Mister Car Wash (MCW) 15 May 222022 Q1 Earnings call transcript

Good afternoon, and welcome to Mister Car Wash'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. ma'am. ahead, go Please

afternoon, Mister thank Earnings Car Good us Call. for today for Wash's everyone, you. you and joining Thank QX 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

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

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

the of express making quarter a our we've are more our and we're wash thanks call. exterior volume good pleased on that start, new UWC quarter strong joining the changing to demand first expanding vehicles. had program, fundamentally earnings XXX,XXX the and increased results. limited XXXX. had XXXX washing start Megan, quarter, another translating Thanks, afternoon, locations, With network club and quarter they're added locations than and a EBITDA with revenue new stores, quarter with members and We're first everyone, at their We and high some car us in great that and locations is members. as greenfield of for wash discovering - million. million, and value, customers in and that convenient Houston, program, Orlando, also combination green club unlimited people We service, in their sales more consistent easy we most the $XX the Abilene, the clean, car in and we provide. quick greenfield the service driving our million that amazing more first and than In is team and Comp and total into value of great and increased our to convenience, strong from ever. the $XXX great our of the keep locations nearly way our it see how QX increased discover And ended for with members, and off year, and care XX%. XX% to profitable are XX% portfolio. X.X three a opened is opened demand more customer to productive of This strong Adjusted

development teams and expand open we're locations. invest to new estate in result, our capabilities a As our to real continuing to

in about we'll stores market. a of that we assets We acquisition footprint California, for excited recently strategic the continue As opportunity about M&A, and the entry Victor to allow think region. complement to four us into that are and Valley, announced our look in grow

brands. better buying integrating making over trying have versus businesses time, good record brand, them into bespoke over them and to XXX of track We long a manage by one

path years a made engaged many to ago, progression, people-centric The ongoing on the that began training, through to bench most the note, the both which investments Streak of led and career we're we've And performing being market, the our are to we're we leaders. often pleased industry. and benefits, and in team progress have say to company our we're in can future Speaking motivated businesses, and buy path on highly making even as integration, the part wages, hard be pleased The the a to almost at every businesses set when time out we integration we that region. our process. tight volume to we no And stores we've anyone our building stores records business. interruptions is business, and Shifting many feel post-acquisition become very with operations, and Clean a best-in-class fully and of a the service expectations. what are struggling had more remain Downtowner are productive, above staff members staffed, that continues team early model, our fortunate labor customer our that in their have

each Before the Mister equipment, and it’s the to I people forward. scaling day I'd growing business. thank Car and team Jed, to our are and and customers our to and build the like upon recognize who the every all turn it us amazing over service Wash systems, mission propel Despite and machinery, brand deliver our who

grateful do. We team. quarter now members Mister that results. very over to it our turn Thank Jed, up Wash to are I'll so the financial make for review team you you passionate and hardworking for first Car their everything you

in very trends Thank the start great results, everyone. first business, with you, underlying the good our pleased John, we're and the afternoon, XXXX. and to Overall, quarter

to there details, want into I couple get we are highlights the emphasize. a of Before

First, from regions demand across was the and throughout business, the favorable retail weather. benefited strong sales all quarter, across

perform our and mature as newer comp stores, as strong well very more generated Our to continued locations, growth. all well

levels to and labor precautions. health-related of during Omicron taking out that temporary were to being nature. of in in this and sick led lower-than-expected Second, the staffing related This experienced expenses January quarter in the surge people we year, absenteeism higher

differentiator our discussed, biggest we’ve As with our starts people.

and key customers have Our service customer labor come delivering model delivery and experience the our to to are expect. service,

well, offset retail mentioned. in price we productivity, we the the inflation, rates, primarily improvements rates, the some this last and the chemical input year, I costs to utility to took quarters, modest managed related were similar increase we Third, few and our experienced absenteeism last year-over-year late labor and increased pricing, but higher by just

we current during performing a change high quarter of we in are about very stimulus, the population backdrop, seeing are overall is due picture, to comparable reemergence and level, fundamental that that while a the we the facing demand consumer second the sheltered the the everyone any remind year. at government XX% sales strong last business to was in the store macroeconomic previously QX Lastly, wanted of simply and not

growth to to year. QX let store and first quarter highlights million, XX% of driven the of increased Net through Now, sales of comparable walk compared the last revenue me of XX% XX% unit $XXX.X by for XXXX. growth

