2022 Q4 Form 10-K Financial Statement

#000162828023005078 Filed on February 24, 2023

View on sec.gov

Income Statement

Concept 2022 Q4 2022 2021 Q4
Revenue $103.8M $407.2M $74.19M
YoY Change 39.93% 242.53% 1041.35%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $50.70M $157.9M $36.80M
YoY Change 37.75% 131.49% 417.64%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $6.939M $27.02M $5.407M
YoY Change 28.33% 940.64% 1218.78%
% of Gross Profit
Operating Expenses $119.4M $406.6M $73.67M
YoY Change 62.03% 261.51% 936.13%
Operating Profit -$17.90M
YoY Change -2337.5%
Interest Expense -$25.64M -$94.85M -$16.39M
YoY Change 56.4% 226.42% 905.71%
% of Operating Profit
Other Income/Expense, Net $1.456M -$89.47M $561.0K
YoY Change 159.54% 148.93% -247.63%
Pretax Income -$56.79M -$107.4M -$19.82M
YoY Change 186.53% 205.75% 98.99%
Income Tax $14.02M $18.80M -$234.0K
% Of Pretax Income
Net Earnings -$70.81M -$126.2M -$19.60M
YoY Change 261.19% 299.54% 155.59%
Net Earnings / Revenue -68.21% -30.99% -26.42%
Basic Earnings Per Share -$7.66
Diluted Earnings Per Share -$4.27 -$7.66 -$1.200M
COMMON SHARES
Basic Shares Outstanding 16.48M shares
Diluted Shares Outstanding 16.48M shares

Balance Sheet

Concept 2022 Q4 2022 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.67M $28.67M $56.66M
YoY Change -49.4% -49.4% 1352.72%
Cash & Equivalents $68.76M $99.92M
Short-Term Investments
Other Short-Term Assets $6.086M $36.23M $11.85M
YoY Change -48.65% -13.88% 401.18%
Inventory $6.925M $6.925M $5.927M
Prepaid Expenses
Receivables $23.90M $23.88M $19.56M
Other Receivables $0.00 $0.00 $231.0K
Total Short-Term Assets $95.70M $95.70M $118.5M
YoY Change -19.25% -19.25% 385.24%
LONG-TERM ASSETS
Property, Plant & Equipment $79.20M $180.3M $80.50M
YoY Change -1.61% 0.7% 16566.67%
Goodwill $293.3M $295.1M
YoY Change -0.62% 2605.36%
Intangibles $625.3M $652.8M
YoY Change -4.21% 1268.24%
Long-Term Investments
YoY Change
Other Assets $4.003M $18.72M $2.534M
YoY Change 57.97% -11.09% 339.93%
Total Long-Term Assets $1.118B $1.118B $1.152B
YoY Change -2.95% -2.95% 1090.56%
TOTAL ASSETS
Total Short-Term Assets $95.70M $95.70M $118.5M
Total Long-Term Assets $1.118B $1.118B $1.152B
Total Assets $1.213B $1.213B $1.270B
YoY Change -4.47% -4.47% 948.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.33M $18.33M $27.53M
YoY Change -33.42% -33.42% 219.15%
Accrued Expenses $52.80M $95.68M $46.30M
YoY Change 14.05% 16.44% 133.42%
Deferred Revenue $2.019M $2.636M
YoY Change -23.41% 39.69%
Short-Term Debt $4.000M $4.000M $1.173M
YoY Change 241.01% 241.01%
Long-Term Debt Due $49.60M $49.61M $600.0K
YoY Change 8166.67% 7762.28% -96.89%
Total Short-Term Liabilities $267.0M $267.0M $198.5M
YoY Change 34.53% 34.53% 171.24%
LONG-TERM LIABILITIES
Long-Term Debt $958.6M $958.6M $904.3M
YoY Change 6.0% 6.01% 1124.48%
Other Long-Term Liabilities $2.332M $119.7M $976.0K
YoY Change 138.93% 7.25% 1090.24%
Total Long-Term Liabilities $960.9M $1.078B $905.3M
YoY Change 6.15% 6.15% 1124.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $267.0M $267.0M $198.5M
Total Long-Term Liabilities $960.9M $1.078B $905.3M
Total Liabilities $1.372B $1.372B $1.227B
YoY Change 11.84% 11.84% 652.78%
SHAREHOLDERS EQUITY
Retained Earnings -$178.7M -$52.48M
YoY Change 240.52% 151.14%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$159.2M -$159.2M -$21.66M
YoY Change
Total Liabilities & Shareholders Equity $1.213B $1.213B $1.270B
YoY Change -4.47% -4.47% 948.37%

