Franchise Group, Inc.: auditor change — Franchise Group Reports Q3 2022 Net Loss of $121.2M, Restates Prior Cash Flows, Forms Home Furnishings Division

Franchise Group, Inc.

2022-Q3 EPS reported -$1.85 revenue$3,281,943,000

Total revenue $1.1B, net loss $121.2M, Adjusted EBITDA $73.1M, Non-GAAP EPS $0.59, including $70M goodwill impairment on American Freight.
Restating Q1 and Q2 FY2022 cash flow statements due to misclassified interest payments ($53M and $100.9M overstatements); material weakness in internal controls identified.
Creating Home Furnishings Division composed of American Freight, Buddy’s Home Furnishings, and W.S. Badcock, led by former At Home COO Peter Corsa.
Repurchased approximately 2.2 million shares of common stock for $77.9 million, reducing shares outstanding by over 5% to 38.2 million.

item 2.02 item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Franchise Group, Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: Deloitte & Touche LLP

Exact text from the filing

the consolidated statements of cash flows included in the Company's Quarterly Reports on Form 10-Q for the affected quarters, should no longer be relied upon and should be restated

View on SEC.gov

Earnings Releases SEC 8-K Item 2.02 confidence 0.9

Franchise Group, Inc. reported third quarter ended September 24, 2022 results: revenue $1.1 billion, net income $121.2 million or $3.09 per fully diluted share, EPS $0.59 per share.

Period: third quarter ended September 24, 2022
Revenue: $1.1 billion
Net income: $121.2 million or $3.09 per fully diluted share
EPS: $0.59 per share
Result: reported results

Exact text from the filing

total reported revenue for Franchise Group was $1.1 billion, net loss from continuing operations was $121.2 million or $3.09 per fully diluted share, Adjusted EBITDA was $73.1 million and Non-GAAP EPS was $0.59 per share.

View on SEC.gov

Browse all auditor changes →

Source: SEC EDGAR

accession 0001171843-22-007084

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.