What was the depreciation and amortization expense for Canopy Lawn Care in 2023 (as restated)?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year 2023 (as restated) was $7,910,727. This figure is part of the adjustments used to reconcile net income to net cash provided by operating activities. Depreciation and amortization are non-cash expenses that reflect the reduction in value of assets over time.

For a prospective Canopy Lawn Care franchisee, understanding depreciation and amortization is crucial for assessing the true profitability and cash flow of the business. While these expenses don't represent an immediate cash outlay, they do reflect the wearing out of assets that will eventually need replacement. Ignoring these expenses can lead to an overestimation of available cash.

In the context of the broader financial statement, the depreciation and amortization expense is subtracted when calculating income from operations. It is important to note that this expense can fluctuate based on the company's investment in assets and the depreciation methods used. Reviewing these figures over several years, as presented in the FDD, can provide insights into Canopy Lawn Care's capital expenditure patterns and asset management strategies.

It is also important to note that the intangible amortization expense for the year ending September 30, 2023 was $7,343,351. Intangible assets include items like franchise agreements, trademarks, and internally developed software, which are amortized over their useful lives. Goodwill, however, is not amortized but is tested for impairment annually.