What was the interest expense 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 company's interest expense in 2022 was $2,497,171. This figure reflects the cost Christian Brothers Automotive incurred for its debt obligations during that year. Interest expense is a common cost for businesses, especially those with significant capital investments or ongoing financing needs.
For a prospective franchisee, understanding Christian Brothers Automotive's interest expense can provide insight into the company's financial leverage and how it manages its debt. A higher interest expense might indicate greater reliance on borrowing, while a lower expense could suggest a stronger cash position or less debt. However, it's important to consider these figures in the context of the company's overall financial performance and growth strategy.
It's also worth noting the change in interest expense from 2022 to 2023, as the interest expense increased to $6,596,136 in 2023. This increase could be due to factors such as increased borrowing, higher interest rates, or changes in the company's debt structure. Franchisees should inquire about the reasons for this change and how it might impact the company's future financial performance.