Tucson, Arizona-based Mister Car Wash Inc. (MCW, Financial), the nation’s largest car wash brand, is banking, quite effectively, on customer loyalty for its growth.
The company announced last Thursday its financial results for the quarter and year ended Dec. 31. For the fourth quarter, net revenue increased 18.2% to $191.5 million from $162 million in the prior-year quarter and 21% from the fourth quarter of 2019. Excluding $4.9 million of oil change revenue that was included in net revenue in the fourth quarter of 2020 and was generated from the company’s quick lube facilities divested in December 2020, net revenue increased 21.8%. Comparable store sales increased 14.6%.
Net income for the quarter of $36.3 milllion, or earnings of 11 cents per share, was down from $40.4 million in net income, or earnings of 15 cents per share, a year ago.
According to Mister Car Wash executives, the chain enjoyed a 34.3% year-to-year gain in membership in its Unlimited Wash Club program, which now counts more than 1.6 million members. UWC sales represented approximately 67% of total wash sales for the three-month period.
At the close of trading on Monday, shares were at $15.09, down 4.49% or 71 cents per share.
In a statement, Chairperson and CEO John Lai commented on Mister Car Wash's "extraordinary year."
“We are pleased with the way we closed 2021 and the strong start we are seeing in 2022. Demand for our services remains healthy as more motorists value the convenience of professional car washing and the ease of being an Unlimited Wash Club member,” he said. “As we continue to add more units through greenfields and acquisitions, we remain focused on investing in our team members and developing our future generation of leaders. Our people-first culture and unwavering commitment to operational excellence creates our amazing customer experience."
The company added 36 net new car wash locations in the fourth quarter and operated a total of 396 car wash locations as of Dec. 31, a 15.8% increase from 342 locations at the end of 2020.
For all of fiscal 2021, net revenue was $758.4 million, a 31.9% increase from $574.9 million in fiscal 2020 and up 20.5% from fiscal 2019. Excluding $23.8 million of fiscal 2020 revenue from the company’s divested quick lube facilities, net revenue increased 37.6%. Comparable stores sales increased 31.7%.
The net loss of $22 million and net loss per share of 8 cents for the year were down from net income of $60.4 million and net income per diluted share of 22 cents last year.
The company's outlook for 2022 calls for net revenue between $875 million and $895 million and comparable store sales growth between 5% and 7%. GAAP net income is estimated at $139 million to $149 million, with adjusted net income between $144 million and $153 million. Adjusted Ebitda should be $284 million to $297 million, while adjusted net income per share, diluted, is projected at 44 cents to 47 cents.
