Mister Car Wash(US:MCW)2025-10-31 10:05Financial Performance - Net revenues for Q3 2025 reached $263,417,000, a 5.4% increase from $249,329,000 in Q3 2024[19] - Operating income for the nine months ended September 30, 2025, was $158,966,000, up 8.1% from $147,130,000 in the same period of 2024[19] - Net income for the nine months ended September 30, 2025, was $83,006,000, representing a 36.0% increase compared to $61,070,000 in 2024[19] - For the nine months ended September 30, 2025, net revenues increased to $790.5 million, up 6.3% from $743.6 million in the same period of 2024[39] - Net income for the nine months ended September 30, 2025, was $27.0 million, compared to $16.6 million for the same period in 2024, representing a 62.7% increase[39] - Net income for the three months ended September 30, 2025, was $27,411 million, compared to $22,342 million for the same period in 2024, representing a 22.5% increase[40] - Basic earnings per share for Q3 2025 were $0.08, compared to $0.07 in Q3 2024[19] - Basic earnings per share increased to $0.08 for the three months ended September 30, 2025, from $0.07 in 2024, while diluted earnings per share also rose to $0.08 from $0.07[40] - The net income margin for the three months ended September 30, 2025, was 10.4%, up from 9.0% in the same period of 2024[130] - Adjusted EBITDA for the three months ended September 30, 2025, was $86,792 thousand, compared to $78,804 thousand in 2024, reflecting a margin of 32.9%[130] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $225,733,000, an increase from $198,840,000 in 2024[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $225.7 million, supported by net income of $83.0 million and non-cash adjustments[154] - The company believes existing sources of liquidity and capital will be sufficient to finance growth strategy and operations for at least the next 12 months[153] - Free cash flow for the nine months ended September 30, 2025, was $47.1 million, with growth capital expenditures of $154.9 million[162] - The company experienced a decrease in cash provided by operating activities due to changes in working capital balances, which decreased cash by $6.8 million[155] Assets and Liabilities - Total assets as of September 30, 2025, were $3,142,930,000, compared to $3,101,796,000 at the end of 2024[24] - Total liabilities decreased to $2,037,773,000 as of September 30, 2025, from $2,103,444,000 at the end of 2024[24] - Cash and cash equivalents at the end of the period were $35,652,000, down from $67,463,000 at the beginning of the period[24] - Total long-term debt as of September 30, 2025, was $827,231 million, a decrease from $909,094 million as of December 31, 2024[60] - The company’s total stockholders' equity as of September 30, 2025, was $1,105.2 million, up from $998.4 million as of December 31, 2024[39] Operational Highlights - The company operated 527 car washes across 21 states as of September 30, 2025, reflecting continued market expansion[29] - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[19] - The number of Unlimited Wash Club (UWC) Members reached 2,227 thousand as of September 30, 2025, up from 2,110 thousand in 2024, representing a growth of approximately 5%[124] - UWC sales accounted for 77% of total wash sales for the three months ended September 30, 2025, compared to 74% for the same period in 2024[125] - Comparable store sales growth for the three months ended September 30, 2025, was 3.1%, compared to 2.9% for the same period in 2024[119] Expenses and Costs - Cost of labor and chemicals for the three months ended September 30, 2025, was $76.6 million, representing 29% of net revenues, a slight decrease from 30% in 2024[138] - Other store operating expenses increased to $109.5 million for the three months ended September 30, 2025, accounting for 42% of net revenues, compared to 41% in 2024[140] - General and administrative expenses decreased to $22.7 million for the three months ended September 30, 2025, representing 9% of net revenues, down from 10% in 2024[142] - Total other expense, net, for the three months ended September 30, 2025, was $14.1 million, a 32% decrease from $20.7 million in 2024, primarily due to lower interest expenses[146] - Income tax provision for the three months ended September 30, 2025, was $10.4 million, a 58% increase from $6.6 million in 2024, driven by higher pre-tax income[148] Investments and Growth Strategy - The company plans to continue its growth strategy through greenfield development, focusing on Express Exterior Locations[115] - The company has increased its location count by 5 greenfield locations in the three months ended September 30, 2025[120] - The company acquired the assets of five express car wash locations in Lubbock, Texas on October 20, 2025[109] - The company entered into 11 forward-starting leases related to build-to-suit arrangements for car wash locations, commencing between 2025 and 2028[83] Debt and Financing - In March 2024, the company amended its Credit Agreement, providing $925,000 in first lien term commitments, including $901,201 to refinance outstanding term loans and $23,799 in additional incremental term commitments[64] - The company increased its borrowing capacity under the Revolving Commitment from $150,000 to $300,000 as part of Amendment No. 5[66] - As of September 30, 2025, the available borrowing capacity under the Revolving Commitment was $299,926, with an unused commitment fee of 0.20%[67][68] - The company was in compliance with all covenants related to its long-term debt as of September 30, 2025[71] Miscellaneous - The company has maintained effective disclosure controls and procedures as of September 30, 2025[167] - There were no material changes in risk factors or legal proceedings during the reporting period[171][170]