Mister Car Wash (MCW) 25 Mar 222021 Q4 Earnings call transcript

Good afternoon and welcome to Mister Car Wash' conference call to discuss financial results for the fourth quarter of fiscal 2021. [Operator Instructions] 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. thank Fourth joining Earnings Quarter and Mister today Call. everyone, Wash' Car Fiscal afternoon, you us for for Good Year XXXX

and questions. made their Speaking Officer, remarks, we Gold. and Chairperson the formal John Chief call open Lai; to After have today Jed Financial Jed Chief and will Officer, are John Executive

as actual significant today forward-looking statements, company's which Before management's we obligation to to of current company expectations. today revise and need These any cause include be if statements do results update uncertainties to speak as remind everyone as -- could required statements and subject from may have change. may to such risks materially the law, by or begin, does I not that circumstances and except that comments made differ are the

release the between ir.mistercarwash.com. can During A found company's measures. refer today, With financial also to Relations website posted measures turn call John. section non-GAAP that, press Mister will over earlier call non-GAAP the Car be John? at the of to financial certain Wash' to the management issued the in today Investor and I'll and GAAP reconciliation earnings

approximately afternoon, trends year-end some quarter today. express size we the only not the the zoom talk drive-through how year we about and on the driven is by on value of out seeing car joining wash the road thanks into convenience industry I category pond to look at and fourth quarter excited expanding model. of you. the come to like before nature our I'd another of But very huge our and Big market, large, the results. unit-level XXX tremendous car we're in, dive more across ease, it's and that When and Good consumers as but for execute and is deliver growing best-in-class and U.S. we're the Megan. earnings market, Thanks, the had everyone, park We extraordinary and vehicles with million the call. of growing us great picture, an with share the

inflation people joy investment. which affordable importantly, consumption of keeping the customers Even program, strong all face their it More seeing the gas up service, easy in a has Club created our clean, as protecting to keep members expansion. made with Unlimited that our the subscription-based the coupled sign their car rising we Wash their and rising become while of to receive prices, time tailwind clean from believe affordability we're for car of has relative and more

size look the we've created across level huge at As the industry, our differentiators our opportunity largest position car wash for look team new see United that growth in believe elevated supply, amazing when are existing operator by the demand a of Biggest company. in great and we we're increasing expand X% short, into. move to markets States with In continuing share, we than footprint for penetration a the in markets while we outpacing people an the less entire to hospitality market to of which delivers developed has us.

satisfaction. their is well-choreographed strong special. day a scale the culture Watching we like shared results providers, teams cars, success. smooth technology take of skip at crews but has customer that service everyone lots competitive consistently watching in talk XXX a this we've very We cars our biggest wash and in model, our synchronicity. to delivery our working seamless key what a our perpetual dance developed incredibly systems a and a with that's in arguably per is lot hour step become As in which process The purpose our great way our real in And motion and in pride with advantage. moving and it's our a AUVs to of makes we people-first and unison service about use procedures

that During by standpoint, of grew the XXXX, XX From up company. in the share of I'm $XXX set to XX year to a over year million over footprint $XXX we XX our This unit delighted million. stores, our and a full record revenue unit-level XX.X% acquiring greenfields. single-biggest locations and history opening EBITDA growth increased our for in

significant that We've closed late the our front, investing in are openings We our position heavily in year, in M&A Greenfields the our strategic with the opportunity our performing. at before quarter least and leveraged XX we up the year. the XX how the on volume. XXXX On developed the and fourth Clean all a thrilled wash in growth locations X all and we're model years pieces picked of have most greenfield we important strategy, last about accelerate and of store Florida. that's We're end of teams opening see the more and they're now Downtowner, of significantly Streak acquisitions, Florida plan in knowledge and car and bolstered to have throughput construction well beyond. development over and new one

year, For XX the and million year the washed vehicles ended Wash million members. X.X with over full Club Unlimited nearly we

our clean most in and company. care call, car At the program. fortunate We on way very To struggling their had for that a of managers. keeping our fundamentally we and is within and has heavily a in growth our volume every those more date, to certified time the the recent providing get to our them are constant our stores company customers We program this our We by the year, healthy everyone staff trainer have their well, results people hiring operations, about last paying in invest achieve challenges launch of no which the productive as looking records hourly stepping are leadership XXX increasing importantly, labor continue when continuing that now operations half more and see vehicles. we more to wages attract team treating members completed we've more their on is companies see all out as talked in become than a development them team out to take In as well. great membership training the feel people, training, last almost to moved our right experiencing responsibility rise, front exceptional interruptions clear of we're business, we leadership the to and retain of and members. to even mode set stone in region. more we time, talented future second build by we earnings bench and for changed as In value our

