Mister Car Wash and Driven Brands announced their financial results in press releases following their respective earnings calls held between February 21-22, 2024 to discuss financial results for the fourth quarter and fiscal years ended December 31, 2024.

Mister Car Wash

Mister Car Wash, Inc. (NYSE: MCW) announced its financial results in a press release for the quarter and fiscal year ended December 31, 2023.

“Fourth quarter and full-year results reflect continued strong performance. In line with our expectations, we generated positive comparable-store sales and opened a record 35 new greenfields, while simultaneously implementing our new Titanium offering," said John Lai, Chairman and CEO of Mister Car Wash. “Our team has entered 2024 with positive momentum and a commitment to expand the Mister brand. As always, we will do this with a clear focus on managing our business to deliver quality, profitable growth that will create lasting shareholder value.”

Fourth Quarter 2023 Highlights:

• Net revenues increased 7.4% to $230.1 million, up from $214.3 million in the fourth quarter of 2022.
• Comparable-store sales increased 0.7%.
• Unlimited Wash Club® (“UWC”) sales represented 73.8% of total wash sales compared to 70.9% in the fourth quarter of 2022. The Company added six thousand net new UWC members in the fourth quarter and had approximately 2.1 million members as of December 31, 2023.
• The Company opened 14 new greenfield locations in the fourth quarter of 2023, a quarterly record, bringing the total number of car wash locations operated to 476 as of December 31, 2023, compared to 436 car wash locations as of December 31, 2022, an increase of 9.2%.
• Net income and net income per diluted share were $12.4 million and $0.04, respectively.
• Adjusted net income* and diluted adjusted net income per share* were $24.0 million and $0.07, respectively.
• Adjusted EBITDA* increased 5.0% to $69.5 million from $66.2 million in the fourth quarter of 2022.

Full Year Highlights:

• Net revenues increased 5.8% to $927.1 million, up from $876.5 million in the prior year.
• Comparable-store sales increased 0.3%.
• The Company added approximately 194 thousand UWC members and UWC membership increased 10.3% on a year-over-year basis.
• The Company opened a record 35 new greenfield locations during 2023.
• Net income and net income per diluted share were $80.1 million and $0.24, respectively.
• Adjusted net income* and diluted adjusted net income per share* were $105.2 million and $0.32, respectively.
• Adjusted EBITDA* increased approximately 1.5% to $285.9 million from $281.6 million in the prior year.

Sale Leasebacks and Rent Expense:

In the fourth quarter of 2023, the Company completed five separate sale-leaseback transactions involving a total of five car wash locations for aggregate consideration of $23.8 million.

With 427 car wash leases at the end of the year versus 382 leases at the end of the prior year, rent expense increased 14.7% to $27.5 million, compared to the fourth quarter of 2022.

Fiscal 2024 Outlook:

Total capital expenditures for the fiscal year ending December 31, 2024 are expected to consist of approximately $314 million to $350 million of new store growth capital expenditures and $50 million to $55 million of other capital expenditures related to store-level maintenance, productivity improvements and the integration of acquired locations.

Learn More:

Mister Car Wash hosted a conference call to discuss fourth quarter and year-end 2023 results on February 21, 2024. A live audio webcast of the conference call is available online at https://ir.mistercarwash.com/.

A recording of the call will be available for 90 days at https://ir.mistercarwash.com/.

Driven Brands

Driven Brands Holdings Inc. (NASDAQ: DRVN) recently reported in a press release financial results and fiscal year ended December 31, 2023.

"We are happy to announce that we delivered on our updated 2023 outlook for all financial metrics, while also pivoting our strategy and adapting to the dynamic market. In the fourth quarter, our performance was driven by strong execution in our Maintenance segment, specifically in our industry-leading Take 5 Oil Change business, and we're encouraged by the progress made in our U.S. Glass and U.S. Car Wash businesses," said Jonathan Fitzpatrick, President and Chief Executive Officer of Driven Brands. "Our goals in the second half of 2023 were to deliver on our full-year outlook and set ourselves up for a successful 2024, and we did just that. In 2024, we are focused on accelerating growth, reducing debt, and making sure that Driven has the right assets to execute on both our short- and long-term goals."

Fourth Quarter 2023 Highlights:

• Driven Brands delivered revenue of $553.7 million, up 3% versus the prior year.
• System-wide sales were $1.5 billion, up 3% versus the prior year driven by 4% same-store sales growth.
• Net Loss was $13.1 million or a Net Loss of $0.08 per diluted share versus Net Income of $27.4 million, or $0.16 per diluted share in the prior year.
• Adjusted Net Income* was $30.7 million and Adjusted EPS* was $0.19, a decrease of 27% and 24%, respectively from the prior year.
• Adjusted EBITDA* was $129.0 million, down 1% versus the prior year. 

Full Year Highlights:

• Driven Brands delivered revenue of $2.3 billion, up 13% versus the prior year.
• System-wide sales were $6.3 billion, up 12% versus the prior year driven by 7% same-store sales growth and 4% net store growth.
• The Company added 183 net new stores during fiscal 2023.
• The Company recognized an $851.0 million non-cash goodwill impairment in the Car Wash segment as well as $132.9 million in non-cash asset impairment charges and lease terminations. These drove a Net Loss of $745.0 million or a Net Loss of $4.53 per diluted share versus Net Income of $43.2 million or Net Income of $0.25 per diluted share in the prior year.
• Adjusted Net Income* was $155.9 million and Adjusted EPS* was $0.93, a decrease of 25% and 24%, respectively from the prior year.
• Adjusted EBITDA* was $535.1 million, up 4% versus the prior year.
• Cash provided by operating activities increased 19% to $235.2 million compared to $197.2 million in the prior year.

Car Wash Specific:

• Driven Brands improved margins from approximately 17% in Q3 to over 23% in Q4 2023.
• Same-store sales decreased 3.3% versus the prior year period driven by US car wash operations.
• Total segment revenue decreased 1%.
• Adjusted EBITDA* margin decreased 23.2% in Q4 2024 from 26.9% in Q4 2022, resulting in segment adjusted EBITDA* of $30.8 million.

Fiscal 2024 Outlook:

• Same-store sales growth of 3% to 5%.
• Net new store growth of approximately 205 to 220.
• Maintenance: approximately 165 to 185 stores of which approximately 65% will be franchise and 35% company-operated.
• Car Wash: approximately 5 to 10 stores all from the international business.
• Paint Collision & Glass: approximately 25 to 35 stores of which approximately 85% will be franchise and 15% company-operated

Learn More:

Driven Brands hosted a conference call to discuss fourth quarter and year-end 2023 results on February 22, 2024. A recording of the call will be available for at least three months at https://investors.drivenbrands.com/overview/default.aspx.

*See Use of Non-GAAP Financial Measures and GAAP to Non-GAAP Reconciliations disclosures in the respective press releases.