The special dividend is payable on May 6, 2022. The net proceeds of $372 million from the Class A-2 Notes were used to pay transaction fees, pay off the Company’s previous term loan, and fund a special dividend of $3.30 per share to shareholders on record as of April 22, 2022. $400 million of Class A-2 Fixed Rate Senior Secured Notes (the “Class A-2 Notes”) with an anticipated repayment term of five years and a fixed interest rate of 5.5% per annum, payable quarterly, and Ī $40 million variable funding note facility which remains undrawn. On April 6, 2022, the Company announced the completion of a refinancing transaction which included: Refinancing Transaction and Special Dividend Net cash provided by operating activities totaled $5.5 million. The Company ended the first quarter with $44.2 million in cash and cash equivalents, $178.9 million in borrowings outstanding under its term loan and no outstanding borrowings under its revolving credit facility. Net income of $4.0 million increased $2.9 million from $1.1 million and Adjusted Net Income of $8.6 million increased $5.7 million from $2.9 million in the prior year period.Īdjusted EBITDA of $15.2 million increased 20.9% from $12.5 million in the prior year period. SG&A as a percent of total revenue increased 390 basis points to 34.1%, primarily as a result of increased stock-based compensation, headcount and insurance needed to operate as a public company. Selling, general and administrative expenses (“SG&A”) of $15.5 million increased 39.8% from $11.1 million in the prior year period. Total revenue of $45.4 million increased 23.9% from $36.7 million in the prior year period. Additionally, sales in the prior year period were constrained by COVID restrictions affecting many of our centers. System-wide sales of $207.0 million grew 31.9% from $157.0 million in the prior year period, primarily driven by increased spend by guests at existing centers and net new centers opened over the past twelve months. The Company opened 21 net new centers and ended the quarter with 874 centers, representing an increase of 8.2% versus 808 centers in the prior year period. Results for the First Quarter of Fiscal 2022 versus Fiscal 2021 We have laid a solid foundation and look forward to the many opportunities ahead.” “In addition, we will continue to leverage our scale to strategically manage costs and mitigate supply chain headwinds to deliver another year of strong financial growth.
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“We are raising our expectations for the full year topline and bottom line as we continue to work towards our fiscal 2022 growth objectives that include new center growth, increasing our pipeline of wax specialists, capitalizing on our enhanced marketing and loyalty programs and optimizing our capital structure,” Mr. Lastly, we successfully completed our refinancing at the beginning of April, allowing us to secure a flexible fixed-rate capital structure and unlock value for our shareholders in the form of a special dividend.” The strength of our development pipeline, evidenced by 21 net new center openings in the first quarter, continues to give us confidence in capitalizing on our long-term goal of over 3,000 centers nationwide.
Our strategic marketing initiatives drove increased customer engagement and wax pass redemptions, generating solid performance across our network and especially in our California centers.
(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 Macompared to March 27, 2021.ĭavid Berg, Chief Executive Officer of European Wax Center, Inc., stated: “We are pleased with our performance as we start fiscal 2022, including strong consumer demand for our services and continued recovery from COVID-related headwinds early in fiscal 2021. PLANO, Texas, (GLOBE NEWSWIRE) - Today, European Wax Center, Inc. Subsequent to quarter end, completed debt refinancing with proceeds funding $3.30 per share special dividend GAAP net income of $4.0 million improved $2.9 millionĪdjusted EBITDA of $15.2 million increased 20.9% Total revenue of $45.4 million increased 23.9% System-wide sales of $207.0 million increased 31.9% Raises fiscal 2022 outlook for revenue and profit