What was the net change in cash and restricted cash for 1 800 Packouts in 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
terest expense | | (3,821,499) | | (647,029) | | Earnings from unconsolidated subsidiary | | - | | 77,537 | | Gain on sale of unconsolidated subsidiary | | 1,025,637 | | - | | Other income (expense) | _ | (51,463) | | (112,956) | | Total other expense, net | _ | (2,847,325) | | (682,448) | | Loss before income taxes | | (11,719,346) | | (6,523,717) | | Income tax benefit | _ | 1,280,676 | | 374,421 | | Net loss | $ | (10,438,670) | s | (6,149,296) |
| Balance as of April 9, 2021 (inception) | $ | |
|---|---|---|
| Contributions | 47,557,681 | |
| Net loss | (6,149,296) | |
| Balance as of December 31, 2021 | 41,408,385 | |
| Contributions | 35,555,980 | |
| Distributions | (250,000) | |
| Net loss | _ | (10,438,670) |
| Balance as of December 31, 2022 | Ś | 66,275,695 |
| For the year ded December 31, 2022 | (in | r the period from April 9, 2021 ception) through cember 31, 2021 | ||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net loss | $ | (10,438,670) | $ | (6,149,296) |
| Adjustments to reconcile net loss to net cash used in | ||||
| operating activities: | ||||
| Amortization of goodwill and intangible assets | 10,568,470 | 2,543,033 | ||
| Depreciation of fixed assets | 29,104 | 5,840 | ||
| Amortization of deferred financing costs | 213,726 | 38,998 | ||
| Amortization of operating lease right-of-use asset | 108,253 | - | ||
| Gain on sale of unconsolidated subsidiary Loss on disposal of fixed assets | (1,025,637) 43,615 | - | ||
| Provision for bad debt | 43,615 25,950 | 32,710 | ||
| Decrease (increase) in: | 23,330 | 32,710 | ||
| Accounts receivable | (777,114) | 34,410 | ||
| Contract assets | (2,540,535) | (169,463) | ||
| Other assets | (535,234) | (216,538) | ||
| Increase (decrease) in: | 2 012 105 | 472.450 | ||
| Accounts payable and accrued expenses Contract liabilities | 2,012,196 3,647,786 | 472,458 768.118 | ||
| Operating lease liabilities | (76,533) | 700,110 | ||
| Deferred taxes | (1,269,181) | (409, 393) | ||
| Net cash used in operating activities | _ | (13,804) | (3,049,123) | |
| • | _ | (13,604) | (3,049,123) | |
| Cash flows from investing activities: | (000 774) | (5.040) | ||
| Purchase of property and equipment | (238,771) | (5,840) | ||
| Contingent consideration paid | ||||
| Proceeds from sale of unconsolidated subsidiary | (1,200,000) 1,623,174 | |||
| Net cash paid for acquisitions | (46,109,861) | (62,103,632) | ||
| Net cash used in investing activities | Ξ | (45,925,458) | (62,109,472) | |
| Cash flows from financing activities: | ||||
| Member contributions | 29,025,980 | 40,065,556 | ||
| Borrowing on long-term debt | 20,100,000 | 28,000,000 | ||
| Payment of debt issuance costs | (307,500) | (932,140) | ||
| Repayment of long-term debt | (378,894) | 2.070.502 | ||
| Borrowing on short-term debt | 3,078,592 | |||
| Repayment of short-term debt | (3,000,000) | |||
| Member distributions | (250,000) | (3,000,000) | ||
| Net cash provided by financing activities | 48,189,586 | 67,212,008 | ||
| Net change |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the net change in cash and restricted cash for the year ended December 31, 2022, was $2,250,324. This figure represents the overall increase in the company's cash and restricted cash holdings during that year. This is an important indicator of the company's financial performance and liquidity.
For a prospective franchisee, understanding the net change in cash and restricted cash can provide insights into 1 800 Packouts's financial stability and growth trajectory. A positive net change suggests that the company is generating more cash than it is using, which can be a sign of a healthy and sustainable business model. This information, combined with other financial metrics, can help franchisees assess the overall financial health of the franchisor.
It's also useful to compare this figure to the net change in cash and restricted cash for the previous period, which was $2,053,413 for the period from April 9, 2021 (inception) through December 31, 2021. The increase from $2,053,413 to $2,250,324 indicates a positive trend in cash flow management. Reviewing these trends over multiple years can provide a more comprehensive understanding of the company's financial performance and its ability to manage its cash resources effectively.
Prospective franchisees should consider this information in conjunction with other financial statements and disclosures in the FDD to make an informed decision about investing in a 1 800 Packouts franchise. Consulting with a financial advisor can also help in interpreting these figures and understanding their implications for the franchisee's investment.