Net revenues increased 9% Comparable-store
sales increased 6.0% Unlimited Wash Club® (“UWC”) memberships
increased 2% year-over-year Opened 14 new greenfield locations
Mister Car Wash, Inc. (the “Company”) (Nasdaq: MCW), the
nation’s largest car wash brand, today announced its financial
results for the quarter and year ended December 31, 2024.
“I am pleased with the strength of our fourth quarter and full
year 2024 performance. Against a challenging consumer backdrop and
increased competition, we delivered record revenue and EBITDA with
our results improving as the year progressed. None of it would’ve
been possible without the execution and passion of our exceptional
team,” commented John Lai, Chairperson and CEO of Mister Car Wash.
“In addition, our subscription business remained a highlight, led
by our premium Titanium offering, while retail sales trends showed
meaningful improvement. Looking ahead, I’m confident that our
approach to scaling the business will drive sustained growth and
market share gains over the long term and deliver increased value
for our shareholders.”
Fourth Quarter 2024 Highlights:
- Net revenues increased 9% to $251.2 million, up from $230.1
million in the fourth quarter of 2023.
- Comparable-store sales increased 6.0% during the quarter.
- UWC sales represented 75% of total wash sales compared to 74%
in the fourth quarter of 2023.
- Added approximately 14 thousand net new UWC members in the
fourth quarter and had over 2.1 million members as of December 31,
2024.
- Opened 14 new greenfield locations, relocated one, and closed
two locations, bringing the total net number of car wash locations
operated to 514 as of December 31, 2024, an increase of 8% compared
to 476 car wash locations as of December 31, 2023.
- Net income and net income per diluted share were $9.2 million
and $0.03, respectively.
- Adjusted net income(1) and adjusted net income per diluted
share(1) were $30.7 million and $0.09, respectively.
- Adjusted EBITDA(1) increased 13% to $78.3 million from $69.5
million in the fourth quarter of 2023.
Full Year Highlights:
- Net revenues increased 7% to $994.7 million, up from $927.1
million in the prior year.
- Comparable-store sales increased 3.0%.
- Added approximately 46 thousand net new UWC members and UWC
membership increased 2% on a year-over-year basis.
- Opened a record 39 new greenfield locations during 2024.
- Net income and net income per diluted share were $70.2 million
and $0.21, respectively.
- Adjusted net income(1) and adjusted net income per diluted
share(1) were $122.8 million and $0.37, respectively.
- Adjusted EBITDA(1) increased 12% to $320.9 million from $285.9
million in 2023.
(1) Adjusted net income, adjusted EBITDA and adjusted net income
per diluted 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.
Location Count
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
Beginning location count
501
462
476
Greenfield locations opened
14
14
39
Relocations
1
-
1
Closures
(2
)
-
(2
)
Ending location count
514
476
514
Balance Sheet and Cash Flow Highlights
- As of December 31, 2024, cash and cash equivalents totaled
$67.5 million, compared to cash and cash equivalents of $19.0
million as of December 31, 2023. There were no borrowings under the
Company’s Revolving Commitment as of December 31, 2024 and
2023.
- Net cash provided by operating activities totaled $248.6
million compared to $204.7 million for the year ended December 31,
2024 and 2023, respectively.
Sale-Leasebacks and Rent Expense
- In the fourth quarter of 2024, the Company completed 21
separate sale-leaseback transactions involving a total of 21 car
wash locations for aggregate consideration of $97.5 million,
bringing the full year aggregate proceeds from sale-leaseback
transactions to $134.9 million for 29 car wash locations.
- With 470 car wash leases at the end of the year versus 427
leases at the end of the prior year, rent expense, net increased
10% to $28.7 million, compared to the fourth quarter of 2023.
