What was the net cash provided by operating activities for Engel & Volkers in 2022?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
rehensive loss: | - | - | - | - | (141,272) | (141,272) | | Foreign currency translation | | | | | | | | adjustment | | | | | | | | BALANCE - DECEMBER 31, | 17,143 | $ 171,430 | $ 34,285,342 | $ (17,638,174) | $ (173,649) | $16,644,949 | | 2024 | | | | | | |
ENGEL & VÖLKERS AMERICAS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income (loss) | $ (4,048,100) | $ 1,761,556 | $ 3,560,109 |
| Adjustments to reconcile net income (loss) to net cash | |||
| provided by operating activities: | |||
| Depreciation and amortization | 2,288,707 | 1,596,741 | 1,002,565 |
| Non-cash lease expense | 422,734 | 432,537 | 467,177 |
| Provision for doubtful accounts | 644,206 | 673,367 | 14,444 |
| Foreign exchange gain on long-term debt | - | - | (15,369) |
| Deferred income taxes | 4,748 | (53,900) | 131,267 |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (750,778) | (1,113,744) | 203,349 |
| Prepaid commissions | 41,985 | (269,440) | (20,804) |
| Other prepaid expenses | (63,766) | (361,450) | (108,581) |
| Due from affiliates, net | (1,425,055) | (65,316) | 112,966 |
| Prepaid income taxes | 827,611 | 831,019 | (1,658,630) |
| Notes receivable | 1,064,148 | (789,858) | (160,000) |
| Other receivables | (552,774) | 3,000 | 2,000 |
| Deposits | (34) | (32) | (33) |
| Operating lease liability | (429,737) | (429,737) | (412,994) |
| Accounts payable | (410,404) | 403,164 | (366,207) |
| Accrued expenses and other current liabilities | 2,966,698 | (42,193) | (1,580,465) |
| Contract liabilities | (132,172) | 95,856 | 156,569 |
| Other long-term liabilities | 3,065,357 | - | - |
| Income taxes payable | (301,464) | (796,994) | 1,111,599 |
| Net cash provided by operating activities | 3,211,910 | 1,874,576 | 2,438,962 |
| Cash flows from investing activities: | |||
| Additions to property and equipment | (22,791) | (26,523) | (556,206) |
| Capitalized software costs | (1,853,750) | (1,881,771) | (1,650,544) |
| Net cash used in investing activities | (1,876,541) | (1,908,294) | (2,206,750) |
| Cash used in financing activities: | |||
| Repayment of long-term debt | - | - | (308,760) |
| Effect of exchange rate changes on cash | (141,272) | 30,285 | (54,080) |
| Net increase (decrease) in cash and cash equivalents | 1,194,097 | (3,433) | (130,628) |
| Cash and cash equivalents - beginning | 5,037,368 | 5,040,801 | 5,171,429 |
| CASH AND CASH EQUIVALENTS - ENDING | $ 6,231,465 | $ 5,037,368 | $ 5,040,801 |
| Supplemental disclosures of cash f |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $2,438,962. This figure represents the cash generated from the company's normal business operations during that year. It's a key indicator of Engel & Volkers's ability to fund its operations, make investments, and meet its financial obligations.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It provides insight into the financial health and stability of Engel & Volkers. A positive and consistent net cash flow from operations suggests that the company is generating enough cash to sustain its business and potentially support its franchisees. This can be a reassuring factor when considering investing in an Engel & Volkers franchise.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks. While a positive net cash flow is generally a good sign, it's essential to analyze the trends over multiple years to assess the long-term financial performance of Engel & Volkers. Additionally, comparing this figure to other real estate franchises can provide a better understanding of Engel & Volkers's relative financial strength.