Financial Data and Key Metrics Changes - Total company revenue increased by 4% to $265 million, with comparable store sales growth of 1.2% and adjusted EBITDA of $87 million [5][20][22] - Adjusted EPS was reported at $0.11, reflecting the strength of the UWC subscription model [20][27] - Total operating expenses rose to $178 million, increasing as a percentage of revenue by 200 basis points to 67.2% due to sales deleverage [24][25][26] Business Line Data and Key Metrics Changes - UWC subscription sales represented 76% of total sales, with UWC membership growing by 5% year-over-year, totaling over 2.2 million members [22][23] - Retail comparable store sales decreased in low double digits, contrasting with mid-single-digit growth in UWC sales [22][24] - Best Express revenue per member increased by approximately 4% to $29.23, driven by successful price increases [24] Market Data and Key Metrics Changes - Car wash spending increased by roughly 5% in Q2, indicating strong demand despite a competitive environment [7][8] - The company noted a deceleration in the pace of competitor new builds, which is seen as a positive for the industry [20][22] Company Strategy and Development Direction - The company is focused on operational excellence and strategic growth through both greenfield expansions and potential M&A opportunities [9][18][56] - Investments in repairs and maintenance are aimed at maintaining industry-leading quality and customer experience [6][64] - The company is optimistic about its ability to double its footprint over time, combining greenfield and M&A strategies [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softer top-line trends due to unfavorable weather and a tepid consumer environment but expressed confidence in the resilience of the UWC model [5][20] - The company is cautiously optimistic about the second half of the year, with July showing encouraging trends compared to Q2 [24][48] - Management is monitoring evolving consumer dynamics and adjusting guidance for the remainder of the year based on current performance [31][32] Other Important Information - The company executed a float-to-fixed interest rate swap for $250 million, fixing approximately 30% of floating interest rate exposure [27] - The balance sheet remains healthy, with cash and cash equivalents at $26 million and long-term debt at $853 million, reflecting a year-over-year decrease [28] Q&A Session Summary Question: Marketing strategy and balancing spend with current macros - Management emphasized a blend of awareness and promotional strategies, with plans to increase marketing spend responsibly based on encouraging results from recent tests [38][40] Question: Competitors' pricing strategies - Management noted that competitors are becoming more rational in their pricing, with less aggressive discounting observed [41][42] Question: Titanium membership sign-ups and retention - Management is optimistic about the stickiness of titanium sign-ups following promotional efforts, expecting some churn but overall retention to remain strong [45][46] Question: New unit performance and ramp-up speed - New builds are performing well, though some are taking longer to ramp up due to increased competition and site selection challenges [52][53] Question: M&A opportunities and capital considerations - Management sees M&A as a key growth opportunity, with a focus on quality assets and strategic fit, while being cautious about integration challenges [54][56] Question: Weather impact on Q2 performance - Management indicated that the lack of favorable weather was a factor in Q2 performance, but the subscription model helped mitigate some of the impact [84][85] Question: Retail comp expectations for the back half of the year - Management expects retail comps to remain negative in the low double digits, influenced by consumer behavior and weather conditions [93][95]