contributed the units greenfield acquisitions, store strong performed are which growth. comparable New the many revenue to base recent yet, in and of a not well quarter, and very in

nearly first strong UWC are XXX,XXX being is the of comparable members UWC regions strong membership sales cohorts in club million by net basis, store bringing and UWC fueled growth seeing March increases membership primarily a We XX%, across stores. added as Our to X.X On all we in new in members increased total growth XX, XXXX. year-over-year and of subscriptions program. quarter, our

newer expectations. strong We are greenfield with the perform UWC particularly above which growth locations, to our at membership continue pleased

the the expense. revenue now increasing and during $XX.X expenses of compensation first quarter. of Turning included labor stock-based to $X.X of a the million, for to and the quarter backdrop cost quarter, of XX.X% million XX% first chemicals XXXX Against from increased

to earlier. supplies. in store As and in million, higher primarily increase to a primarily XX offsetting the labor XX.X%. expenses in inflationary increased by chemicals expense, percentage chemicals XXXX line increased basis this The wash Partially operating Also, cost the wash is growth, revenue, stock-based that to a quarter highlighted driven the of pressure XX% decline first of compensation in from resulted labor and increase temporary was revenue XX.X% of our with absenteeism the points from slight related locations. expenses $XX.X other and

the quarter million operating a as points $XX and expenses percentage other store and first the was versus primarily services. inflationary utilities $XX.X maintenance XX million were the of basis costs pressure As operating to The increase in such administrative increased driven XX.X%. related by General to expenses in revenue, insurance other and about last public company primarily costs, expenses, to headcount professional of year. stock million nearly About from was services. $X million million $X increase, and over G&A compensation expense. D&O including $X million related from labor, investment increased $X Of just was an

area being $X.X interest of interest proceeds the projects the million debt, using rates to in-house. IPO down to more against rates. pay last development favorable expense partially most to As biggest we our been on investment company costs of earlier internal G&A and as the incremental public we capabilities have investment our decreased to greenfield due hedged development in calls, from year, bring million scale Interest from the rising in at has and discussed and team continue $XX

for the The Our the XX.X% income GAAP options our favorable employee quarter rate compared of operating first tax related the net income, share diluted exercise million million. increased and net quarter certain tax stock $X.XX. to to stock decrease XXXX. XXXX. due per of GAAP awards, expenses, first compensation quarter benefit tax was was the XX.X%, of effective the stock-based to $XX.X reported first was was of adds The the for XX.X% exercise during Adjusted treatment. adjusted rate $X.X which primarily of And back to with non-core

the first are of quarter adjusted $XX.X million, was quarterly from work hard The EBITDA achievement First highest the an the in and Car the $XX.X EBITDA of testament a history team proud of of. Wash, Mister to adjusted quarter the was up XX.X% last million year. all we

At approximately cash and debt million, quarter were to Moving cash outstanding was balance $XX cash highlights. on some and million. and $XXX flow equivalents sheet end, long-term

was maximize to of and first proceeds be by transactions. the we plan expenditures with provided million $XX activities the disciplined of the cash of net and timing our and economics were year, million. of these months opportunistic gross $XX.X to sale Similar and to aim For capital leasebacks, the three M&A, operating

around a few Lastly, let me guidance. comments make

this Our point. XXXX full year the outlook is at unchanged for

challenging While first comps results we our X% our second projecting the flat our and XXXX expectations, were represents quarter quarter ahead most comparison, the range. to are quarter of second in slightly

XX in be to of and $XXX in X%, the diluted Gross $XXX simply in XX% and to calls some the there Comparable EBITDA approximately could adjusted $XXX $XXX $X.XX our these the of of year. and $XXX GAAP respectively. to That is the leasebacks share, increase still get per the macro of expenditures of the we outlook of further full environment, million with also and million million. second helping along the million, million, in year, of fulfill be sale capital to our $XXX maintain year. premier to between revenue an the X% being to of million some of range in net closing, projected of opening it sale $XXX the until to In range $XXX for million $X.XX million income are outlook uncertainties majority year And $XXX store day the hardworking million, mission add the business to variability sales are for all like my appreciation leasebacks. think locations, a million I we greenfield carwash million who the every or half to of would thanks net timing $XXX members of to brand. and XX%, prudent America's of $XXX income executing team us to our million full in $XXX the increase adjusted Given to little to

operations algorithm, in confident driven against ability growth further long-term as new and our are unit as best-in-class We to ever by expansion. our deliver our

team we over as to the as other greatly Operator? the always, our the session. I'll With of of operator Q&A our that, and members, dedication to As hard turn work support well appreciate the it begin stakeholders.

