European Wax Center, Inc. Reports First Quarter Fiscal Year 2024 Results
European Wax Center (NASDAQ: EWCZ) reported its first quarter fiscal 2024 results, showcasing a 4% increase in total revenue to $51.9 million and a net income of $3.7 million, reversing a net loss of $1.1 million from the prior year. Adjusted net income rose 41.3% to $4.8 million, while Adjusted EBITDA increased 7.4% to $17.5 million. System-wide sales grew 1.3% to $221.4 million, despite a decrease in same-store sales by 1.2%. The company also announced a $50 million share repurchase program and reiterated its fiscal 2024 guidance. Key figures include $60.4 million in cash, $6.5 million in restricted cash, and $393 million in borrowings.
The company remains confident in its growth, driven by new center openings and continued franchisee demand. CEO David Willis highlighted stable guest frequency and spending as factors for positive performance, along with strategic initiatives aimed at increasing guest engagement and ticket sizes.
- Total revenue increased by 4.0% to $51.9 million.
- Net income of $3.7 million, compared to a net loss of $1.1 million the previous year.
- Adjusted net income rose 41.3% to $4.8 million.
- Adjusted EBITDA increased 7.4% to $17.5 million.
- System-wide sales grew by 1.3% to $221.4 million.
- SG&A expenses decreased by 22.0%, improving overall cost efficiency.
- Interest expense decreased due to increased interest income from investments.
- Company approved a $50 million share repurchase program.
- Cash and cash equivalents stand at $60.4 million, providing strong liquidity.
- Same-store sales decreased by 1.2%, indicating potential issues in existing locations.
- Income tax expense was $1.2 million compared to an income tax benefit of $0.5 million in the prior year.
- High borrowings of $393 million under senior secured notes.
Insights
European Wax Center, Inc.'s latest earnings report paints a mixed picture that offers several insights for investors. From a financial perspective, the company has experienced revenue growth of
The share repurchase program of
Overall, the financial metrics indicate a cautiously optimistic outlook. The company is expanding, evidenced by the increase in new centers and has managed to improve its profitability through cost management. However, the decline in same-store sales warrants close monitoring as it may impact long-term growth if not addressed.
From a market perspective, European Wax Center's performance indicates both opportunities and challenges. The company added seven net new centers, bringing the total to 1,051 across 45 states, a
The reiteration of the fiscal 2024 outlook suggests the company's confidence in overcoming these challenges. Management's focus on driving average ticket size and frequency among existing guests, alongside attracting new guests, is particularly relevant. Investors should watch for updates on these initiatives to gauge their effectiveness, as any positive developments could significantly boost the company’s market position.
The announcement of a $50 million share repurchase program is a significant move from a legal and corporate governance perspective. This program indicates that the company's board believes its shares are undervalued or that buying back shares is a good use of capital. However, such programs must comply with federal securities laws and the terms of the company's outstanding indebtedness. The flexibility inherent in the program—allowing repurchase in open market transactions, block trades, or negotiated transactions—provides the company with multiple avenues to execute this strategy effectively.
Investors should be aware that share repurchase programs can be modified, suspended, or discontinued at any time, depending on market conditions and company performance. The legal framework surrounding these programs ensures transparency and fairness, but it's essential to monitor execution to understand its actual impact on shareholder value.
Reiterates fiscal 2024 outlook
Announces
First Quarter Fiscal 2024 versus 2023
- Net new centers increased
7.5% to 1,051 total centers in 45 states - System-wide sales of
$221.4 million increased1.3% - Total revenue of
$51.9 million increased4.0% - Same-store sales decreased
1.2% - GAAP net income of
$3.7 million and Adjusted net income of$4.8 million - Adjusted EBITDA of
$17.5 million increased7.4%
PLANO, Texas, May 15, 2024 (GLOBE NEWSWIRE) -- Today, European Wax Center, Inc. (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 13 weeks ended April 6, 2024.
David Willis, Chief Executive Officer of European Wax Center, Inc. stated, “We began 2024 with stable frequency and spend among our existing guests which led to positive system-wide sales and revenue growth in the first quarter and underpins our predictable, recurring business model. Further, continued franchisee demand drove new center growth in-line with our expectations. We’re pleased that our development pipeline remains robust and supported by our well-capitalized and committed franchisees.”
