Mister Car Wash, Inc.

Good afternoon and welcome to Mr. Carwash's conference call to discuss financial results for the first quarter fiscal 2022. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. Please note that this call is being recorded and a reproduction of this call in whole or in part is not permitted without written authorization from the company. I would now like to turn the call over to Megan Everett, Senior Director of Communications. Please go ahead, ma'am.

Thank you. Good afternoon, everyone, and thank you for joining us today for Mr. Karwash's Q1 2022 earnings call. Speaking today are Chairperson and Chief Executive Officer John Lai and Chief Financial Officer Jed Gold. After John and Jed have made their formal remarks, we will open the call to questions. Before we begin, I do need to remind everyone that comments made today may include forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ material from management's current expectations. These statements speak as of today and, except as may be required by law, the company does not have any obligation to update or revise such statements if circumstances change. Please review the cautionary statements and risk factors contained in the company's most recent filings with the SEC, as such factors may be updated from time to time. During the call today, management will also refer to certain non-GAAP financial measures. A reconciliation between the GAAP and non-GAAP financial measures can be found in the company's earnings press release issued earlier today and posted to the investor relations section of Mr. Carwash's website at ir.mrcarwash.com. With that, I'll turn the call over to John.

Thanks, Megan, and good afternoon, everyone, and thanks for joining us on our first quarter earnings call. We had another great quarter and are pleased with the strong start that we've had in 2022. With our high-volume express exterior locations, unlimited wash club program, and expanding network of stores, we're making car washing more convenient than ever. And as more and more customers discover how quick and easy it is to keep their car clean, they're also discovering the great value of our unlimited wash club program and the amazing customer service that our team members provide. We see that the combination of convenience, value, and service is driving strong demand and fundamentally changing the way people care for the vehicles. This is translating into strong and consistent demand and results. In the first quarter, total revenue increased 25% from the first quarter of 2021 to $219 million. Comp sales at locations open more than a year increased 11%. Adjusted EBITDA increased 22% to $75 million, and we added 125,000 new UWC members and ended the quarter with nearly 1.8 million members. We're off to a great start with our three greenfield locations that we opened in Q1 in Houston, Orlando, and Abilene. And our greenfield locations are some of the most productive and profitable in our portfolio. As a result, we're continuing to invest in our real estate and development teams to expand our capabilities to open new locations. As we think about M&A, we'll continue to look for assets that complement our footprint and allow us strategic entry into a market. We recently announced the acquisition of four stores in Victor Valley, California, and are excited about the opportunity to grow in that region. We have a long track record of buying good businesses and making them better over time. by integrating them into one brand versus trying to manage over 100 bespoke brands. Speaking of integration, we often say that anyone can buy a business. The hard part is the post-acquisition integration process. And on that note, we're pleased with the progress we're making on the clean streak and downtowner businesses, which are both performing above our early expectations. Shifting to our team members and the best-in-class customer service model, We're pleased that through what continues to be a tight labor market, our stores remain fully staffed, and we are building out our bench of future leaders. The path to being a people-centric company began many years ago, and the ongoing investments we've made in wages, benefits, training, and career path progression have led to the most highly engaged and motivated team in the industry. And at a time when many businesses are struggling to staff their operations, we feel very fortunate that we've had no interruptions to our business and our stores have become even more productive as we set volume records in almost every region. Before I turn it over to Jed, I'd like to recognize and thank our amazing team who are growing and scaling the business. Despite all the systems, machinery, and equipment, it's the people who service our customers and deliver upon our mission each and every day to build the Mr. Car Wash brand and propel us forward. We are so very grateful for their passionate and hardworking team members that make up the Mr. Car Wash team. Thank you for everything you do. Jed, I'll now turn it over to you to review our first quarter financial results.