What was the total provision for income taxes for Management Recruiters at the end of December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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HireQuest, Inc. Consolidated Statements of Income
| Year ended | ||||
|---|---|---|---|---|
| December 31, 2021 | December 31, 2020 | |||
| Franchise royalties | $ 21,317,045 | $ | 12,792,793 | |
| Staffing revenue, owned locations | 230,668 | - | ||
| Service revenue | 1,212,080 | 1,016,332 | ||
| Total revenue | 22,759,793 | 13,809,125 | ||
| Cost of staffing revenue, owned locations | (170,548) | - | ||
| Gross profit | 22,589,245 | 13,809,125 | ||
| Selling, general and administrative expenses | 13,363,957 | 8,700,446 | ||
| Depreciation and amortization | 1,563,088 | 129,182 | ||
| Income from operations | 7,662,200 | 4,979,497 | ||
| Other miscellaneous income | 4,570,575 | 458,973 | ||
| Interest income | 412,457 | 711,646 | ||
| Interest and other financing expense | (157,234) | (49,664) | ||
| Net income before income taxes | 12,487,998 | 6,100,452 | ||
| Provision for income taxes | 638,064 | 741,038 | ||
| Net income | $ 11,849,934 | $ | 5,359,414 | |
| Earnings per share | ||||
| Basic | $ 0.88 | $ | 0.40 | |
| Diluted | $ 0.87 | $ | 0.39 | |
| Weighted average shares outstanding | ||||
| Basic |
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 at the end of December 31, 2021, was $638,064. This figure reflects the amount Management Recruiters allocated for income taxes during that fiscal year.
For a prospective franchisee, understanding the provision for income taxes is crucial as it provides insight into the company's profitability and tax obligations. A higher provision for income taxes typically indicates higher earnings before taxes, suggesting a profitable business. However, it also means the company has a significant tax liability, which can impact its net income.
It's important to note that this figure is part of the overall financial health assessment of Management Recruiters. Franchisees should review these figures in conjunction with other financial metrics, such as revenue, expenses, and net income, to gain a comprehensive understanding of the company's financial performance and stability. Additionally, prospective franchisees should consult with a financial advisor to interpret these figures in the context of their investment decision.