has of investments a us great ago, we've Our being in and training career this many company wages, path years during position began path tough a people-centric environment. progression the and made labor in put ongoing benefits,

of VP quality to happiness. the On and was and Mister the with at want off everyone some of after him decided spend Development, time Hale, industry, to XX the executive over Mister From our thank and to on his like time who into wish Car XX ride years leadership retirement Dave recognize Dave you it family. sunset front, we to I'd years the in say Wash,

capacity job years, over, increasing promotion thrilled even Ryan promoted veteran I'm as a Darby, in prior Dave team X to Latina beautiful to been of new report our open she's and new Chimienti Services that to also and Mayra Car XX-year has more. successor, happy Ops Officer. industry served building cool. female a to has a take Operating is predominantly VP his Myra being stores Wash to also Over our Chief of are a I'm The of the and grooming that announce and to and up role. male-dominated phenomenal is fact pretty last a Mister his Ryan doing as the a

and industry. our We done turn to team it I'd thank entire our best job grateful and Jed do I'd our it to to company to XXXX quarter our turn the fourth like our I amazing it over been experience. deliver financial who especially have now deliver so review culture, car to couldn't best Before our without like the Jed, wash to field in the have to people and and teams, over are mission elevating results. who's our on hard an team, HQ working scaling to

on strong start our and XXXX everyone. a John, afternoon, you, with as was XXXX. and year levels, John far good many record to Thank pleased so we're indicated,

Before you help our want guidance, results I better understand XXXX broader trends to going the through X and business. to comments of in our some make

see during and fourth weather, remained demand. the was did of We middle the variability our quarter. related that First strong. in worked have to the is itself in But some retail out sales. quarter specifically the strong impacting Underlying December, trends around demand

around input and inflation The second pricing. is

modest resulted we a quarter. our we proactively call, XXXX, As our the rates inflation majority labor we August fourth retail in in the that across took price hourly on locations earnings our some of this, offset November. and of in last in wash discussed offerings adjusted increase labor in modest To

basically We did X of on are in labor bit quarter pricing based of experience the timing that December, the has the increase little offset happy the But in report these fourth events. increase to margin inflation. since a compression

very that labor our car improvements investments productivity these middle employee us such labor year. invest strong are while we're as store to growth. seeing cars to flat And measures, of future helped and since washed last margins people importantly, keep maintain in turnover labor have More allowing and relatively per in the also washed, hour continuing our dollars

share X a around locations, population acquisitions completion Florida, teens. acquisition sale-leaseback acquisitions. our expected demographic market trends. have the the acquisitions Upon positioning late and quarter. of and is helped of that be is the The acquired multiple to fourth low the the process closed solidify our experiencing boost third strong These in in the We growth state is in

And compression time As the experience to locations before, us it apply our X we this processes. labor mentioned take and acquired to we months acquired as locations. some margin a during fully model can have integrate year period,

the that December to $XXX.X fourth non-GAAP Now today's year's let press million release XX.X%. XX.X% note refer if included business fourth our sales and our My million from non-GAAP will was comments lube increased growth metrics. store would quarter, revenue calculating Please our year. more of financial on me performance oil and divested of methodology financial In in comparable change last unit of of revenue growth review Please some adjusted that results. of in details quarter subsequently quarter results. last driven include the our $X.X quick like you to by fourth XX.X%

from this quarter. comparison, the increased XX.X% Excluding the in revenue

year-over-year. XX% Our sales subscription as the XX% million memberships XX.X% a locations, quarter. UWC driver of increased Unlimited build locations added in XX new Wash of the of Club quarter, for were that these added X.XXX locations these an to With in were of increase accounted units the acquired from net December key new XX respect program of XX, growth, were X fourth X.XXX Of new to we wash greenfield and approximately the and XXXX, in in of remains locations. quarter, million growth. total unit XX

total We year-end. also giving quarter, XXX closed X in at us of location the locations a

