What was the amount of Precision Door Service's accumulated deficit as of December 31, 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
et | | | | | | | Intangible assets – | | 1,327,052 | | 1,425,724 | | | net | | | | | | | Goodwill | | 1,739,179 | | 1,741,101 | | | Other non-current assets | | 1,758 | | 2,128 | | | Total Assets | $ | 3,336,716 | $ | 3,459,395 | |
Consolidated Balance Sheets (continued) ($000's, except share and per share amounts)
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Liabilities and Stockholder's Equity | ||||
| Current Liabilities | ||||
| Trade accounts payable | $ | 17,856 | $ | 15,962 |
| Accrued liabilities | 48,074 | 56,589 | ||
| Deferred revenue - | 18,215 | 17,760 | ||
| current | ||||
| Current portion of long-term debt | 10,051 | 10,488 | ||
| Current portion of operating lease liabilities | 5,401 | 6,925 | ||
| Current portion of finance lease obligations | 5,941 | 4,426 | ||
| Total current liabilities | 105,538 | 112,150 | ||
| Long-term debt - | 1,571,110 | 1,451,356 | ||
| less current portion | ||||
| Operating lease obligations – | 15,639 | 21,302 | ||
| less current portion | ||||
| Finance lease obligations – | 10,278 | 10,187 | ||
| less current portion | ||||
| Deferred tax liabilities | 199,638 | 220,780 | ||
| Deferred revenue - | 74,718 | 73,850 | ||
| less current portion | ||||
| Other non-current liabilities | 1,616 | 1,696 | ||
| Commitments and Contingencies (Note 11) | ||||
| Stockholder's Equity | - | - | ||
| Common stock-par value $0.01 per share; 100 shares | ||||
| authorized, issued and outstanding |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the accumulated deficit as of December 31, 2023, was ($489,405). This figure represents the total losses Precision Door Service has incurred over its lifetime, which have not yet been offset by profits. In the context of a franchise, an accumulated deficit can be an indicator of past financial performance and may influence investor confidence.
For a prospective franchisee, this number provides insight into the financial history of Precision Door Service. While not necessarily a cause for alarm, it's important to understand the reasons behind the deficit. It could be due to initial startup costs, past economic downturns, or strategic investments in growth. A deficit does not automatically mean the company is unstable, but it warrants further investigation.
Franchisees should consider this information in conjunction with other financial metrics, such as revenue trends, profitability, and cash flow. It would be prudent to ask Precision Door Service about the factors contributing to the accumulated deficit and the strategies in place to address it. Understanding the franchisor's plan for future financial stability is crucial for making an informed investment decision.