What was the income from operations for Christian Brothers Automotive in 2022?
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 income from operations for 2022 was $25,936,269. This figure represents the company's earnings before considering other income and expenses, such as gains from sale-leaseback transactions, interest income/expense, and state income taxes. It is a key indicator of the core profitability of Christian Brothers Automotive's primary business activities.
For a prospective franchisee, understanding the income from operations provides insight into the financial health and stability of Christian Brothers Automotive. A consistently positive and growing income from operations suggests that the franchise system is well-managed and generates substantial profits from its core business model. This can be reassuring for potential investors who are evaluating the long-term viability of the franchise opportunity.
However, it's important to note that this figure is part of the consolidated financial statements, which include the performance of all Christian Brothers Automotive's subsidiaries and variable interest entities. While this gives a comprehensive view of the company's overall financial performance, franchisees should also consider the specific factors that contribute to the income from operations, such as revenue from franchise fees, real estate activities, and other related services. A detailed analysis of these factors can provide a more nuanced understanding of the franchise's profitability and potential for growth.