2023 Q4 Form 10-K Financial Statement

#000162828024010647 Filed on March 12, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022
Revenue $158.6M $480.5M $407.2M
YoY Change 52.81% 18.0% 242.53%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $44.11M $140.7M $157.9M
YoY Change -13.0% -10.88% 131.49%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.914M $31.13M $27.02M
YoY Change 42.87% 15.24% 940.64%
% of Gross Profit
Operating Expenses $159.2M $454.8M $406.6M
YoY Change 33.33% 11.85% 261.51%
Operating Profit $22.30M -$17.90M
YoY Change -224.58% -2337.5%
Interest Expense -$33.34M -$117.5M -$94.85M
YoY Change 30.05% 23.91% 226.42%
% of Operating Profit -527.04%
Other Income/Expense, Net $1.096M -$118.7M -$89.47M
YoY Change -24.73% 32.66% 148.93%
Pretax Income -$35.07M -$96.37M -$107.4M
YoY Change -38.25% -10.26% 205.75%
Income Tax -$8.827M -$6.300M $18.80M
% Of Pretax Income
Net Earnings -$28.07M -$90.11M -$126.2M
YoY Change -60.36% -28.59% 299.54%
Net Earnings / Revenue -17.69% -18.75% -30.99%
Basic Earnings Per Share -$5.85 -$7.66
Diluted Earnings Per Share -$1.68 -$5.85 -$7.66
COMMON SHARES
Basic Shares Outstanding 16.60M shares 16.48M shares
Diluted Shares Outstanding 16.60M shares 16.48M shares

Balance Sheet

Concept 2023 Q4 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.04M $37.04M $28.67M
YoY Change 29.22% 29.22% -49.4%
Cash & Equivalents $91.90M
Short-Term Investments
Other Short-Term Assets $10.49M $53.51M $36.23M
YoY Change 72.3% 47.71% -13.88%
Inventory $9.306M $9.306M $6.925M
Prepaid Expenses
Receivables $21.10M $21.15M $23.88M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $121.0M $121.0M $95.70M
YoY Change 26.44% 26.44% -19.25%
LONG-TERM ASSETS
Property, Plant & Equipment $100.5M $320.6M $180.3M
YoY Change 26.89% 77.79% 0.7%
Goodwill $305.1M
YoY Change 4.02%
Intangibles $620.6M
YoY Change -0.75%
Long-Term Investments
YoY Change
Other Assets $5.371M $20.96M $18.72M
YoY Change 34.17% 11.94% -11.09%
Total Long-Term Assets $1.267B $1.267B $1.118B
YoY Change 13.39% 13.39% -2.95%
TOTAL ASSETS
Total Short-Term Assets $121.0M $121.0M $95.70M
Total Long-Term Assets $1.267B $1.267B $1.118B
Total Assets $1.388B $1.388B $1.213B
YoY Change 14.42% 14.42% -4.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $21.81M $21.81M $18.33M
YoY Change 18.99% 18.99% -33.42%
Accrued Expenses $58.90M $109.1M $95.68M
YoY Change 11.56% 14.04% 16.44%
Deferred Revenue $2.490M
YoY Change 23.33%
Short-Term Debt $4.000M $4.000M $4.000M
YoY Change 0.0% 0.0% 241.01%
Long-Term Debt Due $42.60M $42.61M $49.61M
YoY Change -14.11% -14.11% 7762.28%
Total Short-Term Liabilities $276.6M $276.6M $267.0M
YoY Change 3.59% 3.59% 34.53%
LONG-TERM LIABILITIES
Long-Term Debt $1.110B $1.110B $958.6M
YoY Change 15.83% 15.82% 6.01%
Other Long-Term Liabilities $4.684M $238.4M $119.7M
YoY Change 100.86% 99.24% 7.25%
Total Long-Term Liabilities $1.115B $1.349B $1.078B
YoY Change 16.03% 25.08% 6.15%
TOTAL LIABILITIES
Total Short-Term Liabilities $276.6M $276.6M $267.0M
Total Long-Term Liabilities $1.115B $1.349B $1.078B
Total Liabilities $1.644B $1.644B $1.372B
YoY Change 19.79% 19.79% 11.84%
SHAREHOLDERS EQUITY
Retained Earnings -$268.8M
YoY Change 50.42%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$255.9M -$255.9M -$159.2M
YoY Change
Total Liabilities & Shareholders Equity $1.388B $1.388B $1.213B
YoY Change 14.42% 14.42% -4.47%

Cashflow Statement

Concept 2023 Q4 2023 2022
OPERATING ACTIVITIES
Net Income -$28.07M -$90.11M -$126.2M
YoY Change -60.36% -28.59% 299.54%
Depreciation, Depletion And Amortization $9.914M $31.13M $27.02M
YoY Change 42.87% 15.24% 940.64%
Cash From Operating Activities -$12.57M -$35.61M -$47.40M
YoY Change 16.46% -24.88% -7050.0%
INVESTING ACTIVITIES
Capital Expenditures $8.076M $18.90M $21.42M
YoY Change -17.72% -11.79% 105.54%
Acquisitions $38.60M $1.022M
YoY Change 3676.61% -99.86%
Other Investing Activities -$37.38M -$38.30M $0.00
YoY Change -418.05% -100.0%
Cash From Investing Activities -$45.46M -$59.81M -$12.50M
YoY Change -2445.51% 378.55% -98.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 11.09M $118.6M $28.74M
YoY Change -28.52% 312.53% -96.47%
NET CHANGE
Cash From Operating Activities -12.57M -$35.61M -$47.40M
Cash From Investing Activities -45.46M -$59.81M -$12.50M
Cash From Financing Activities 11.09M $118.6M $28.74M
Net Change In Cash -46.93M $23.14M -$31.16M
YoY Change -804.29% -174.27% -133.61%
FREE CASH FLOW
Cash From Operating Activities -$12.57M -$35.61M -$47.40M
Capital Expenditures $8.076M $18.90M $21.42M
Free Cash Flow -$20.65M -$54.50M -$68.82M
YoY Change 0.18% -20.8% 606.57%

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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%">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. 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> week is added to the fiscal year every 5 or 6 years, as was 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. Fiscal year 2023 was a 53-week year and 2022 was a 52-week year.
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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%">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></div>
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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%">Credit and depository risks</span> – 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 31, 2023 and December 25, 2022, accounts receivable, net of allowance for doubtful accounts, totaled $21.1 million and $23.9 million, respectively, with no franchisee representing more than 10% of that amount.
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