What was the net cash provided by operating activities for Lees Famous Recipe in 2024?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
ember 31, 2023 | 19,887,331 | 1,989 | 11,998,011 | (594,697) | 11,405,303 | | Net loss | - | - | - | (45,658) | (45,658) | | Balance, December 31, 2024 | 19,887,331 | $ 1,989 | $ 11,998,011 | $ (640,355) | $ 11,359,645 |
ARTEMIS RESTAURANT CORP. 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) | $ (45,658) | $ 244,996 | $ (433,830) | |
| Adjustments to reconcile net income (loss) to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | 3,902,066 | 2,994,576 | 2,943,406 | |
| Amortization of right of use asset in excess of rent paid | 338,343 | 55,708 | 53,057 | |
| Deferred income taxes | (167,000) | 136,000 | (88,000) | |
| Change in - | ||||
| Royalties receivable | 8,368 | 18,188 | (103,349) | |
| Proprietary product sales and allowances receivable | (256,040) | (412,895) | (823,305) | |
| Other receivables | 16,128 | (4,129) | 4,771 | |
| Inventory | 109,892 | (1,588) | (157,110) | |
| Prepaid expenses | (53,964) | 6,128 | 14,576 | |
| Other current assets | 15,840 | (32,544) | (27,915) | |
| Accounts payable | 931,067 | 605,538 | 199,390 | |
| Accrued payroll and compensated absences | 279,616 | 143,594 | 17,512 | |
| Taxes payable | 289,630 | 32,992 | 89,840 | |
| Deferred revenue | (68,834) | 115,548 | (70,755) | |
| Contingent consideration liability | 12,314 | - | - | |
| Net cash provided by operating activities | 5,311,768 | 3,902,112 | 1,618,288 | |
| Cash Flows from Investing Activities: | ||||
| Principal payments received on notes receivable | - | 1,898 | 10,509 | |
| Due from related party | (2,847) | - | 19,141 | |
| Purchase of property and equipment | (639,635) | (294,686) | (210,893) | |
| Net assets purchased in acquisition of LFRC Cynthiana | (375,000) | - | - | |
| Cash received in acquisition of LFRC St. Louis | 11,500 | - | - | |
| Net assets purchased in acquisition of LFRC St. Louis | (11,699,517) | - | - | |
| Cash received in acquisition of LFRC Ft. Wayne | - | 4,000 | - | |
| Net assets purchased in acquisition of LFRC Ft. Wayne | - | (467,000) | - | |
| Net assets purchased in acquisition of LFRC Ft. Wayne RE | - | (3,983,000) | - | |
| Cash received in acquisition of LFRC Sanford | - | 900 | - | |
| Net assets purchased in acquisition of LFRC Sanford | - | (291,210) | - | |
| Net assets purchased in acquisition of LFRC Sanford RE | - | (520,000) | - | |
| Net assets purchased in acquisition of LFRC Springfield | - | - | (8,517,599) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2024 was $5,311,768. This figure represents the cash flow generated from the company's core business operations during that year. It's a key indicator of the company's ability to generate cash from its ongoing activities.
For a prospective franchisee, a strong net cash flow from operating activities suggests that Lees Famous Recipe is effectively managing its resources and generating sufficient cash to cover its operational expenses. This can be a positive sign, indicating the potential for a stable and profitable business. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's financial health.
It is also important to note that this number is from the consolidated financial statement which includes Artemis, LFR Chicken and subsidiaries. This number may not be directly representative of the performance of an individual franchise location. A prospective franchisee should inquire about the typical operating activities of a franchise location.