What was the net cash provided by operating activities for My Salon Suite in 2022?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | | | | | 31, | | | | | | | | 2023 | | | | | | |
Consolidated Statements of Cash Flows
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Operating | ||
| activities | ||
| Net income | $ 12,569,087 | $ 17,655,295 |
| Adjustments | ||
| to | ||
| reconcile | ||
| net | ||
| income | ||
| to | ||
| net | ||
| cash | ||
| provided by operating activities: | ||
| Bad | 429,277 | 58,670 |
| debt | ||
| expense | ||
| Depreciation | 4,502,473 | 4,043,757 |
| & | ||
| amortization | ||
| Share-based | 1,144,951 | 955,911 |
| compensation | ||
| expense | ||
| Gain | - | (253,092) |
| on | ||
| sale | ||
| of | ||
| assets | ||
| Capital | 323,146 | - |
| Asset | ||
| Impairment | ||
| Deferred | 182,406 | (526,188) |
| income | ||
| taxes | ||
| Amortization | 4,322,294 | 3,957,006 |
| of | ||
| right-of-use | ||
| asset | ||
| Changes in operating assets and | ||
| liabilities, | ||
| net | ||
| of | ||
| businesses | ||
| acquired: | ||
| Accounts | (715,354) | (1,222,781) |
| and | ||
| notes | ||
| receivable, | ||
| trade | ||
| Amount | (494,880) | 844,519 |
| due | ||
| to/from | ||
| affiliate | ||
| Prepaid | 635,960 | 61,885 |
| expenses | ||
| Other | (817,899) | 410,263 |
| assets | ||
| Income | 3,038,140 | (841,376) |
| taxes | ||
| payable | ||
| Accounts | (353,661) | (236,487) |
| payable | ||
| Accrued | 4,598,741 | 1,499,001 |
| liabilities | ||
| Other | (538,612) | (2,367,045) |
| long-term | ||
| liabilities | ||
| Deferred | (753,097) | 108,492 |
| revenue | ||
| Operating | (3,407,70) | (3,613,275) |
| lease | ||
| obligation | ||
| Net | 24,665,263 | 20,534,555 |
| cash | ||
| provided | ||
| by | ||
| operating | ||
| activities | ||
| Investing | ||
| activities | ||
| Capital | (2,715,270) | (3,563,623) |
| expenditures | ||
| Proceeds | - | 725,000 |
| from | ||
| sale | ||
| of | ||
| assets | ||
| Acquisition | (6,784,799) | - |
| of | ||
| a | ||
| business, | ||
| net | ||
| of | ||
| cash | ||
| acquired | ||
| Net | (9,500,069) | (2,838,623) |
| cash | ||
| used | ||
| in | ||
| investing | ||
| activities | ||
| Financing | ||
| activities | ||
| Payments on finance lease | (36,863) | (53,811 ) |
| Net | (18,947,698) | (11,618,027) |
| advances | ||
| to | ||
| parent | ||
| Net | (18,984,561) | (11,671,838) |
| cash | ||
| used | ||
| in | ||
| financing | ||
| activities | ||
| Net | (3,819,367) | 6,024,094 |
| increase | ||
| (decrease) | ||
| in | ||
| cash | ||
| and | ||
| cash | ||
| equivalents | ||
| Cash | 11,866,419 | 5,842,325 |
| and | ||
| cash | ||
| equivalents | ||
| at | ||
| beginning | ||
| of year | ||
| Cash | $ 8,047,052 | $ 11,8 |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $20,534,555. This figure represents the cash flow generated from the company's core business operations during that year. It's a key indicator of My Salon Suite's financial health and its ability to fund ongoing expenses and future growth.
Several factors contributed to this net cash flow. These include net income, adjustments to reconcile net income (such as depreciation and amortization), share-based compensation expense, and changes in operating assets and liabilities. These adjustments provide a more accurate picture of the actual cash generated by My Salon Suite's operations by accounting for non-cash expenses and changes in working capital.
For a prospective franchisee, this information is valuable because it provides insight into the financial stability and profitability of My Salon Suite. A strong net cash flow from operating activities suggests that the company is well-managed and has a sustainable business model. This can be reassuring for individuals considering investing in a My Salon Suite franchise, as it indicates the potential for a return on their investment and the franchisor's ability to support its franchisees.