What was the net income (loss) for Remax for the year ending December 31, 2023?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
uity-based compensation | 24,761 | — | 24,761 | | Payroll taxes related to net settled restricted stock units | (6,415) | — | (6,415) | | Member distributions | (78,393) | — | (78,393) | | Other | (146) | — | (146) | | Balances, December 31, 2022 | $ 3,685 | $ (1,609) | $ 2,076 | | Net income (loss) | (61,229) | — | (61,229) | | Change in accumulated other comprehensive income (loss) | — | 1,148 | 1,148 | | Member contribution of equity-based compensation | 17,018 | — | 17,018 | | Payroll taxes related to net settled restricted stock units | (4,273) | — | (4,273) | | Member distributions | (33,565) | — | (33,565) | | Other | (240) | — | (240) | | Balances, December 31, 2023 | $ (78,604) | $ (461) | $ (79,065) | | Net income | 11,293 | — | 11,293 | | Change in accumulated other comprehensive income (loss) | — | (4,213) | (4,213) | | Member contribution of equity-based compensation | 15,563 | — | 15,563 | | Payroll taxes related to net settled restricted stock units | (2,988) | — | (2,988) | | Member distributions | (8,450) | — | (8,450) | | Other | 87 | — | 87 | | Balances, December 31, 2024 | $ (63,099) | $ (4,674) | $ (67,773) |
(A Wholly Owned Subsidiary of RMCO, LLC) Consolidated Statements of Cash Flows (in thousands)
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ | 11,293 | $ | (61,229) | $ 20,714 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
| Depreciation and amortization | 29,551 | 32,387 | 35,742 | ||
| Equity-based compensation expense | 17,553 | 18,106 | 20,915 | ||
| Bad debt expense | 1,359 | 6,784 | 2,518 | ||
| Deferred income tax expense (benefit) | (2,102) | (1,571) | (1,690) | ||
| Fair value adjustments to contingent consideration | (225) | (533) | (133) | ||
| Settlement charge | 5,483 | 55,150 | — | ||
| Impairment charge - goodwill | — | 18,633 | 7,100 | ||
| Impairment charge - leased assets | — | — | 6,248 | ||
| Loss (gain) on sale or disposition of assets, net | 190 | 406 | 1,320 | ||
| Non-cash lease benefit | (2,928) | (2,847) | (2,108) | ||
| Non-cash loss on lease termination | — | — | 1,175 | ||
| Non-cash debt charges | 863 | 860 | 861 | ||
| Payment of contingent consideration in excess of acquisition date fair value | (360) | — | — | ||
| Other, net | (218) | 38 | 49 | ||
| Changes in operating assets and liabilities | |||||
| Accounts and notes receivable, current portion | 8,324 | (8,778) | 2,834 | ||
| Other current and noncurrent assets | 712 | 6,462 | 5,819 | ||
| Other current and noncurrent liabilities | 1,526 | (19,338) | (17,906) | ||
| Income taxes receivable/payable | 92 | (1,078) | (464) | ||
| Deferred revenue, current and noncurrent | (2,870) | (5,432) | 58 | ||
| Net cash provided by operating activities | 68,243 | 38,020 | 83,052 | ||
| Cash flows from investing activities: | |||||
| Purchases of property, equipment and capitalization of software |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the net loss for the year ending December 31, 2023, was approximately $61,229. This figure represents the overall financial performance of Remax during that period, reflecting the difference between total revenues and total expenses, including factors like operating costs, interest, and taxes. For a prospective franchisee, this historical data point offers insight into the financial stability and profitability trends of the company.
It's important to consider this loss in the context of Remax's broader financial performance. The FDD also shows Remax's net income (loss) for 2022 and 2024, which were $20,714 and $11,293 respectively. Reviewing these figures alongside revenue and expense details can provide a more comprehensive understanding of the factors contributing to the 2023 loss and whether it was an isolated event or part of a larger trend.
Furthermore, the FDD provides details on cash flow from operating, investing, and financing activities. Examining these cash flow statements can help a potential franchisee assess Remax's ability to generate cash, manage its investments, and fund its operations. Understanding these financial dynamics is crucial for evaluating the overall financial health and sustainability of the Remax franchise system.