EWCZ European Wax Center Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 14, 2024

EUROPEAN WAX CENTER, INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-40714	86-3150064
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
5830 Granite Parkway, 3rd Floor Plano, Texas		75024
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (469) 264-8123

 

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A common stock, par value $0.00001 per share		EWCZ		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Explanatory Note

This Amendment (this “Amendment”) to the Current Report on Form 8-K filed by European Wax Center, Inc. (the “Company”) on November 14, 2024 is being filed to correct the Company’s balance sheet and income statement as of October 5, 2024 contained in the press release issued by the Company on November 14, 2024 announcing the Company’s financial results for the 13 and 39 weeks ended October 5, 2024. The correction reclassifies (i) approximately $329,000 of non-controlling interests to accumulated deficit on the balance sheet and (ii) approximately $38,000 of year to date net income from non-controlling interest to net income attributable to European Wax Center, Inc. on the income statement. There were no other changes to the balance sheet or income statement. A corrected copy of the Press Release is furnished as Exhibit 99.1 to this Amendment and is incorporated herein by reference.

 

Item 2.02 Results of Operations and Financial Condition.

On November 14, 2024, the Company issued the press release attached hereto as Exhibit 99.1 reporting its financial results for the 13 and 39 weeks ended October 5, 2024.

All of the information included in Items 2.02 and 9.01 of this report and Exhibit 99.1 hereto is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

 

 

Item 9.01 Financial Statements and Exhibits

 

Exhibit Number		Description
99.1		Press release reporting financial results for the 13 and 39 weeks ended October 5, 2024, issued by European Wax Center, Inc. on November 14, 2024 (Corrected).
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		EUROPEAN WAX CENTER, INC.
Date: November 15, 2024		By:	/s/ GAVIN M. O'CONNOR
			Name: Gavin M. O'Connor
			Title: Chief Administrative Officer, General Counsel and Corporate Secretary

 

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European Wax Center, Inc. Reports Third Quarter Fiscal Year 2024 Results

Reiterates fiscal 2024 financial outlook

Updates fiscal 2024 outlook for net new centers

Third Quarter Fiscal 2024 versus 2023

Plano, TX, November 14, 2024 - Today, European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 13 and 39 weeks ended October 5, 2024.

David Berg, Executive Chairman and CEO of European Wax Center, Inc. stated, “We are pleased that our third quarter results were in line with the revised expectations we provided in August. Over the past three months, I’ve been immersing myself in the business, refining our key focus areas and developing a robust action plan focused on driving new guests and ticket growth. Over time, we believe our efforts will enhance unit economics and financial returns for our franchise partners, enable thoughtful growth for European Wax Center, and deliver long-term value to our stakeholders.

Mr. Berg continued, “As we look ahead, we are encouraged that our core guests remain committed to this brand, enabling us to reiterate our fiscal 2024 financial outlook. That said, as we navigate current market dynamics and continue to assess near-term development plans, we are updating our fiscal 2024 outlook for net new center openings. We remain confident in the strength of the European Wax Center business model and its ability to generate strong cash flow and sustained top-line, bottom-line and unit growth over the long-term.”

Results for the Third Quarter of Fiscal 2024 versus Fiscal 2023

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Year-to-Date Results through the Third Quarter of Fiscal 2024 versus Fiscal 2023

 

Balance Sheet and Cash Flow

The Company ended the quarter with $48.0 million in cash and cash equivalents, $6.5 million in restricted cash, $391.0 million in borrowings outstanding under its senior secured notes and no outstanding borrowings under its revolving credit facility. Net cash provided by operating activities totaled $14.8 million during the quarter and $40.0 million year-to-date.

Fiscal 2024 Financial Outlook(1)

The Company reiterates its previous financial outlook for fiscal year 2024:

	Fiscal 2024 Outlook
System-Wide Sales	$930 million to $950 million
Total Revenue	$216 million to $221 million
Same-Store Sales	(1.5)% to 0.5%
Adjusted Net Income(2)	$19 million to $22 million
Adjusted EBITDA(3)	$70 million to $74 million

——————————————

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(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 25% for fiscal 2024 computed by applying our estimated blended statutory tax rate and incorporating the effect of nondeductible and other rate impacting adjustments.

