Mister Car Wash (MCW) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this car wash operator would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise. Over the last four quarters, the compan ...

[Forward-Looking Statements](index=2&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary note regarding forward-looking statements and their inherent uncertainties [Forward-Looking Statements](index=2&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section details forward-looking statements, emphasizing that actual results may differ due to various known and unknown risks and uncertainties - Key risks and uncertainties include **economic health decline**, **customer retention**, **competition**, **growth strategy implementation**, **supply chain disruptions**, **increased operating costs**, **personnel challenges**, **leased property liabilities**, **regulatory compliance**, **intellectual property protection**, and **stock price volatility**[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the period [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2024 show total assets of $2.93 billion, net revenues of $239.2 million, and a net income of $16.6 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $2.93 billion as of March 31, 2024, driven by property and equipment, while cash and cash equivalents decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,701 | $19,047 | | Total current assets | $52,736 | $60,894 | | Property and equipment, net | $773,230 | $725,121 | | Goodwill | $1,134,734 | $1,134,734 | | **Total assets** | **$2,925,261** | **$2,881,536** | | **Liabilities & Equity** | | | | Total current liabilities | $174,669 | $169,561 | | Long-term portion of debt, net | $913,350 | $897,424 | | **Total liabilities** | **$1,996,537** | **$1,966,501** | | **Total stockholders' equity** | **$928,724** | **$915,035** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenues increased to $239.2 million in Q1 2024, but net income declined to $16.6 million due to higher costs and debt extinguishment loss Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net revenues | $239,183 | $225,960 | | Total costs and expenses | $196,638 | $180,378 | | Operating income | $42,545 | $45,582 | | Interest expense, net | $20,024 | $17,748 | | Loss on extinguishment of debt | $1,882 | - | | Net income | $16,637 | $21,136 | | Diluted EPS | $0.05 | $0.06 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $58.0 million in Q1 2024, while investing activities used $76.9 million, and financing activities provided $10.7 million Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $57,990 | $67,017 | | Net cash used in investing activities | $(76,944) | $(63,160) | | Net cash provided by financing activities | $10,652 | $894 | | **Net change in cash** | **$(8,302)** | **$4,751** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including a March 2024 debt refinancing, a $5.2 million Employee Retention Credit, and 482 car wash locations - As of March 31, 2024, the company operated **482 car washes** in 21 states[26](index=26&type=chunk) - In March 2024, the company qualified for a **$5.2 million Employee Retention Credit (ERC)** for March 13, 2020, to December 31, 2020, recorded as 'Other income'[39](index=39&type=chunk) - In March 2024, the company refinanced its term loans with **$925 million in new commitments** maturing in March 2031, resulting in a **$1.9 million loss on extinguishment of debt**[66](index=66&type=chunk) - During Q1 2024, the company completed one sale-leaseback transaction for a car wash location, receiving **$4.9 million** and recognizing a **net gain of $1.7 million**[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 5.8% revenue increase driven by UWC memberships and new locations, despite a net income decrease due to higher operating costs Key Performance Indicators | Indicator | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Location count (end of period) | 482 | 439 | | Comparable store sales growth | 0.9% | (1.6)% | | UWC Members (in thousands) | 2,112 | 2,006 | | UWC sales as a % of total wash sales | 74% | 69% | | Adjusted EBITDA ($ thousands) | $75,172 | $70,976 | - The company's growth strategy increasingly focuses on **greenfield development**, with **six new locations** opened in Q1 2024, expected to drive future unit growth[128](index=128&type=chunk) - Net revenues increased by **$13.2 million (6%)** year-over-year, primarily due to growth in **UWC Members** and the addition of **43 locations**[151](index=151&type=chunk) - General and administrative expenses rose by **23% to $29.7 million**, largely due to **$4.2 million in third-party costs** related to the March debt refinancing[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations, with a 100-basis-point change impacting annual interest expense by approximately $9 million - The company holds **$925.0 million in variable-rate debt** under its First Lien Term Loan as of March 31, 2024[176](index=176&type=chunk) - A **100 basis point** increase or decrease in the effective interest rate would cause an approximate **$9 million change in annual interest expense**[176](index=176&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Management concluded that disclosure controls and procedures were **effective** as of March 31, 2024[178](index=178&type=chunk) - There were **no material changes** in internal control over financial reporting during Q1 2024[179](index=179&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and a list of exhibits filed with the report [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a settled class action lawsuit against a subsidiary, pending final court approval - A class action lawsuit against subsidiary Prime Shine LLC in California has been **settled**, with the agreement pending final court approval, and the accrued financial amount is **not material**[182](index=182&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - **No material changes** to the risk factors described in the 2023 Form 10-K have occurred[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the first quarter - **None**[184](index=184&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the first quarter of 2024 - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter ended March 31, 2024[187](index=187&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including debt agreement amendments, CEO/CFO certifications, and Inline XBRL documents - The list of exhibits includes **Amendment No. 5 to the First Lien Term Loan Agreement**, **CEO and CFO certifications** pursuant to Sarbanes-Oxley Act Sections 302 and 906, and **XBRL data files**[191](index=191&type=chunk)

