What was the net loss for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
istribution to parent | - | - | (324,718) | - | - | (324,718) | | Equity-based compensation | - | - | 4,194 | - | - | 4,194 | | Foreign currency translation adjustment | - | - | - | - | 8,527 | 8,527 | | Net loss | - | - | - | (439,076) | - | (439,076) | | Balance – | 100 | $ - | $ 2,100,435 | $ (489,405) | $ (42,956) $ | 1,568,074 | | December 31, 2023 | | | | | | |
Consolidated Statements of Cash Flows ($000's)
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Operating activities | ||
| Net loss | $ (439,076) $ | (35,746) |
| Adjustments to reconcile net loss to net cash provided by | ||
| operating activities: | ||
| Depreciation and amortization | 116,929 | 104,943 |
| Amortization of deferred financing costs | 4,164 | 1,447 |
| Loss on impairment of goodwill and tradenames | 428,286 | 51,454 |
| Bad debt expense | 2,812 | 2,398 |
| Notes received | (15,243) | (13,059) |
| Collections of notes receivable | 16,605 | 13,965 |
| Deferred income taxes | (44,346) | (44,898) |
| (Gain) loss on disposal of assets | - | (538) |
| Equity-based compensation | 4,194 | 3,414 |
| Changes in assets and liabilities, net of business acquisitions: | ||
| Trade accounts receivable | (1,403) | (11,523) |
| Inventories | 626 | (1,281 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the company experienced a net loss of $439,076 in 2023. This figure is derived from the consolidated financial statements included in the FDD, which provide a detailed overview of the company's financial performance over the past two years. Reviewing these statements is crucial for potential franchisees to understand the financial health and stability of Precision Door Service.
The net loss is calculated by subtracting total expenses from total revenues, also factoring in other income, expenses, and tax benefits. In Precision Door Service's case, the operating loss of $394,110 combined with other expenses, most notably interest expenses of $68,756, contributed to the net loss before income taxes of $462,866. However, an income tax benefit of $23,790 partially offset the loss, resulting in the final net loss of $439,076.
Prospective franchisees should carefully analyze the components contributing to this net loss. A significant factor was the loss on impairment of goodwill and tradenames, amounting to $428,286. Understanding the reasons behind this impairment and its potential impact on future financial performance is essential. Additionally, scrutinizing the trends in revenues, cost of sales, and various operating expenses can provide valuable insights into the overall profitability and efficiency of Precision Door Service's business model. Consulting with a financial advisor to interpret these financial statements is highly recommended for any potential franchisee.