What was the net cash provided by investing activities for Carls in fiscal year 2023?
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 net cash provided by investing activities for fiscal year 2023 was $2,172. This figure represents the net change in cash resulting from investments made by Carls during that fiscal year. Investing activities typically include the purchase and sale of long-term assets, such as property, equipment, and other investments.
For a prospective franchisee, this number provides insight into how Carls manages its capital and invests in its future growth. A positive net cash flow from investing activities could indicate that Carls is generating cash from the sale of assets or investments, while a negative cash flow might suggest that Carls is investing heavily in expanding its operations or acquiring new assets.
It's important to consider this figure in conjunction with other financial metrics, such as cash flow from operating and financing activities, to get a comprehensive understanding of Carls's overall financial health and investment strategies. Reviewing these trends over multiple years can provide a more accurate picture of Carls's investment patterns and their potential impact on the franchise system.