How much cash did Annex Brands use in investing activities 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 company used $605,000 in investing activities during the fiscal year 2023. This figure represents the net cash flow resulting from investments made by Annex Brands during that period.
Specifically, this net cash outflow is comprised of several components. Annex Brands spent $689,000 on the purchase of equipment and $14,000 on the issuance of notes receivable. However, they also received $98,000 in payments on notes receivable, which partially offset the cash outflow.
For a prospective franchisee, understanding these cash flow dynamics provides insight into how Annex Brands manages its capital and invests in its own growth. Investing activities are crucial for maintaining and expanding the business, and this information can help franchisees assess the financial health and strategic direction of the company.