for to labor included revenue. driven The increase of of stock-based The XX.X% side $X.X $XX.X million expense from Cost labor fourth of or to increased XXXX increased the chemicals cost to was the of primarily Turning labor the to and P&L the quarter compensation. of benefits. by related of expense and million quarter. the XX.X%

financing with the fourth this the $XX.X increase were were year's and driven last was increased was labor. Streak, $XX.X $XX.X in million incurred Other of issuance quarter was compared the $X in of operating comp Clean store revenue $X professional on volume. year. per-car compared managed company connection and our an of G&A debt million expenses million to XX.X% revenue and last The primarily investment million in increase, or stock from million quarter were year. acquire of General Our $X.X basis. down chemical $XX.X a from well fourth and or was locations nearly increase by in fees, $XX.XX administrative was from with in and million million X.X% public, wash revenue XX% in year's from quarter million or modest were million expense, the slightly with this $X.X XX.X% Of expenses costs or costs revenue

to our the calls, invest development area from As and to our Interest the continue greenfield million $X more we continue build to the scale million capabilities expense we as last to bring development discussed down earlier of from we due an projects in-house. on $XX.X to debt. is team pay IPO decreased majority and year have proceeds

help first late loan to our fund million Clean As in raised a the reminder, acquisition additional of we quarter, an Streak. in $XXX lien term incremental

the decrease for tax the rate tax and options primarily effective due the XXXX stock reported fourth treatment. of exercise a fourth GAAP quarter of was with The Our compared employee to for XX.X% quarter was XXXX. XX.X% favorable

in Our in $X.XX diluted net of that stock adjusted resulted exercise difficult the stock-based benefited lower in GAAP taxes adds prior from the share income the and tax operating and to period. adjusted stock the exercises, share income, tax increased per versus of fourth of of quarter quarter, benefit model. The per stock by in and options benefits $XX.X $X.XX options We back $X.XX which the quarter. fourth million certain are XX.X% the realize to predict rate, options expenses, was income the excluding compensation year the diluted net noncore Adjusted exercise was XXXX. net XXX% fourth from

the benefits quarter year, plan income in adjusted and our the first the net from to income net excluding tax reported table. adjusted calculate begin of this per So starting financial share we we way in

increased $XX.X adjusted XXXX fourth of in million the the EBITDA $XX.X of in XXXX. quarter Lastly, to quarter XX.X% fourth million versus

net full increased Comparable million $XXX.X UWC sales happy our the year, XX% car results. XX% EBITDA XX For fiscal share, grew income by team We stores, nearly increased XX% UWC and accomplished. for total store count traded million. XXX year delivered in wash store the of we XXXX XX% or to becoming the compared program. adjusted XX%. year On $XXX.X nearly memberships with was publicly team ended we the fiscal And X.X the added Adjusted diluted $X.XX a are the accounted in revenue wash XXXX. impressive million. with company, what to per top net $XXX.X million increased Car washes. of with in ended members and sales nearly with very

Moving $XXX for by Gross we leasebacks. million, and capital million expenditures on highlights. and provided $XX cash operating $XX generated $XXX to year cash equivalents activities million. cash cash At in sale And was long-term flow year-end, were was debt was some balance Net from the million. and proceeds $XXX sheet million.

the for around $XXX an initial year expected for X% Lastly, first -- in our million, comments to a increase some the trends Comparable to or second to diluted XXXX noncash to range $XXX on and And $XXX outlook commentary nonoperating are are the the $XXX revenue $XXX $XXX $XXX we be share. proceeds let Adjusting me capital in make compensation, for to between other per full projected few expenditures a $XXX expenses, expect XXXX. range is acquisition the million. expected as of and in range from million EBITDA XX%. million to million. of million we of $XXX well to Revenue approximately adjusted be to to as net of projecting quarter million sale greenfield the the year. of XX% of onetime million. leasebacks $XXX primarily the $XXX This basis, is to expected half sales net XX opening income $X.XX $XXX store gross expenses, be assumes Gross On of GAAP be to opened million to rent $X.XX is million increase in between million. locations adjusted in be income million X%. nonrecurring, to And range stock-based or

we're how we quarter in we some anticipate commentary provide trends providing progression of the first a wanted the on thinking and on While to year. quarterly color the basis, do regular not about

