What was the income (loss) before income taxes for Americas Best Value Inn in 2022 (in thousands)?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 |
| Accounts receivable, net | 9,258 | 7,259 | ||
| Notes receivable, net | 40 | 42 | ||
| Prepaid expenses and other current assets | 4,592 | 3,441 | ||
| Total current assets | 27,206 | 48,495 | ||
| Property and equipment, net | 1,178 | 816 | ||
| Intangible assets, net | 20,884 | 21,153 | ||
| Operating lease right of use assets | 1,686 | 2,131 | ||
| Goodwill | 19,680 | 19,680 | ||
| Other long term as sets | 30,308 | 12,324 | ||
| Total assets | $ | 100,942 | $ | 104,599 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,481 | $ | 1,915 |
| Accrued compensation | 4,202 | 3,745 | ||
| Accrued expenses and other current liabilities | 868 | 1,631 | ||
| Operating lease liabilities | 581 | 595 | ||
| Total current liabilities | 7,132 | 7,886 | ||
| Long term liabilities: | ||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | ||
| Due to related parties | 7,234 | 8,768 | ||
| Deferred income taxes | 235 | 235 | ||
| Loyalty program | 139 | - | ||
| Other long-term liabilities | 6,753 | 4,886 | ||
| Total long term liabilities | 15,579 | 15,569 | ||
| Total liabilities | 22,711 | 23,455 | ||
| Commitments and contingencies (Note 8) | ||||
| Shareholders' Equity: | ||||
| Common shares, $0.01 par value; 50,000,000 shares authorized, | ||||
| 25,464,899 issued and outstanding | 255 | 255 | ||
| Additional paid in capital | 87,652 | 87,652 | ||
| Accumulated deficit | (9,676) | _ | (6,763) | |
| Total shareholders' equity | 78,231 | 81,144 | ||
| Total liabilities and shareholders' equity | $ | 100,942 | $ | 104,599 |
RED LION HOTELS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
Year Ended December 31, 2024 2023 2022 Revenues: $ 15,110 $ $ Franchise fees 17,139 17,684 System, reservation and marketing fees 24,752 21,364 21,287 149 258 255 Loyalty program fees Other fee revenue 6,463 6,231 3,103 Total fee revenue 46,474 44,992 42,329 Hotel operations 4,577 10,574 11,634 Total revenues 51,051 55,566 53,963 Operating costs and expenses: Sales and marketing 24,180 18,493 18,496 General, administrative and other 24,543 25,288 20,899 Hotel operations 5,383 9,105 10,914 Depreciation and amortization 489 1,691 3,506 Total operating costs and expenses 54,595 53,815 54,577 989 148 Operating income (loss) (3,544)Interest expense (11)921 440 Other income and expenses, net (1) 160 Gain (loss) on sale of assets (153)(2,885
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Americas Best Value Inn's income (loss) before income tax expense for the year 2022 was a loss of $2,749 thousand. This figure is derived from the Red Lion Hotels Corporation Consolidated Statements of Comprehensive Income (Loss). The document provides a detailed breakdown of revenues, operating costs, and other expenses that contribute to this income (loss) figure.
For a prospective Americas Best Value Inn franchisee, this historical financial data provides insight into the brand's overall financial performance. While the franchisee's individual financial performance will vary based on factors such as location, operating efficiency, and local market conditions, understanding the franchisor's financial results can inform their investment decision. It's important to note that past performance is not necessarily indicative of future results.
The Consolidated Statements of Comprehensive Income (Loss) includes various revenue streams such as franchise fees, system, reservation and marketing fees, loyalty program fees, and other fee revenue, as well as hotel operations revenue. Operating costs and expenses include sales and marketing, general and administrative expenses, hotel operations, and depreciation and amortization. The difference between total revenues and total operating costs and expenses determines the operating income (loss), which is further adjusted by interest expense, other income and expenses, gain or loss on sale of assets, and acquisition costs to arrive at the income (loss) before income tax expense.
Prospective franchisees should carefully review the entire financial statement and consider consulting with a financial advisor to fully understand the implications of these figures. They should also inquire about more recent financial performance data and the factors that may have influenced the company's profitability in recent years. Understanding the trends and underlying drivers of the franchisor's financial performance is crucial for making an informed investment decision.