Wed, May 15, 3:04 PM (72 days ago)
European Wax Center, Inc. reported its financial results for the quarter ended April 6, 2024. Key highlights include: 1. **Revenue Growth**: Total revenue increased by 4.0% year-over-year to $51.9 million, driven by a 5.9% increase in product sales and slight increases in royalty and marketing fees due to new center openings. 2. **Operating Performance**: Income from operations more than doubled to $11.3 million from $5.3 million in the same quarter last year. This improvement was largely due to a 22.0% reduction in selling, general, and administrative expenses, primarily from lower payroll and benefits expenses. 3. **Net Income**: Net income was $3.7 million, a significant turnaround from a net loss of $1.1 million in the prior year. This improvement was driven by higher operating income and lower interest expenses. 4. **Cash Flow**: Cash provided by operating activities increased to $10.7 million from $4.2 million, reflecting better working capital management and improved operating results. 5. **Balance Sheet**: The company had $60.4 million in cash and equivalents, with stable long-term debt at $372.3 million. 6. **Future Outlook**: The company plans to continue its growth strategy by opening new franchised centers and increasing system-wide sales, leveraging its scalable support infrastructure to drive profitability and free cash flow. This performance indicates strong operational efficiency and a solid financial position, positioning European Wax Center for continued growth.