from, Simeon from first The go from question Instructions] Please Stanley. [Operator ahead. Morgan Gutman

Simeon. for guys. Hey, Great. on questions. for Michael This Thank Kessler taking our is you

but that of your curious on diversity? First, been slowdown, outright like shops your how guess, memberships, any a question to performs consumer thoughts a it, business rates, recession, months, frameworks common last I’d assumption, locations, know to trips in I be What several just your about scale, mean, I has would frequency and how I the to an this there. about thinking given geographic of nature? the churn updated and know your be things current think

chime certainly XX I'll think can was that embedded one. And into like kick it you I off and, Jed, questions in.

in that where $XX, relative our very umbrella. with will have feel in five cover in very a you under But that - demand, I'll less service accessible can has service, car around always think And space affordable always $XX, all is Cars some Everyone under and need consumer be it's across of get get your broad to than appeal all dirty. we're and we all. cases to cleaned cleaned. to demographics. try So, I given typically starting minutes fortunate universe They'll that the we loves carwash. affordability a for a those universal

a environment items, cut on feel that it overall any point and cost keeping and what kind consumer recession, is people and feel So, Jed memory non-essential good opening of sales in going we’re B, we washing non-staple to that X% overall during we something our it’s there's it car would consider people given during starting on which, And for the serves get timeframe. is And have do particularly ’XX, and are approximately we a the today. other right What the how budget. a compared we said if not in performed asset some as ago, is business. shrink times. fact impact discretionary of comments, of as can we well from ‘XX left to have seen to And shattering A actually impacted? where going really, pending had where his to few your that we're if win. years comp and in perhaps viewed clean, people sectors, an cost me that of to timeframe, be non-staple maintaining about to to tougher that to and we and that want correct, point I a seen really in sit technically back And takes a back confident pennies to good, transportation look records If

luxury bit there's So, play well. of a affordable little as here

also do well. in we well, good do so, And times, really we in and times, tougher

the And so, future. we’re feeling the really knock-on-woods, confident all for about

period an he fortunate add Yes. that, what sales. very And to where strong. where right, services recession said, remain X% John, previous part the When we're of our Michael, comp thing in in business you ‘XX, demand to I represented the go supplement back subscription the industry to only decline, that that saw for of one right, to the time of XX% would we had be

of So, smaller XX% have sitting at portion where about it's than sales we we're today, much a today. what

effect is catalyst treat subscription can And behavior care pretty and sticky And way many of members, top our And we're to that's really can business. and times a routine. their base we I as characterize, that of we loyal. can doing said, bandwagon of that this feel and regular very our ago, hey, the well washing given change a into something and it’s acted on take very has And membership the people for member convert consumer performed, years how kind their that as X.X smoothing climbed we once-in-a-while that million We car was cool. and part vehicle. fortunate

given coast, up, we've up impact the headlines and the know any your west the curious, I how all But for your shortage occurred I the or we're when seen respond down a side. coast, exposure a Great. never on you impact in how water guys from respond follow business have situations west situation what have drought, said response the business I'm and these Right. consumer in situation of if might Thanks would your about there? how or that color. past, think this you're really types material to ask and your or store any could or If out is seeing consumers you hearing on given

the ways making lines. clean And use that continuing and fresh we of conservation very car. a to utilization we that by focus that let those to We Well, reduce XX% me along recycle repurpose over take seriously. on water our investments of can saying and we we're water start water

With and respect there's and have would all in a from Utah, I some material in your think with a we've your then heavily our washing right all in water Arizona, it's car what's don't that's the one And something footprint wash. it past. Any then driveway. environment driveway, on think, on it the region. commercial think geographic to always in a here concerns we’re And other a any you drought most and/or any the car that using washing note, restrictions, also, and almost thing better were news, specifically, shared that it's in know your I important lawn if professional diversity really given to beautiful for going your at California municipalities, municipalities in not weighted it I not washing be this in car effect. is in impact, wash than coast-to-coast, the in now to there about that's is environment,

effect our two So, seen but Valley we've of stores good by in on Antelope lawns, only had not impact have market-wide have city, and operate. any that restriction California whatsoever our we to The quite think was a thus to I that frankly mandate not pocket ability only called the mandate. the far, it's a that a was water

