What was the cost of staffing services for Management Recruiters for the year ended December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
f customer lists with a net carrying value of approximately $3.1 million.
The income from discontinued operations amounts as reported on our consolidated statements of operations was comprised of the following amounts (in thousands):
| Year ended December 31, December 31, 2022 2021 | |||||
|---|---|---|---|---|---|
| Revenue | $ 6,313 | $ | 231 | ||
| Cost of staffing services | 4,505 | 171 | |||
| Gross profit | 1,808 | 60 | |||
| S |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the cost of staffing services for the year ended December 31, 2022, was $4,505. This figure represents the direct expenses Management Recruiters incurred to provide staffing services during that period. It is important to note that this cost is distinct from selling, general, and administrative expenses, which totaled $795 for the same year.
Gross profit, which is revenue minus the cost of staffing services, was $1,808 for the year ended December 31, 2022. This indicates the profit Management Recruiters made from its staffing services before considering other operating expenses. Net income before tax was $629, and after accounting for income taxes, the net income was $483.
Prospective franchisees should consider the relationship between revenue, cost of staffing services, and other expenses to understand the profitability of Management Recruiters. Reviewing these figures over multiple years, as presented in the FDD, can provide a more comprehensive understanding of the company's financial performance and trends.