sales, first has January particularly very weather in strong, and favorable. about weather We the business, some trends have earlier, first the on been quarter in the can been As how impact the indicated February. quarter talked and specifically have retail

over quarter area store acceleration comparable to the growth months few in nice we've XX%. and result, a be business first in seen the sales anticipate past As of the a

the this $XX EBITDA top As the being last first With million is of of first growth a the case, comp we reminder, almost on in the being being we of revenue quarter adjusted year. quarter first XX% that in $XXX see quarter area in area and million. reported this

a for assumes demand my fundamentals all into to XXXX. currently the the in I the increase of was like to in and company. outlook revenue our the mid-single-digit store second work to appreciation feel year Fiscal a comparable day As closing, initial record-breaking full toughest a In our store good year strong the year. of our and very out low would half serve represents mid- business for driven to XXXX a team and in and year half customers. thanks the our comparison single-digit going and sales members to the We the comparable first by who the quarter XXXX high add in historic positioning execute second and our our the sales year of for prior reminder, about year day of business

as ability are algorithm of against unit forward With and Operator? our we We earnings to driven by Q&A the to success consistent that, growth growth the the team, long-term begin deliver our behalf continued for shareholders. I'll to over new operations and our in as confident delivering our best-in-class ever operator look it our On session. turn further expansion. to

[Operator Instructions] Capital is Simeon with question first Our Siegel from Markets. BMO

the end Nice Congrats. of year.

positive -- you about So commentary. think Jed, to great I the just really hear quarter-to-date

about or sentiment answer the raised think for year. itself. stress maybe general And this usage factors, potential how -- be greenfield testing I of then customer So just anything you internally, estimate But said it's was and from I you inflation react? might hoping, about your and they impacted any curious you're UWC whether I impacts, thinking might macro guess go-forward, churn? kind expected how the thinking a just retail Just how question

that into little dig would bit So I was a hoping you more.

it the heightened expansion unit target raising beaten really handily gear. the M&A greenfields. just now like Like in full is you're if seems You've

acceleration. talk talk to of that, the kind just maybe to So

business. I know Jed, stay don't the humble And comps QX, alluded live we feel that grow want give we to ground, it. and definition to for the QX a as we this stay quarter. there's is feet before in But technical keeping how health the broad XX.X%, Yes. to color plus see to and But in on some hungry. themselves. John. numbers we're remain if speak it Simeon, over pretty going were have turn to, trying the confident by of I this And able Jed the on mantra XX% to both comps to a plus be of how where just crushing for I

Our is now. right healthy business super

opening I been amazing. service As demand mentioned in for my has comments, the our

So we category. feel happen with concerns we're to around very to consumer going not what's fortunate in And this spending, to seeing it. be to inflation respect and

So as holds, what we've -- a we're now. because Jed as processing cars spot future we're knows quickly woods, to great the to knock I'll over it all for turn And the precise we got them with up can. right, give right and the lined more all on one no in street, to answers.

Yes.

the down, but up indirect And first the a geopolitical Even I performing then the as of the the encouraged nearly said, putting gas are may right, backdrop the seeing, with average trickle prices potential the the the backdrop operate risk. we've on of macro XXX% that it's prices. rising trends, stronger. first of we're guidance, worth Gas all, national in we together XX% rates, lot on the the some impact though think highlighting of been got of Simeon, we a of have that the part outlook John business, uncertainty for and come. year-to-date. U.S., that in it's with really We're interest and trends broader as question just is So fundamentals how business and never were and the

greenfields lot what that future broader macro up you also some made potential of built the So We've the for as broader that so white factors question, that we've believe at opportunity of operating changed. development. side we trends then -- during the but guidance, we've together we're has expansion, event adequately nothing seeing, when a in growth. There's the macro look saying that we're we we're runway and ramping And -- some reflects put white environment space approximately made the for know, in. XX team. Greenfield your as We're investments and year. space we in the

is question Simeon from Morgan next The Stanley. with Gutman

strong Sussman as now, quarter. to and more This business what you your a trends. the about a is did on of a quarter is think you on it's decline occurring, But about market potentially higher traditional have for bit a starting business date recession of recurring good to Kind in were Congratulations The a a last mix. off revenue with mentioned, of Simeon. recession. Jackie piggybacking different saying the

recession? So year? stronger a I guess, expecting the comps the subscription you're during more specifically, forward throughout how And is resilient going base

