Mister Car Wash announces first quarter 2024 financial results

Mister Car Wash announces first quarter 2024 financial results

TUCSON, Ariz. — The company reports it is finding ways to do more with less and managing its expense structure to deliver strong cash flow.

TUCSON, Ariz. — Mister Car Wash, Inc. recently announced in a press release its financial results for the quarter ended March 31, 2024.

“Our overall results in the first quarter were in line with expectations, and we are executing against our strategic initiatives to drive profitable growth. In the first quarter, our subscription business remained incredibly resilient, growth in our new Titanium membership package was very strong, and we opened a record number of new greenfields for any first quarter in our history,” said John Lai, chairman and CEO of Mister Car Wash. “Finally, we are finding ways to do more with less and managing our expense structure to deliver strong cash flow and more than $75 million of adjusted EBITDA for the first quarter.”

First Quarter 2024 Highlights:

  • Net revenues increased 6% to $239.2 million, up from $226.0 million in the first quarter of 2023.
  • Comparable-store sales increased 0.9% during the quarter.
  • UWC sales represented 74% of total wash sales compared to 69% in the first quarter of 2023. The company added 35 thousand net new UWC members in the first quarter and had approximately 2.1 million members as of March 31, 2024.
  • The company opened six new greenfield locations in the first quarter of 2024, bringing the total number of carwash locations operated to 482 as of March 31, 2024, compared to 439 carwash locations as of March 31, 2023, an increase of 10%.
  • Net income and net income per diluted share were $16.6 million and $0.05, respectively.
  • Adjusted net income(1) and diluted adjusted net income per share(1) were $26.6 million and $0.08, respectively.
  • Adjusted EBITDA(1) increased 6% to $75.2 million from $71.0 million in the first quarter of 2023.

(1) Adjusted net income, Adjusted EBITDA and diluted adjusted net income per share are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and GAAP to Non-GAAP Reconciliations disclosures included below in this press release.

Balance Sheet and Cash Flow Highlights

  • As of March 31, 2024, cash and cash equivalents totaled $10.7 million, and there were no borrowings under the company’s Revolving Commitment, compared to cash and cash equivalents of $19.0 million and no borrowings under the company’s Revolving Commitment as of Dec. 31, 2023.
  • Net cash provided by operating activities totaled $58.0 million during the first quarter of 2024, compared to $67.0 million in the first quarter of 2023.

Debt Refinancing Highlights

  • On March 27, 2024, we upsized, amended and extended the $901 million First Lien Term Loan to $925 million now due in 2031 and removed a 0.10% credit spread adjustment to the SOFR benchmark for all available interest periods.
  • On March 27, 2024, we also upsized, amended and extended the $150 million Revolving Commitment to $300 million now due in 2029, and removed a 0.10% credit spread adjustment to the SOFR benchmark for all available interest periods and reduced the cost of borrowings under the facility.
  • Proceeds of the transaction were used to refinance our existing First Lien Term Loan due in 2026 and the existing Revolving Commitment due in 2026.
  • The transactions extend our debt maturities and increase available liquidity in line with company growth.

Sale-Leasebacks and Rent Expense

  • In the first quarter of 2024, the company completed one sale-leaseback transaction involving one carwash location for aggregate consideration of $4.9 million.
  • With 435 carwash leases at the end of the first quarter versus 388 leases at the end of the first quarter last year, rent expense, net increased 12% to $26.5 million, compared to the first quarter of 2023.

Fiscal 2024 Outlook

The company reiterates the guidance previously provided for the fiscal year ending December 31, 2024:

Conference Call Details

A conference call to discuss the company’s financial results for the first quarter of fiscal 2024 and to provide a business update was scheduled for May 1, 2024, at 4:30 p.m. Eastern Time. 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.

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