What was the total amount of gains on the 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 total gains on the sale of leased properties in 2023 amounted to $3,613,496. This figure reflects the profit Christian Brothers Automotive recognized from selling properties that were previously leased.
For a prospective franchisee, understanding these gains is crucial as it provides insight into Christian Brothers Automotive's financial strategies and performance. The company's involvement in real estate, through investing, owning, and selling properties, can impact its overall financial health, which in turn affects the stability and support it can offer to its franchisees. Knowing that Christian Brothers Automotive actively manages and profits from its real estate holdings offers a degree of reassurance about its business model.
It's also worth noting that Christian Brothers Automotive engages in sale-leaseback transactions, which are distinct from direct sales of leased properties. In 2023, gains from sale-leaseback transactions were $2,044,287. Reviewing both types of transactions helps a franchisee understand the different revenue streams and strategies employed by Christian Brothers Automotive. This information, combined with other financial data in the FDD, allows for a more comprehensive assessment of the franchise's financial standing and potential.