Mr. Willis continued, “We are making progress on our focused initiatives to drive average ticket and frequency from existing guests and attract new guests to the brand. Early data points give us confidence that these initiatives will drive our performance as we move through the year. As a result, we are reiterating our full-year guidance today. We believe that these efforts, along with continued engagement from our guests and franchise partners, position European Wax Center to generate meaningful top- and bottom-line growth over the long-term.”
Mr. Willis concluded, “We are also pleased to announce that our Board of Directors has approved a
Results for the First Quarter of Fiscal 2024 versus Fiscal 2023
- Franchisees opened seven net new centers, and we ended the quarter with 1,051 centers, representing a
7.5% increase versus 978 centers in the prior year period. - System-wide sales of
$221.4 million increased1.3% from$218.4 million in the prior year period, primarily driven by net new centers opened over the past twelve months. - Total revenue of
$51.9 million increased4.0% from$49.9 million in the prior year period. - Same-store sales decreased
1.2% . - Selling, general and administrative expenses (“SG&A”) of
$13.5 million decreased22.0% from$17.3 million in the prior year period. SG&A as a percent of total revenue decreased 860 basis points to26.0% from34.6% , primarily due to the nonrecurrence of share-based compensation expense related to the modification of certain pre-IPO equity awards in the prior year period. - Interest expense of
$6.3 million decreased from$6.9 million in the prior year period, primarily due to an increase in interest income from the Company’s short-term investments. - Income tax expense was
$1.2 million compared to an income tax benefit of$0.5 million in the prior year period. - Net income of
$3.7 million increased from a net loss of$1.1 million in the prior year period. Adjusted net income of$4.8 million increased41.3% from$3.4 million in the prior year period. - Adjusted EBITDA of
$17.5 million increased7.4% from$16.3 million in the prior year period. As a percent of total revenue, Adjusted EBITDA margin increased 100 basis points to33.7% from32.7% .
Balance Sheet and Cash Flow
The Company ended the year with
Fiscal 2024 Outlook(1)
The Company reiterates the following outlook for fiscal year 2024:
| Fiscal 2024 Outlook | ||
| New Center Openings, Net | 75 to 80 | |
| System-Wide Sales | ||
| Total Revenue | ||
| Same-Store Sales | ||
| Adjusted Net Income(2) | ||
| Adjusted EBITDA(3) |
(1) Fiscal 2022 and Fiscal 2023 each included a 53rd week in the fourth quarter. The Company estimates the 53rd week contribution to the top and bottom line is approximately equal to the contribution from an average fourth quarter week. The Company’s current outlook assumes no meaningful change in consumer behavior driven by inflationary pressures and no further impacts from incremental tightening in the labor market beyond what we see today.
(2) Adjusted net income outlook assumes an effective tax rate of approximately
(3) Adjusted EBITDA outlook includes approximately
See “Disclosure Regarding Non-GAAP Financial Measures” and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.
Share Repurchase Program
On May 13, 2024, the Company approved a share repurchase program which authorized the Company to repurchase, from time to time, as market conditions warrant, up to
Webcast and Conference Call Information
European Wax Center, Inc. will host a conference call to discuss first quarter fiscal 2024 results today, May 15, 2024, at 8:00 a.m. ET/7:00 a.m. CT. To access the conference call dial-in information, analysts should click here to register online at least 15 minutes before the start of the call. All other participants are asked to access the earnings webcast via https://investors.waxcenter.com. A replay of the webcast will be available two hours after the call and archived on the same web page for one year.
About European Wax Center, Inc.
