What was the amount of distributions to shareholders for Annex Brands in 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 7,357,000 | $ | 7,626,000 | $ 7,476,000 |
| Adjustments to reconcile net income to cash | ||||
| provided by operating activities: | ||||
| Depreciation and amortization | 691,000 | 718,000 | 1,134,000 | |
| Amortization of right-of-use-assets | 88,000 | - | ||
| Gain on sale of corporate location | - | - | (218,000) | |
| Loss on disposal of long-lived assets | 5,000 | - | 3,000 | |
| Provision for bad debts | - | 120,000 | 120,000 | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 265,000 | (805,000) | 48,000 | |
| Inventory | 2,000 | |||
| Prepaid expenses and other current assets | (516,000) | (66,000) | 112,000 | |
| Deposits and other noncurrent assets | 152,000 | 14,000 | (288,000) | |
| Accounts payable and accrued expenses | (529,000) | (26,000) | 92,000 | |
| Deferred franchise revenue | 41,000 | 134,000 | 30,000 | |
| Operating lease liabilities | (82,000) | - | - | |
| Net cash provided by operating activities | 7,472,000 | _ | 7,715,000 | 8,511,000 |
| Cash flows from investing activities: | ||||
| Purchase of equipment | (835,000) | (689,000) | (408,000) | |
| Issuance of notes receivable | (242,000) | (14,000) | (43,000) | |
| Receipt of payments on notes receivable | 126,000 | _ | 98,000 | 96,000 |
| Net cash used in investing activities | (951,000) | _ | (605,000) | (355,000) |
| Cook flows from financing activities. | ||||
| Cash flows from financing activities: Distributions to shareholders | (6,294,000) | (6,347,000) | (7,085,000) | |
| Proceeds from exercise of stock options | (0,294,000) | (0,347,000) | 93,000 | |
| Stock repurchase | _ | _ | (1,325,000) | - |
| Net cash used in financing activities | (6,294,000) | _ | (7,672,000) | (6,992,000) |
| Net increase (decrease) in cash | 227,000 | (562,000) | 1,164,000 | |
| Cash and cash equivalents at beginning of year | 11,992,000 | _ | 12,554,000 | 11,390,000 |
| Cash and cash equivalents at end of year | $ 12,219,000 | $ | 11,992,000 | $ 12,554,000 |
| Supplemental disclosure of cash flow information: | $ 111,000 | $ | 226,000 | $ 205,000 |
| Cash paid during the year for income taxes |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the distributions to shareholders in 2023 totaled $6,347,000. This figure is part of the cash flow statement, specifically under cash flows from financing activities. It reflects the amount of money Annex Brands distributed to its shareholders during that fiscal year.
For a prospective franchisee, this indicates how Annex Brands manages its finances and allocates profits. While distributions to shareholders are a normal part of corporate finance, a franchisee might want to consider the size and consistency of these distributions in relation to the company's overall profitability and financial health. Large or erratic distributions could potentially impact the company's ability to reinvest in growth, support franchisees, or handle unforeseen financial challenges.
It's important to note that these distributions are not directly related to the franchisee's own earnings or financial obligations. However, understanding the financial practices of Annex Brands can provide valuable insight into the stability and long-term prospects of the franchise system. A potential franchisee may want to discuss these distributions with the franchisor to understand the company's financial strategy and ensure that it aligns with their investment goals.
Reviewing the complete financial statements and discussing these figures with a financial advisor is recommended for any prospective franchisee to fully assess the financial implications of investing in an Annex Brands franchise.