Mister Car Wash, the leading car wash brand in the United States, has announced its financial results for the fourth quarter and fiscal year ending December 31, 2022, showcasing a year of robust growth and expansion. The company, known for its commitment to customer service and operational excellence in the Mr. Car Wash industry, reported significant increases in revenue, comparable store sales, and membership in its Unlimited Wash Club. These results underscore Mister Car Wash’s strong market position and effective strategies in a competitive landscape.
Key Financial Highlights for 2022
Mister Car Wash demonstrated impressive financial performance throughout 2022, marked by substantial growth in key metrics. The company’s success is attributed to consistent customer demand, effective membership programs, and strategic expansion.
Fourth Quarter 2022 Performance
In the final quarter of 2022, Mister Car Wash achieved a notable 12.0% increase in net revenues, reaching $214.3 million compared to $191.5 million in the same period of 2021. Comparable store sales also saw a healthy rise of 4.0%. Significantly, the company expanded its footprint by opening 13 new greenfield locations and acquiring three additional sites during this quarter, demonstrating a rapid growth trajectory.
Full Year 2022 Performance
The full fiscal year of 2022 was exceptional for Mister Car Wash. Net revenues climbed to $876.5 million, a 15.6% increase from $758.4 million in the previous year. Comparable store sales grew by 5.0% annually. The company’s net income for the year reached $112.9 million, or $0.34 per diluted share, highlighting strong profitability alongside revenue growth. Adjusted EBITDA also saw a significant increase of 10.7% to $281.6 million, up from $254.3 million in the prior year.
Unlimited Wash Club Membership Growth
A key driver of Mister Car Wash’s sustained success is the growth of its Unlimited Wash Club (UWC) membership program. In the fourth quarter alone, Mister Car Wash added 24,000 new UWC members. By the end of 2022, the total UWC membership reached approximately 1.884 million, a 13.8% increase year-over-year. Sales from UWC members constituted about 71% of total wash sales in the fourth quarter, compared to 67% in the same quarter of the previous year, indicating increasing customer loyalty and recurring revenue streams.
Expansion and Store Count
Mister Car Wash significantly expanded its operations in 2022. The company inaugurated 28 new greenfield locations and acquired 12 existing car wash sites throughout the year. This expansion brought the total number of Mr. Car Wash locations operated by the company to 436 as of December 31, 2022, a 10.1% increase from 396 locations at the end of 2021. This aggressive expansion strategy underscores Mister Car Wash’s commitment to increasing its market presence and accessibility for customers seeking reliable car wash services.
Strong Financial Position and Positive 2023 Outlook
Mister Car Wash’s balance sheet remains robust, providing a solid foundation for future growth. The company reported cash and cash equivalents of $65.2 million as of December 31, 2022, a substantial increase from $19.7 million the previous year. Net cash provided by operating activities for fiscal year 2022 totaled $229.2 million, compared to $173.4 million in 2021, indicating strong operational cash generation.
2023 Financial Outlook
Looking ahead to fiscal year 2023, Mister Car Wash has provided an initial outlook that projects continued growth. The company anticipates net revenues to be in the range of $925 to $960 million. While comparable store sales growth is expected to be between 0.0% and 3.0%, this reflects a normalization after a period of high growth. Adjusted EBITDA is projected to be between $277 and $297 million. Mister Car Wash also plans to open approximately 35 new greenfield locations in 2023, further extending its reach and capacity.
Investment and Growth Plans
The company’s capital expenditure plan for 2023 is between $220 to $270 million, primarily focused on new store development. Sale-leaseback transactions are expected to generate between $110 to $130 million, optimizing the company’s capital structure. These strategic financial activities are designed to support Mister Car Wash’s expansion and enhance shareholder value.
CEO Commentary
John Lai, Chairperson and CEO of Mister Car Wash, commented on the results, stating, “We reported another strong quarter, capping off an excellent year for our company. Demand for our services remained steady and our retention of Unlimited Wash Club members remained consistent in the fourth quarter. We opened thirteen new greenfield locations in the fourth quarter, a record quarterly number for the company. This is a testament to the resiliency of our business and execution of our winning team.”
Conclusion
Mister Car Wash’s 2022 financial results demonstrate a year of significant achievement and strategic progress. The company’s robust revenue growth, expansion of its store network, and increasing customer loyalty through its Unlimited Wash Club position it strongly for continued success in the Mr. Car Wash market. With a positive outlook for 2023 and ongoing investment in growth, Mister Car Wash remains a leader in the car wash industry, committed to delivering exceptional service and value to its customers and stakeholders.
For investors and those interested in learning more, a conference call was held on February 23, 2023, and a replay is available on the Mister Car Wash investor relations website. Detailed financial documents, including the 10-K filing, are also accessible on the company’s website for further review.
