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

Forward-Looking Statements This section details the inherent risks and forward-looking nature of statements within the report, advising against undue reliance - This report contains forward-looking statements based on management's current beliefs and assumptions, which are subject to various risks and uncertainties. The company cautions readers not to place undue reliance on these statements and does not commit to updating them[12][13][14] PART I - FINANCIAL INFORMATION This part details unaudited financial statements, management's analysis, market risk, and internal controls Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements for the three months ended March 31, 2025, compared to the same period in 2024. It includes the Statements of Operations, Cash Flows, Balance Sheets, and Stockholders' Equity, along with detailed notes. Key results show a 9.4% increase in net revenues and a 62.3% increase in net income year-over-year Consolidated Statements of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $261,656 | $239,183 | +9.4% | | Operating Income | $52,967 | $42,545 | +24.5% | | Net Income | $27,000 | $16,637 | +62.3% | | Diluted EPS | $0.08 | $0.05 | +60.0% | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Cash Flow Activity (in thousands) | 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 (used in) provided by financing activities | $(60,913) | $10,652 | | Net change in cash | $(28,324) | $(8,302) | Consolidated Balance Sheet Highlights | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,133 | $67,463 | | 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 | - As of March 31, 2025, the company operated 518 car washes in 21 states, primarily focusing on Express Exterior Locations[33] Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes the strong quarterly performance to growth in Unlimited Wash Club (UWC) members, increased retail traffic, and the addition of 36 new locations year-over-year. Comparable store sales grew 6.0%. The company highlights its focus on greenfield development and UWC membership growth as key strategies. Adjusted EBITDA increased to $85.6 million from $75.2 million in the prior year, with the margin expanding to 32.7% Key Performance Indicators (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Location count (end of period) | 518 | 482 | | Comparable store sales growth | 6.0% | 0.9% | | UWC Members (in thousands) | 2,227 | 2,112 | | UWC sales as a % of total wash sales | 73% | 74% | | Adjusted EBITDA (in thousands) | $85,649 | $75,172 | | Adjusted EBITDA margin | 32.7% | 31.4% | - Net revenues increased by 9% ($22.5 million) in Q1 2025 compared to Q1 2024, primarily due to UWC member growth, increased retail traffic, and the net addition of 36 locations[125] - Cost of labor and chemicals as a percentage of net revenues decreased from 30% to 28% year-over-year, driven by labor optimization and lower chemical costs from new formulations and strategic partnerships[126] - General and administrative expenses decreased by 17% ($5.1 million), mainly due to prior year debt refinancing costs and fully amortized intangible assets[128] - The company believes its existing cash, cash from operations, and available credit will be sufficient to fund its growth strategy, operations, and capital expenditures for at least the next 12 months[136] Quantitative and Qualitative Disclosures About Market Risk The company reports that there have been no material changes in its exposure to market risk since the disclosures provided in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes in the company's market risk exposure from the information provided in its 2024 Form 10-K[147] Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. No material changes to internal control over financial reporting occurred during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[148] - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[149] PART II - OTHER INFORMATION This part covers legal proceedings, risk factors, equity sales, other disclosures, and a list of filed exhibits Legal Proceedings The company states there have been no material changes to the legal proceedings previously described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to legal proceedings have occurred since the 2024 Form 10-K filing[151] Risk Factors The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the risk factors described in the 2024 Form 10-K[152] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None reported[153] Other Information This section discloses that on March 13, 2025, Joseph Matheny, the Chief Innovation Officer, entered into a Rule 10b5-1 trading plan for the potential sale of up to 371,520 shares of common stock - On March 13, 2025, Chief Innovation Officer Joseph Matheny entered into a Rule 10b5-1 trading plan for the potential sale of up to 371,520 shares of common stock, effective until November 22, 2026[156] Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, agreements, and required certifications by the Principal Executive Officer and Principal Financial Officer, as well as XBRL data files - The report includes certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL documents[158]