Good for year, Great. Great clear. Very Thanks luck rest of guys. quarter. the the

next comes of ahead. Please UBS. Lasser Michael The question from go

evening. at, customer a given order stimulus that the to to rates customer lot you're in in for heart last quarter? cost or that this an Thanks or new level the quarter. you're taking new is in business currently changes that for Have see what And achieve Is two need guiding right of the the in a - comp to it either weeks? lab seen is few running you my Good now the question. retention flat any acquisition the of you acceleration,

strange, oddly but enough, virtually let in me our as Michael, and, can this Jed, off, it kick you Michael, is sound well, CAC might So, but here chime zero. certainly

them and the retail or right plan. the value taking on and existing of our benefits focused We customers and wrong, informing have membership on been, educating

very people we promotional So, have advertising activity and attract discounting very promotions into to the done little little or program. and

our I inform, aggressive try and think, take see is our Our approach, in sale attrition just customers a promotional make a to to versus soft have ready, educate, and their rate. call when then it, which offering we being is, decision they're own approach to and them philosophy, higher unique what let certain

now do with working probably We're member as had we when be amazing will turn we've There behind member base. knock-on-woods, months do some advertising spigot an build the result, though, is all anything engagement, a huge improve few material day But a digital out loyal having again, to and on we're more. to the scenes for which a So, continuing a share. need on our and more right ecosystem to priority away us. to the from

And remain right, of strong, I'd the add Michael, the there, fundamentals unchanged. thing so business, the

UWC we first the UWC business. retail saw of relative the seeing and the the quarter, side sides in subscription we're the Thus compared outperformance both performance far second For subscription on really quarter, side. retail to the of strong

that we quarter a be of comp and the was XX% in from macroeconomic perspective. going the second challenging knew Given environment a the facing was the second that comp to quarter kind we're quarter, mentioned earlier

and new included well. recent perform However, the very stores acquisitions, to number, our our comp which continued store are not in

there. and the the addition, remains In any seeing degradation side UWC business we're subscription not of strong,

heightened given for two the have very how stacks current there of a subscription, Like, on a is overall us as So, just you in as three-year in attribute is focus what's the if it or do retail running sense way to last is you macro environment? tough going that on comparison? macro some few been the uncertainty, the give the and weeks, can not strong reflection

Yes.

sensitive. more we've with would it's what side, similar in retail lot the to that The beauty, to as customer That a more business. about Michael, It's a is talked is, consistent. perform So, predictable. it's subscription typical retail more going you see

and the a on last combination so, strong lap really a to that little some of year what recently, but seen business, had. feels strong - really it’s And side it side headwind the tailwinds seeing we're of really the was of we more where macro with we’ve that both, a of here that even a like is retail lap, macro having the pronounced retail it's piece bit

also John, this have we with Michael, relatively I Yes. think you, Jed's have we're the be well. but is and talking on in operators, but business underperformed retail, crystal seeing on just retail not - as softness Nashville, to to from some But national be relatively clear, we to honest I point, their came in trade UWC. alone. outperformed unperformed show to on other they're

we're a studying So, really right it’s good question. one that now. It's

so Thank and you luck. much, Understood. good

comes Please from Capital of next Markets. Siegel The go question Simeon BMO ahead.

you're doing Hey, well. everyone. Hope Thanks. all

I Thank think OpEx, you geographic And then on that missed guys Jed, forward? did about how it, discrepancy any store you if going you give have just, you that seen? Sorry a can you.

think and for No, of pocket one unusual, terms not. that's another have country the I uncommon of It's weather nothing some to in then Simeon, performance. not

the - So, it's bounce time. downside, everything, consistently once and over week smooths our on any region the view, weather couple they over But just If not back. period, for we're in time. a out back any underperforming comes is seeing anything, that of

saw would all. I sentiment when the at across all the - you our strong demographics, that when when echo performance across the you look we the regions, performance we quarter, locations, even across income look performance look mature you were most same at across for all at Yes.

And seeing change Are within the that strength any UWC, guys. net are since you that's the it any worth Thanks calling Great. you then - out? was up, - in delta comes seeing growth any great.

