What were the cash outlays for Checkersrallys for the year ended January 3, 2022?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Janua | 2023 through ry 1, 2024 ccessor) | 202: June | January 3, 2023 through June 16, 2023 (Predecessor) | ary 2, 2023 edecessor) | ary 3, 2022 | |||
| Revenues: | ||||||||
| Restaurant sales | $ | 141,217 | $ | 130,191 | $ | 278,541 | $ | 291,447 |
| Franchise and retail royalty revenue | 18,608 | 15,385 | 30,149 | 29,613 | ||||
| Franchise fees and other income | 5,317 | 4,061 | 9,685 | 10,964 | ||||
| Total Revenues | 165,142 | 149,637 | 318,375 | 332,024 | ||||
| Costs and expenses: | ||||||||
| Restaurant food and paper costs | 45,102 | 41,194 | 91,396 | 86,774 | ||||
| Restaurant labor costs | 44,446 | 38,348 | 86,874 | 88,361 | ||||
| Restaurant occupancy costs | 11,778 | 11,145 | 23,097 | 28,432 | ||||
| Restaurant depreciation | 2,524 | 7,529 | 13,084 | 13,838 | ||||
| Other restaurant operating expenses | 20,357 | 17,423 | 39,597 | 38,570 | ||||
| General and administrative expenses | 19,435 | 36,471 | 35,999 | 39,668 | ||||
| Franchise support and service expenses | 3,634 | 1,696 | 6,447 | 5,088 | ||||
| Advertising expense | 8,077 | 6,810 | 14,825 | 15,464 | ||||
| Other depreciation and amortization | 2,093 | 900 | 1,542 | 1,583 | ||||
| Restaurant retirement costs | 300 | 596 | 305 | 531 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | - | ||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,301 | ||||
| Net loss on sales of restaurants | 38 | 238 | ||||||
| Total costs and expenses | 159,039 | 2. | 229,584 | 318,773 | 3 | 319,610 | ||
| Operating income (loss) | 6,103 | (79,947) | (398) | 12,414 | ||||
| Other income (expense) | ||||||||
| Interest income | 1 | - | 1 | (E) | ||||
| Interest expense | (8,134) | (18,326) | (26,203) | (22,887) | ||||
| Other income (expense) | :=: | (375) | 24 | 201 | ||||
| Total other income (expense) | 0 | (8,133) | (18,701) | (26,178) | - | (22,686) | ||
| Loss before income tax expense (benefit) | (2,030) | (98,648) | (26,576) | (10,272) | ||||
| Income tax expense (benefit) | 540 | (7,542) | (2,952) | (206) | ||||
| Net loss | $ | (2,570) | $ | (91,106) | $ | (23,624) | $ | (10,066) |
CHECKERS DRIVE-IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
June 17, 2023 through January 1, 2024 (Successor) Sugar 2, 2023 CPredecessor) CPredecessor) For the Periods Ended Net loss $ (2,570) $ (91,106) $ (23,624) $ Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization A 6,638 A mortization of deferred financing costs A mortization of deferred financing costs Deferred income tax expense (benefit) Noncash operating lease expense, net Eight-of-use asset amortization for finance lease Change in favorable leasehold interests Change in unfavorable leasehold interests Noncash stock based compensation Noncash interest on long-term debt Loss on disposal of fixed assets Net loss on disposal of fixed assets Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,648) Decrease (increase) in other noncurrent assets 231 Changes in other noncurrent assets 232 Decrease (increase) in other noncurrent assets 233 Changes in other noncurrent assets (1,241) Decrease (increase) in other noncurrent assets 231 Control of the distribution of the current assets (1,241) Decrease (increase) in other noncurrent assets Depreciation and amortization 10,066) Amortization of deferred financing costs 54 892 1,771 Provision for credit losses 122 94 134 Deferred income tax expense (benefit) 4 (7,529) (2,961) Noncash operating lease expense, net 5,490 6,878 14,914 Right-of-use asset amortization for finance lease 455 262 204 Change in favorable leasehold interests 232 146 - Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 670 839 606 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 0,1618 0,211 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0,201 0 Provision for credit losses 122 94 134 Deferred income tax expense (benefit) 4 (7,529) (2,961) Noncash operating lease expense, net 5,490 6,878 14,914 Right-of-use asset amortization for finance lease 455 262 204 Change in favorable leasehold interests 232 146 - Change in unfavorable leasehold interests (31) (29) - Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants - 238 Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 927 (564) (153) Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in operating assets (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) 17,193 Deferred income tax expense (benefit) 1,570 Noncash operating lease expense, net 5,490 6,878 14,914 Right-of-use asset amortization for finance lease 455 262 204 Change in favorable leasehold interests 232 146 - 274 Right-of-use asset amortization for finance lease 455 262 204 Change in favorable leasehold interests 232 146 - Change in unfavorable leasehold interests (31) (29) - Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants - 238 Changes in operating assets and liabilities, net of acquisitions: - 221 522 Decrease (increase) in accounts and notes receivable, net (1,693) 221 522 Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in prepaid expenses (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) (215) Change in favorable leasehold interests Change in unfavorable leasehold interests (31) Noncash stock based compensation Noncash interest on long-term debt Noncash interest on long-term debt Noncash interest on long-term debt 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory 927 (564) Decrease (increase) in prepaid expenses (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory 927 (564) Decrease (increase) in other current assets (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 25 Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants 238 Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 927 (564) (153) Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in other current assets (1,618) 1,137 1,009 Decrease (increase) in other noncurrent assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) ÷ Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants 238 Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net (1,693) 221 522 Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in prepaid expenses (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) - Impairment of long-lived assets 623 66,633 4,763 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants 238 Changes in operating assets and liabilities, net of acquisitions: 221 522 Decrease (increase) in accounts and notes receivable, net 927 (564) (153) Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in other current assets (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) 758 Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants - 238 Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net (1,693) 221 522 Decrease (increase) in inventory 927 (564) (153) Decrease (increase) in prepaid expenses (1,618) 1,137 1,009 Decrease (increase) in other current assets (1,241) 105 931 Decrease (increase) in other noncurrent assets 231 602 (78) 9,198 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other no
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the consolidated statements of cash flows include data for the fiscal year ended January 3, 2022. Specifically, this includes the net loss, adjustments to reconcile net loss to net cash provided by (used in) operating activities, changes in operating assets and liabilities, and the overall net cash used in operating activities. These figures are presented in thousands of dollars.
For the year ended January 3, 2022, Checkersrallys had a net loss of $(23,624) thousand. Adjustments to reconcile this net loss to net cash included items such as depreciation and amortization of $10,066 thousand, amortization of deferred financing costs of $1,771 thousand, deferred income tax benefit of $(2,961) thousand, noncash operating lease expense of $14,914 thousand, right-of-use asset amortization for finance lease of $204 thousand, noncash stock based compensation of $1,208 thousand, noncash interest on long-term debt of $9,882 thousand, impairment of long-lived assets of $4,763 thousand, and net loss on disposal of fixed assets of $606 thousand.
Changes in operating assets and liabilities for Checkersrallys included a decrease in accounts and notes receivable of $522 thousand, a decrease in inventory of $(153) thousand, an increase in prepaid expenses of $1,009 thousand, and a decrease in other noncurrent assets of $(78) thousand. The document does not provide a single figure for total cash outlays, but rather a detailed breakdown of various cash flow activities. A prospective franchisee should carefully review these statements and consult with a financial advisor to understand the full scope of Checkersrallys's cash flow dynamics during this period.