What was the change in accounts payable for Americas Best Value Inn in 2023 (Restated)?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | |||||
|---|---|---|---|---|---|
| 2024 | 2023 (Restated) | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ ( 2,913) | $ 1,477 | $ ( 3,186) | ||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||
| Depreciation and amortization | 489 | 1,691 | 3,506 | ||
| Amortization of key money and contract costs | 1,514 | 396 | 7 | ||
| Amortization of contract liabilities | 192 | 1,497 | 713 | ||
| Deferred income taxes | - | 1 | 1 | ||
| Provision (Recovery) of doubtful accounts | 1,112 | ( 1,819) | 654 | ||
| Other income (expense), net | - | - | 846 | ||
| Loss (gain) on sale of hotel | 153 | ( 160) | - | ||
| Change in current assets and liabilities | |||||
| Accounts receivable, net | ( 3,111) | ( 942) | ( 50) | ||
| Prepaid expenses and other current assets | ( 706) | ( 414) | ( 541) | ||
| Other long term assets | ( 19,498) | ( 9,440) | ( 1,007) | ||
| Accounts payable | ( 434) | ( 436) | ( 682) | ||
| Loyalty program liability | 139 | - | - | ||
| Accrued compensation, accrued expenses, and other liabilities | 893 | ( 2,777) | 3,600 | ||
| Net cash provided by (used in) operating activities | ( 22,170) | ( 10,926) | 3,861 | ||
| Cash flows from investing activities: | |||||
| Capital expenditures | ( 735) | ( 433) | ( 358) | ||
| Proceeds from sale of hotel | - | 550 | - | ||
| Merger purchase price adjustment | - | - | ( 264) | ||
| Disbursement of notes receivable | ( 12) | - | - | ||
| Collection of notes receivable | 14 | 39 | 54 | ||
| Cash transfers from (to) parent for centralized cash management | - | 38,264 | (3,245) | ||
| Net cash provided by (used in) investing activities | ( 733) | 38,420 | (3,813) | ||
| Cash flows from financing activities: | |||||
| Cash transfers from (to) parent for centralized cash management | ( 1,534) | 8,768 | - | ||
| Net cash provided by (used in) financing activities | ( 1,534) | 8,768 | - | ||
| Change in cash and cash equivalents: | |||||
| Net increase (decrease) in cash and cash equivalents | (24,437) | 36,262 | 48 | ||
| Cash and cash equivalents at beginning of period | 37,753 | 1,491 | 1,443 | ||
| Cash and cash equivalents at end of period | $ 13,316 | $ 37,753 | $ 1,491 |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the accounts payable for Americas Best Value Inn decreased by $436,000 in 2023 (Restated). This figure is part of the cash flow statement, specifically within the changes in current assets and liabilities. This indicates a decrease in the amount Americas Best Value Inn owed to its suppliers and creditors compared to the previous year.
For a prospective franchisee, understanding changes in accounts payable can provide insights into the company's financial management and its ability to meet short-term obligations. A decrease in accounts payable could suggest that Americas Best Value Inn is paying off its debts more quickly or has negotiated better payment terms with its suppliers. However, it could also indicate a decrease in purchasing activity or a change in accounting practices.
It's important to note that this figure is part of a larger financial picture, and potential franchisees should review the entire cash flow statement and balance sheet to gain a comprehensive understanding of Americas Best Value Inn's financial health. Additionally, franchisees should compare these figures to industry benchmarks and previous years' performance to identify any trends or potential areas of concern. Consulting with a financial advisor is recommended to fully assess the implications of these financial statements.