What was the payment of dividends for Management Recruiters for the twelve months ended December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| Twelve months ended | |||||||
|---|---|---|---|---|---|---|---|
| December 31, 2021 | December 31, 2020 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 11,849,934 | $ 5,359,414 | ||||
| Adjustments to reconcile net income to net cash used in operations: | |||||||
| Depreciation and amortization | 1,563,088 | 129,182 | |||||
| Non-cash interest | 47,725 | - | |||||
| Allowance for losses on notes receivable | 307,440 | 1,598,673 | |||||
| Stock based compensation | 1,627,829 | 1,226,890 | |||||
| Deferred taxes | (2,366,549) | (1,767,825) | |||||
| Loss on disposition of intangible assets | 1,222,546 | - | |||||
| Bargain purchase gain | (5,621,484) | - | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,476,972) | 6,856,780 | |||||
| Prepaid expenses, deposits, and other assets | (119,283) | (155,531) | |||||
| Prepaid workers' compensation | 1,065,368 | (611,645) | |||||
| Accounts payable | 348,799 | 203,645 | |||||
| Risk management incentive program liability | 773,157 | (953,435) | |||||
| Other current liabilities | (206,236) | (571,082) | |||||
| Accrued benefits and payroll taxes | 844,000 | (370,473) | |||||
| Due to franchisees | 3,872,240 | (381,819) | |||||
| Workers' compensation claim payment deposit | 6,875,802 | (623,452) | |||||
| Workers' compensation claims liability | (1,225,846) | 739,566 | |||||
| Net cash provided by operating activities - continuing operations | 17,381,558 | 10,678,888 | |||||
| Net cash used in operating activities - discontinued operations | - | 201,440 | |||||
| Net cash provided by operating activities | 17,381,558 | 10,880,328 | |||||
| Cash flows from investing activities | |||||||
| Purchase of acquisitions | (33,736,734) | - | |||||
| Purchase of property and equipment | (1,401,597) | (1,421,875) | |||||
| Proceeds from the sale of purchased locations | 997,367 | - | |||||
| Proceeds from the sale of notes receivable | 5,261,111 | - | |||||
| Proceeds from payments on notes receivable | 669,435 | 2,075,590 | |||||
| Cash issued for notes receivable | (855,664) | (330,082) | |||||
| Investment in intangible assets | (573,606) | (342,697) | |||||
| Net change in franchisee deposits | 193,389 | 55,435 | |||||
| Net cash (used in) provided by investing activities | (29,446,299) | 36,371 | |||||
| Cash flows from financing activities | |||||||
| Proceeds from term loan payable | 3,153,500 | - | |||||
| Payment on term loan payable | (87,595) | - | |||||
| Payments related to debt issuance | (477,258) | - | |||||
| Proceeds from the exercise of stock options | 33,494 | - | |||||
| Net proceeds from revolving line of credit | 171,286 | - | |||||
| Proceeds from affiliates | - | 67,398 | |||||
| Purchase of treasury stock | - | (146,465) | |||||
| Payment of dividends | (3,140,600) (347,173) | (1,357,648) (1,436,715) | |||||
| Net cash used in financing activities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the payment of dividends for the twelve months ended December 31, 2021, was a deduction of $3,140,600. The document also lists a deduction of $347,173, but it is unclear what this figure represents.
This figure is part of the cash flow statement, which outlines the movement of cash both into and out of Management Recruiters. Dividend payments represent a distribution of the company's earnings to its shareholders. For prospective franchisees, understanding the dividend payment history can offer insights into the company's financial management and its commitment to returning value to its owners.
It is important to note that dividend payments can fluctuate based on the company's profitability, investment strategies, and overall financial health. While a consistent dividend payment history might be seen as a positive sign, potential franchisees should also consider other financial metrics and factors when evaluating the franchise opportunity. Reviewing the complete financial statements and consulting with a financial advisor is recommended to gain a comprehensive understanding of Management Recruiters' financial performance and stability.