(3) Adjusted EBITDA outlook includes up to $4 million of costs related to the Company’s investment in laser hair removal.

Fiscal 2024 New Center Outlook(1)

As was embedded in its previous net new center openings outlook, the Company continues to expect 43 gross new center openings in fiscal 2024. The Company continues to manage a dynamic closure environment with franchisees, and as of November 14, 2024, 16 centers have closed during fiscal 2024. The Company expects an additional 5 to 10 closures during the balance of the year, translating to 17 to 22 net new center openings compared to a previous outlook of 27 to 32 net new center openings.

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.

Webcast and Conference Call Information

European Wax Center, Inc. will host a conference call to discuss third quarter fiscal 2024 results today, November 14, 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 leading 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 $955 million in fiscal 2023. For more information, including how to receive your first wax free, please visit: https://waxcenter.com.

 

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 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

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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, Adjusted EBITDA margin 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 and/or gains.

We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

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

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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 and/or gains.

We define net debt as total long-term debt plus the current portion of long-term debt less cash and cash equivalents.

 

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 6.0% of sales, net of retail product sales, as defined in the franchise agreement. This measure allows us to better assess changes in our royalty revenue, our overall center performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by net new center openings as well as increases in same-store sales.

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.

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EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)

(Unaudited)

		October 5, 2024				January 6, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	48,017			$	52,735
Restricted cash			6,487				6,493
Accounts receivable, net			7,139				9,250
Inventory, net			20,570				20,767
Prepaid expenses and other current assets			5,239				6,252
Total current assets			87,452				95,497
Property and equipment, net			1,563				2,284
Operating lease right-of-use assets			3,591				4,012
Intangible assets, net			436,994				451,495
Goodwill			39,112				39,112
Deferred income taxes			137,003				138,623
Other non-current assets			2,250				3,094
Total assets		$	707,965			$	734,117
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	15,545			$	17,966
Long-term debt, current portion			4,000				4,000
Tax receivable agreement liability, current portion			2,807				9,363
Deferred revenue, current portion			3,952				5,261
Operating lease liabilities, current portion			1,283				1,232
Total current liabilities			27,587				37,822
Long-term debt, net			372,913				372,000
Tax receivable agreement liability, net of current portion			198,461				197,273
Deferred revenue, net of current portion			6,054				6,615
Operating lease liabilities, net of current portion			2,606				3,158
Other long-term liabilities			2,444				2,246
Total liabilities			610,065				619,114
Commitments and contingencies
Stockholders’ equity:
Preferred stock ($0.00001 par value, 100,000,000 shares authorized, none issued and outstanding as of October 5, 2024 and January 6, 2024, respectively)			—				—
Class A common stock ($0.00001 par value, 600,000,000 shares authorized, 51,508,038 and 51,261,001 shares issued and 44,747,397 and 48,476,981 shares outstanding as of October 5, 2024 and January 6, 2024, respectively)			—				—
Class B common stock ($0.00001 par value, 60,000,000 shares authorized, 12,192,191 and 12,278,876 shares issued and outstanding as of October 5, 2024 and January 6, 2024, respectively)			—				—
Treasury stock, at cost 6,760,641 and 2,784,020 shares of Class A common stock as of October 5, 2024 and January 6, 2024, respectively			(70,147	)			(40,000	)
Additional paid-in capital			241,615				232,904
Accumulated deficit			(102,384	)			(110,880	)
Total stockholders’ equity attributable to European Wax Center, Inc.			69,084				82,024
Noncontrolling interests			28,816				32,979
Total stockholders’ equity			97,900				115,003
Total liabilities and stockholders’ equity		$	707,965			$	734,117

 

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EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands)

(Unaudited)

