What was the net income for Cornwell Quality Tools in 2022?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
20,451,381 | $ (773,260) | $ - | $ 19,678,121 |
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2022
| Cornwell Quality Tools Company | CQT Kennedy, LLC | Eliminations | Consolidated | |
|---|---|---|---|---|
| SALES Less: Dealer weekly volume incentives | $ 251,915,684 4,853,504 | $ 22,648,171 | $ (12,862,937) | $ 261,700,918 4,853,504 |
| Sales - Net | 247,062,180 | 22,648,171 | (12,862,937) | 256,847,414 |
| COST OF GOODS SOLD | 178,516,201 | 23,648,832 | (12,862,937) | 189,302,096 |
| Gross profit | 68,545,979 | (1,000,661) | - | 67,545,318 |
| EXPENSES | ||||
| Shipping and warehousing | 6,300,877 | 2,300 | 6,303,177 | |
| Selling | 21,791,074 | 646,761 | 22,437,835 | |
| General and administrative | 13,068,550 | 1,259,995 | - | 14,328,545 |
| Employee stock ownership plan contribution | 5,000,000 | - | - | 5,000,000 |
| Goodwill amortization expense | - | 848,375 | - | 848,375 |
| Total expenses | 46,160,501 | 2,757,431 | - | 48,917,932 |
| Income (loss) before financing operations | 22,385,478 | (3,758,092) | • | 18,627,386 |
| FINANCING OPERATIONS | ||||
| Revenues | 19,598,514 | - | - | 19,598,514 |
| Other financing income | 1,069,676 | 1,069,676 | ||
| Total financing income | 20,668,190 | - | - | 20,668,190 |
| Expenses | 7,213,203 | _ | · · | 7,213,203 |
| Income from financing operations | 13,454,987 | _ | _ | 13,454,987 |
| Income (loss) from operations | 35,840,465 | (3,758,092) | - | 32,082,373 |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | (239,390) | (8,261) | - | (247,651) |
| Interest income | 325,161 | - | 325,161 | |
| Other expense - Net | (65,670) | (200) | - | (65,870) |
| Other income (expense) - Net | 20,101 | (8,461) | _ | 11,640 |
| Income (loss) before taxes | 35,860,566 | (3,766,553) |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the consolidated net income for the company in 2022 was $23,889,515. This figure represents the total profit Cornwell Quality Tools earned after deducting all expenses, including the cost of goods sold, operating expenses, financing operations, interest, and income taxes. This net income reflects the overall financial performance of Cornwell Quality Tools for that year.
For a prospective franchisee, understanding the franchisor's financial health is crucial. A strong net income indicates that Cornwell Quality Tools is a profitable and well-managed company, which can provide confidence in its stability and potential for future growth. This can be a positive indicator for potential franchisees, suggesting a solid foundation for the franchise system.
However, it is important to note that past performance is not necessarily indicative of future results. While a healthy net income in 2022 is encouraging, prospective franchisees should also review Cornwell Quality Tools' recent financial statements, including those for 2023 and beyond, to assess its ongoing financial performance and identify any trends or changes. Additionally, franchisees should consider other factors such as the company's debt levels, cash flow, and overall financial position to gain a comprehensive understanding of its financial health. Consulting with a financial advisor is recommended to properly interpret these financial statements and understand the risks involved.