What was the net loss for 1 800 Packouts in the year ending December 31, 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
----|--------------------| | Cost of revenues | | 10,001,056 | 5,463,228 | | Gross profit | | 24,596,601 | 20,563,296 | | Operating expenses: | | | | | Selling, general and administrative | | 20,522,378 | 18,837,743 | | Depreciation and amortization | | 11,307,800 | 10,597,574 | | Total operating expenses | _ | 31,830,178 | 29,435,317 | | Loss from operations | | (7,233,577) | (8,872,021) | | Other income (expense): | | | | | Interest expense | | (5,506,427) | (3,821,499) | | Gain on sale of unconsolidated subsidiary | | - | 1,025,637 | | Other income (expense) | | (204,868) | (51,463) | | Total other expense, net | | (5,711,295) | (2,847,325) | | Loss before income taxes | | (12,944,872) | (11,719,346) | | Income tax benefit (provision) | | (765,698) | 1,280,676 | | Net loss | $ | (13,710,570) | $ (10,438,670) |
| For the Year | s Ende | ed December 31, | ||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Cash flows from operating activities: | ||||
| Net loss | $ | (13,710,570) | $ | (10,438,670) |
| Adjustments to reconcile net loss to net cash used in | ||||
| operating activities: | 44 470 440 | 40.550.470 | ||
| Amortization of goodwill and intangible assets Depreciation of fixed assets | 11,179,113 | 10,568,470 | ||
| Amortization of deferred financing costs | 128,687 237,783 | 29,104 213,726 | ||
| Amortization of op |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company experienced a net loss of $10,438,670 for the year ending December 31, 2022. This figure is part of the cash flow statement, which outlines the financial activities of the company during that period. In comparison, the net loss for the prior period, which ran from April 9, 2021 (inception) through December 31, 2021, was $6,149,296.
This substantial net loss in 2022 could be a point of concern for potential franchisees. It is important to investigate the reasons behind this loss, which could stem from various factors such as increased operating costs, investments in acquisitions, or other strategic decisions made by the company. The FDD further details adjustments made to reconcile the net loss to net cash used in operating activities, including amortization of goodwill and intangible assets ($10,568,470), depreciation of fixed assets ($29,104), and other financial adjustments.
A prospective franchisee should carefully review the complete financial statements and notes within the FDD, and consider consulting with a financial advisor to fully understand the implications of these losses. Understanding the context behind these figures is crucial for making an informed decision about investing in a 1 800 Packouts franchise. It's also advisable to ask the franchisor for detailed explanations regarding the financial performance and strategies for future profitability.