		For the Thirteen Weeks Ended								For the Thirty-Nine Weeks Ended
		October 5, 2024				September 30, 2023				October 5, 2024				September 30, 2023
REVENUE
Product sales		$	31,684			$	31,890			$	95,105			$	93,457
Royalty fees			13,413				13,345				40,314				39,843
Marketing fees			7,603				7,551				22,841				22,368
Other revenue			2,730				2,931				8,915				9,031
Total revenue			55,430				55,717				167,175				164,699
OPERATING EXPENSES
Cost of revenue			15,003				15,721				44,551				47,078
Selling, general and administrative			17,474				14,372				43,851				45,769
Advertising			8,409				8,099				28,673				24,592
Depreciation and amortization			5,073				5,135				15,246				15,432
Gain on sale of center			—				—				(81	)			—
Gain on disposal of assets and non-cancellable contracts			(2	)			—				(2	)			—
Total operating expenses			45,957				43,327				132,238				132,871
Income from operations			9,473				12,390				34,937				31,828
Interest expense, net			6,340				6,471				19,043				20,095
Other expense (income)			285				36				535				(756	)
Income before income taxes			2,848				5,883				15,359				12,489
Income tax expense			818				1,765				3,751				3,981
NET INCOME		$	2,030			$	4,118			$	11,608			$	8,508
Less: net income attributable to noncontrolling interests			550				1,235				3,114				2,234
NET INCOME ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC.		$	1,480			$	2,883			$	8,494			$	6,274

 

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EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

		For the Thirty-Nine Weeks Ended
		October 5, 2024				September 30, 2023
Cash flows from operating activities:
Net income		$	11,608			$	8,508
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation and amortization			15,246				15,432
Amortization of deferred financing costs			4,171				3,964
Provision for inventory obsolescence			(25	)			(4	)
Provision for bad debts			393				105
Deferred income taxes			3,568				3,768
Remeasurement of tax receivable agreement liability			535				(756	)
Gain on sale of center			(81	)			—
Loss on disposal of property and equipment			3				11
Equity compensation			4,205				9,489
Changes in assets and liabilities:
Accounts receivable			1,702				(189	)
Inventory, net			202				1,319
Prepaid expenses and other assets			2,426				(1,300	)
Accounts payable and accrued liabilities			(1,642	)			(1,180	)
Deferred revenue			(1,683	)			178
Other long-term liabilities			(678	)			(489	)
Net cash provided by operating activities			39,950				38,856
Cash flows from investing activities:
Purchases of property and equipment			(276	)			(774	)
Cash received for sale of center			135				—
Net cash used in investing activities			(141	)			(774	)
Cash flows from financing activities:
Principal payments on long-term debt			(3,000	)			(3,000	)
Distributions to EWC Ventures LLC members			(3,584	)			(2,492	)
Repurchase of Class A common stock			(30,147	)			(6,369	)
Taxes on vested restricted stock units paid by withholding shares			(549	)			(516	)
Dividend equivalents to holders of EWC Ventures units			(757	)			(2,787	)
Payments pursuant to tax receivable agreement			(6,496	)			(3,209	)
Net cash used in financing activities			(44,533	)			(18,373	)
Net increase in cash, cash equivalents and restricted cash			(4,724	)			19,709
Cash, cash equivalents and restricted cash, beginning of period			59,228				50,794
Cash, cash equivalents and restricted cash, end of period		$	54,504			$	70,503
Supplemental cash flow information:
Cash paid for interest		$	16,443			$	16,621
Cash paid for income taxes		$	498			$	633
Non-cash investing activities:
Property purchases included in accounts payable and accrued liabilities		$	30			$	—
Right-of-use assets obtained in exchange for operating lease obligations		$	592			$	368

 

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Reconciliation of GAAP net income to Adjusted net income:

		For the Thirteen Weeks Ended								For the Thirty-Nine Weeks Ended
		October 5, 2024				September 30, 2023				October 5, 2024				September 30, 2023
(in thousands)
Net income		$	2,030			$	4,118			$	11,608			$	8,508
Share-based compensation(1)			882				1,732				4,205				9,489
Remeasurement of tax receivable agreement liability (2)			285				36				535				(756	)
Gain on sale of center (3)			—				—				(81	)			—
Gain from legal judgment proceeds (4)			—				—				(739	)			—
Executive severance(5)			1,548				—				1,548				—
Reorganization costs(6)			490				—				490				—
Terminated debt offering costs(7)			944				—				944				—
Tax effect of adjustments to net income (8)			(687	)			105				(1,014	)			(935	)
Adjusted net income		$	5,492			$	5,991			$	17,496			$	16,306

 

(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash adjustments 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 cash severance paid or payable to our former chief executive and commercial officers.