portfolio majority has ratio a Yes. where $X that a 'XX, down, value impact Exterior, Clean Terrific was price Express of question. or stores $X a and flipped that We has back had in. the Today, get different portfolio virtue upside When we of full-service received, by 'XX proposition, is look been were our anywhere at $X, then. which from very Interior of that point locations. lot to the bulk we our of our affordable

perfectly going So it's we accessible tighter that and motorists. be And for is think, forward. an even positioned all could environment it easily affordability,

a quick if can. I Great. follow-up, And just

in great year a guys had 'XX. You

inflation kind reinvest the You back macro of of of volatility into Is backdrop your thinking said given you're to in to going business. choosing the you how any in were terms there kind and invest?

No.

For us, full it's ahead. steam

sure we've we've been particularly as with right that enjoying, with emboldened in that that out place. there. in greenfields, not so the down doubling the our And got the mentioned but success on tripling calls, capabilities some down our previous building really, are human focus team we're, side, capital of just on is the making We we

growing lot But what at we're we and So doing like right pulling doing. the having weeds on anticipate back don't a now all. fun we're of throttle

Michael from Lasser question is UBS. Next with

would would $X? it closer if on to that What an John, think of -- would Would the what $X, is there start it business? be got impact gallon level, that to a will national they be you have gas that be? per to level that price

I I tricky in into know Yes. That's history I'm the really wish future had gas answer. had good a our a prices. company, couple of of And do more it consumer anything, paycheck, meaningful an inflation-adjusted gallon But and for budget a to of disproportionately are do going the living per all little we're, was to $X. business go if price I spend. an to far. woods. to with to seeing on in north We think now. that see overall back your from basis, we've impact I $X XXXX, it Because to inflation-adjusted the standpoint, seen and where, on to any years don't impacts us, is it's didn't frankly, question not get I impact then I on the folks come quite we that going any crystal knock to to higher, ball not But a we want again, that question, or way. any it to where to to affect going -- paycheck have a thus way were any want in think threat across their there if our haven't hubristic

is My in the you like, to One the your side of part in did much as X quarter, Jed, contributing have sales out And growth pointed increase XXXX? is same-store retail compare is, tough on you a the particularly that, second follow-up question the parts. business. of price how

in Wash of that to more to because additional is make starts it going second membership? soften new Club members retail quarter, a recruit the difficult is to key extent the to source So it that

Yes.

part what I'll the Mike, your we of So question take price around expect and the first that.

we year. which as of just the to we've from the impact in forward inflation under the of the as X% look the growth to a on that said, coming pricing, be XXXX, expect we've cost labor increase So pressures support the and November that we some we year last will made making a offset future the of largely are that of we and benefit took business. investments and price on And

stores too working of them that, base them would into I the more and lifeblood for converting towards add is member an decision make our retail then educating membership. Michael, our Yes, us, customers informed to attracting growing into and

important. traffic We've doing so we're washing because So us, we're and cars well, this retail is so [Indiscernible] got member for phenomenon base. many unique where

decompress thing. to have we we continue beautiful overall for when that it's we've some some out previously, share speed lot more make and done high-performing in market. to, hey, us there's stores in add where minutes. to have have. shared and cut can in which where certain good street, quite we've and get bit our reduce that are it lift we're maximum locations And in X problem then As more up bumping a add street." and lines cars the I and of up to you things is a that those we're decompress penetration stores them the certain to sure frankly, that up down a locations grow a the Let's stores share, our lined "leaving on hours then to against and bottlenecks increase There people we're our the also guess around opportunity to saying, highlights capacity, our But

is with Chris question next Stifel. The from O'Cull

have to you make development continue targeting team investments, significant in term. those given hoping kind of investments and for made development you John, you greenfield I you're capacity the what longer could was describe

Yes.

the of just I watermark. in if to up -- to set is of up way, is And for and team a spot and XXX% is by training other the bench. get the us. to We have and exceptional on sweet -- to the almost much most investments, think that's important store, we good opening which stores. piece the our out that we as put year, things continue of to program open be operate to reset XXX% deliver investments customer if management We them a year we we to to building in speaks expect And XX -- the And we stores, MIT to this equation, which opened about work store to last important XX as most want able improvement. highlight I path is that place which the our have our high continue kind is, piece, a that perspective, want experience, one week, things

this that that got we've leadership new concurrent it. making with building crush of out pipeline So and of path trained can go in we've amazingly our and leaders stores, our coupled increasing capability sure got building

mentioned on previous not the pulling that parallel And to we're path. on throttle. as back I we're So question, the