No, Simeon.

slight - churn saw where we on actually improvement In we we'd to the relative been. fact,

of luck Best rest Thanks lot, year. a Perfect. of the guys. for the

question from ahead. Please of comes America. Bank go next Elizabeth The of Suzuki

point? this are guidance? year Sorry. this internal mute. what on at into rates capital How I assumptions floating risk rate thinking interest for rate are that you the your about And baked are structure was your at and your

good a it’s Liz, Yes, question.

currently was hedged exposure, But that evaluating year, off at look interest mitigate that. $XX exposure. $X strategies hedge the roll we’re very will quarter, rate expecting around at help interest full be year. to the so We're the rates. it at we’re On at favorable The about - rate to And we're it interest expense As million. potentially different this full - million. today point, that XX% a looking about during in October cap you this year, still of about

difficult and in pressure as environment, some year and So, in present the to interest the short-term project know, later could really model. to this expense, likely moving will it’s be you higher

Yep. Got it.

Okay. and sense. hire the will any just be in one That just and you're on makes constraints acquisitions. what those seeing labor members the able And and Are to just your to on that one train greenfield seeing market and in there new ability being quick recruit leading train? all of you

John. is this Liz,

industry. think So, it been the consider fortunate listen, I many, we what that we to team the building feel many ago. on years started be very best in we've focused And

As revenue as are labor percentage hour average labor car this labor up ago, productivity shared but entire where our down. across versus rates in that's per improved the per is hourly of same X% previous timeframe - our a Labor we've a is the calls, year up. down. is roughly chain, backdrop year our of Cars against dollar

And profitable. so, a productive cars, washing and people we're more more as we're while far more, result, paying more

So, it's two think rate). With that. more and costs, to I when currently XX% lot article simultaneously of an The doing a lives we're (run and there profitability, just X% to in think, was people, - allow kind inflationary I that an a Journal little lift and do PI respect simultaneously, to there's things on yesterday, of make able of those them to you're improve can not companies bit the

rents ways, goes it it's So, - in that food a costs to comes lot in, and raise et and out right back of cetera. but

while results. even where make for help people And actually can so, we’re looking continuously bottom-line drive we we our our more ways

Great. Thanks so much.

comes Goldman Sachs. of go Kate ahead. Please next The McShane from question

tougher Hi. were Good comps a how think an margins? remind us costs how there we where weaker, environment a softening topline, and negative question. or should in you were of see environment our just or were If or to if can you would for afternoon. taking environment tougher manage about the a macro Thanks topline you to be

Yes.

we're So, door is and we build Kate the When and and to X,XXX to on down kick We're stores. the this term stores, our long X,XXX setting to John. get knock-on-wood, grow. to, get sites to continue looking going

pull So, pressures, making in to be that capital to making two We're too three years it not in the because an investments have infrastructure. impact throttle, investments we're growth. would to to back end, to if We're on the material human we able near-term road. support focused material down accelerated on were

So, for throttle just sense us, if and the growth Pulling high long-term attempting national on back this are not we is we're a us. a company, what play be build we to to envision brand. a make for does

and So, costs for I this that just us, pressures point, ratcheting pressures make But we're different ahead. us, over doesn't it’s at do full steam down to years. cost any sense. we've so. shown we very and think through responsible to price able manage That the said, been for we've And will continue

it, capitalize margins front we really we needed if how (market). and and pricing, do pricing we but the at thing the markets. do We of in - we right, fragmented that's with competitively to with each this topline but our have how a member at Kate, the can business. And managing priced point, on power growth-focused, continue of we growth-oriented. general, there, this here in us though, Yes. volume over do balance opportunity run, we long would in John's we're additional much we're so in that very pricing not take that's and I growth add looking to one needed, and the do we're believe look, if It’s

you. Thank

The next question comes Please from ahead. Chris Stifel. go O'Cull of

comparisons reported in to the to on at comp comp a second flat imply appreciate performance when looks the X% in what appear, the than quarter I would afternoon, three-year to would slower relative stack, Is look it just it Good difficult relative quarter, the first geometric or or guide Thanks. Jed, like, guys. you you the even but true? ‘XX, ‘XX. that

Yes.

which So, be it at in we've is done new what X% a last unused at to we're you look - you over what introduce look three-year business comp, stack, on since if would about relatively a delivered Chris, the with has historically term, the years. line the when going a XX

really, retail Particularly, retail said and half weather benefited well as performed ticket UWC that first trends that that helped us. support of especially, The we side. in the had remarks, great on from I'd my QX, really both - retail some or sales