Cashflow Statement

Concept 2022 Q4 2022 2021 Q4
OPERATING ACTIVITIES
Net Income -$70.81M -$126.2M -$19.60M
YoY Change 261.19% 299.54% 155.59%
Depreciation, Depletion And Amortization $6.939M $27.02M $5.407M
YoY Change 28.33% 940.64% 1218.78%
Cash From Operating Activities -$10.80M -$47.40M $4.688M
YoY Change -330.27% -7050.0% -257.85%
INVESTING ACTIVITIES
Capital Expenditures $9.815M $21.42M -$8.761M
YoY Change -212.03% 105.54% 3882.27%
Acquisitions $1.022M
YoY Change -99.86%
Other Investing Activities $11.75M $0.00 -$368.3M
YoY Change -103.19% -100.0% 11302.14%
Cash From Investing Activities $1.938M -$12.50M -$377.1M
YoY Change -100.51% -98.27% 10797.4%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 15.52M $28.74M 428.8M
YoY Change -96.38% -96.47% -69254.03%
NET CHANGE
Cash From Operating Activities -10.80M -$47.40M 4.688M
Cash From Investing Activities 1.938M -$12.50M -377.1M
Cash From Financing Activities 15.52M $28.74M 428.8M
Net Change In Cash 6.664M -$31.16M 56.39M
YoY Change -88.18% -133.61% -899.9%
FREE CASH FLOW
Cash From Operating Activities -$10.80M -$47.40M $4.688M
Capital Expenditures $9.815M $21.42M -$8.761M
Free Cash Flow -$20.61M -$68.82M $13.45M
YoY Change -253.25% 606.57% -589.05%

