What was the amount of claims paid by Management Recruiters during the period reflected in the financial statements?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
December 31, 2022 | 13,918 | $ 14 | $ (146) | $ 32,844 | $ 25,542 | $ 58,254 |
HireQuest, Inc. Consolidated Statement of Cash Flow
Year ended December 31, December 31, (in thousands) 2022 2021 Cash flows from operating activities Net income $ 12,458 $ 11,850 Income from discontinued operations (483) (9) Net income from continuing operations 11,975 11,841 Adjustments to reconcile net income to net cash used in operations: Depreciation and amortization 2,040 1,551 Non-cash interest 95 48 Allowance for losses on notes receivable 350 307 Stock based compensation 2,372 1,628 Deferred taxes (412) (2,367) Loss on disposition of intangible assets 2,233 1,223 Bargain purchase gain - (5,621) Changes in operating assets and liabilities: Accounts receivable (974) (3,065) Prepaid expenses, deposits, and other assets (9) (119) Prepaid workers' compensation (134) 1,065 Accounts payable (2,192) 349 Risk management incentive program liability (755) 773 Other current liabilities 230 (206) Accrued wages, benefits a
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the consolidated statement of cash flow for the year ending December 31, 2022, shows workers' compensation claim payment deposits of -$284,000 and workers' compensation claims liability of -$2,325,000. For the year ending December 31, 2021, the workers' compensation claim payment deposit was $6,876,000, and the workers' compensation claims liability was -$1,226,000. These figures are presented in thousands of dollars.
These values reflect changes in the company's deposits related to workers' compensation claim payments and the overall liability associated with those claims. The negative values indicate a decrease in deposits or liabilities, while positive values indicate an increase. These amounts are part of the broader financial activities related to managing workers' compensation risks and obligations.
For a prospective Management Recruiters franchisee, understanding these figures is crucial as it provides insight into how the company manages its workers' compensation liabilities and the cash flow implications associated with these claims. Franchisees should consider how Management Recruiters' risk management incentive program impacts their own potential liabilities and costs related to workers' compensation.