I Jed, was for guidance the, call and given add, one - this providing this is insanity budgeting This think ‘XX I'll of business for lab difficult guide quarters what lot and is of also into, it in projecting going we're of that amazingly terms the I almost of great the a boat. in to. are just that every growth, would more companies to QX and of

in a to at a being think last did what year, conservative, could you of lot guiding ways, but least lot that in So, would hitting I win we a us be we're if of of accuse cases.

of glad consumers? free, the the like if certain with that? Yes, company would I the steady I'm attempt do segment, that rates promotional - have group churn start improving, discount been consumer special to reduce a month capability the you as, to a to next Do be hear you among And does to especially and churn but may fair enough. rate see increase, a know, don't to maybe the such targeted have or offers at something churn

Yes.

haven't strong attract the argument way there's a which a in retain And customer. a the is price promotional We lever, you customer, a tactic lot you done in to lever, is which it the slippery lever, the the call I'll that pressing the a way discount need think We of slope. that. -

offer, some What look when so, the done, our then month, about to value that's with their through when third high giving for to become not prioritize they fact in super pass away they time. hey, door, my on opinion, over farm our in I'm next people at may in the it. clean what's fast the the but and rates that introductory and all way visit through we month folks this store quicker They come can stack view, seeing them, the have important the attrition fourth the, And are, and and keeping at love value lanes. to proposition obsessed the the first go how $X.XX you member “skip or in line” time, get they car save going even the with

continuing changing aggressive excuse all elements customer way. we've trying convenience to exceptional we think their on kind best is through up But price. too the from introduced, getting of away for until or to people retain so, ultimately continuing behavior, improve, to stayed me, that that we’ve back experience, those just to deliver, And now,

and anecdotal, noticed then And might the some in and we the last fair. but markets be Nashville, washes here ability of a to one this to now? tip this attendants surrounding chose new to That's a payment a the in you so, it we bit added color around you been bit visited if the kiosk Is do widespread provide the why And had one, flow. feature? can

Yes. Hopefully that by you Isn't way? cool the tipped.

Of course.

the precise, a Of be is employee, me spot, course. going per per-hour how much. the will I on customer, very per $X on me, say excuse our let won't is you huge. not to you tip I'm but but, or around hour, ask average which average that I basis income put

we're path. question limit non-managerial benefits. That option qualify something our And our we're there, that retail society, would XX% hour, club average they're your number big this zoom not do. of we think. which them a that out that add I think wash it's per hourly six overall for entire in $X can tip that today a to get hour, the we when And kind we're that our your tip, of enjoying for talk business, a tipping want at to look is don't tipping And if week XX is wages. across chance of our country. they mix. to But to and the it We ago, down take to hourly then get highlight managing didn't just highlight, second we over a we're So, be me many to per introduced $XX to you have and we let different even volume to will listen, limited loyal, a that's businesses everyone though we the And give if in are pushing them ambassadors. average average in but months right? that hourly When income, I comes wages biggest a range. it of argument game there out We me it'd And introduce. we let goal And a culture, that to wage, just were so think $XX see little important a our if when member part-time, starting $XX what for interesting should and really hours a fans, and is There's provide a benefits opportunity most the trying and there's awesome. full-time tip, strong doesn't that had biggest our per them.

drone can on ton wages some the I benefits a but and the on piece things of done we from sense. so, made was we've something standpoint, that a about of felt income tip And and

guys. Thanks,

The ahead. of Sundby go next Blair. Ryan from question comes William Please

Thanks so Hey, for Yes. the the Good all evening. guys. question appreciate I color far. and

corresponding cost at help in see anywhere health look supply, then, much Omicron any of sales, labor how impact labor of on across chemicals you maybe we the on sequential can really and maybe just quantify impact percentage did as you us And had the demand expenses? an decline portfolio? As the a

QX, on thoughts to So, you think, specific Jed, some have … I

Yes.

look when remarks, we to So, of a you absenteeism points the quarter had it on as XX the impact basis that percentage in the about the sales. is that highlighted XX prepared at

we underscore be again, what just, to believe an that could I elevated the staffing fact If have Yes. model. we

do that's there that to want do We There's think So, will we're out some unsafe least wouldn’t with with it and we our businesses two one. opening that. kids closing highly people. at and

on to a Many to at team people not So, to we there's on businesses no which, the model, it's us ask do much to for that. we're our other not again, the labor going four tighter stores, in least uncommon three or managing have members our But volume And five. higher are have average, clock day. throughout criticism.

all service a up picking that so delivering these advisor, why those the trash, customer processing Our approach all has cross-trained, amazing it's have and you periods any all If can is Express everyone cross-trained, have dealing issue, a call this, during dependent cross-trained other to where everyone lines any person. provide many and an peak of elevated tunnel members would into plug things, operator, AUVs experience don't and in businesses. upon XXX, our make a Because they're with we are we're see to one sure we're position. cars, and team we do what that's not been that because we

great demand on to impacted any hear. - And you That's do thoughts think at all? Omicron

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Got it.

