How much was the depreciation and amortization for Management Recruiters in 2022 (in thousands)?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| | 58,254 | 46,735 |
| | $ | 103,283 | $ 77,352 | | Total liabilities and stockholders' equity | | | |
HireQuest, Inc. Consolidated Statements of Income
| Year ended | |||||||
|---|---|---|---|---|---|---|---|
| December 31, | December 31, | ||||||
| (in thousands, except per share data) | 2022 | 2021 | |||||
| Franchise royalties | $ | 28,897 | $ | 21,317 | |||
| Service revenue | 2,055 | 1,212 | |||||
| Total revenue | 30,952 | 22,529 | |||||
| Selling, general and administrative expenses | 12,874 | 13,328 | |||||
| Depreciation and amortization | 2,040 | 1,551 | |||||
| Income from operations | 16,038 | 7,650 | |||||
| Other miscellaneous (expense) income | (2,047) | 4,570 | |||||
| Interest income | 247 | 413 | |||||
| Interest and other financing expense | (368) | (157) | |||||
| Net income before income taxes | 13,870 | 12,476 | |||||
| Provision for income taxes | 1,895 | 635 | |||||
| Net income from continuing operations | 11,975 | 11,841 | |||||
| Income from discontinued operations, net of tax | 483 | 9 | |||||
| Net income | $ | 12,458 | $ | 11,850 | |||
| Basic earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.88 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.88 | |||
| Diluted earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.87 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.87 | |||
| Weighted average shares outstanding |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the depreciation and amortization expenses for the year ending December 31, 2022, amounted to $2,040 thousand. This figure reflects the accounting measure of allocating the cost of tangible and intangible assets over their useful lives. For a prospective franchisee, understanding depreciation and amortization is crucial because it impacts the company's profitability and overall financial health.
Depreciation typically applies to tangible assets like equipment and buildings, while amortization applies to intangible assets such as patents or acquired franchise rights. The combined figure of $2,040 thousand indicates the extent to which Management Recruiters' assets are being utilized and expensed over time. This expense is a non-cash charge, meaning it doesn't involve an actual outflow of cash during the period, but it does reduce the company's reported income.
Franchisees should consider this figure in the context of Management Recruiters' overall financial performance. A higher depreciation and amortization expense can result from significant investments in assets, which may suggest growth and expansion. However, it's essential to evaluate whether these expenses are proportionate to the revenue generated and if they are managed efficiently. Reviewing these figures over several years can provide insights into Management Recruiters' capital expenditure strategy and asset management practices.
It is also useful to compare this figure against industry benchmarks to assess whether Management Recruiters' depreciation and amortization expenses are in line with similar companies. Furthermore, prospective franchisees may want to inquire about the specific assets that contribute most to these expenses and understand their expected useful lives. This information can help in evaluating the long-term sustainability and profitability of a Management Recruiters franchise.