PLANO, Texas, Feb. 22, 2024 /PRNewswire/ -- European Wax Center (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, was recognized as one of the top 500 franchises in Entrepreneur's Franchise 500®, the world's first, best, and most comprehensive franchise ranking. For 45 years, the annual Entrepreneur Franchise 500® has been a highly sought-after honor in the franchise industry and recognized as an invaluable resource for potential fra ...

Financial Data and Key Metrics Changes - Q3 system-wide sales increased by 2.4% to $240.7 million, while total revenue rose by 1.2% to $55.7 million, reflecting a shift in the reporting calendar that moved some promotional days into Q2 [32][41] - Q3 adjusted EBITDA increased by 3.4% to $19.3 million, with an adjusted EBITDA margin of 34.6%, representing an 80 basis point improvement year-over-year [52][56] - Cash position improved by approximately $10 million to $64 million, with net leverage decreasing to 4.4x adjusted EBITDA compared to 5.3x in Q3 last year [34][36] Business Line Data and Key Metrics Changes - Wax Pass and routine guests, comprising over 75% of system-wide sales, showed strong brand loyalty, while episodic guests, making up about 25%, were more impacted by economic concerns [12][42] - The company opened 23 net new centers across 12 states in Q3, achieving over 80% of its expected new center openings for fiscal 2023 [25][80] - Same-store sales increased by 3.4%, driven by higher average tickets and consistent performance from ramping and mature centers [22][79] Market Data and Key Metrics Changes - The macroeconomic environment has negatively impacted the behavior of episodic guests, leading to a decrease in their frequency and spend [43][118] - The company is not observing significant regional differences in performance, although some variations exist based on new center openings [70] Company Strategy and Development Direction - The company is focused on two growth vectors: expanding its footprint through new center growth and driving in-center sales to enhance both system-wide and same-store sales [44][56] - A new media agency has been engaged to implement strategies aimed at increasing guest reservations and improving marketing effectiveness [24][28] - The company is testing additional hair removal modalities, such as laser hair removal, to attract new customers and increase share of wallet from existing guests [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Wax Pass and routine guests remain committed, the macro environment has created challenges for episodic guests, impacting their frequency and spend [43][118] - The company updated its guidance for fiscal 2023 to reflect current transaction trends, expecting system-wide sales between $945 million and $955 million [35][36] - Despite challenges, management remains confident in long-term growth potential, citing strong franchisee confidence and a robust pipeline for new center openings [80] Other Important Information - The company released its inaugural ESG report, highlighting its commitment to sustainability and community support [30] - The adjusted net income for Q3 was $6.1 million, reflecting the impact of tax expenses [52] Q&A Session Summary Question: Can you provide more color on the pattern differential from episodic guests? - Management noted that less frequent guests began to pull back in late August and September, while Wax Pass guests remained stable [86] Question: What are the early impressions from the laser tests? - Initial results from the laser test in six centers are encouraging, suggesting potential to capture new demographics and enhance existing guest spending [61] Question: Are there any changes in new store ramp expectations due to macro pressures? - Management remains bullish on new unit development and does not foresee a slowdown in demand, emphasizing support for franchisees [64][65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-40714 EUROPEAN WAX CENTER, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 86-3150064 (Sta ...

European Wax Center, Inc. (NASDAQ:EWCZ) Q4 2022 Earnings Conference Call March 9, 2023 8:00 AM ET Company Participants Bethany Johns - Director of Investor Relations David Berg - Chief Executive Officer David Willis - Chief Financial & Chief Operating Officer Conference Call Participants Randy Konik - Jefferies Jonathan Komp - Baird Dana Telsey - Telsey Group Kelly Crago - Citi Hannah Pittock - Morgan Stanley Korinne Wolfmeyer - Piper Sandler Operator Good morning, ladies and gentlemen and thank you for sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40714 EUROPEAN WAX CENTER, INC. (Exact name of Registrant as specified in its Charter) | Delaware | 86-3150064 | | --- | --- | | (Sta ...

European Wax Center, Inc. (NASDAQ:EWCZ) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Amir Yeganehjoo - Senior Vice President-Financial Planning & Investor Relations David Berg - Chief Executive Officer David Willis - Chief Financial & Chief Operating Officer Conference Call Participants Jonathan Komp - R.W. Baird Dana Telsey - Telsey Group Lorraine Hutchinson - Bank of America John Heinbockel - Guggenheim Partners Kelly Crago - Citi Simeon Gutman - Morgan Stanley Scot Ci ...

Financial Data and Key Metrics Changes - System-wide sales increased by 32% to $207 million, while total revenue grew by 24% to $45.4 million [16][48] - Adjusted EBITDA rose by 21% to $15.2 million, with an adjusted EBITDA margin of 33.4%, a decline of 80 basis points due to public company costs [16][51] - Adjusted net income increased to $8.6 million, up from $5.7 million year-over-year [52] Business Line Data and Key Metrics Changes - The company opened 21 net new centers, ending the quarter with 874 centers across 44 states [13][49] - Same-store sales growth was reported at 29%, significantly outperforming expectations [14][49] - Mature centers showed strong double-digit growth driven by increased traffic and pricing [15] Market Data and Key Metrics Changes - California contributed approximately one-third of the 29% same-store sales growth, recovering faster than anticipated [15][50] - The company is targeting 7% to 10% annual unit growth, expecting over 8% growth in fiscal 2022 [19] Company Strategy and Development Direction - The company aims to expand its national footprint through new centers and enhance marketing and loyalty programs to deepen customer engagement [17][25] - A focus on increasing the pipeline of Wax Specialists is critical to support new unit growth [20] - The company is leveraging its scale to enhance supply chain efficiencies and support franchisees [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic headwinds and highlighted strong traffic and engagement from guests [42][43] - The company raised its fiscal 2022 guidance for both top-line and bottom-line metrics based on strong first-quarter performance [62][63] Other Important Information - A special dividend of $3.30 per share is expected to be issued following the refinancing of the capital structure [12][53] - The company is focused on maintaining a strong balance sheet with cash and cash equivalents of $44.2 million at the end of the quarter [52] Q&A Session Summary Question: Changes in service patterns and impact on transaction value - Management noted that it is still early to see a significant shift towards facial services, but expects this to increase over time as customers return [73] Question: Market share gains and geographic performance - Management indicated that approximately 20% of new guests came from competitors, with many independent salons not reopening post-COVID [75] Question: Comps outlook and inflation impacts - Management acknowledged tougher comparisons in Q2 and Q3 but did not foresee degradation in long-term targets [77][78] Question: Gross margin guidance and labor rates - Management confirmed that gross margin expectations remain intact, with franchisees managing inflationary labor rates effectively [82][86] Question: Demand during economic downturns - Historical performance during the 2008-2009 recession showed resilience, with continued center openings and positive comp growth [108] Question: Targeting new customer segments - The company identified a total addressable market of $18 billion, with significant opportunities in the male and multicultural segments [114]

| --- | --- | |------------------------------------------------------|-------| | | | | European Wax Center Investor Presentation March 2022 | | | © 2021 European Wax Center, Inc. | | Disclaimer Forward-Looking Statements This Presentation contains forward-looking statements. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of whic ...