Mister Car Wash(MCW) - 2025 Q1 - Quarterly Results

Mister Car Wash First Quarter 2025 Results First Quarter 2025 Financial and Operational Highlights Mister Car Wash reported strong Q1 2025 results, with net revenues up 9% and Adjusted EBITDA increasing 14% Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $261.7 million | $239.2 million | +9% | | Comparable-Store Sales Growth | 6.0% | N/A | N/A | | Net Income | $27.0 million | $16.6 million | +62% | | Adjusted EBITDA | $85.6 million | $75.2 million | +14% | | Diluted EPS | $0.08 | $0.05 | +60% | | Adjusted Diluted EPS | $0.11 | $0.08 | +37.5% | - Opened 4 new greenfield locations in Q1 2025, reaching a total of 518 locations, a 7% increase from 482 locations in Q1 2024[1][5][6] - Unlimited Wash Club® (UWC) memberships grew by 5% year-over-year, adding a net of 103,000 members in the quarter to reach over 2.2 million total members[1][6] - UWC sales constituted 73% of total wash sales, a slight decrease from 74% in the first quarter of 2024[6] 2025 Full Year Outlook The company updated its full-year 2025 guidance, raising the lower end for net revenues and Adjusted EBITDA Updated Full-Year 2025 Guidance | Metric | Current Guidance | Previous Guidance | | :--- | :--- | :--- | | Net Revenues | $1,046 to $1,064 million | $1,038 to $1,064 million | | Comparable-Store Sales Growth | 1.5% to 3.0% | 1.0% to 3.0% | | Adjusted EBITDA | $338 to $346 million | $334 to $346 million | | Adjusted Net Income (new def.) | $140 to $147 million | N/A | | Adjusted Net Income per Share (new def.) | $0.42 to $0.44 | N/A | | New Greenfield Locations | 30 to 35 | 30 to 35 | | Capital Expenditures | $275 to $305 million | $275 to $305 million | - The company introduced guidance based on a new 2025 definition for adjusted net income and adjusted net income per diluted share, which no longer excludes non-cash rent expense[7][15] Financial Condition and Cash Flow Cash and cash equivalents decreased to $39.1 million, while operating cash flow significantly increased to $87.6 million - Cash and cash equivalents totaled $39.1 million as of March 31, 2025, down from $67.5 million as of December 31, 2024[11][30] - Net cash provided by operating activities increased to $87.6 million in Q1 2025 from $58.0 million in Q1 2024[11][28] - Rent expense increased by 12% to $29.8 million compared to Q1 2024, driven by an increase in leased locations from 435 to 474[11] - Total liabilities decreased slightly to $2.06 billion from $2.10 billion at the end of 2024, primarily due to a reduction in long-term debt[30] Consolidated Financial Statements This section presents the company's detailed financial performance, position, and cash flows for the first quarter of 2025 Consolidated Statements of Operations Net revenues grew 9% to $261.7 million, leading to increased operating income and net income for Q1 2025 Q1 2025 Statement of Operations (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenues | $261,656 | $239,183 | | Total costs and expenses | $208,689 | $196,638 | | Operating income | $52,967 | $42,545 | | Interest expense, net | $16,023 | $20,024 | | Income before taxes | $36,944 | $25,828 | | Net income | $27,000 | $16,637 | | Diluted EPS | $0.08 | $0.05 | Consolidated Balance Sheets Total assets slightly decreased to $3.09 billion, while total liabilities decreased to $2.06 billion, increasing stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,133 | $67,463 | | Total current assets | $65,714 | $99,090 | | Property and equipment, net | $843,704 | $814,600 | | Total assets | $3,090,584 | $3,101,796 | | Long-term debt, net | $853,881 | $909,094 | | Total liabilities | $2,056,689 | $2,103,444 | | Total stockholders' equity | $1,033,895 | $998,352 | Consolidated Statements of Cash Flows Net cash from operating activities significantly increased to $87.6 million, offsetting cash used in investing and financing activities Cash Flow Summary (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $87,550 | $57,990 | | Net cash used in investing activities | ($54,961) | ($76,944) | | Net cash provided by (used in) financing activities | ($60,913) | $10,652 | | Net change in cash | ($28,324) | ($8,302) | GAAP to Non-GAAP Reconciliations This section reconciles GAAP net income to non-GAAP measures, including Adjusted EBITDA and Adjusted Net Income under a new 2025 definition Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $27,000 | $16,637 | | Interest expense, net | $16,023 | $20,024 | | Income tax provision | $9,944 | $9,191 | | Depreciation and amortization | $20,917 | $19,595 | | Stock-based compensation | $7,116 | $6,802 | | Other adjustments | $4,649 | $(1,147) | | Adjusted EBITDA | $85,649 | $75,172 | - Beginning in fiscal 2025, the company no longer includes non-cash rent expense in its calculation of adjusted net income and adjusted net income per diluted share, which impacts comparability to prior periods[15][32] Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $27,000 | $16,637 | | Adjustments (as per old def.) | $9,561 | $9,950 | | Adjusted net income (old def.) | $36,561 | $26,587 | | Non-cash rent expense adjustment | ($1,966) | ($1,487) | | Tax impact of adjustment | $454 | $347 | | Adjusted net income (new def.) | $35,049 | $25,447 |