Mister Car Wash, Inc.

Good afternoon, and welcome to the Mr. Carwash fourth quarter 2024 conference call. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. Please note that today's 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 Mr. Eddie Plink, Vice President of Investor Relations. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining us to discuss our fourth quarter and full year 2024 financial results. With me on the call today are John Lai, Chairman and Chief Executive Officer, and Jed Gold, Chief Financial Officer. After John and Jed have made their formal remarks, we will open the call to questions. During this conference call, references to non-GAAP financial measures will be made. A complete reconciliation of these measures to the most comparable GAAP measures have been included in the company's earnings press release issued earlier today and posted to the investor relations section of the company's website at mrcarwash.com. As a reminder, comments made on today's call may include forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations. While the company may choose to update these statements in the future, it is under no obligation to do so unless required by applicable law or regulation. Please review the forward-looking statements disclaimer contained in the company's SEC filings, including its most recent 10-K and 10-Q reports, as such factors may be updated from time to time with the Securities and Exchange Commission. I'll now turn the call over to John.

Thanks, Eddie. Good afternoon, everyone, and thanks for joining our Q4 2024 earnings call. We ended the year with quarterly results that exceeded our expectations, led by strong comp store sales growth of 6%. Q4 marked the seventh consecutive quarter of comp growth for Mr., including the first positive retail comp since Q1 of 2022. Looking at the full year, fueled by the introduction of our premium titanium service, We delivered record revenues and EBITDA, with sales up 7% and adjusted EBITDA growing by 12%. We also continue to make great strides with our Greenfield program, opening 40 new locations in 2024, including one relocation and surpassing the 500-store milestone. While we're encouraged by our performance, we are hesitant to extrapolate current trends through the upcoming year. Consumer behavior remains difficult to predict, and our non-subscription business is more sensitive to weather, so we're retaining a cautiously optimistic view for retail trends in the months ahead, which Jed will discuss in more detail when he outlines our guidance for the year later in the call. As we turn our focus to 2025, I'd like to briefly comment on the competitive environment. Although the landscape remains crowded, we expect the influx of new entrants into the market to continue to decelerate from the highs we saw in 2023. Over the next few years, we expect the industry to rationalize We are confident Mr. will be well positioned to capitalize as market share and consolidation opportunities present themselves. Discipline growth, solid execution, and operational excellence to deliver an exceptional customer experience is what motivates us and drives our success, not growth at all costs. Now I'd like to spend a little time on our four strategic pillars and the progress we're making to drive productive and profitable growth over the long term. Starting with number one, expand our footprint. We will continue to drive unit growth in 2025 through our Greenfield program. This year, we plan to add 30 to 35 new stores in key metro areas as we continue to densify and strengthen our position. The Greenfield program has proven successful for us. Since inception, we have constructed 140 car wash locations, accounting for more than 27% of our platform. As the program evolves, we are continuing to refine our proprietary site selection model and are becoming more surgical with our analysis of both core and new markets, which we expect will improve our success rate. With respect to M&A transactions, we remain opportunistic and will continually evaluate opportunities that make strategic sense. Moving to number two, increase our innovative solutions. Our culture of innovation across product, service, and operations also sets MISTER apart. When we innovate, we win. Our titanium launch is a great example of this. At 23% of UWC membership penetration overall, titanium outperform our expectations in 2024. Our overarching goal is to continuously improve the customer experience. That requires agility and a commitment to innovate across all segments of the company, whether reducing friction at point of sale, developing creative new marketing campaigns, or pushing forward with industry-leading technology and R&D. The end game is the same, to consistently wow and delight our customers while increasing our competitive advantage. Moving to number three, drive traffic and grow membership. As I mentioned, we're increasing our investments in marketing to enhance our brand messaging, to engage with customers in new ways. To that end, in Q4, we tested new media channels to expand our reach and launched digital promotions in select markets to drive retail traffic, and we're generally pleased with customer response. Moving forward, we remain customer obsessed, evaluating and improving each customer interaction, and we're turning our attention towards driving stronger brand awareness and membership growth. This includes developing more robust, segmented, and targeted marketing aimed at increasing our awareness and driving traffic. Finally, number four, build a best-in-class team. This has been an ongoing effort evidenced by the material investments in our leadership team over the past couple of years. The most recent being our first ever Chief Technology Officer, Carlos Chavez, who joined us at the beginning of the year. With his strong retail and digital background and wealth of experience in technology leadership roles, Carlos will develop our vision for how technology can serve as a competitive differentiator. I look forward to his partnership as we take the business and industry beyond where it is today. Looking to 2025 and beyond, I remain optimistic on our growth prospects. Our industry has seen a lot of change over the past few years, but over time we believe the best operators will win. As the leading car wash company in the nation, we'll continue to play offense by expanding our footprint, connecting with our consumer, driving membership, and ultimately shareholder value. When I reflect on where our company was 10 years ago with 136 stores and $250 million in revenue, To where we stand today at over 500 stores and nearly a billion in revenue, I couldn't be more energized about our future. None of this would have been possible without our incredible, talented team. Our people, our culture, and our ability to continuously improve is what makes Mr. special. I'd like to thank all of our great team members for your tremendous effort. I'll now turn the call over to Jed to provide more commentary around our financial results.