X there's That's I to long-term think, I Streak had your acquisition, over washes one, under locations. the X-or-so had calls, you algorithm XX other XX helpful. then think for XX acquired units years. opened, And I that were then be I And think, the Clean construction. mean

So should be XX to be to we wash forward? going we that outlook mean would limited conservative? that acquisitions should very interpret Or expect the

I very acquisitions, lumpy definition, can and unpredictable. think highly by be

and in, Tampa you markets. particular strategically but case, the position, us, in markets opportunities bolt-on looking bolster the the footprint almost to market opportunities Streak already at we're regions in Orlando that lean our that that in, deal Clean our For in out where -- the of we building increase in our some share we're in there's then also lean our we're like referenced doubled number and when for market a that on

down is ever-changing as look the that but difficult being So opportunities, larger-scale landscape rate. very consolidating those is up, to and coming we some perhaps we rolled anticipate at are turnpike this combination

into of the years, being for chasing we ourselves to what number. when we've where position together, the a in a pulled we Multiples up. thing a didn't a over one are that algorithm, X are growth There's I'd the long-term driven the put chasing capital do Chris, sake of XX this add. coming And just is lot space. right, number want

weren't we this hit would playing to but is number to any -- that sense then we And put forced then just out. out driver, And egregious make multiples to are pay where try a M&A key play and for so also also, there building us. a we right, didn't

earlier question, that of you our brings in element the predictability and in to greenfield, an As unit we're which highlighted much expansion. more just investments making even your consistency

acquisition you is anticipating have say embedded this, I the if much I to in But That's very you're much I revenue? guidance? it Streak your contributes And EBITDA may How Jed, helpful. Yes. how or missed Clean maybe apologize did. did

acquisition as look QX. So QX in late at we the XXXX, was

XXXX aren't half acquisitions, oftentimes, Streak. exact keep in disclosing make over will as then get X done steps very back mind, a ahead. Clean around we then on impact and step it little we acquisitions. the So results. we'll take But XXX And these expectation We've Chris,

really We these a at have and strong this track X-year looking investment a over of horizon. record investments

from Peter Next Sandler. Keith question Piper is with

piggyback Streak. Congrats I to of year. a great on wanted off Clean

acquisition frame little Do have acquisition you what compared So in for you past? bit a see your of it normal sizable It's months. a now guys more, it little EBITDA up owned the to would benefit? fairly a How you done couple You've have similar accretion guys a XX% a opportunity raised four-wall a years. by X you bit or in less? about historically here maybe versus

team mentioned, year a to least what months X. going Jed growth business a we takes and inside and very be about, get just ton at the And as oftentimes up in the X and operating we're underscore Jed potential see it pieces the referenced, trained all to to in definitely where the get Yes, of year Mister place to we're optimistic way. in us

us, do EBITDA because year in what not X. somewhat about for in in we get a about So opinion, year outlook it's year we X conservative it's growth, X take our

the So necessary investments, And it's making well. those things one really of necessary the making that we changes. do

our assimilating consistent So and stores. of standardizing this we're all creating integrating across but and experience

experience. to you're any yet. Florida, you there of any Car if -- not store the So Wash in receive going Mister XX We're same the

members another before with we for there. team singular we we boats to us, we and personally think And will to almost lifting the when everything really and for again, ultimately. days getting we But is something to adopt standard lifting the into the all We heavy And probably there. our from to but XXX do, again, that's difficult, days system the a them and experience rise the culture we're every get procedures. professionally. that get a get have point-of-sale right, it's Because most important because XX it's case, and the probably tide connecting that single for stick we most in family, it

color little that. on a just bit Peter, more

well, those members memberships. position higher in per-unit chemical the the mentioning a particular highlighted, But thing integration there's us in we that XXX% -- materially step is of upside, Streak, acquisition we overnight. this, model, takes look you all Florida. throughput our a convert basis store. you on big we as in this that does on Also, at for some opportunities our per point portfolio. as into don't potential is there -- on of then going seen we some previous cost one processes. national but per acquisitions. The of think -- brand, lot them lower location, at not look over it's take build programs estate particularly synergies John other Having right, Clean had process particularly see, it's subscription So to guys this we're that the was right, happen than we our and our sale-leaseback the the for as vision what When which, as the the opportunities is bolstering X,XXX than also know, it's of The in building we've in a said we'll to worth owned as The and still at one direction, had time. that, that of I a share real looking in and the EBITDA

