What was the total provision for income taxes for Management Recruiters as of December 31, 2022?
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 total provision for income taxes as of December 31, 2022, was $1,895,000. This figure represents the amount Management Recruiters allocated for income taxes during that year. This number is derived from the table that summarizes the consolidated statements of income.
It's important to understand that this provision is an accounting estimate, reflecting the company's best assessment of its income tax obligations based on current tax laws and regulations. The actual tax liability could differ from this provision when the final tax returns are filed and reviewed by tax authorities. Franchisees should recognize that changes in tax laws or the company's financial performance could impact future tax provisions.
Prospective franchisees should consult with a financial advisor to understand the implications of income taxes on their investment. Reviewing Management Recruiters' financial statements and understanding their tax strategies can provide valuable insights into the company's financial health and stability. Understanding the tax provision helps franchisees assess the overall profitability and financial management of the franchise system.