Company: MCW
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024533
Chunk: 57

Company: Mister Car Wash, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 57
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 recognition of revenues as a critical audit matter because performing audit procedures to test the recognition of revenues required significant audit effort, including the involvement of data analytics specialists, given the Company’s high volume of individually low monetary value transactions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the testing of the recognition of revenues included the following, among others: 

•We tested the operating effectiveness of internal controls over the Company’s recognition of revenues.

•With the assistance of our data analytics specialists, we extracted journal entries to analyze the Company’s revenue transactions.

•We reconciled recorded revenues and credit card receivables to cash receipts per the bank. 

•We selected a sample of revenue transactions and agreed the amounts recognized to source documents, then tested the mathematical accuracy and the timing of the recorded revenues. 

•We developed an independent expectation of deferred revenue and compared it to the recorded balance.

/s/ Deloitte & Touche LLP

Tempe, Arizona February 21, 2025

We have served as the Company's auditor since 2018. 

35 

Mister Car Wash, Inc. 

Consolidated Statements of Operations

    Year Ended December 31,

     (Amounts in thousands, except share and per share data)
     
    2024

    2023

    2022

    Net revenues
     
    $
    994,727

    $
    927,070

    $
    876,506

    Costs and expenses:

    Cost of labor and chemicals

    290,705

    279,375

    268,467

    Other store operating expenses

    404,675

    363,717

    322,414

    General and administrative

    107,980

    105,708

    98,855

    (Gain) loss on sale of assets, net

    12,435

    125

    (949
    )

    Total costs and expenses

    815,795

    748,925

    688,787

    Operating income

    178,932

    178,145

    187,719

    Other (income) expense:

    Interest expense, net

    79,488

    75,104

    41,895

    Loss on extinguishment of debt

    1,976

    —

    —

    Other income

    (