European Wax Center, Inc. (NASDAQ: EWCZ) is the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform more than 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax® formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values – We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome – the Company is proud to be Certified™ by Great Place to Work®. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which now includes more than 1,000 centers in 45 states, generated sales of
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to European Wax Center, Inc.’s strategy, outlook and growth prospects, its operational and financial outlook for fiscal 2024, its capital allocation strategy, including the share repurchase program, and its long-term targets and algorithm, including but not limited to statements under the heading “Fiscal 2024 Outlook” and statements by European Wax Center’s chief executive officer. Words including “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or “would,” or, in each case, the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
These forward-looking statements are based on current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the operational and financial results of its franchisees; the ability of its franchisees to enter new markets, select appropriate sites for new centers or open new centers; the effectiveness of the Company’s marketing and advertising programs and the active participation of franchisees in enhancing the value of its brand; the failure of its franchisees to participate in and comply with its agreements, business model and policies; the Company’s and its franchisees’ ability to attract and retain guests; the effect of social media on the Company’s reputation; the Company’s ability to compete with other industry participants and respond to market trends and changes in consumer preferences; the effect of the Company’s planned growth on its management, employees, information systems and internal controls; the Company’s ability to retain of effectively respond to a loss of key executives; a significant failure, interruptions or security breach of the Company’s computer systems or information technology; the Company and its franchisees’ ability to attract, train, and retain talented wax specialists and managers; changes in the availability or cost of labor; the Company’s ability to retain its franchisees and to maintain the quality of existing franchisees; failure of the Company’s franchisees to implement business development plans; the ability of the Company’s limited key suppliers, including international suppliers, and distribution centers to deliver its products; changes in supply costs and decreases in the Company’s product sourcing revenue; the Company’s ability to adequately protect its intellectual property; the Company’s substantial indebtedness; the impact of paying some of the Company’s pre-IPO owners for certain tax benefits it may claim; changes in general economic and business conditions; the Company’s and its franchisees’ ability to comply with existing and future health, employment and other governmental regulations; complaints or litigation that may adversely affect the Company’s business and reputation; the seasonality of the Company’s business resulting in fluctuations in its results of operations; the impact of global crises on the Company’s operations and financial performance; the impact of inflation and rising interest rates on the Company’s business; the Company’s access to sources of liquidity and capital to finance its continued operations and growth strategy and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended January 6, 2024 filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov and Investors Relations section of the Company’s website at www.waxcenter.com.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA and Adjusted net income. Management believes these non-GAAP financial measures are useful because they enable management, investors, and others to assess the operating performance of the Company.
We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. We believe that EBITDA, which eliminates the impact of certain expenses that we do not believe reflect our underlying business performance, provides useful information to investors to assess the performance of our business.
We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, transaction costs and other one-time expenses.
We define Adjusted net income (loss) as net income (loss) adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, debt extinguishment costs, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, transaction costs and other one-time expenses. Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release.
This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted net income. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA and Adjusted net income (loss) to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss).
Glossary of Terms for Our Key Business Metrics
System-Wide Sales. System-wide sales represent sales from same day services, retail sales and cash collected from wax passes for all centers in our network, including both franchisee-owned and corporate-owned centers. While we do not record franchised system-wide sales as revenue, our royalty revenue is calculated based on a percentage of franchised system-wide sales, which are
Same-Store Sales. Same-store sales reflect the change in year-over-year sales from services performed and retail sales for the same-store base. We define the same-store base to include those centers open for at least 52 full weeks. If a center is closed for greater than six consecutive days, the center is deemed a closed center and is excluded from the calculation of same-store sales until it has been reopened for a continuous 52 full weeks. This measure highlights the performance of existing centers, while excluding the impact of new center openings and closures. We review same-store sales for corporate-owned centers as well as franchisee-owned centers. Same-store sales growth is driven by increases in the number of transactions and average transaction size.
| EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share amounts) (Unaudited) | ||||||||
| April 6, 2024 | January 6, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 60,355 | $ | 52,735 | ||||
| Restricted cash | 6,516 | 6,493 | ||||||
| Accounts receivable, net | 8,191 | 9,250 | ||||||
| Inventory, net | 22,314 | 20,767 | ||||||
| Prepaid expenses and other current assets | 5,469 | 6,252 | ||||||
| Total current assets | 102,845 | 95,497 | ||||||
| Property and equipment, net | 1,774 | 2,284 | ||||||
| Operating lease right-of-use assets | 4,138 | 4,012 | ||||||
| Intangible assets, net | 159,334 | 164,073 | ||||||
| Goodwill | 328,551 | 328,551 | ||||||
| Deferred income taxes | 137,307 | 138,215 | ||||||
| Other non-current assets | 2,912 | 3,094 | ||||||
| Total assets | $ | 736,861 | $ | 735,726 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 16,076 | $ | 17,966 | ||||
| Long-term debt, current portion | 4,000 | 4,000 | ||||||
| Tax receivable agreement liability, current portion | 9,369 | 9,363 | ||||||
| Deferred revenue, current portion | 4,187 | 5,261 | ||||||
| Operating lease liabilities, current portion | 1,250 | 1,232 | ||||||
| Total current liabilities | 34,882 | 37,822 | ||||||
| Long-term debt, net | 372,290 | 372,000 | ||||||
| Tax receivable agreement liability, net of current portion | 197,596 | 197,273 | ||||||
| Deferred revenue, net of current portion | 6,473 | 6,615 | ||||||
| Operating lease liabilities, net of current portion | 3,253 | 3,158 | ||||||
| Other long-term liabilities | 2,246 | 2,246 | ||||||
| Total liabilities | 616,740 | 619,114 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock ( | — | — | ||||||
| Class A common stock ( | — | — | ||||||
| Class B common stock ( | — | — | ||||||
| Treasury stock, at cost 2,784,020 shares of Class A common stock as of April 6, 2024 and January 6, 2024, respectively | (40,000 | ) | (40,000 | ) | ||||
| Additional paid-in capital | 233,819 | 232,848 | ||||||
| Accumulated deficit | (106,685 | ) | (109,506 | ) | ||||
| Total stockholders’ equity attributable to European Wax Center, Inc. | 87,134 | 83,342 | ||||||
| Noncontrolling interests | 32,987 | 33,270 | ||||||
| Total stockholders’ equity | 120,121 | 116,612 | ||||||
| Total liabilities and stockholders’ equity | $ | 736,861 | $ | 735,726 | ||||
| EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands) (Unaudited) | ||||||||
| For the Thirteen Weeks Ended | ||||||||
| April 6, 2024 | April 1, 2023 | |||||||
| REVENUE | ||||||||
| Product sales | $ | 29,498 | $ | 27,842 | ||||
| Royalty fees | 12,436 | 12,351 | ||||||
| Marketing fees | 7,096 | 6,902 | ||||||
| Other revenue | 2,844 | 2,797 | ||||||
| Total revenue | 51,874 | 49,892 | ||||||
| OPERATING EXPENSES | ||||||||
| Cost of revenue | 13,524 | 14,457 | ||||||
| Selling, general and administrative | 13,466 | 17,263 | ||||||
| Advertising | 8,688 | 7,809 | ||||||
| Depreciation and amortization | 5,000 | 5,063 | ||||||
| Gain on sale of center | (81 | ) | — | |||||
| Total operating expenses | 40,597 | 44,592 | ||||||
| Income from operations | 11,277 | 5,300 | ||||||
| Interest expense, net | 6,336 | 6,862 | ||||||
| Other income | (20 | ) | — | |||||
| Income (loss) before income taxes | 4,961 | (1,562 | ) | |||||
| Income tax expense (benefit) | 1,232 | (509 | ) | |||||
| NET INCOME (LOSS) | $ | 3,729 | $ | (1,053 | ) | |||
| Less: net income (loss) attributable to noncontrolling interests | 908 | (545 | ) | |||||
| NET INCOME (LOSS) ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC. | $ | 2,821 | $ | (508 | ) | |||
| EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) | ||||||||
| For the Thirteen Weeks Ended | ||||||||
| April 6, 2024 | April 1, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 3,729 | $ | (1,053 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | 5,000 | 5,063 | ||||||
| Amortization of deferred financing costs | 1,377 | 1,318 | ||||||
| Provision for inventory obsolescence | (30 | ) | — | |||||
| Provision for bad debts | 9 | 19 | ||||||
| Deferred income taxes | 1,145 | (486 | ) | |||||
| Remeasurement of tax receivable agreement liability | (20 | ) | — | |||||
