European Wax Center Inc (NASDAQ:EWCZ) stock rose 2.81% (As on Sep 15, 12:18:05 PM UTC-4, Source: Google Finance) after the company in the second quarter of FY 21 has reported the adjusted net income of total $9.9 million in the second quarter of fiscal 2021 compared to an adjusted net loss of $10.6 million in the second quarter of fiscal 2020. Adjusted EBITDA grew $20.9 million to $19.8 million from ($1.1) million in the second quarter of fiscal 2020. The company has reported 343% increase in the total revenue, including the recurring sale of wax and retail products to franchisees, royalty and marketing fees from franchisees, and revenues from corporate-owned centers and other ancillary franchise fees, to $47.9 million as compared to $10.8 million in the second quarter of fiscal 2020. System-wide sales, which includes the sale of services and retail products as well as cash payments for Wax Passes, were $218.5 million across the network of 815 locations, which represents an increase of 443% from $40.3 million in the second quarter of fiscal 2020.
On the other hand, the company has closed the initial public offering of its Class A common stock at $17.00 per share, received net proceeds of $155.4 million and started trading on August 5, 2021. The Company has ended the second quarter with $35.2 million in cash and cash equivalents, and there were $269.3 million in borrowings under the Company’s credit facilities as of June 26, 2021. In August 2021, the Company entered into a new 5-year credit agreement maturing in August 2026, comprised of a $40.0 million revolving credit facility, including $5.0 million for letters of credit and a $180.0 million term loan. The Company was also able to secure better rates on its new credit agreement, from L+550 and 1% LIBOR floor in the prior facility to L+300 and 0% LIBOR floor in the current facility.
For fiscal 2021, the company expects Total Revenue to be in the range of $173.0 million – $178.0 million, Adjusted Net Income to be in the range of $26.5 million – $28.5 million, Adjusted EBITDA to be in the range of $60.0 million – $63.0 million, Net New Center Openings to be 52, System-Wide Sales to be in the range of $788.0 million – $793.0 million and Same-Store Sales to be high single digits.