What was the total capital for Precision Door Service 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 total stockholder's equity, representing the capital, was $1,568,074 as of December 31, 2023. This figure is derived from the financial statements included in the FDD, which provide a snapshot of the company's financial position at the end of the year. The stockholder's equity is calculated by subtracting total liabilities from total assets, reflecting the net worth of Precision Door Service. This number includes common stock, additional paid-in capital, accumulated deficit, and accumulated other comprehensive loss.
For a prospective franchisee, understanding the capital structure of Precision Door Service is crucial. A healthy stockholder's equity suggests financial stability and the ability to meet its obligations. However, it's also important to consider the components of the equity, such as the accumulated deficit, which represents the company's accumulated losses over time. A significant deficit could raise concerns about the company's profitability and future prospects. The additional paid-in capital reflects the amount investors have paid above the par value of the stock, indicating investor confidence and willingness to invest in the company.
It is also important to note that the total liabilities and stockholder's equity as of December 31, 2023, was $3,459,395. This number represents the total assets of the company, which are financed by liabilities and equity. A prospective franchisee should analyze the composition of liabilities to assess the company's debt burden and its ability to manage its financial obligations. The financial statements also include details on various types of liabilities, such as trade accounts payable, accrued liabilities, and deferred revenue, providing a comprehensive view of the company's financial health.
In summary, while the stockholder's equity provides a snapshot of Precision Door Service's capital, a thorough review of the entire financial statement, including assets, liabilities, and income statement, is essential for a prospective franchisee to make an informed decision. Consulting with a financial advisor to interpret these financial statements and understand their implications is highly recommended.