What was the amount of proceeds from the sale of other property and equipment for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
S OF MEMBERS' DEFICIT (In thousands)**
| Balance as of January 31, 2021 $ | (57,815) | |--------------------------------------------------------------|--------------------------------| | Capital contributions | 23,793 | | Distributions to members | (323,594) | | Net income | 105,799 | | Balance as of January 31, 2022 | (251 ,817) | | Capital contributions | 45,394 | | Distributions to members | (139,428) | | Net income | 97,797 | | Cumulative effect of change in accounting principle (Note 9) | "- ( 452) | | Balance as of January 31, 2023 $ | (248,506) ==::::::::::===== |
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2023 | Fiscal 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income $ | 97,797 | $ 105,799 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 44,580 | 41 ,482 |
| Amortization of deferred financing costs | 3,352 | 3,092 |
| Gain on early termination oflease agreement associated with a financing method sale-leaseback | (1 ,285) | (262) |
| restaurant property | ||
| Loss (gain) on disposal of other property and equipment | 512 | (6,486) |
| Provision for losses on impairments, accounts receivable and other items, net | 318 | 2,040 |
| Net changes in operating assets and liabilities: | ||
| Receivables, inventories, prepaid expenses and other current and non-current assets | 4,247 | 14,273 |
| Accounts payable and other current and long-term liabilities | (13,013) | (19,926) |
| Operating lease assets and liabilities, net | 511 | |
| Net cash provided by operating activities | 137,019 | 140,012 |
| Cash flows from investing activities: | ||
| Proceeds from sale of other property and equipment | 1,957 | 25,341 |
| Other investing activities | 215 | 190 |
| Net cash provided by investing activities | 2,172 | 25,531 |
| Cash flows from financing activities: | ||
| Net change in book overdraft | (1 ,952) | 2,565 |
| Repayments of Class A-2 Notes | (11 ,800) | (10,900) |
| Issuance of Series 2021-1 Class A-2 Notes | 180,000 | |
| Payment for deferred financing costs of Series 2018-1 VFN Notes | (861) | |
| Payment for deferred financ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the proceeds from the sale of other property and equipment in fiscal year 2022 were $25,341. This figure represents the cash inflow that Carls received from selling assets other than their primary restaurant properties and equipment during that fiscal year.
For a prospective franchisee, this number provides insight into Carls's asset management and potential revenue streams beyond normal operations. While not a recurring revenue source, proceeds from asset sales can boost Carls's financial performance in a given year. It is important to note that this is a one-time event and may not be indicative of ongoing financial health.
Franchisees should consider this information in the context of Carls's overall financial statements. Reviewing trends in asset sales over multiple years, if available, could offer a more comprehensive understanding. Additionally, franchisees may want to inquire about Carls's strategy for managing and disposing of assets, as this could impact the availability of resources for supporting the franchise system.