What was the depreciation and amortization expense for Bumble Roofing in 2023, as restated?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
NSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Revenue | |||
| Fencing and rail revenues | $ 24,961,275 | $ 23,390,797 | $ 16,879,944 |
| Franchise royalties and fees | 31,551,158 | 21,471,627 | 13,380,514 |
| Product sales | 11,624,045 | 9,875,832 | 8,878,823 |
| Residential and commercial roofing | 5,849,769 | 4,131,506 | - |
| Window and door installation | 3,448,901 | 1,058,329 | - |
| Franchise fees | 12,430,539 | 10,807,586 | 5,641,473 |
| Ancillary | 7,854,946 | 5,721,908 | 2,553,819 |
| Advertising fund contributions | 4,525,890 | 3,075,049 | 2,159,470 |
| 102,246,523 | 79,532,634 | 49,494,043 | |
| Cost of Product Sales | 26,068,176 | 24,051,826 | 16,544,077 |
| Operating Expenses | 45,261,207 | 37,487,987 | 21,404,407 |
| Income from Operations | 30,917,140 | 17,992,821 | 11,545,559 |
| Other Income (Expense) | |||
| Depreciation and amortization | (10,773,355) | (7,910,727) | (5,494,567) |
| Other income | 315,233 | (161,414) | 38,521 |
| (10,458,122) | (8,072,141) | (5,456,046) | |
| Net Income Before Noncontrolling Interest | 20,459,018 | 9,920,680 | 6,089,513 |
| Loss Attributable to Noncontrolling Interest | 176,630 | 120,083 | - |
| Net Income Attributable to O |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2023, as restated, was $7,910,727. This figure reflects the accounting expense recognized for the reduction in value of Bumble Roofing's tangible and intangible assets over that year. Depreciation applies to tangible assets like equipment and vehicles, while amortization applies to intangible assets like franchise agreements and software.
For a prospective Bumble Roofing franchisee, understanding depreciation and amortization is crucial because it impacts the company's profitability and overall financial health. While franchisees do not directly pay this expense, it is an important factor in assessing the financial stability of the franchisor. A large depreciation and amortization expense could indicate significant investments in assets, which may be beneficial, but it could also signal rapid obsolescence or impairment of those assets.
The FDD also provides additional context regarding Bumble Roofing's accounting policies related to depreciation and amortization. The company amortizes intangible assets such as franchise agreements, internally developed software, and trademarks on a straight-line basis over 5-15 years. Goodwill, another intangible asset, is not amortized but is tested for impairment annually or when events occur that might reduce its fair value. These policies can affect how Bumble Roofing reports its financial performance and should be considered when evaluating the company's financial statements.
It's important for potential franchisees to review the complete financial statements and related notes in the FDD to gain a comprehensive understanding of Bumble Roofing's financial performance and the factors that influence it. Consulting with a financial advisor can also help in interpreting these statements and assessing the financial risks and opportunities associated with investing in a Bumble Roofing franchise.