What was the amount of capital distributions for City Publications during the year ended December 31, 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Debt expense | 312 | - | 26,102 | | | Depreciation expense | 3,000 | 3,000 | 3,000 | | | TOTAL OPERATING EXPENSES | 1,140,130 | 1,172,585 | 1,153,845 | | | OPERATING INCOME | 273,141 | 99,917 | (13,378) | | | OTHER (EXPENSE) | | | | | | Interest expense | (9,194) | (414) | (460) | | | NET INCOME | $ 263,947 | $ 99,503 | $ (13,838) | |
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Common Stock | Additional Paid-In Capital | Due From Affiliates | Retained Earnings | Total Shareholders' (Deficit) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE, DECEMBER 31, 2021 | $ 1,000 | $ | 17,000 | $ (1,770,163) | $ 1,715,261 | $ (36,902) | |||||
| Advances from (to) affiliates | (11,790) | (11,790) | |||||||||
| Capital (distributions) | (72,470) | (72,470) | |||||||||
| Net (loss) | (13,838) | (13,838) | |||||||||
| BALANCES, DECEMBER 31, 2022 | 1,000 | 17,000 | (1,781,953) | 1,628,953 | (135,000) | ||||||
| Advances from (to) affiliates | - | - | (67,140) | - | (67,140) | ||||||
| Capital additions | - | - | - | 17,027 |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, capital distributions for the year ending December 31, 2024, amounted to $107,323. This figure reflects the amount of money or assets distributed to the owners or shareholders of City Publications during that fiscal year. Capital distributions are essentially payments made to the owners from the company's capital, which can impact the company's retained earnings. Retained earnings represent the accumulated net income of the company after accounting for dividends or distributions to shareholders. For City Publications, the capital distributions reduced the retained earnings.
For a prospective franchisee, understanding capital distributions is crucial because it provides insight into how the company manages its finances and allocates profits. A high level of capital distributions might indicate that the company is returning value to its owners, but it could also mean less capital is retained for reinvestment in the business, potentially affecting future growth or stability. Conversely, lower distributions could suggest a focus on reinvestment and growth, but might also raise questions about owner satisfaction and returns.
It's important to note that capital distributions are different from net income. In 2024, City Publications had a net income of $263,947, but distributed $107,323 as capital distributions. This distinction highlights that net income represents the profitability of the company, while capital distributions are decisions about how to allocate the company's capital. Franchisees should consider these figures in conjunction with other financial metrics to assess the overall financial health and management practices of City Publications.