What was Chem Dry's consolidated net loss/income for the year ended December 31, 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Years Ended December 31, 2023, 2022, and 2021 | ||||
|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||
| Net Revenue | $31,072 $ 33,483 | $ 36,232 | ||
| Cost of Revenue | 9,613 9,055 | 10,700 | ||
| Gross Profit | 21,459 24,428 | 25,532 | ||
| Operating Expenses Before Impairment | 20,604 27,789 | 23,079 | ||
| Impairment of Goodwill | 45,537 1,266 | - | ||
| Impairment of Intangible Assets | - 4,952 | - | ||
| Operating (Loss) Income | (44,682) | (9,579) | 2,453 | |
| Nonoperating Income (Expense) | ||||
| Interest income | 496 1,112 | 1,465 | ||
| Loss on disposal of property and equipment | - - | (27) | ||
| Other income | 386 268 | 269 | ||
| Total nonoperating income | 882 1,380 | 1,707 | ||
| (Loss) Income - Before income taxes | (43,800) | (8,199) | 4,160 | |
| Income Tax Expense (Recovery) (Note 11) | 477 (1,869) | 1,219 | ||
| Consolidated Net (Loss) Income | $ (44,277) | $ (6,330) | $ 2,941 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the consolidated net income for the year ended December 31, 2021, was $2,941 (in thousands). This figure represents the net result of Chem-Dry's revenues, expenses, and other financial activities for that year, indicating an overall profit.
It's important to note that this consolidated net income includes the financial performance of BFG Holdco, Inc. and its subsidiaries, such as Chem-Dry, Inc., NHance, Inc., and others. The financial statement provides a comprehensive view of the company's overall profitability, taking into account various factors such as revenue, cost of revenue, operating expenses, and non-operating income and expenses.
A prospective Chem-Dry franchisee should consider this historical financial data as part of their due diligence. While past performance is not indicative of future results, it can provide insights into the financial stability and potential profitability of the franchisor. Reviewing trends over several years, such as the provided data for 2023 and 2022, alongside the 2021 figures, can offer a more complete picture. Note that the figures are presented in thousands, so the actual amounts are significantly larger than the numbers shown in the table.
It is also important to consider any factors that may have influenced the company's financial performance during this period, such as economic conditions, changes in consumer preferences, or specific events affecting the franchise system. Consulting with a financial advisor and conducting thorough research into Chem-Dry's financial health are crucial steps for any potential franchisee.