Does the text provide a cross-section of financial data for Checkersrallys?
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, Item 21 includes the consolidated statements of cash flows. The provided consolidated statements of cash flows include financial data for the year ended December 30, 2024 (Successor), the period from June 17, 2023 through January 1, 2024 (Successor), and the period from January 3, 2023 through June 16, 2023 (Predecessor).
The consolidated statements of cash flows detail the operating, investing, and financing activities of Checkersrallys. For the year ended December 30, 2024, Checkersrallys reported a net income of $21,260 (in thousands) and net cash provided by operating activities of $15,850 (in thousands). Capital expenditures for the same period were $(10,024) (in thousands). Net cash used in financing activities totaled $(2,821) (in thousands). The document also shows cash flow information for predecessor and successor periods.
These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The statements include various adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities, such as depreciation and amortization, deferred income tax expense (benefit), noncash operating lease expense, and changes in operating assets and liabilities. These adjustments provide a more comprehensive view of Checkersrallys's cash flow dynamics.
The inclusion of these audited financial statements in Item 21 of Checkersrallys's FDD aims to provide prospective franchisees with an overview of the brand's financial health and performance. Reviewing these statements can help potential franchisees assess the financial stability and operational efficiency of Checkersrallys, aiding in their decision-making process.