What was the net income for Cornwell Quality Tools after taxes 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's 2025 Franchise Disclosure Document, the consolidated net income after taxes for the year ending December 31, 2022, was $23,889,515. This figure represents the company's profitability after all expenses, including the provision for income taxes, have been deducted from its total revenues. The net income is a key indicator of the company's financial health and performance during that period.
This net income figure is part of the Consolidated Statement of Shareholders' Equity, which provides a comprehensive view of changes in the company's equity structure over time. It shows the beginning balance of shareholders' equity at the start of the year, any additions to equity (such as net income), any reductions (such as dividends paid), and the resulting ending balance at the end of the year. For Cornwell Quality Tools, the net income significantly contributed to the increase in the total shareholders' equity from $158,731,260 at the beginning of 2022 to $179,279,140 at the end of the year.
For a prospective franchisee, the net income figure provides insight into the overall financial stability and success of Cornwell Quality Tools. A strong net income suggests that the company is well-managed, profitable, and has the potential to support its franchisees. However, it is essential to consider this figure in conjunction with other financial data and factors, such as the company's debt levels, growth rate, and industry trends, to gain a complete understanding of the franchise's financial viability. Additionally, the franchisee should investigate how Cornwell Quality Tools uses its net income, whether it's reinvested into the company, distributed as dividends, or used for other strategic purposes, as this can impact the long-term growth and stability of the franchise system.