Mister Car Wash, the leading car wash brand in the United States, has announced impressive financial results for the fourth quarter and the entire fiscal year of 2022, demonstrating robust growth and solidifying its position in the market. This report highlights the company’s significant achievements, including increased revenue, comparable store sales, and an expanding Unlimited Wash Club membership base, showcasing a strong finish to the year and a promising outlook for 2023.
Fourth Quarter 2022: A Quarter of Remarkable Growth for Mister Car Wash
The fourth quarter of 2022 was marked by substantial financial gains for Mister Car Wash. Net revenues saw a significant jump, increasing by 12.0% to $214.3 million compared to $191.5 million in the same quarter of the previous year. This impressive growth underscores the sustained demand for Mister Car Wash’s services and the brand’s strong market appeal.
Comparable store sales also demonstrated a healthy increase of 4.0%, building upon a remarkable 14.6% increase in the fourth quarter of 2021. This consistent upward trend in sales at existing locations reflects the company’s operational excellence and ability to maintain customer loyalty.
The Unlimited Wash Club (UWC), a cornerstone of Mister Car Wash’s business model, continued its expansion, adding 24,000 new members in the fourth quarter alone. As of December 31, 2022, the total UWC membership reached approximately 1.884 million, representing a substantial 13.8% year-over-year increase. The popularity of the UWC is evident in its contribution to wash sales, accounting for approximately 71% of total wash sales in Q4 2022, up from approximately 67% in the same period of 2021. This growth in membership and UWC sales highlights the effectiveness of Mister Car Wash’s subscription model in driving revenue and fostering customer retention.
Expanding its footprint, Mister Car Wash opened a record 13 new greenfield locations and acquired three existing locations in the fourth quarter of 2022. This aggressive expansion strategy brought the total number of car wash locations operated by the company to 436 as of December 31, 2022, a notable 10.1% increase from 396 locations at the end of 2021. This expansion demonstrates Mister Car Wash’s commitment to growth and increasing accessibility for its customers.
Profitability remained strong in the fourth quarter, with net income reported at $17.8 million, or $0.05 per diluted share. Adjusted net income reached $25.9 million, or $0.08 per diluted share, while Adjusted EBITDA increased by 15.4% to $66.2 million, up from $57.3 million in the fourth quarter of 2021. These figures highlight Mister Car Wash’s ability to not only grow revenue but also enhance profitability, reflecting efficient operations and effective cost management.
Fiscal Year 2022: A Year of Significant Achievements for Mister Car Wash
Building on the momentum of a strong fourth quarter, Mister Car Wash’s full fiscal year 2022 results further underscore the company’s exceptional performance throughout the year. Net revenues for the fiscal year reached $876.5 million, a substantial 15.6% increase from $758.4 million in the comparable period last year. This significant year-over-year revenue growth highlights the sustained success of Mister Car Wash’s business strategy.
Comparable stores sales for the full year increased by 5.0%, following an exceptional 31.7% increase in the previous year. Maintaining positive comparable store sales growth, even against a high prior-year comparison, demonstrates the enduring strength of the Mister Car Wash brand and customer demand.
The Unlimited Wash Club saw remarkable growth throughout the year, with approximately 228,000 new members joining. This substantial increase in membership further cements the UWC’s role as a key driver of Mister Car Wash’s revenue and customer loyalty.
Profitability for the full year remained robust, with net income at $112.9 million, or $0.34 per diluted share. Adjusted net income increased by 9.9% to $130.8 million from $119.0 million, and diluted adjusted net income per share increased to $0.40 from $0.39 in the comparable period last year. Adjusted EBITDA for the full year increased by 10.7% to $281.6 million, up from $254.3 million in the previous year. These strong profitability metrics for the entire fiscal year reinforce Mister Car Wash’s operational efficiency and financial health.
Strong Financial Position and Strategic Sale-Leasebacks
Mister Car Wash maintains a healthy balance sheet, with cash and cash equivalents totaling $65.2 million as of December 31, 2022, and no borrowings under the company’s Revolving Commitment. Net cash provided by operating activities for fiscal year 2022 was a robust $229.2 million, compared to $173.4 million in 2021, highlighting the company’s strong cash generation capabilities.
In a strategic financial move, Mister Car Wash completed three sale-leaseback transactions in the fourth quarter of 2022, involving five car wash locations for a total consideration of $25.2 million. For the full fiscal year 2022, aggregate proceeds from sale-leasebacks reached $89.9 million. These transactions demonstrate Mister Car Wash’s proactive approach to capital management and unlocking value from its real estate assets.
2023 Outlook: Continued Growth on the Horizon for Mister Car Wash
Looking ahead to fiscal year 2023, Mister Car Wash has provided an initial outlook that indicates continued growth and expansion. The company anticipates net revenues to reach between $925 to $960 million, compared to $876.5 million in 2022. While comparable stores sales growth is projected to be between 0.0% and 3.0%, reflecting tougher year-over-year comparisons and the ramp-up of new greenfield locations, the overall revenue outlook remains positive.
Adjusted net income is projected to be between $100 to $115 million, and Adjusted EBITDA is expected to be in the range of $277 to $297 million. Mister Car Wash plans to continue its expansion strategy, aiming to open approximately 35 new greenfield locations in 2023, further increasing its market presence. Capital expenditures for 2023 are estimated to be between $220 to $270 million, with sale-leasebacks projected to generate $110 to $130 million in proceeds.
This forward-looking guidance reflects Mister Car Wash’s confidence in its business model, growth strategies, and ability to navigate market conditions. While acknowledging potential challenges, the company’s outlook for 2023 remains optimistic, signaling continued success for the Mister Car Wash brand.
Mister Car Wash: Inspiring People to Shine®
Headquartered in Tucson, AZ, Mister Car Wash, Inc. (NYSE: MCW) operates over 425 car washes across the nation and boasts the largest car wash subscription program in North America. With over 25 years of experience in the car wash industry, Mister Car Wash is dedicated to operational excellence and providing a memorable customer experience through exceptional hospitality. The brand is built upon principles of quality, friendliness, and a commitment to the communities it serves, emphasizing environmental stewardship and responsible resource management. Mister Car Wash believes in taking care of its people, fostering a culture where employees are empowered to take care of customers. To discover more about Mister Car Wash, visit https://mistercarwash.com.
This financial announcement underscores Mister Car Wash’s strong performance in 2022 and its positive trajectory for continued success in the car wash industry. The company’s focus on growth, customer satisfaction, and operational efficiency positions it well for future achievements and reinforces its leadership in the market.