2025 Outlook
The Company’s outlook for the year ending December 31, 2025
compared to actual results of 2024 is as follows:
2025 Outlook
2024 Actual
Net revenues
$1,038 to $1,064 million
$994.7 million
Comparable-store sales growth %
1.0% to 3.0%
3.0%
Adjusted net income
$141 to $149 million
$122.8 million
Adjusted EBITDA
$334 to $346 million
$320.9 million
Adjusted net income per diluted share
$0.43 to $0.45
$0.37
Interest expense, net
$63 million
$79.5 million
Rent expense, net
Approx. $123 million
$109.7 million
Weighted average common shares
outstanding, diluted, full year
Approx. 330 million
329.5 million
New greenfield locations
30 to 35
39
Capital expenditures(1)
$275 to $305 million
$330.1 million
Sale leasebacks
$40 to $50 million
$134.9 million
- Total capital expenditures for the year ending December 31,
2025 are expected to consist of approximately $225 million to $250
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 year ended December 31, 2024 and to provide
a business update is scheduled for today, February 19, 2025, 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. (NASDAQ:
MCW) operates over 500 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
adjusted net income per diluted 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, debt refinancing costs, 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, debt
refinancing costs, 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, loss on extinguishment of debt,
other nonrecurring charges, income tax impact of stock award
exercises and the tax impact of adjustments to basic net income per
share. Adjusted net income per diluted 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, debt refinancing costs, 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 2025
outlook for adjusted EBITDA, adjusted net income, and adjusted net
income per diluted 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 2024 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
year ended December 31, 2023, 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.
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net revenues
$
251,172
$
230,140
$
994,727
$
927,070
Costs and expenses:
Cost of labor and chemicals
72,739
68,999
290,705
279,375
Other store operating expenses
105,722
93,400
404,675
363,717
General and administrative
27,925
27,270
107,980
105,708
Loss on sale of assets, net
12,987
3,595
12,435
125
Total costs and expenses
219,373
193,264
815,795
748,925
Operating income
31,799
36,876
178,932
178,145
Other (income) expense:
Interest expense, net
18,557
19,961
79,488
75,104
Loss on extinguishment of debt
91
-
1,976
-
Other income
(10
)
-
(5,199
)
-
Total other expense, net
18,638
19,961
76,265
75,104
Income before taxes
13,161
16,915
102,667
103,041
Income tax provision
3,992
4,538
32,428
22,911
Net income
$
9,169
$
12,377
$
70,239
$
80,130
Earnings per share:
Basic
$
0.03
$
0.04
$
0.22
$
0.26
Diluted
$
0.03
$
0.04
$
0.21
$
0.24
Weighted-average common shares
outstanding:
Basic
322,904,182
314,550,061
320,031,984
311,035,122
Diluted
330,364,039
328,122,154
329,513,232
328,239,604
Consolidated Statements of Cash Flows
(Amounts in thousands) (Unaudited)
Year Ended December
31,
2024
2023
Cash flows from operating
activities:
Net income
$
70,239
$
80,130
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense
81,366
69,991
Stock-based compensation expense
25,563
24,001
Loss on sale of assets, net
12,435
125
Loss on extinguishment of debt
1,976
-
Amortization of deferred debt issuance
costs
1,256
1,698
Non-cash lease expense
49,855
45,084
Deferred income tax
30,084
18,137
Changes in assets and liabilities:
Accounts receivable, net
5,513
(2,363
)
Other receivables
373
960
Inventory, net
3,224
357
Prepaid expenses and other current
assets
365
810
Accounts payable
3,373
(113
)
Accrued expenses
9,157
6,065
Deferred revenue
1,274
3,195
Operating lease liability
(42,753
)
(40,434
)
Other noncurrent assets and
liabilities
(4,680
)
(2,990
)
Net cash provided by operating
activities
$
248,620
$
204,653
Cash flows from investing
activities:
Purchases of property and equipment
(330,079
)
(328,124
)
Acquisition of car wash operations, net of
cash
—
(51,218
)
Proceeds from sale of property and
equipment
130,227
119,977
Net cash used in investing
activities
$
(199,852
)
$
(259,365
)
Cash flows from financing
activities:
Proceeds from issuance of common stock
under employee plans
6,510
9,777
Payments for repurchases of common
stock
(19,290
)
—
Proceeds from debt borrowings
925,000
—
Proceeds from revolving line of credit
217,000
—
Payments on debt borrowings
