What was the change in accounts payable and accrued expenses for Bumble Roofing in 2024?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
IDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amortization | 10,773,355 | 7,910,727 | 5,494,567 |
| Lease expense | 940,945 | 519,344 | - |
| Operating lease payments | (657,754) | (265,181) | - |
| Changes in assets and liabilities: | (0.000.10=) | (=00.000) | (0.044.045) |
| Royalties and accounts receivable | (2,099,495) | (729,389) | (2,044,615) |
| Rebates receivable | (73,676) | (1,815,484) | (47.454) |
| Notes receivable | (403,653) | 113,076 | (17,454) |
| Inventory Prepaid expenses and other assets | (246,248) | (1,043,705) | (122,300) |
| 1,348,125 | 192,280 | (976,687) | |
| Accounts payable and accrued expenses | 153,274 | 2,121,617 | 925,000 |
| Deferred revenues on franchise sales | (1,253,452) , , , , | (824,331) | 1,337,600 |
| Customer deposits | (502,153) | 706,594 | (306,386) |
| Net Cash Provided by Operating Activities | 28,738,817 | 16,865,274 | 10,461,439 |
| Cash Flows from Investing Activities: | |||
| Purchases of property and equipment | (1,054,507) | (1,494,918) | (467,351) |
| Internally developed software additions | (715,046) | (318,010) | (267,000) |
| Net cash received from acquisition of Koala and Wallaby | - | 33,145 | - |
| Net cash received from acquisition of Canopy | - | 641 | - |
| Cash paid for Bumble Bee of LA | (421,250) | - | - |
| Acquisition of Junk Junk Baby | (125,000) | - | |
| Net advances from (repayments to) affiliated companies | 743,827 | 2,966,646 | (3,790,229) |
| Net Cash Provided (Required) by Investing Activities | (1,446,976) | 1,062,504 | (4,524,580) |
| Cash Flows from Financing Activities: | |||
| Net distributions to Member | (26,088,010) | (17,682,672) | (5,078,245) |
| Net Cash Required by Financing Activities | (26,088,010) | (17,682,672) | (5,078,245) |
| Net Change in Cash | 1,203,831 | 245,106 | 858,614 |
| Cash, Beginning of Year | 1,737,401 | 1,492,295 | 633,681 |
| Cash, End of Year | $ 2,941,232 | $ 1,737,401 | $ 1,492,295 |
Schedule of Non-Cash Operating, Investing, and Financing Activities:
As further discussed in Note 7, during 2023 and 2022, the Company financed business acquisitions through member contributions approximating $93,200,000 and $69,256,000, respectively.
As further discussed in Note 8 effective October 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842). Adoption of this ASU resulted in the Company recording right-of-use ("ROU") assets of approximately $3,398,000 and corresponding operating lease liabilities of approximately $3,954,000 at the date of adoption. The difference in ROU asset and operating lease liability at inception is due to a deferred rent and certain tenant allowances of approximately $556,000 at October 1, 2022 which has been netted against the ROU asset. During 2024, the Company obtained additional ROU assets through operating leases of approximately $484,000.
The accompanying notes are an integral part of these consolidated financial statements.
NOTE 1 – DESCRIPTION OF BUSINESS
Outdoor Living Brands ("OLB") Holdco, LLC ("OLB Holdco" or "the Company"), is located in Virginia, operates multiple franchise brands serving the outdoor living product and service markets. Its customers are primarily located throughout the United States of America and Canada.
OLB includes nine franchise brands under the trade names Archadeck Outdoor Living, Outdoor Lighting Perspectives, Conserva Irrigation, Superior Fence and Rail, Wallaby Windows, Koala Insulation, Bumble Roofing, Canopy Lawn Care, and Junk Junk Baby! (referred to hereafter as, the "brands"). The brands sell franchises and provide support for franchisees using standardized products, services and procedures developed by the franchisor.
- Archadeck Outdoor Living franchises design, sells and constructs decks, porches, screened rooms, sunrooms, outdoor kitchens, hardscaped patios and other custom outdoor living space projects.
- Outdoor Lighting Perspectives franchises provide outdoor lighting and holiday lighting design and installation and maintenance services for residential and commercial clients.
- Conserva Irrigation franchises provide upgrades, maintenance services, and installation of outdoor irrigation systems for residential and commercial clients.
- Superior Fence and Rail franchises sell and construct a variety of fences for residential and commercial clients.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the accounts payable and accrued expenses experienced a change in 2024. The document indicates that in 2024, the accounts payable and accrued expenses totaled $7,890,614, while in 2023 (as restated), the amount was $7,737,340.
This represents an increase of $153,274 in accounts payable and accrued expenses from 2023 to 2024. This increase could be due to a variety of factors, such as increased business activity, changes in payment terms with suppliers, or accrual of additional expenses.
For a prospective Bumble Roofing franchisee, this information provides insight into the company's financial management and expense handling. Understanding the trends in accounts payable and accrued expenses can help franchisees assess the financial stability and operational efficiency of Bumble Roofing. It's important to note that these figures reflect the overall financial performance of the company and may not directly translate to the financial performance of an individual franchise location. Franchisees should consider these figures in conjunction with other financial data and consult with financial advisors to gain a comprehensive understanding of the financial implications for their specific franchise.