that. we're businesses see through more staffing just generate to we approach it's would because models again, And that Jed, cars us than already are to starting the for we're that uncommon staffing labor able I increase acquire running Yes. to add, happy turnstile. we're not too, leaner And that are. to,

as So and labor?" the "Well, but comment counterintuitive to line, people increasing the because we're us, labor, more on top it throughput increasing clock, Yes, washing you we're like, having as your for growing more on it's increasing may cars. sound aren't

the happy to front-end going And which investment, which load that's we're a generate more we're revenue, line. trickle bottom overall, will to so ultimately And to make.

Okay. clarification on question Great. That sounds exciting. Maybe Streak. just last Clean one

you stores additional what weren't of it? was that open think I was I in are So think that -- XX yet opening. process had there

in openings your in have So the XX-unit Or guiding do as XXXX, Clean Streaks there own when XX those you are well? greenfield? for you're

The clean XX. that, streaks into are approximately factored

Yes.

owned greenfield of plus greenfield planned basically got you've own these -- plus of or your So Clean XX XX of XX the Streak sort your of acquisitions?

Yes, roughly. That's how it works, yes.

William [Operator Instructions] Sundby Ryan next question with The is Blair. from

You X.X ended with year or million the members. UWC nearly --

Just does should driving quickly And locations? like Because it active about corporate lower does, from how that average. a think higher the penetration standpoint, location? than it this at we at was acquired if that include were members it housekeeping sounds the

Yes.

some processes, in us to membership our going core It's for providing on basis But in acquired our base growth. business, So location happen members again, million including members, the look the place future once that's the our at overnight. nearly see got our not development. lower put acquisitions, We've when you the than But X.X that going per-unit those materially take time. opportunity it to all membership acquired stores, yes. we through training, members, we the member team, of a our to includes for per the

customer might uptick where modest our [Indiscernible] program. seeing Wash prioritizing growth. right it that of be. probably before Yes. make start member needs are to an want quality value of we're on be the the there's sure of is we half we there, things the fundamental that We I second would Unlimited turn this now. some them There But expect, start customers is the other on to year, blocks in membership. growth Jed, to before service Club building speed's there, the Those we'll

egg. half, we're bit very I optimistic But about little a there's So a the think chicken second potential. the of and growth

roughly you sign-ups the little XX% the I QX and year. the ahead help XXXX that 'XX. should bit about retention year? years of anything looks us it. of there's member the here QX. with a during UWC And historically, Did Got frequency next the just about Makes compared think occurred like think Can to bigger then half we sense. gains setup passed? of first lot a in different think of how a And you've talked different in guess about sequencing or rates I impact

different market. it's particularly a are just little -- this seasonality, example, for in a Michigan business, as -- more a it's based presence Yes. little there The seasonality. which where the we tricky, we Florida, because bit little have larger in seasonality have versus now so bit Iowa patterns -- shifts on will a these make Ryan, acquisitions, a bit or seasonality

look really the And the little of predict. seen it's year, year it the seasonality thing year half a we you I first where, a difficult year, thing then are a in flat was is relatively believe like bit. to was when and there a it but to shifts Historically, it's -- half some any XX% at given difficult of last year. the just XX% in So years that about first have that where

in Jed, our gold I pollen hits is Because is. everyone, we're now, of Right when into season, geographic diverse coming which vehicle. and would portfolio particularly add our how beauty the footprint summertime they we're in like the absolutely it. climates, we during and southern In harvest get almonds, season California the the Minnesota, their the in want rolling. crush to rocking In that off winter the vehicle. of pollen it

year-round. we some into X And moving try mean then not go historically, that it I curve. I because each has we right? But quarter the any smoothed what different of these QX. bulk done love now curves there's growth. can regions. different. around clumpy of market in more triangulate at back QX each was to and think demand Florida demand the beautiful down is see based do percentages it So see where our out growth specific bunks, comes And of it's has is because the on I And our their I persistent that's to smoothing,