For the quarter ended March 2024, Mister Car Wash (MCW) reported revenue of $239.18 million, up 5.9% over the same period last year. EPS came in at $0.08, compared to $0.08 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $244.06 million, representing a surprise of -2.00%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.08.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Mister Car Wash (MCW) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this car wash operator would post earnings of $0.07 per share when it actually produced earnings of $0.07, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Mister Car Wash, which belongs ...

Exhibit 99.1 Mister Car Wash Announces First Quarter 2024 Financial Results Net revenues increased 6% Comparable-store sales increased 0.9% Unlimited Wash Club® ("UWC") memberships increased 5% year-over-year Opened six new greenfield locations Reiterating previously provided Fiscal 2024 outlook figures Tucson, Ariz., May 1, 2024 – Mister Car Wash, Inc. (the "Company") (NYSE: MCW), the nation's largest car wash brand, today announced its financial results for the quarter ended March 31, 2024. "Our overall r ...

Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both Pactiv Evergreen Inc. (PTVE) and Mister Car Wash (MCW) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate ...

tirc83/E+ via Getty Images Investment Thesis Mister Car Wash (NYSE:MCW) is the largest publicly traded machine car wash operator in the U.S. Since the early 2000s, the firm has grown rapidly to become a nationwide chain of wash centres. Since their IPO, profitability has failed to match lofty valuations. However, solid fiscal improvements in 2023 have coincided with a much fairer share price which, given a base-case outlook for 2024, may suggest a 15% undervaluation in shares. Nevertheless, significant ...