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CY2022 fat Increase Decrease In Accrued Advertising
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CY2021 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 us-gaap Payments To Acquire Intangible Assets
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CY2021 us-gaap Payments To Acquire Intangible Assets
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CY2021 us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
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CY2022 us-gaap Proceeds From Sale Of Property Plant And Equipment
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CY2021 us-gaap Proceeds From Sale Of Property Plant And Equipment
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CY2021 us-gaap Payments To Acquire Property Plant And Equipment
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CY2021 fat Proceeds From Purchase Deposits On Refranchised Restaurants
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CY2021 us-gaap Net Cash Provided By Used In Investing Activities
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CY2022 us-gaap Repayments Of Short Term Debt
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CY2021 us-gaap Proceeds From Issuance Of Preferred Stock And Preference Stock
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CY2021 fat Repayment Of Change In Operating Lease Liabilities
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CY2021 us-gaap Payments Of Merger Related Costs Financing Activities
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CY2022 us-gaap Proceeds From Warrant Exercises
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CY2021 us-gaap Proceeds From Warrant Exercises
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2021 us-gaap Interest Paid Net
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CY2022 us-gaap Income Taxes Paid Net
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CY2021 us-gaap Income Taxes Paid Net
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CY2022 fat Director Fees Converted To Common Stock
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CY2021 fat Director Fees Converted To Common Stock
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CY2021 us-gaap Stock Issued1
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CY2017Q4 fat Initial Public Offering Percentage
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0.20
CY2022 fat Number Of Franchise Brands
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17 franchise
CY2022Q4 us-gaap Number Of Stores
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2300 location
CY2022Q4 fat Percent Of Total Restaurants Franchised
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0.95
CY2022 us-gaap Number Of Operating Segments
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1 segment
CY2022 us-gaap Operating Income Loss
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CY2021 us-gaap Operating Income Loss
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CY2022Q4 fat Working Capital
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CY2022Q4 fat Current Portion Of Preferred Shares Net
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CY2022Q4 us-gaap Cash
Cash
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CY2022 us-gaap Fiscal Period
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<div style="margin-top:10pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Nature of operations</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> – The Company operates on a 52-week calendar and its fiscal year ends on the last Sunday of the calendar year. Consistent with the industry practice, the Company measures its stores’ performance based upon 7-day work weeks. </span></div><div style="margin-top:10pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days, since certain days are more profitable than others. The use of this fiscal year means a 53</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">rd</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> week is added to the fiscal year every 5 or 6 years, as will be the case in fiscal year 2023. In a 52-week year, all four quarters are comprised of 13 weeks. In a 53-week year, one extra week is added to the fourth quarter. Both fiscal years 2022 and 2021 were 52-week years. Our revenues are derived from two sales channels, franchised restaurants and company owned locations, which we operate as one reportable segment.</span></div>
CY2022 us-gaap Number Of Reportable Segments
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1 segment
CY2022 us-gaap Use Of Estimates
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of estimates in the preparation of the consolidated financial statements</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the determination of fair values of goodwill and other intangible assets, the allocation of basis between assets acquired, sold or retained, allowances for uncollectible notes receivable and accounts receivable, and the valuation allowance related to deferred tax assets. Estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span>
CY2022 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Financial statement reclassification</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> – Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications.</span>
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
Credit and depository risks – Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Management evaluates each of its franchisee’s financial condition prior to entry into a franchise or other agreement, as well as periodically through the term of the agreement, and believes that it has adequately provided for any exposure to potential credit losses. As of December 25, 2022 and December 26, 2021, accounts receivable, net of allowance for doubtful accounts, totaled $23.9 million and $20.1 million, respectively, with no franchisee representing more than 10% of that amount.
CY2022Q4 us-gaap Accounts Receivable Net Current
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CY2021Q4 us-gaap Accounts Receivable Net Current
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CY2022Q4 fat Disposal Group Including Discontinued Operation Operating Lease Right Of Use Asset
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CY2021Q4 fat Disposal Group Including Discontinued Operation Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Assets Held For Sale Not Part Of Disposal Group Current
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CY2021Q4 us-gaap Assets Held For Sale Not Part Of Disposal Group Current
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CY2022Q4 us-gaap Liabilities Of Disposal Group Including Discontinued Operation
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4100000 usd
CY2021Q4 us-gaap Liabilities Of Disposal Group Including Discontinued Operation
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CY2022 fat Refranchising Gain Loss
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CY2021 fat Refranchising Gain Loss
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CY2022Q4 us-gaap Property Plant And Equipment Gross
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CY2021Q4 us-gaap Property Plant And Equipment Gross
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15000000.0 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2021Q4 us-gaap Property Plant And Equipment Net
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CY2022 us-gaap Tangible Asset Impairment Charges
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CY2021 us-gaap Tangible Asset Impairment Charges
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CY2021Q4 us-gaap Goodwill Gross
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CY2020Q4 us-gaap Goodwill Gross
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CY2021 us-gaap Goodwill Acquired During Period
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CY2021Q4 us-gaap Goodwill Gross
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CY2022 us-gaap Goodwill Impairment Loss
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CY2022Q4 us-gaap Goodwill Impaired Accumulated Impairment Loss
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CY2021Q4 us-gaap Goodwill Impaired Accumulated Impairment Loss
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CY2022Q4 us-gaap Goodwill
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CY2021Q4 us-gaap Goodwill
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CY2022 us-gaap Goodwill Impairment Loss
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CY2021 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
300000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
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175600000 usd
CY2020Q4 us-gaap Finite Lived Intangible Assets Net
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