What was the reported net income before income taxes for Atwell Suites?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
of net income within 'gains (losses) on securities' for the years ended December 31, 2023 and 2022. There is no impact on presentation of the consolidated balance sheets.
As a result of this revision, net income increased by $18.8 million and decreased by $40.6 million in the years ended December 31, 2023 and 2022, respectively, whilst other comprehensive income decreased by $18.8 million and increased by $40.6 million in those respective years. These figures are net of related tax of $6.3 million and $(13.6) million respectively.
There is no impact on net cash provided by operating activities, however the statements of cash flows are also revised to reflect the changes to net income and other comprehensive income.
Notes to Consolidated Financial Statements (continued)
1. Description of the Business and Summary of Significant Accounting Policies (continued)
The following summarizes the impact of the revisions (in thousands):
| Year Ended December 31, 2023 | ||||||
|---|---|---|---|---|---|---|
| As Reported | Adjustment | Revised | ||||
| Statement of net income | ||||||
| Gains | $ | - | $ | 25,109 | $ | 25,109 |
| (losses) on securities | ||||||
| Income before income taxes | 971,127 | 25,109 | 996,236 | |||
| Pro |
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the income before income taxes for the year ended December 31, 2023, was initially reported as $971,127. After an adjustment of $25,109, the revised income before income taxes amounted to $996,236. This information is derived from the statement of net income provided in the FDD.
For a prospective Atwell Suites franchisee, understanding the franchisor's financial performance is crucial. The income before income taxes indicates the company's profitability before accounting for income tax expenses. A higher income before taxes generally suggests stronger financial health and efficient operations.
The adjustment of $25,109 to the initially reported income before income taxes highlights the importance of scrutinizing financial statements for revisions and adjustments. These adjustments can stem from various factors, such as accounting errors, changes in estimates, or one-time events. Franchisees should seek clarification from the franchisor regarding the nature and implications of such adjustments to gain a comprehensive understanding of the company's financial standing.
It is important to note that this data reflects the financial performance of the overall Six Continents Hotels, Inc. and not specifically Atwell Suites. Prospective franchisees should consider this within the context of the broader company performance and seek further brand-specific financial details to assess the potential profitability and stability of an Atwell Suites franchise.