What was the operating loss for Benjamin Franklin Plumbing in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 net loss for 2024 was $104,486. This figure is part of the cash flows from operating activities, which also includes several adjustments to reconcile the net loss to net cash provided by operating activities. These adjustments include depreciation and amortization, increases or reductions in inventory reserve, bad debt expense, stock-based compensation, impairment loss, loss on sale of retail, gain on disposal of property and equipment, amortization of deferred loan costs, and deferred taxes.
Additionally, there were changes in assets and liabilities that impacted the cash flows. These include accounts receivable, inventory, prepaid expenses and other current assets, other assets, accounts payable, accrued liabilities, other liabilities, deferred revenue, and operating lease right-of-use assets and operating lease liabilities. After all these adjustments, the net cash provided by operating activities for 2024 was $32,993.
Prospective franchisees should consider the initial net loss in the context of these adjustments and the overall cash flow situation. While the initial net loss appears significant, the adjustments and changes in assets and liabilities ultimately resulted in positive net cash flow from operating activities. This suggests that while the company may have initially operated at a loss, it generated sufficient cash from its operations to cover these losses and even produce a surplus. Franchisees should analyze these figures carefully to understand the financial dynamics of the company and its ability to generate cash.