What was the total amount of distributions to members for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
---------------------------------------------|---------------------| | 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) | | Capital contributions | 35,679 | | Distributions to members | (133,746) | | Net income | 108,945 | | Balance as of January 31, 2024 | $ (237,628) |
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income $ | 108,945 | $ 97,797 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 46,692 | 44,580 |
| Amortization of deferred financing costs | 3,419 | 3,352 |
| Gain on early termination of lease agreement associated with a financing method sale-leaseback | — | (1,285) |
| restaurant property | ||
| Gain on refranchising transaction | (817) | — |
| (Gain) loss on disposal of other property and equipment | (602) | 512 |
| Provision for losses on impairments, accounts receivable and other items, net | 4,806 | 318 |
| Net changes in operating assets and liabilities: | ||
| Receivables, inventories, prepaid expenses and other current and non-current assets | (1,985) | 4,247 |
| Accounts payable and other current and long-term liabilities | (3,089) | (13,013) |
| Operating lease assets and liabilities, net | 1,096 | 511 |
| Net cash provided by operating activities | 158,465 | 137,019 |
| Cash flows from investing activities: | ||
| Proceeds from refranchising transactions | 2,092 | — |
| Proceeds from sale of other property and equipment | 2,412 | 1,957 |
| Other investing activities | 154 | 215 |
| Net cash provided by investing activities | 4,658 | 2,172 |
| Cash flows from financing activities: | ||
| Net change in book overdraft | (1,260) | (1,952) |
| Repayments of Class A-2 Notes | (11,800) | (11,800) |
| Payment for deferred financing costs of Series 2018-1 VFN Notes | — | (861) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total distributions to members in fiscal year 2023 was $(139,428). This figure represents the cash outflow from the company to its members during that fiscal year.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into how Carls manages its finances and allocates profits. A high distribution amount could indicate strong profitability, but it's important to consider this in the context of other financial metrics, such as net income and capital contributions.
It is also important to note that these distributions are related to the CKE Securitization Entities, as mentioned in Note 12. Reviewing the complete financial statements and notes is essential for a comprehensive understanding of Carls's financial health and stability. A potential franchisee should consult with a financial advisor to fully assess the implications of these distributions.