What was the depreciation and amortization expense for Aunt Millies Bakeries in 2022?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------|-------------------------------------|---------------------------------------| | Net income (loss) | $ 14,199,697 | $ (5,256,940) | | Other comprehensive income (loss) Interest rate swap Change in benefit plans, net | | | | | (281,013) | 307,182 | | | 556,711 | (458,749) | | | 275,698 | (151,567) | | Comprehensive income (loss) | $ 14,475,395 | $ (5,408,507) |
PERFECTION BAKERIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended September 30, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| Cash flows from operations | ||||
| Net income (loss) | $ | 14,199,697 | $ | (5,256,940) |
| Adjustments to reconcile net income (loss) to net cash provided by | , , | |||
| (used for) operations | ||||
| Depreciation and amortization | 8,371,434 | 8,235,893 | ||
| Lease expense | 6,704,501 | - | ||
| Gain from property disposal | (339,370) | (371,313) | ||
| Change in assets and liabilities: | ||||
| Receivables, net | (3,671,470) | (2,874,426) | ||
| Inventories, net | (972,290) | (2,928,397) | ||
| Prepaid expenses | (1,064,138) | (353,554) | ||
| Other assets | (115,533) | 419,033 | ||
| Accounts payable | 1,925,254 | 3,207,295 | ||
| Pension plan withdrawal liability | (507, 177) | (474,913) | ||
| Lease payable | (7,099,381) | - | ||
| Accrued expenses and other liabilities | (508,861) | _ | (4,864,365) | |
| Net cash provided by (used for) operations | 16,922,666 | (5,261,687) | ||
| Cash flows from investing activities | ||||
| Capital expenditures | (6,639,634) | (6,267,927) | ||
| Payments received from notes receivable | 711,589 | 816,239 | ||
| Proceeds received from sale of property | 310,028 | (44,670) | ||
| Net cash used for investing activities | (5,618,017) | (5,496,358) | ||
| Cash flows from financing activities | ||||
| Borrowings on line of credit | 74,936,095 | 68,684,532 | ||
| Payments on line of credit | (80,640,650) | (62,459,825) | ||
| Borrowings on subordinated revolving credit facility | 288,402 | - | ||
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2022 was $8,235,893. This figure reflects the accounting method of allocating the cost of tangible assets (depreciation) and intangible assets (amortization) over their useful lives.
For a prospective franchisee, understanding depreciation and amortization is crucial because it impacts the company's profitability and cash flow. While it's a non-cash expense, meaning it doesn't directly involve the outflow of cash, it reduces the company's taxable income, which can lower income tax obligations. This can indirectly improve the company's cash position.
Franchisees should consider this figure in the context of Aunt Millies Bakeries's overall financial health. A consistent depreciation and amortization expense might indicate stable asset management and investment in long-term assets. However, significant fluctuations could signal changes in capital expenditure or asset valuation policies, warranting further investigation. It is important to note that this figure represents the depreciation and amortization for the entire company, not an individual franchise location.