What was the net cash used in investing activities for Aplus in 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
e | 394 | | Balance at December 31, 2023 | $ 978 | | | |
The accompanying notes are an integral part of these consolidated financial statements.
Year Ended December 31,
SUNOCO LP CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES: | |||
| Net income | $ 394 | $ 475 | $ 524 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation, amortization and accretion | 187 | 193 | 177 |
| Amortization of deferred financing fees | 8 | 7 | 7 |
| Gain on disposal of assets | (7) | (13) | (14) |
| Loss on extinguishment of debt | — | — | 36 |
| Non-cash unit-based compensation expense | 17 | 14 | 16 |
| Deferred income tax | 13 | 28 | 10 |
| Inventory adjustments | 114 | (5) | (190) |
| Equity in earnings of unconsolidated affiliates | (5) | (4) | (4) |
| Changes in operating assets and liabilities, net of acquisitions: | |||
| Accounts receivable | 34 | (312) | (231) |
| Receivables from affiliates | (5) | (3) | (1) |
| Inventories | (182) | (172) | 38 |
| Other assets | 47 | (94) | (95) |
| Accounts payable | (101) | 390 | 296 |
| Accounts payable to affiliates | 61 | 50 | (20) |
| Accrued expenses and other current liabilities | 43 | — | 9 |
| Other non-current liabilities | (18) | 7 | (15) |
| Net cash provided by operating activities | 600 | 561 | 543 |
| INVESTING ACTIVITIES: | |||
| Capital expenditures | (215) | (186) | (174) |
| Distributions from unconsolidated affiliates in excess of cumulative earnings | 9 | 8 | 9 |
| Cash paid for acquisitions, net of cash acquired | (111) | (318) | (256) |
| Proceeds from disposal of property and equipment | 31 | 32 | 34 |
| Other | (2) | — | — |
| Net cash used in investing activities | (288) | (464) | (387) |
| FINANCING ACTIVITIES: | |||
| Senior Notes borrowings | 500 | — | 800 |
| Senior Notes repayments | — | — | (1,252) |
| Credit Facility borrowings | 3,283 | 4,127 | 1,922 |
| Credit Facility repayments | (3,772) | (3,808) | (1,341) |
| Loan origination costs | (5) | — | — |
| Cash distribution to unitholders, including incentive distributions | (371) | (359) | (357) |
| Net cash used in financing activities | (365) | (40) | (228) |
| Net increase (decrease) in cash and cash equivalents | (53) | 57 | (72) |
| Cash and cash equivalents at beginning of period | 82 | 25 | 97 |
| Cash and cash equivalents at end of period | $ 29 | $ 82 | $ 25 |
| Year Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| SUPPL |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the net cash used in investing activities for the year 2023 was $(288). This indicates that Aplus spent more cash on investing activities than it generated from them during this period.
Investing activities typically include capital expenditures, acquisitions, and the purchase or sale of long-term assets. In 2023, Aplus's capital expenditures were $(215), cash paid for acquisitions was $(111), proceeds from disposal of property and equipment was $31, and other investing activities resulted in $(2). Distributions from unconsolidated affiliates in excess of cumulative earnings amounted to $9.
For a prospective franchisee, this information is useful for understanding how Aplus manages its cash flow and invests in its business. A consistently negative net cash flow from investing activities could suggest that Aplus is focused on expansion or is making significant investments in its existing operations. It is important to consider these figures in the context of Aplus's overall financial performance and strategic goals.