How much did Checkersrallys spend on capital expenditures during the year ended December 30, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
tment | | - | | - | | 181 | | 181 | | | Net income | | - | | - | | 21,260 | | 21,260 | | | Balances at December 30, 2024 | $ | - | $ | 98,449 | $ | 18,785 | $ | 117,234 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Successor | Predecessor | |||||
|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||
| Operating activities: | ||||||
| Net income (loss) | $ | 21,260 | $ | (2,570) | (91,106) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 9,312 | 4,638 | 8,552 | |||
| Amortization of deferred financing costs | 294 | 54 | 892 | |||
| Provision for credit losses | 582 | 122 | 94 | |||
| Deferred income tax expense (benefit) | (25,962) | 4 | (7,529) | |||
| Noncash operating lease expense, net | 14,873 | 5,490 | 6,878 | |||
| Right-of-use asset amortization for finance lease | 2,699 | 455 | 262 | |||
| Change in favorable leasehold interests | 427 | 232 | 146 | |||
| Change in unfavorable leasehold interests | 56 | (31) | (29) | |||
| Noncash stock based compensation | 498 | 132 | 5,720 | |||
| Noncash interest on long-term debt | 5,201 | 2,534 | 13,808 | |||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||
| Changes in operating assets and liabilities: | ||||||
| Decrease (increase) in accounts receivable, net | (264) | (1,693) | 221 | |||
| Decrease (increase) in inventory | (250) | 927 | (564) | |||
| Decrease (increase) in prepaid expenses | (30) | (1,618) | 1,137 | |||
| Decrease (increase) in other current assets | 1,881 | (1,241) | 105 | |||
| Decrease in other noncurrent assets | 1,150 | 231 | 602 | |||
| (Decrease) increase in accounts payable | 582 | (16) | (247) | |||
| (Decrease) increase in accrued liabilities, accrued wages and benefits, deferred | ||||||
| revenue, self-insurance, and long-term liabilities | (680) | (7,774) | 9,416 | |||
| Change in operating lease liabilities | (17,434) | (8,154) | (8,250) | |||
| Other changes, net | (793) | (237) | (584) | |||
| Net cash provided by (used in) operating activities | 15,850 | (7,222) | 6,996 | |||
| Investing activities: | ||||||
| Capital expenditures | (10,024) | (7,269) | (5,513) | |||
| Net cash used in investing activities | (10,024) | (7,269) | (5,513) | |||
| Financing activities: | ||||||
| Payment for debt issuance costs | - | (500) | - | |||
| Principal payments on long-term debt | (812) | (1,304) | (1,360) | |||
| Principal payments on financing obligations | (73) | (47) | (400) | |||
| Repayments on finance lease liabilities | (1,885) | (254) | (159) | |||
| Proceeds from short-term financing | 1,464 | 1,540 | - | |||
| Payment on short-term financing | (1,515) | - | - | |||
| Proceeds from the issuance of long-term financing | - | 10,000 | - | |||
| Net cash (used in) provided by financing activities | (2,821) | 9,435 | (1,919) | |||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS | 3,005 | (5,056) | (436) | |||
| Cash, cash equivalents, and restricted cash at beginning of period | 12,557 | 17,613 | 18,049 | |||
| Cash, cash equivalents, and restricted cash at end of period | $ | 15,562 | $ | 12,557 | $ | 17,613 |
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid for interest | $ | 7,859 | $ | 4,619 | $ | 458 |
| Income taxes paid, net of refunds | 558 | 18 | 43 | |||
| Non-cash activities: | ||||||
| Non-cash right-of-use assets obtained in exchange for operating leases | $ | 664 | $ | 1,006 | $ | 1,058 |
| Non-cash right-of-use assets obtained in exchange for finance |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's capital expenditures for the year ended December 30, 2024, totaled $10.024 million. This figure reflects the investments Checkersrallys made in its property, equipment, and other assets during that fiscal year.
For a prospective franchisee, understanding Checkersrallys's capital expenditure strategy can provide insights into the company's growth plans and investment in its infrastructure. Significant capital expenditures may indicate that Checkersrallys is focused on expanding or upgrading its existing facilities and technology.
It's important to note that this figure represents the capital expenditures for Checkersrallys as a whole and not necessarily the investment required for an individual franchise location. A potential franchisee should inquire about the specific capital investments they will need to make to establish and maintain their own Checkersrallys franchise.