What was the change in accounts receivable, net for Americas Best Value Inn in 2024?
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 Americas Best Value Inn Franchise Disclosure Document, the net accounts receivable decreased by $3,111,000 in 2024. This figure represents the change in the amount of money owed to Americas Best Value Inn by its customers or franchisees after accounting for potential uncollectible amounts. This decrease could be due to various factors, such as improved collection efforts, changes in payment terms, or a reduction in outstanding invoices.
For a prospective Americas Best Value Inn franchisee, this information provides insight into the brand's financial management and cash flow trends. A significant decrease in net accounts receivable might suggest more efficient revenue collection processes. However, it is important to consider this figure in conjunction with other financial data to gain a comprehensive understanding of the brand's financial health.
It is also important to note that the 2023 figures have been restated, which could indicate adjustments or corrections made to the previously reported financial data. Franchisees should inquire about the reasons for these restatements to fully understand the financial context. Reviewing these figures over several years, as presented in the table, provides a more robust understanding of the trends and potential financial stability of the Americas Best Value Inn franchise system.