What was the net income for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ve Common Stock Additional Receivable Paid-In from CKE Accumulated Total Shares Amount Capital Inc. Deficit Loss Equity Balance as of January 31, 2022 100 $ $ 733,537 $(441,866) $(125,600) $ (885) $165,186 Share-based compensation. 777 (250)Other comprehensive loss (250)CKE Inc. merger with CKE Restaurants 441,866 (441,866)Holdings, Inc. Net Income 27,760 27,760 Cumulative effect of change in accounting principle (571)(571)Balance as of January 31, 2023 100 734,314 (1,135)192,902 (540,277)Share-based compensation... 2,124 2,124 Other comprehensive loss (22)(22)Net income 45,129 45,129 Balance as of January 31, 2024 100 $ 736,438 $(495,148) (1,157)$240,133
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2024 | Fiscal 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income $ | 45,129 | $ 27,760 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 51,372 | 49,302 | |
| Amortization of deferred financing costs | 3,417 | 3,352 | |
| Share-based compensation | 2,124 | 777 | |
| Gain on early termination of lease agreement associated with a financing method sale-leaseback | — | (1,285) | |
| restaurant property | |||
| Gain on refranchising transaction | (153) | — | |
| (Gain) loss on disposal of other property and equipment | (602) | 512 | |
| Deferred income taxes | (3,738) | (178) | |
| Provision for losses on impairments, accounts receivable and other items, net | 508 | (9,704) | |
| Net changes in operating assets and liabilities: | |||
| Receivables, inventories, prepaid expenses and other current and non-current assets | (14,140) | 14,470 | |
| Estimated liability for closed restaurants and estimated liability for self-insurance | (1,253) | (1,709) | |
| Accounts payable and other current and long-term liabilities | 7,604 | (33,356) | |
| Operating lease asset and liabilities, net | 581 | 530 | |
| Net cash provided by operating activities | 90,849 | 50,471 | |
| Cash flows from investing activities: | |||
| Purchases of property and equipment | (35,514) | (50,837) | |
| Acquisitions of restaurants, net of cash received | (3,019) | — | |
| Proceeds from refranchising transactions | 2,092 | — | |
| Proceeds from sale of other property and equipment | 2,346 | 1,957 | |
| CKE Inc. Merger with CKE Restaurants | — | 316 | |
| Other investing activities | (7,346) | 215 | |
| Net cash used in investing activities | (41,441) | (48,349) | |
| Cash flows from financing activities: | |||
| Net change in book overdraft |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the net income for fiscal year 2023 was $27,760. This figure is part of the cash flow statement, which also details adjustments to reconcile net income to net cash provided by operating activities. These adjustments include depreciation and amortization, amortization of deferred financing costs, and other gains or losses.
Understanding net income is crucial for prospective franchisees as it provides a snapshot of Carls's profitability. However, it's important to consider the adjustments made to reconcile net income to net cash flow, as these adjustments reflect non-cash items that impact the company's overall financial health. For example, depreciation and amortization are added back to net income because they are non-cash expenses.
Additionally, the cash flow statement provides insights into Carls's cash inflows and outflows from operating, investing, and financing activities. Reviewing these cash flows can help potential franchisees assess the company's ability to generate cash and manage its financial obligations. It is important to note that net income is only one component of the overall financial picture and should be evaluated in conjunction with other financial metrics and disclosures.