What was the change in other long term assets for Americas Best Value Inn in 2022?
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 change in other long term assets for Americas Best Value Inn in 2022 was a decrease of $1,007,000. This figure is derived from the cash flow statement, which tracks changes in various asset and liability accounts to determine the net cash flow from operating activities.
For a prospective franchisee, this indicates how the company's investment in long-term assets impacted its cash flow during that year. A decrease in other long-term assets could result from amortization, disposal, or write-downs of these assets.
Understanding these changes can help a franchisee assess the financial health and stability of Americas Best Value Inn. It's important to note that this is just one year's data, and a broader trend analysis would provide a more comprehensive view. Franchisees should inquire about the nature of these long-term assets and the reasons behind the changes to fully understand the implications for the franchise system.