(6) Represents employee cash severance paid or payable to employees and costs related to the Company's return-to-office mandate such as retention bonuses, relocation assistance and preparation of the Company's corporate office.

(7) Represents costs related to a debt offering the Company was previously evaluating and subsequently decided to terminate.

(8) Represents the income tax impact of non-GAAP adjustments computed by applying our estimated blended statutory tax rate to our share of the identifies 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								For the Thirty-Nine Weeks Ended
		October 5, 2024				September 30, 2023				October 5, 2024				September 30, 2023
(in thousands)
Net income		$	2,030			$	4,118			$	11,608			$	8,508
Interest expense, net			6,340				6,471				19,043				20,095
Income tax expense			818				1,765				3,751				3,981
Depreciation and amortization			5,073				5,135				15,246				15,432
EBITDA		$	14,261			$	17,489			$	49,648			$	48,016
Share-based compensation(1)			882				1,732				4,205				9,489
Remeasurement of tax receivable agreement liability (2)			285				36				535				(756	)
Gain on sale of center (3)			—				—				(81	)			—
Gain from legal judgment proceeds (4)			—				—				(739	)			—
Executive severance(5)			1,548				—				1,548				—
Reorganization costs(6)			490				—				490				—
Terminated debt offering costs(7)			944				—				944				—
Adjusted EBITDA		$	18,410			$	19,257			$	56,550			$	56,749
Adjusted EBITDA margin			33.2	%			34.6	%			33.8	%			34.5	%

 

(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash adjustments 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 cash severance paid or payable to our former chief executive and commercial officers.

(6) Represents employee cash severance paid or payable to employees and costs related to the Company's return-to-office mandate such as retention bonuses, relocation assistance and preparation of the Company's corporate office.

(7) Represents costs related to a debt offering the Company was previously evaluating and subsequently decided to terminate.

 

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Investor Contact

European Wax Center, Inc.

Bethany Johns

Bethany.Johns@myewc.com

469-270-6888

Media Contact

Zeno Group

Shannon Powell

shannon.powell@zenogroup.com

312-752-6851

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v3.24.3

Document and Entity Information	Nov. 14, 2024
Cover [Abstract]
Document Type	8-K/A
Amendment Flag	true
Amendment Description	This Amendment (this “Amendment”) to the Current Report on Form 8-K filed by European Wax Center, Inc. (the “Company”) on November 14, 2024 is being filed to correct the Company’s balance sheet and income statement as of October 5, 2024 contained in the press release issued by the Company on November 14, 2024 announcing the Company’s financial results for the 13 and 39 weeks ended October 5, 2024. The correction reclassifies (i) approximately $329,000 of non-controlling interests to accumulated deficit on the balance sheet and (ii) approximately $38,000 of year to date net income from non-controlling interest to net income attributable to European Wax Center, Inc. on the income statement. There were no other changes to the balance sheet or income statement. A corrected copy of the Press Release is furnished as Exhibit 99.1 to this Amendment and is incorporated herein by reference.
Document Period End Date	Nov. 14, 2024
Entity Registrant Name	EUROPEAN WAX CENTER, INC.
Entity Central Index Key	0001856236
Entity Emerging Growth Company	true
Securities Act File Number	001-40714
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-3150064
Entity Address, Address Line One	5830 Granite Parkway, 3rd Floor
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
City Area Code	469
Local Phone Number	264-8123
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	false
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	EWCZ
Security Exchange Name	NASDAQ

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