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Great. Thanks, guys.

question The Piper from Sandler. [Operator Keith go Please next Peter of instructions]. ahead. comes

Good afternoon, acquisitions. on team. Was thanks. Hey, curious the

You'd could you are than The good that quickly? than commented that you're now. little bit? better more just and them member better expected. are simply a trending thought? they going guess, Downtowner How Is are it unpack I you Clean that rebranding Streak you trends

our and just call states investment first is but also the of beautiful love that our, for macro thesis other state trends similar the that fest the I’ll there's trends is Florida, seeing, a share and we're part dynamics. that Florida, it dynamic Well, growth of

and get innings going that very on three made members, more integration early Specific to take our our we’re the process. different with to was Clean looked specific different we're the opportunity, the given and it to for when for three Streak, there. the it's bullish both Florida. penetration three the your washes This of and So, Downtowner, our a and double at Clean absolute little we it provide more systems in really the different to post-acquisition we opportunity sense. operating flags fact work footprint improve question and flying bit us improvements, Streak to And particular around had procedures,

were hard a take to excited culture. and and now of to part putting work then our of we uptick business But to what products very always live taking the hungry nitty that this a the programs while. a This hardest to six-month the team. is came going about for team it's and timeline and we improving menus, typical our members is being kind part and the all go that going the the post-acquisition. better gritty our Our we're an us table and month-over-month place But that. through see really call with after start at mark, of And team the group in about is members

there. our the months, we're six naturally to least to bench. teams team mean, the system, it are more through attribute transition not going us short like the continuing driven. of if of to by putting but a are and knee to then point place store, out to we've the work that going we're and at So, question, improvements our and going and and new link the it's things store take to deep answer to done, still just I year, your I on integrated into sales through some in equipment, get it. And building

like to maybe higher some a What's We talking of April speculation? April Are prices? lot a Okay. country a with were around gas people of had citing of sales. of heels lot impacted peers. the precipitation the in some that's and know you some comments, That's have some some pockets circling of where retail. of the - helpful. earlier of just And the conference off And then coming John, interesting, sounds maybe from softness back, it you're the

Just is weakness. retail the what curious that of on on speculation some

there Yes, own interpretation opinion, is - wasn't I mean, a everyone's their frankly. quite

in not the euphoria behalf more right of money everyone's in a a doing is well our because a you, you're was in jubilance environment, everyone's when to with that less of anything, celebrating, and position of doing I'm perhaps really when and to retail (indiscernible) the be kind temperature concerned respect slowdown lot just with the it's I that temporary But on a to that's about honest entire are people kind if to times. give is of how staying down floor everyone's think, making And like, grab I man, when now, the on put coffee water, martini speak because cup staying and broadly get should of - and our industry, and I'm but hungry and humble we mantra. now. And you a right maybe nervous industry of well.

the around I there's answer so, is is. to a group but not on continue what we're as as the celebrating. we can to anyone now, And don't just improve. out single This lot think driver there peddling as retail, But has right of quickly to speculation clear a why

appreciate luck. I Good feedback. the Okay.

Moser ahead. Jacob go Research. of Please Wolfe next The question from comes

you Last we performance talked, trade income comparing higher areas. lower areas consistently income versus time trade strong when Hey, guys. noted

those two was have between market divergence I you wondering, you So, that's say case still cohorts? would any the today or seen

most wash Yes. hear income performance us those and everybody as we’re lower you as the in seeing No. well affluent income in that the all The they're demographics. performing car Even the locations loves across demographics. the strong is, demographics, use well, income phrase

you. Got you. Thank

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

and our Mister Listen, call team thank in for your the interest Wash. want on entire to Car everyone I just thank

opportunity us, growth super and very to of in and we're a front have even greater our ability scale about bright this future continue to our optimistic to company We heights.

great a you thank and day. much So, very have

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

disconnect. now may You