Company Operations - As of December 31, 2023, Mister Car Wash operates 476 locations across 21 states, with 406 Express Exterior Locations and 70 Interior Cleaning Locations[22][44]. - During 2023, Mister Car Wash successfully opened 35 greenfield locations and plans to continue this growth strategy in existing and adjacent markets[29]. - The company has integrated over 100 acquisitions throughout its history, employing a disciplined approach to select and upgrade new locations[30]. - Mister Car Wash's workforce increased by 4% in 2023, reaching approximately 6,600 team members, primarily due to the addition of new locations[44]. - The company operates in a fragmented industry, competing with various operators, but believes its scale and operational consistency provide a competitive advantage[33]. Financial Performance - Net revenues increased by 6% to $927.1 million in 2023 from $876.5 million in 2022, primarily due to growth in car wash sales and the addition of 40 net locations[168]. - Net income for 2023 was $80.13 million, with a net income margin of 8.6%, down from a net income of $112.9 million and a margin of 12.9% in 2022[152][156]. - Adjusted EBITDA for 2023 was $285.92 million, with an adjusted EBITDA margin of 30.8%, compared to $281.65 million and a margin of 32.1% in 2022[152][159]. - Total costs and expenses increased to $748.9 million in 2023, representing 81% of net revenues, compared to 79% in 2022[167]. - Interest expense rose significantly to $75.1 million in 2023, up from $41.9 million in 2022, primarily due to higher average interest rates[173]. Unlimited Wash Club (UWC) - In 2023, the company increased its Unlimited Wash Club (UWC) penetration from 68% to 71% of total wash sales, with UWC Members spending over four times more than retail customers[28][55]. - Mister Car Wash's UWC subscription program accounted for 71% of total wash sales in 2023, highlighting its importance for revenue growth[55]. - The number of Unlimited Wash Club (UWC) Members grew to approximately 2.1 million in 2023, up by about 10.2% from 1.9 million in 2022[157]. - UWC sales accounted for 71% of total wash sales in 2023, an increase from 68% in 2022, reflecting the growing penetration of the subscription model[158]. Challenges and Risks - The company faces challenges in hiring and retaining qualified personnel, which may lead to increased labor costs and negatively affect customer service[72]. - The company is subject to various risks related to credit card and debit card payments, including potential increases in processing fees that could impact operating results[67]. - The company relies on a limited number of suppliers for car wash equipment, which poses risks of supply chain disruptions and increased costs[71]. - Changes in applicable tax laws could adversely affect the company's financial condition and effective tax rate[78]. - The company may face difficulties in negotiating lease renewals on commercially acceptable terms, potentially leading to location closures[75]. Cash Flow and Liquidity - For the year ended December 31, 2023, the net cash provided by operating activities was $204.7 million[83]. - As of December 31, 2023, the company had $19.0 million in cash and cash equivalents for working capital purposes[83]. - Cash and cash equivalents decreased to $19.0 million as of December 31, 2023, from $65.2 million in 2022, indicating a need for improved liquidity management[175]. - Net cash provided by operating activities was $204.7 million in 2023, down from $229.2 million in 2022, with changes in working capital negatively impacting cash flow[178]. Corporate Governance - Leonard Green & Partners, L.P. holds more than 50% of the voting power, classifying the company as a "controlled company" under NYSE rules[109]. - The board of directors is responsible for overall risk oversight, supported by the Audit Committee which reviews cybersecurity policies[123]. - The company has established advance notice requirements for board nominations and actions, which could limit stockholder influence[119]. - The company has provisions in its charter that may discourage or delay potential acquisitions, impacting stockholder interests[116]. Environmental and Regulatory Factors - The company has ceased dispensing gasoline and diesel fuels at all locations as of December 31, 2023, but faces ongoing environmental risks from historical operations[94]. - The company is subject to evolving global climate change regulations that may adversely affect operations and financial performance[95]. - Governmental restrictions on water use may result in decreased access to water supplies, impacting financial condition and results of operations[99]. - The company faces significant costs in complying with various federal, state, and local laws and regulations, which may materially increase operational costs[88]. Stock Performance and Dividends - The company's stock performance since its IPO in June 2021 shows a decline, with the stock value at $43.00 as of December 31, 2023, down from $100.00 at the IPO[140]. - The company does not intend to pay dividends for the foreseeable future, focusing on retaining earnings for business operations and expansion[119]. - Approximately 71% of the outstanding common stock has rights to require the company to file registration statements for public sales, which could adversely affect stock price[115].

Mister Car Wash, Inc. (NYSE:MCW) Q4 2023 Earnings Conference Call February 21, 2024 4:30 PM ET Company Participants John Lai - Chairperson and Chief Executive Officer Jedidiah Gold - Chief Financial Officer Conference Call Participants Peter Keith - Piper Sandler Justin Kleber - Baird John Heinbockel - Guggenheim Jason Haas - Bank of America Phillip Blee - William Blair Michael Lasser - UBS Tristan Thomas-Martin - BMO Capital Markets Christian Carlino - JPMorgan Simeon Gutman - Morgan Stanley Operator Good ...

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 Tucson, Ariz., February 21, 2024 – 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 yea ...