What was the interest expense 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 company's interest expense for the year 2023 was $6,596,136. This figure is part of the consolidated financial statements, reflecting the total interest expenses incurred by Christian Brothers Automotive across all its operations. These expenses are a component of the 'Other Income (Expense)' section within the income statement.
Interest expenses typically arise from various forms of debt financing, such as loans used to fund business operations, acquisitions, or investments in real estate. For Christian Brothers Automotive, understanding the interest expense is crucial as it directly impacts the company's profitability. Higher interest expenses can reduce net income, while lower expenses can improve it.
Prospective franchisees should consider the interest expense in relation to the company's overall financial health and revenue generation. It's also worth noting that the interest expense can fluctuate from year to year, as seen by the change from $2,497,171 in 2022 to $6,596,136 in 2023, and further to $10,391,857 in 2024. This fluctuation may be due to changes in debt levels, interest rates, or accounting practices. Franchisees may want to inquire about the reasons for these changes to better understand the company's financial strategy and risk factors.