What was the income (loss) before income taxes for Americas Best Value Inn in 2024 (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 ended December 31, 2024, was $1,581,000 (in thousands). This figure represents the company's earnings before accounting for income taxes. For comparison, the income (loss) before income tax expense in 2023 was a loss of $2,749,000, and in 2022, it was a loss of $137,000.
This information is crucial for potential Americas Best Value Inn franchisees as it provides insight into the brand's profitability trends. A positive income before taxes, as seen in 2024, suggests that the company's revenues are exceeding its expenses prior to considering income taxes. Conversely, a loss indicates that expenses exceeded revenues during those periods.
Franchisees should consider these figures in conjunction with other financial data and market conditions to assess the overall financial health and stability of Americas Best Value Inn. Understanding these trends can help franchisees make informed decisions about their investment and operational strategies. It's also important to note that these figures reflect the overall corporate performance and may not directly correlate with the profitability of individual franchise locations.