Okay. That's helpful. And one if more. just I could squeeze

to Or a had Clean do? change. Is want or I that locations is something a business access? least to of oil that Streak one the continue you'd think at you'd that site

fewer we cars Yes. we're a doing and committed delivering very the and to washing of No, to theory and things great focused subscribe experience. well,

and provider business So change shop, we will has with partner the lube we if get repurpose that any lube last acquiring to business profit anticipate a oil we another question cars. or as these major more more the divested is, more to we're free either divest business of But to to year, to we piece lanes -- your centers. stacking we look in that either wash of our -- that no, ancillary to don't be area answer able get or vaccine a

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The is Research. from next Wolfe question Greg Badishkanian with

This is for Jake Greg. Moser on

was wondering, compression. a it margin your bit just looks So of embeds guidance like I little

much sounds driven So the And I that stores. it secondly, is acquired of recently by wondering, Florida offsetting pricing pretty much is like labor then how chemicals. was and

be investments of the sort out might to aside just Or from compression? what development is mostly the So impact, what the margin the building contributing else acquisition in else it -- team?

Yes.

margin of a changed. on margin. fundamentals So hasn't things couple business for and we've outlook saying, the the our the Like on been

high, in target to or year. our margin range. the at is range, the been Our half for targeted saying. Last we've adjusted like mid-XX% first business were They EBITDA above we margin of in the low incredible rates, particularly experienced year, the exceptionally

leadership we make we'll to year, half a year Streak we was year, the part, labor the which what the our MIT most at the then future or the about on only This a inflation it program on $XX modest general Clean increase have team also those with company the making unit million expansion. seeing margin-neutral margin last compression November overall about we're business. inflation expect offsetting took you're and balance the the price For be and of through And actually of public full in side, in particular, the costs, When in look improvements. investment various just costs. operation year. to help we -- new in we're it's as support year of the productivity And in we investments had to you members that

add, do very, our to, very why we we're increase margins could to we investment build think So Jed, on prioritized and we're do are we profile want to here quickly a wash again, ever that take certain car investments back But your in And is healthy and have and company, and national our if margins year-over-year. I margin remaining really path. conservative. they've grown wanted build dial mode a high-growth would brand, We we're in prematurely? margin mode. easily, growth or expansion. to to even we in higher. result, we too, that the pricing mode, are as if strong, chose that get as very to, not a And we are if But comment, goal on we and

some impact improvements That across I sort makes start seeing positions it of were did have employee sense. rank-and-file the you of like sounded both on turnover. encouraging the XXXX? appreciate improving at in then Omicron Were of that color trends those And there. terms then employees? of And and any manager-level sort

sure. for Yes,

turnover reduced we our my mentioned considerably opening an a this we that, people gotten had test were a Omicron an bunch last over environment of flat We to bunch from that we without any and amazing that and current to turnover, would sick. the things -- we've win. And given again, a January work comments in place think this again, the work. through to were able call-outs to But of X in of I years, consider standpoint, make the I interruptions. with

we vis-à-vis one the have chosen owner powerful. team that now that journey of we're leaders. and great an share company as an improving providing And with improving thousands value an And But because with -- equity things -- puts on been result forward, in we're this kind mindset. we're one we've in probably career their most every company an that of and provided part more the make proposition entire them spot has lives, people's going egalitarian even So -- managers not us fundamentally of we're this lives, to we lives a profits and can who is the lifting in opportunity. how this that's position, really a sharing. competition, our people's believes the fact that because really rewarding the it been of attractive focusing is We're a about in is employee site our

concludes session. closing any I our Lai This for conference over question-and-answer turn to John back to would like remarks. the

behalf company team Well, been X,XXX XX And sometimes our it third you, says, the operator. at who we a Wash, inning. this over our like in opportunity and That's of Car stores life in And me the very years, your this for we're even at here cycle, on Mister Yum! Brands, Jed, though scale condescending from X,XXX journey. on the feels thank quite cute. interest or of to second even Listen, pats in came way stores. early our "John, think frankly. we've higher, head, appreciate to stages entire We and the

be to in path. be XX,XXX." get our X,XXX which line, sight a might to little but and thrilled is on Let's big, bit this we're

thank So to you, and interest. to everyone, back washing cars. going for your support We're get

The presentation. conference you has concluded. attending now today's for Thank

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