What was the net income for Aplus in 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| $ 6,826 | $ 6,830 |
|---|
The accompanying notes are an integral part of these consolidated financial statements.
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in millions, except per unit data)
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | |||
| REVENUES: | |||||
| Motor fuel sales | $ 22,525 | $ | 25,216 | $ | 17,152 |
| Non-motor fuel sales | 392 | 370 | 306 | ||
| Lease income | 151 | 143 | 138 | ||
| Total revenues | 23,068 | 25,729 | 17,596 | ||
| COST OF SALES AND OPERATING EXPENSES: | |||||
| Cost of sales | 21,703 | 24,350 | 16,246 | ||
| General and administrative | 126 | 120 | 109 | ||
| Other operating | 356 | 338 | 270 | ||
| Lease expense | 68 | 63 | 59 | ||
| Gain on disposal of assets | (7) | (13) | (14) | ||
| Depreciation, amortization and accretion | 187 | 193 | 177 | ||
| Total cost of sales and operating expenses | 22,433 | 25,051 | 16,847 | ||
| OPERATING INCOME | 635 | 678 | 749 | ||
| OTHER INCOME (EXPENSE): | |||||
| Interest expense, net | (217) | (182) | (163) | ||
| Other income, net | 7 | 1 | — | ||
| Equity in earnings of unconsolidated affiliates | 5 | 4 | 4 | ||
| Loss on extinguishment of debt | — | — | (36) | ||
| INCOME BEFORE INCOME TAXES | 430 | 501 | 554 | ||
| Income tax expense | 36 | 26 | 30 | ||
| NET INCOME AND COMPREHENSIVE INCOME | $ 394 | $ | 475 | $ | 524 |
| NET INCOME PER COMMON UNIT: | |||||
| Common units - basic | $ 3.70 | $ | 4.74 | $ | 5.35 |
| Common units - diluted | $ 3.65 | $ | 4.68 | $ | 5.28 |
| WEIGHTE |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company's net income for the year ended December 31, 2023, was $394. This figure represents the profit Aplus retained after deducting all expenses, including the cost of sales, operating expenses, interest, and income taxes, from its total revenues. This net income figure is a key indicator of Aplus's overall financial performance and profitability for that year.
When evaluating the financial health of Aplus, it's helpful to compare the 2023 net income to previous years. In 2022, Aplus reported a net income of $475, and in 2021, the net income was $524. This shows a decreasing trend in net income over the three-year period. A prospective franchisee should investigate the reasons behind this decline to understand if it's due to increased expenses, decreased revenues, or other factors. Understanding the reasons for these fluctuations can help a franchisee assess the potential risks and opportunities associated with investing in an Aplus franchise.
It's also important to consider the various components that contribute to Aplus's net income. For example, in 2023, Aplus had total revenues of $23,068, which included motor fuel sales, non-motor fuel sales, and lease income. The cost of sales and operating expenses totaled $22,433, resulting in an operating income of $635. After accounting for other income and expenses, such as interest expense and equity in earnings of unconsolidated affiliates, the income before income taxes was $430. Finally, after deducting income tax expense of $36, the net income was $394. Examining these individual line items can provide a more detailed understanding of Aplus's financial performance and the factors that influence its profitability.
Prospective franchisees should also note that the net income per common unit (basic) was $3.70 in 2023, compared to $4.74 in 2022 and $5.35 in 2021. This metric indicates the portion of Aplus's net income allocated to each common unit, providing insight into the potential returns for investors. Additionally, the cash distributions per common unit were $3.368 in 2023, which represents the amount of cash distributed to common unitholders. Analyzing these figures in conjunction with the overall net income can help potential franchisees evaluate the financial stability and potential profitability of an Aplus franchise.