What was Chem Dry's operating loss/income for the year ended December 31, 2023?
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 operating loss for the year ended December 31, 2023, was approximately ($44,682). This figure is presented in thousands of dollars, so the actual loss was $44,682,000. This can be found in the Consolidated Statement of Operations.
For a prospective Chem-Dry franchisee, this is a crucial piece of financial information. An operating loss of this magnitude indicates that the company's expenses significantly exceeded its revenues during that period. It is important to investigate the reasons behind such a substantial loss, which in this case included Impairment of Goodwill of $45,537.
Understanding the factors contributing to this loss is essential for evaluating the financial health and stability of Chem-Dry. Potential franchisees should inquire about the specific strategies Chem-Dry is implementing to address these financial challenges and improve future profitability. It would be prudent to compare these figures with previous years and industry benchmarks to assess the severity and potential impact on the franchise system.