What were the gains on sale of leased properties for Christian Brothers Automotive in 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
| Total operating costs and expenses | 103,360,231 | 96,373,233 |
| Income from operations | 33,836,412 | 25,936,269 |
| Other Income (Expense) | ||
| Gains on sale-leaseback transactions | 2,044,287 | 920,683 |
| Gains on sale of leased properties | 3,613,496 | 13,994,953 |
| Interest income | 1,234,707 | 859,510 |
| Interest expense | (6,596,136) | (2,497,171) |
| Other income, net | (293,984) | 467,395 |
| Total other income, net | 2,370 | 13,745,370 |
| Net income before state income taxes | 33,838,782 | 39,681,639 |
| State Income Tax Expense | (1,799,431) | (1,535,256) |
| Net income | 32,039,351 | 38,146,383 |
| Less net income attributable to noncontrolling interest | (592,784) | (11, |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the gains on the sale of leased properties in 2023 amounted to $3,613,496. This figure reflects the income Christian Brothers Automotive recognized from selling properties that were previously leased.
For a prospective franchisee, understanding these gains is crucial because it sheds light on Christian Brothers Automotive's financial strategies and overall profitability. The company's involvement in real estate, through investing, owning, and selling properties, can impact its financial stability and, consequently, the support and resources available to franchisees.
It's important to note that these gains can fluctuate significantly year to year, as evidenced by the substantial difference between the 2023 gain of $3,613,496 and the 2022 gain of $13,994,953. Such fluctuations can be influenced by market conditions, the number of properties sold, and the terms of sale-leaseback agreements. Franchisees should consider these factors when assessing the long-term financial health of Christian Brothers Automotive.
Sale-leaseback transactions are also relevant, where Christian Brothers Automotive sells properties and then leases them back. The gains from these transactions are reported separately. Reviewing both the gains on sale of leased properties and the gains on sale-leaseback transactions provides a more complete picture of Christian Brothers Automotive's real estate activities and their impact on the company's financial performance.