| Gain on sale of center | (81 | ) | — | |||||
| Equity compensation | 1,382 | 5,931 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 1,035 | (639 | ) | |||||
| Inventory, net | (1,537 | ) | (2,230 | ) | ||||
| Prepaid expenses and other assets | 1,160 | (1,391 | ) | |||||
| Accounts payable and accrued liabilities | (1,184 | ) | (2,267 | ) | ||||
| Deferred revenue | (1,029 | ) | (70 | ) | ||||
| Other long-term liabilities | (232 | ) | (14 | ) | ||||
| Net cash provided by operating activities | 10,724 | 4,181 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (30 | ) | (358 | ) | ||||
| Cash received for sale of center | 135 | — | ||||||
| Net cash provided by (used in) investing activities | 105 | (358 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Principal payments on long-term debt | (1,000 | ) | (1,000 | ) | ||||
| Distributions to EWC Ventures LLC members | (1,180 | ) | (276 | ) | ||||
| Taxes on vested restricted stock units paid by withholding shares | (319 | ) | (126 | ) | ||||
| Dividend equivalents to holders of EWC Ventures units | (687 | ) | (735 | ) | ||||
| Net cash used in financing activities | (3,186 | ) | (2,137 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 7,643 | 1,686 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 59,228 | 50,794 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 66,871 | $ | 52,480 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for interest | $ | 5,490 | $ | 5,560 | ||||
| Cash paid for income taxes | $ | 40 | $ | 245 | ||||
| Non-cash investing activities: | ||||||||
| Property purchases included in accounts payable and accrued liabilities | $ | — | $ | 122 | ||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 592 | $ | 368 | ||||
Reconciliation of GAAP net income to Adjusted net income:
| For the Thirteen Weeks Ended | ||||||||
| April 6, 2024 | April 1, 2023 | |||||||
| (in thousands) | ||||||||
| Net income (loss) | $ | 3,729 | $ | (1,053 | ) | |||
| Share-based compensation(1) | 1,382 | 5,931 | ||||||
| Remeasurement of tax receivable agreement liability (2) | (20 | ) | — | |||||
| Gain on sale of center (3) | (81 | ) | — | |||||
| Gain from legal judgment proceeds (4) | (80 | ) | — | |||||
| Tax effect of adjustments to net income (5) | (118 | ) | (1,472 | ) | ||||
| Adjusted net income | $ | 4,812 | $ | 3,406 | ||||
(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash expense related to the remeasurement of our tax receivable agreement liability.
(3) Represents gain on the sale of a corporate-owned center.
(4) Represents the collection of cash proceeds from a legal judgment.
(5) Represents the income tax impact of non-GAAP adjustments computed by applying our estimated blended statutory tax rate to our share of the identified items and incorporating the effect of nondeductible and other rate impacting adjustments.
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA:
| For the Thirteen Weeks Ended | ||||||||
| April 6, 2024 | April 1, 2023 | |||||||
| (in thousands) | ||||||||
| Net income (loss) | $ | 3,729 | $ | (1,053 | ) | |||
| Interest expense, net | 6,336 | 6,862 | ||||||
| Income tax expense (benefit) | 1,232 | (509 | ) | |||||
| Depreciation and amortization | 5,000 | 5,063 | ||||||
| EBITDA | $ | 16,297 | $ | 10,363 | ||||
| Share-based compensation(1) | 1,382 | 5,931 | ||||||
| Remeasurement of tax receivable agreement liability (2) | (20 | ) | — | |||||
| Gain on sale of center (3) | (81 | ) | — | |||||
| Gain from legal judgment proceeds (4) | (80 | ) | — | |||||
| Adjusted EBITDA | $ | 17,498 | $ | 16,294 | ||||
| Adjusted EBITDA margin | 33.7 | % | 32.7 | % | ||||
(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash expense related to the remeasurement of our tax receivable agreement liability.
(3) Represents gain on the sale of a corporate-owned center.
(4) Represents the collection of cash proceeds from a legal judgment.
Investor Contact
European Wax Center, Inc.
Bethany Johns
IR@myewc.com
469-270-6888
Media Contact
Creative Media Marketing
Carolanne Coviello
Ewc@cmmpr.com
212-979-8884 ext 209
FAQ
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