What was the amount of the stock repurchase for Annex Brands in 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at September 30, 2021 | $ | 3,638,000 | $ | 9,321,000 | $ | 12,959,000 |
|---|---|---|---|---|---|---|
| Net income | - | 7,476,000 | 7,476,000 | |||
| Distributions | - | (7,085,000) | (7,085,000) | |||
| Stock options exercised (555 shares) | _ | 93,000 | _ | _ | 93,000 | |
| Balance at September 30, 2022 | 3,731,000 | 9,712,000 | 13,443,000 | |||
| Net income | - | 7,626,000 | 7,626,000 | |||
| Distributions | - | (6,347,000) | (6,347,000) | |||
| Stock repurchase (2,560 shares) | _ | (1,325,000) | _ | _ | (1,325,000) | |
| Balance at September 30, 2023 | 2,406,000 | 10,991,000 | 13,397,000 | |||
| Net income | - | 7,357,000 | 7,357,000 | |||
| Distributions | (6,294,000) | (6,294,000) | ||||
| Balance at September 30, 2024 | $ | 2,406,000 | $ | 12,054,000 | $ | 14,460,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the company executed a stock repurchase in 2023. The total amount spent on repurchasing stock during the fiscal year ending September 30, 2023, was $1,325,000. This transaction involved the repurchase of 2,560 shares of Annex Brands stock.
Stock repurchases, also known as buybacks, occur when a company uses its available cash to buy its own shares from the open market or directly from shareholders. This action reduces the number of outstanding shares, which can increase the earnings per share (EPS) and potentially the stock price. For Annex Brands, the decision to repurchase shares suggests that the company believed its stock was undervalued or that it had excess cash to distribute to shareholders.
For a prospective franchisee, this information provides insight into Annex Brands' financial management and capital allocation strategies. While stock repurchases do not directly impact the day-to-day operations of a franchise, they reflect the company's overall financial health and its commitment to enhancing shareholder value. Understanding these financial decisions can help a franchisee assess the stability and long-term prospects of the franchise system.
It's important to note that the stock repurchase is a historical event and does not guarantee future performance or similar actions. However, it does offer a glimpse into how Annex Brands manages its finances and rewards its shareholders, which can be a factor in evaluating the franchise opportunity.