What was the net cash provided by operating activities for Annex Brands in 2022?
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 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $8,511,000. This figure represents the cash generated from the company's core business operations during that year.
Net cash provided by operating activities is a key indicator of a company's financial health. It shows how well Annex Brands is able to generate cash from its business activities to cover its operating expenses and other obligations. A positive and substantial number, like the one reported for 2022, generally indicates that the company is financially stable and capable of funding its operations through its own cash flow.
Prospective franchisees should note that while past performance is not indicative of future results, a strong history of net cash provided by operating activities can be a positive sign when evaluating a franchise opportunity. It suggests that Annex Brands has a solid business model and is capable of generating consistent cash flow.