What was the net cash provided by operating activities for Best Western in 2023 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Excess of revenues over expenses | $ 89,020 | $ 87,769 |
| Adjustments to reconcile excess of revenues over | ||
| expenses to net cash provided by operating activities: | ||
| Depreciation and amortization | 18,162 | 14,748 |
| Provision for doubtful accounts | 794 | (1,650) |
| Net losses (gains) on Restricted Rabbi Trust investments | (996) | 1,977 |
| Net losses on available for sale debt securities | 479 | - |
| Net (gains) on equity securities | (11,629) | (761) |
| Amortization of bond premiums/(discounts) on held-to-maturity securities, net | 79 | 131 |
| Amortization/(accretion) of premiums/(discounts) | ||
| on available-for-sale debt securities, net | (1,732) | (144) |
| Change in accrued interest on held-to-maturity securites, net | 66 | - |
| Change in accrued interest on available-for-sale debt securities, net | (6) | 36 |
| Provision for deferred income taxes | 2,999 | 1,393 |
| Loss on disposition of property, equipment and computer software | 27 | 216 |
| Changes in assets and liabilities: | ||
| Accounts receivable | 9,528 | (7,988) |
| Prepaid expenses and other current assets | (741) | (2,473) |
| Income taxes | (1,327) | (9,710) |
| Other assets, net | (735) | 1,002 |
| Accounts payable, accrued liabilities and deferred compensation plans liability | 5,239 | 2,749 |
| Deferred revenue | (2,089) | (510) |
| Frequent stay program liability | (1,094) | 15,033 |
| Deposits | (3,567) | 952 |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 102,477 | 102,770 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $102,477 thousand. This figure represents the cash generated from Best Western's normal business operations during that year. It's a key indicator of the company's financial health and its ability to fund ongoing expenses and investments.
This number is derived by starting with the excess of revenues over expenses, which was $89,020 thousand, and then making several adjustments. These adjustments account for non-cash items such as depreciation and amortization ($18,162 thousand), provision for doubtful accounts ($794 thousand), and net losses or gains on investments. Changes in assets and liabilities, such as accounts receivable ($9,528 thousand) and accounts payable ($5,239 thousand), also impact the net cash provided by operating activities.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It demonstrates Best Western's ability to generate cash from its core business, which can influence its capacity to support franchisees and invest in brand development. A consistently positive and growing net cash flow from operations suggests a stable and healthy franchisor.