Company: MCW
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024533
Chunk: 48

Company: Mister Car Wash, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 48
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    $ Change

    % Change

    Loss on sale of assets, net
     
    $
    12,435

    $
    125

    $
    12,310

    9,848
    %

    Percentage of net revenues

    1
    %

    0
    %

The change in loss on sale of assets, net in 2024 was primarily attributable to more significant net losses associated with our sale-leaseback activity in the current year and impairments associated with store closures and relocations.

Total Other Expense, net

    Year Ended December 31,

    (Dollars in thousands)
     
    2024

    2023

    $ Change

    % Change

    Total other expense, net
     
    $
    76,265

    $
    75,104

    $
    1,161

    2
    %

    Percentage of net revenues

    8
    %

    8
    %

The increase in total other expense, net was primarily attributable to increased interest expense and loss on extinguishment of debt related to our debt refinancing activity in the current year, partially offset by a gain related to the recognition of an employee retention credit.

Income Tax Provision

    Year Ended December 31,

    (Dollars in thousands)
     
    2024

    2023

    $ Change

    % Change

    Income tax provision
     
    $
    32,428

    $
    22,911

    $
    9,517

    42
    %

    Percentage of net revenues

    3
    %

    2
    %

The increase in income tax provision was primarily attributable to the net, unfavorable income tax impact from equity awards activity in the current year. 

Liquidity and Capital Resources

Funding Requirements

Our primary requirements for liquidity and capital are to fund our investments in our core business, which includes lease payments, pursue greenfield location development, acquisitions of new locations and to service our indebtedness. Historically, these cash requirements have been met through funds raised by the sale of our common stock, utilization of our Revolving Commitment, First Lien Term Loan, sale-leaseback transactions, and cash provided by operations. 

As of December 31, 2024 and 2023, we had cash and cash equivalents of $67.5 million and $19.0 million, respectively