Mister Car Wash (MCW) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 increased 7% year-over-year to $249.3 million, with comparable store sales up 2.9% and Unlimited Wash Club (UWC) memberships reaching 2.1 million, driven by membership growth, price optimization, and new locations.

• Adjusted EBITDA rose 10% to $78.8 million (31.6% margin), reflecting operational efficiencies and membership growth.

• Net income for Q3 2024 was $22.3 million (9% margin), or $0.07 per diluted share; adjusted net income was $28.8 million, or $0.09 per share.

• Opened 10 new greenfield locations in Q3, surpassing 500 total stores, with 25 new stores year-to-date and a focus on greenfield development.

• The Titanium membership offering exceeded expectations, driving a 9% increase in express revenue per member and boosting membership mix to nearly 24%.

Financial highlights

• Q3 2024 net revenues: $249.3 million (up 7% year-over-year); comparable store sales rose 2.9%.

• Q3 net income: $22.3 million (9% margin); adjusted net income: $28.8 million; adjusted EBITDA: $78.8 million (31.6% margin).

• Total costs and expenses were $200 million, including $7 million in stock-based compensation and a $2 million asset disposition gain.

• Interest expense increased 8% to $21 million due to higher borrowings.

• General and administrative expenses decreased 4% in Q3 2024, driven by lower amortization and travel costs.

Outlook and guidance

• Full-year 2024 guidance: net revenue of $988–$995 million, comp store sales growth of 2–2.5%, adjusted net income of $114–$117 million, adjusted EBITDA of $313–$318 million (9–11% growth), and adjusted EPS of $0.35–$0.36.

• Capital expenditures expected at $330–$350 million, with 40 new greenfield locations and sale-leaseback proceeds of $120–$135 million.

• Incremental marketing spend in Q4 will impact operating income and EBITDA margins.

• Liquidity and capital resources are considered sufficient to support growth and operations for at least the next 12 months.