What was the net cash used in investing activities for Engel & Volkers in 2023?
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' 2025 Franchise Disclosure Document, the net cash used in investing activities in 2023 was $(1,908,294). This figure represents the total cash outflow resulting from investments made by Engel & Volkers during that year. These investments can include the purchase of property, equipment, and capitalized software costs.
For a prospective franchisee, understanding the company's investment activities can provide insights into its growth strategy and financial health. A significant cash outflow in investing activities might indicate that Engel & Volkers is expanding its infrastructure or technology, which could benefit franchisees in the long run. However, it's also important to consider how these investments are financed and whether they are generating sufficient returns.
It is important to note that the specific details of these investments, such as the types of assets acquired and their potential impact on franchise operations, are not detailed in this excerpt. Therefore, prospective franchisees should inquire with Engel & Volkers about their investment strategy and how it aligns with the growth and support of the franchise system. Understanding these factors can help franchisees assess the long-term viability and potential of the franchise opportunity.