1,016 million $927.1 million Comparable-store sales growth % 0.5% to 2.5% 0.3% Adjusted net income $99 to $111 million $105.2 million Adjusted EBITDA $291.5 to $308 million $285.9 million Diluted adjusted net income per share $0.30 to $0.34 $0.32 Interest expense, net $81 million $75.1 million Rent expense, net Approx. $111 million $100.3 million Weighted average common shares outstanding, diluted, full year 330 million 328.2 million New greenfield locations Approx. 40 35 Capital expenditures $364 to $405 million $328.1 million Sale leasebacks $135 to $150 million $123.5 million Other outlook related commentary: Total capital expenditures for the fiscal year ending December 31, 2024 are expected to consist of approximately $314 million to $350 million of new store growth capital expenditures and $50 million to $55 million of other capital expenditures related to store-level maintenance, productivity improvements and the integration of acquired locations. Conference Call Details A conference call to discuss the Company’s financial results for the fourth quarter and fiscal year ended December 31, 2023 and to provide a business update is scheduled for today, February 21, 2024, 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 2024 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 those 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Net revenues $ 230,140 $ 214,352 $ 927,070 $ 876,506 Cost of labor and chemicals 68,999 65,350 279,375 268,467 Other store operating expenses 93,400 83,241 363,717 322,414 General and administrative 27,270 24,815 105,708 98,855 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Total costs and expenses 193,264 175,793 748,925 688,787 Operating income 36,876 38,559 178,145 187,719 Other expense: Interest expense, net 19,961 14,867 75,104 41,895 Total other expense 19,961 14,867 75,104 41,895 Income before taxes 16,915 23,692 103,041 145,824 Income tax provision 4,538 5,936 22,911 32,924 Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Total comprehensive income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Net income per share: Basic $ 0.04 $ 0.06 $ 0.26 $ 0.37 Diluted $ 0.04 $ 0.05 $ 0.24 $ 0.34 Weighted-average common shares outstanding: Basic 314,550,061 305,545,143 311,035,122 303,372,095 Diluted 328,122,154 326,903,609 328,239,604 327,560,407 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) December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 19,047 $ 65,152 Restricted cash 72 70 Accounts receivable, net 6,304 3,941 Other receivables 14,714 15,182 Inventory, net 8,952 9,174 Prepaid expenses and other current assets 11,805 12,618 Total current assets 60,894 106,137 Property and equipment, net 725,121 560,874 Operating lease right of use assets, net 833,547 776,689 Other intangible assets, net 117,667 123,615 Goodwill 1,134,734 1,109,815 Other assets 9,573 9,102 Total assets $ 2,881,536 $ 2,686,232 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 33,641 $ 25,649 Accrued payroll and related expenses 19,771 17,218 Other accrued expenses 38,738 41,196 Current maturities of operating lease liability 43,979 40,367 Current maturities of finance lease liability 746 668 Deferred revenue 32,686 29,395 Total current liabilities 169,561 154,493 Long-term debt, net 897,424 895,830 Operating lease liability 809,409 759,775 Financing lease liability 14,033 14,779 Long-term deferred tax liabilities 71,657 53,395 Other long-term liabilities 4,417 6,832 Total liabilities 1,966,501 1,885,104 Stockholders’ equity: Common stock, $0.01 par value, 1,000,000,000 shares authorized, 315,192,401 and 306,626,530 shares outstanding as of December 31, 2023 and 2022, respectively 3,157 3,072 Additional paid-in capital 817,271 783,579 Accumulated other comprehensive income — — Retained earnings 94,607 14,477 Total stockholders’ equity 915,035 801,128 Total liabilities and stockholders’ equity $ 2,881,536 $ 2,686,232 Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 80,130 $ 112,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 69,991 61,580 Stock-based compensation expense 24,001 22,305 Loss (gain) on sale of assets, net 125 (949 ) Amortization of deferred debt issuance costs 1,698 1,698 Non-cash lease expense 45,084 41,099 Non-cash interest income — (302 ) Deferred income tax 18,137 29,382 Changes in assets and liabilities: Accounts receivable, net (2,363 ) (2,668 ) Other receivables 960 7,640 Inventory, net 357 (2,661 ) Prepaid expenses and other current assets 810 (4,324 ) Accounts payable (113 ) 5,633 Accrued expenses 6,065 2,387 Deferred revenue 3,195 1,129 Operating lease liability (40,434 ) (42,637 ) Other noncurrent assets and liabilities (2,990 ) (3,011 ) Net cash provided by operating activities $ 204,653 $ 229,201 Cash flows from investing activities: Purchases of property and equipment (328,124 ) (191,615 ) Acquisition of car wash operations, net of cash (51,218 ) (86,703 ) Proceeds from sale of property and equipment 119,977 88,187 Net cash used in investing activities $ (259,365 ) $ (190,131 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee plans 9,777 8,971 Payments on debt borrowings — (2,100 ) Principal payments on finance lease obligations (668 ) (577 ) Other financing activities (500 ) — Net cash provided by financing activities $ 8,609 $ 6,294 Net change in cash and cash equivalents, and restricted cash during period (46,103 ) 45,364 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 $ 19,119 $ 65,222 Supplemental disclosure of cash flow information: Cash paid for interest $ 75,737 $ 40,605 Cash paid for income taxes $ 4,221 $ 2,221 Supplemental disclosure of non-cash investing and financing activities: Property and equipment in accounts payable $ 17,907 $ 9,816 Property and equipment accrued in other accrued expenses $ 13,303 $ 18,772 Stock option exercise proceeds in other receivables $ - $ 25 GAAP to Non-GAAP Reconciliations (Amounts in thousands, except share and per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted EBITDA: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Interest expense, net 19,961 14,867 75,104 41,895 Income tax provision 4,538 5,936 22,911 32,924 Depreciation and amortization expense 18,573 16,306 69,991 61,580 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Adjusted EBITDA $ 69,490 $ 66,189 $ 285,924 $ 281,646 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net income to Adjusted Net Income: Net income $ 12,377 $ 17,756 $ 80,130 $ 112,900 Loss (gain) on sale of assets, net 3,595 2,387 125 (949 ) Stock-based compensation expense 6,434 5,346 24,310 22,305 Acquisition expenses 820 1,107 3,471 3,648 Non-cash rent expense 1,420 972 5,043 2,792 Expenses associated with initial public offering — — — 272 Other 1,772 1,512 4,839 4,279 Income tax impact of stock award exercises 1,058 (342 ) (3,274 ) (6,338 ) Tax impact of adjustments to net income (3,510 ) (2,831 ) (9,447 ) (8,087 ) Adjusted Net Income $ 23,966 $ 25,907 $ 105,197 $ 130,822 Diluted Adjusted Net Income per Share $ 0.07 $ 0.08 $ 0.32 $ 0.40 Adjusted weighted-average common shares outstanding - diluted 328,122,154 326,903,609 328,239,604 327,560,407 View source version on businesswire.com: https://www.businesswire.com/news/home/20240221051221/en/