What was the net cash used in investing activities for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
to CKE Inc | | | | | | (105,000) | | (105,000) | | | Capital contributions from CKE Inc | | | | 41 ,500 | | | | 41 ,500 | | | Net Income | | | | | | 24,739 | | 24,739 | | | Balance as of January 31 | 100 | | | 733,537 | (441 ,866) | (125,600) | (885) | 165,186 | | | , 2022 | | | | | | | | | | | Share-based compensation | | | | 777 | | | | 777 | | | Other comprehensive loss | | | | | | | (250) | (250) | | | CKE Inc. merger with CKE Restaurants | | | | | 441 ,866 | (441 ,866) | | | | | Holdings, Inc | | | | | | | | | | | Net income | | | | | | 27,760 | | 27,760 | | | Cumulative effect of change in | | | | | | (571) | | (571) | | | accounting principle (Note 9) | | | | | | | | | | | Balance as of January 31 | 100 | $ | | $734,314 | $ | $~540,2771 | $ | ~1 ,1351 $192,902 | | | , 2023 | | | | | | | | | |
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 202 | 3 | Fi | scal 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 27, | 760 | $ | 24,739 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 49, | 46,653 | ||
| Amortization of deferred financing costs | 3, | 352 | 3,092 | |
| Share-based compensation | 777 | 855 | ||
| Gain on early termination of lease agreement associated with a financing method sale-leaseback restaurant property | (1, | 285) | (262) | |
| Loss (gain) on disposal of other property and equipment | 512 | (6,486) | ||
| Deferred income taxes | 178) | (371) | ||
| Provision for losses on impairments, accounts receivable and other items, net | (9, | 704) | 2,550 | |
| Net changes in operating assets and liabilities: | ||||
| Receivables, inventories, prepaid expenses and other current and non-current assets | 14, | 470 | 7,497 | |
| Estimated liability for closed restaurants and estimated liability for self-insurance | 709) | (3,088) | ||
| Accounts payable and other current and long-term liabilities | (33, | (15,064) | ||
| Operating lease asset and liabilities, net | 530 | 4-000 | ||
| Net cash provided by operating activities | _ | _ | 60,115 | |
| Cash flows from investing activities: | 7.5 | , | ||
| Purchases of property and equipment | (50, | 837) | (32,587) | |
| Acquisitions of restaurants, net of cash received | (2,136) | |||
| Proceeds from sale of other property and equipment | 957 | 25,343 | ||
| CKE Inc. |
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 used in investing activities for fiscal year 2022 was $(9,190). This figure represents the total cash outflow resulting from investments made by Carls during that year.
Specifically, this amount is calculated by considering various investing activities, such as the purchase of property and equipment, acquisitions of restaurants net of cash received, proceeds from the sale of other property and equipment, and other investing activities. For fiscal year 2022, Carls had purchases of property and equipment totaling $(32,587), acquisitions of restaurants, net of cash received totaling $(2,136), proceeds from the sale of other property and equipment totaling $25,343, and other investing activities totaling $190.
For a prospective franchisee, understanding these figures is crucial as it provides insight into how Carls manages its capital and invests in its business. A net cash outflow in investing activities could indicate that Carls is expanding its operations or upgrading its assets, which could be a positive sign for future growth. However, it's important to consider these figures in conjunction with other financial data to get a comprehensive understanding of Carls's financial health and investment strategies.