What was the loss on extinguishment of debt for Camp Margaritaville in 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenues | ||
| Restaurant and retail merchandise sales | $ 6,784,532 | $ 6,487,545 |
| Restaurant royalties | 10,166,895 | 9,033,781 |
| Resort royalties | 29,097,964 | 26,963,473 |
| Residential and timeshare royalties | 35,130,754 | 21,691,627 |
| Consumer products royalties | 4,199,315 | 4,705,602 |
| Other revenue | 7,108,803 | 5,978,600 |
| Total revenues | 92,488,263 | 74,860,628 |
| Operating expenses | ||
| Cost of restaurant and retail merchandise sales | 1,814,546 | 1,740,415 |
| Selling, general, and administrative | 65,463,612 | 47,750,487 |
| Depreciation | 1,433,243 | 1,420,259 |
| Total operating expenses | 68,711,401 | 50,911,161 |
| Income from operations | 23,776,862 | 23,949,467 |
| Other income (expenses) | ||
| Net (loss) gain from investments in unconsolidated entities | ( 2,000,000) | 375,000 |
| Net loss on sale of venues | ( 1,902,027) | ( 3,171,426) |
| Net gain on insurance proceeds | 20,088,815 | – |
| Net loss on extinguishment of debt | – | ( 4,336,839) |
| Interest income | 808,337 | 208,929 |
| Interest expense | ( 9,421,558) | |
| ( 12,330,510) | ||
| Net income before income taxes | 28,441,477 | 7,603,573 |
| Income taxes | 656,806 | 359,741 |
| Net income from continuing operations | $ 27,784,671 | $ 7,243,832 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the net loss on extinguishment of debt for the year ended December 31, 2023, was $0. In contrast, for the year ended December 31, 2022, the net loss on extinguishment of debt was $4,336,839.
This information is relevant for prospective franchisees as it provides insight into Camp Margaritaville's financial performance related to debt management. The extinguishment of debt refers to the elimination of a debt obligation, which can result in a gain or loss depending on the terms of the transaction.
The absence of a loss on extinguishment of debt in 2023, compared to a significant loss in 2022, could indicate improved debt management strategies or favorable debt restructuring. Franchisees should consider these figures in the context of the company's overall financial health and consult with financial advisors to understand the implications for their investment.