What was the state income tax 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 state income tax expense for 2023 was ($1,799,431). This figure represents the amount Christian Brothers Automotive paid in state income taxes during that fiscal year. It is important to note that this is an expense, indicated by the parentheses, meaning it is a deduction from the company's net income.
For a prospective franchisee, understanding the state income tax expense of the parent company can provide insight into the overall financial health and tax strategies of Christian Brothers Automotive. While franchisees are responsible for their own business's tax obligations, the franchisor's financial performance can impact the resources and support available to franchisees. A significant change in state income tax expense from year to year could signal changes in profitability, tax planning, or business structure.
It's also worth noting that the net income before state income taxes for 2023 was $33,838,782. After deducting the state income tax expense of $1,799,431, the net income was $32,039,351. This demonstrates the impact of state income taxes on the company's bottom line. Franchisees should consider these figures in the context of overall revenue and expenses to assess the financial stability of Christian Brothers Automotive.