(905,820
)
—
Payments on revolving line of credit
(217,000
)
—
Payments of deferred debt issuance
costs
(5,505
)
—
Principal payments on finance lease
obligations
(748
)
(668
)
Other financing activities
(422
)
(500
)
Net cash provided by (used in)
financing activities
$
(275
)
$
8,609
Net change in cash and cash equivalents,
and restricted cash during period
48,493
(46,103
)
Cash and cash equivalents, and restricted
cash at beginning of period
19,119
65,222
Cash and cash equivalents, and restricted
cash at end of period
$
67,612
$
19,119
Reconciliation of cash, cash
equivalents, and restricted cash to the consolidated balance
sheets:
Cash and cash equivalents
67,463
19,047
Restricted cash, included in prepaid
expenses and other current assets
149
72
Total cash, cash equivalents, and
restricted cash
$
67,612
$
19,119
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
78,122
$
75,737
Cash paid for income taxes
$
2,529
$
4,221
Supplemental disclosure of non-cash
investing and financing activities:
Property and equipment in accounts
payable
$
10,914
$
17,907
Property and equipment accrued in other
accrued expenses
$
9,653
$
13,303
Stock option exercise proceeds in other
receivables
$
294
$
—
Consolidated Balance Sheets (Amounts
in thousands, except share and per share data)
(Unaudited)
As of
December 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
67,463
$
19,047
Accounts receivable, net
791
6,304
Other receivables
13,518
14,714
Inventory, net
5,728
8,952
Prepaid expenses and other current
assets
11,590
11,877
Total current assets
99,090
60,894
Property and equipment, net
814,600
725,121
Operating lease right of use assets,
net
924,896
833,547
Other intangible assets, net
112,507
117,667
Goodwill
1,134,734
1,134,734
Other assets
15,969
9,573
Total assets
$
3,101,796
$
2,881,536
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
30,020
$
33,641
Accrued payroll and related expenses
27,116
19,771
Other accrued expenses
39,162
38,738
Current maturities of long-term debt
6,920
—
Current maturities of operating lease
liability
48,986
43,979
Current maturities of finance lease
liability
804
746
Deferred revenue
33,960
32,686
Total current liabilities
186,968
169,561
Long-term debt, net
909,094
897,424
Operating lease liability
890,613
809,409
Financing lease liability
13,262
14,033
Deferred tax liabilities, net
101,741
71,657
Other long-term liabilities
1,766
4,417
Total liabilities
2,103,444
1,966,501
Stockholders’ equity:
Common stock, $0.01 par value,
1,000,000,000 shares authorized, 323,693,863 and 315,192,401 shares
outstanding as of December 31, 2024 and 2023, respectively
3,242
3,157
Additional paid-in capital
830,264
817,271
Retained earnings
164,846
94,607
Total stockholders’ equity
998,352
915,035
Total liabilities and stockholders’
equity
$
3,101,796
$
2,881,536
GAAP to Non-GAAP Reconciliations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Reconciliation of net income to
adjusted EBITDA:
Net income
$
9,169
$
12,377
$
70,239
$
80,130
Interest expense, net
18,557
19,961
79,488
75,104
Income tax provision
3,992
4,538
32,428
22,911
Depreciation and amortization expense
20,328
18,573
81,366
69,991
Loss on sale of assets, net
12,987
3,595
12,435
125
Stock-based compensation expense
6,892
6,434
27,259
24,310
Acquisition expenses
1,381
820
3,357
3,471
Non-cash rent expense
1,863
1,420
6,405
5,043
Debt refinancing costs
611
—
6,711
—
Employee retention credit
—
—
(5,189
)
—
Other
2,498
1,772
6,447
4,839
Adjusted EBITDA
$
78,278
$
69,490
$
320,946
$
285,924
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Reconciliation of net income to
adjusted net income:
Net income
$
9,169
$
12,377
$
70,239
$
80,130
Loss on sale of assets, net
12,987
3,595
12,435
125
Stock-based compensation expense
6,892
6,434
27,259
24,310
Acquisition expenses
1,381
820
3,357
3,471
Non-cash rent expense
1,863
1,420
6,405
5,043
Debt refinancing costs
611
—
6,711
—
Employee retention credit
—
—
(5,189
)
—
Other
2,498
1,772
6,447
4,839
Income tax impact of stock award
exercises
374
1,058
6,380
(3,274
)
Tax impact of adjustments to net
income
(5,114
)
(3,510
)
(11,197
)
(9,447
)
Adjusted net income
$
30,661
$
23,966
$
122,847
$
105,197
Adjusted net income per diluted share
$
0.09
$
0.07
$
0.37
$
0.32
Adjusted weighted-average common shares
outstanding - diluted
330,364,039
328,122,154
329,513,232
328,239,604
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219361450/en/
Investor Relations Edward Plank, Mister Car Wash, Inc.
IR@mistercarwash.com Media media@mistercarwash.com
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