What was the bad debt expense for Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | | | | | | ive | | | | | | | | | inc | | | | | | | | | r c | | | | | | | | | om | | | | | | | | | pre | | | | | | | | | ns | | | | | | | | | om | | | | | | | | | e | | | | | | | | | los Ne t s | - | - | | - | ( ) 5 9, 5 3 4 | - | ( ) 5 9, 5 3 4 | | Ba lan t D be r 3 1, 20 23 ce s a ec em | 1 | - | | 5 15 8 8 6 , | ( 4) 17 7, 6 8 | ( 1) | 3 3 8, 20 1 | | Sto k- ba d c ion at c se om pe ns | - | - | | 2, 9 22 | - | - | 2, 9 22 | | Ne los t s | - | - | | - | ( 10 4, 48 6 ) | - | ( 10 4, 48 6 ) | | Ba lan t D be r 3 1, 20 24 ce s a ec em | 1 | $ - | $ | 5 18 8 0 8 , | $ ( 28 2, 17 0 ) | $ ( 1) | $ 23 6, 6 37 |
Authority Brands Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net loss | $ (104,486) | $ (59,534) | $ (35,630) |
| Adjustments to reconcile net loss to net cash provided by operating activities | |||
| Depreciation and amortization | 102,085 | 106,568 | 50,771 |
| Increase/(reduction) in inventory reserve | 60 | (42) | (39) |
| Bad debt expense | 3,577 | 3,123 | 1,637 |
| Stock-based compensation | 2,922 | 6,006 | 21,820 |
| Impairment loss | 23,240 | - | - |
| Loss on sale of retail | 11,276 | - | - |
| Gain on disposal of property and equipment | (497) | (391) | (305) |
| Amortization of deferred loan costs | 1,742 | 1,650 | 1,692 |
| Deferred taxes | (12,188) | (13,180) | (4,278) |
| Changes in assets and liabilities | |||
| Accounts receivable | (5,969) | (4,383) | (3,845) |
| Inventory | (759) | 589 | (843) |
| Prepaid expenses and other current assets | 2,841 | (3,088) | (2,326) |
| Other assets | (1,988) | (3,185) | (1,572) |
| Accounts payable | (3,177) | (1,484) | 1,815 |
| Accrued liabilities | 11,255 | (3,273) | (6,254) |
| Other liabilities | 3,774 | (127) | 138 |
| Deferred revenue | (514) | 162 | 3,365 |
| Operating lease right-of-use assets and operating lease liabilities, net | (201) | 290 | 145 |
| Net cash provided by operating activities | 32,993 | 29,701 | 26,291 |
| Cash flows from investing activities | |||
| Business acquisitions, net of cash acquired | - | (35,105) | (94,792) |
| Purchases of assets through asset acquisition | - | (325) | (1,570) |
| Purchases of property and equipment | (1,271) | (2,898) | (1,772) |
| Proceeds on disposal of property and equipment | 497 | 1,234 | 332 |
| Capitalized software development costs | (4,801) | (12,830) | (12,446) |
| Net cash used in investing activities |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the bad debt expense for the company in 2022 was $1,637. This figure represents the amount of accounts receivable that Benjamin Franklin Plumbing estimates will not be collected. Bad debt expense is an important metric for franchisees to monitor as it can impact their profitability.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the bad debt expense is crucial for financial planning. It provides insight into the creditworthiness of customers and the effectiveness of the company's collection efforts. A higher bad debt expense could indicate a need for stricter credit policies or improved collection procedures.
Reviewing trends in bad debt expense over the three years presented (2022-2024) can help a potential franchisee assess the stability and risk associated with the franchise's revenue streams. While a single year's figure provides a snapshot, analyzing the trend offers a more comprehensive understanding of the financial health and operational efficiency of Benjamin Franklin Plumbing.