What was the net cash provided by operating activities for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Equity contribution | 101,756 | | Distributions | (265,744) | | Net income | 166,470 | | Foreign currency translation adjustment | 18,104 | | | | | Balance – | $ 3,111,215 | | December 31, 2023 | |
Combined Statements of Cash Flows ($000's)
| For the years ended December 31, | 2023 | (Restated) 2022 | |-------------------------------------------------|---------------------|--------------------| | Operating activities | | | | Net income | $ 166,470 $ | 138,944 | | Adjustments to reconcile net income to net cash | | | | provided by operating activities: | | | | Depreciation and amortization | 97,290 | 82,921 | | Bad debt expense | 2,283 | 2,035 | | Notes received | (15,050) | (12,808) | | Collections of notes receivable | 16,293 | 13,699 | | Changes in assets and liabilities: | | | | Trade accounts receivable | (464) | (8,183) | | Inventories | 883 | (1,035) | | Prepaid selling expenses and other assets | (11,464) | (9,491) | | Accrued liabilities | 198 | 338 | | Deferred revenue | 11,195 | 5,832 | | Net cash provided by operating activities | 267,634 | 212,253 | | Investing activities | | | | Purchase of equipment and other assets | (2,893) | (7,904) | | Purchase of intellectual property | - | (104,112) | | | | | | Net cash used in investing activities | (2,893) | (112,016) | | Financing activities | | | | Equity contribution | - | 102,000 | | Distributions paid | (265,744) | (202,999) | | | | | | Net cash used in financing activities | (265,744) | (100,999) | | Net decrease in cash and restricted cash | (1,003) | (762) | | | | | | Cash and restricted cash - Beginning of period | 5,740 | 6,502 | | Cash and restricted cash - End of period | $ 4,737 $ | 5,740 | | Supplemental cash flow disclosures: | | | | Non-cash contribution of equity | $ 101,756 $ | 14,670 | Notes to Combined Financial Statements ($000's)
1. Description of Business and Significant Accounting Policies
Organization and Description of Business
Neighborly Assetco LLC ("we", "our" and the "Company") is an infinite-lived single-member special purpose Delaware limited liability company and was organized on November 13, 2020, with no operations until March 25, 2021.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, there are two different values reported for the net cash provided by operating activities in 2023. One excerpt indicates that the net cash provided by operating activities was $267,634 in 2023. Another excerpt indicates that the net cash provided by operating activities was $75,496 in 2023.
It is important to note that there may be different legal entities described within the same FDD, which could account for the different values. Prospective franchisees should carefully review the financial statements and clarify with Precision Door Service which entity these figures pertain to, to understand the financial performance of the specific entity that will be franchising.
Understanding the net cash provided by operating activities is crucial for assessing the financial health and stability of Precision Door Service. This metric reflects the cash generated from the company's core business operations and its ability to meet its short-term obligations and fund future growth. A significant difference in reported values requires further investigation to ensure a clear understanding of the company's financial position.