What was the change in accounts receivable for Clear Pest Pros in 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024 | | | | |
Consolidated Statements of Cash Flows (dollars in thousands)
| Year ended December 31, | 2024 | 2023 | 2022 (as restated) |
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Consolidated net loss | $ (11,108) | $ (44,277) | $ (6,330) |
| Adjustments to reconcile consolidated net | |||
| loss to net cash (used in) provided by | |||
| operating activities: | |||
| Depreciation | 505 | 591 | 490 |
| Amortization of intangible assets | 4,380 | 4,380 | 5,169 |
| Credit (recovery) loss | (296) | 627 | 6,949 |
| Loss on disposal of property and equipment | 781 | - | - |
| Impairment of goodwill | 10,519 | 45,537 | 1,266 |
| Impairment of intangible assets | - | - | 4,952 |
| Deferred income taxes | 357 | 265 | (2,595) |
| Noncash lease expense | 67 | (121) | (44) |
| Changes in operating assets and liabilities | |||
| that provide (use) cash: | |||
| Accounts receivable | (459) | 1 | (3,560) |
| Inventory | (2,619) | (1,289) | (1,523) |
| Notes receivable | 970 | 1,506 | 3,607 |
| Prepaid expenses and other assets | 40 | (166) | 473 |
| Deferred commissions | 223 | 284 | (92) |
| Related party | (2,864) | (845) | (7,126) |
| Accounts payable | 609 | (652) | (191) |
| Accrued and other current liabilities | (1,284) | 518 | (534) |
| Deferred revenue | (1,104) | (2,407) | (2,282) |
| Net Cash (Used in) Provided by Operating | |||
| Activities | (1,283) | 3,952 | (1,371) |
| Cash Flows from Investing Activities | |||
| Purchases of property and equipment | (593) | (1,109) | (581) |
| Payments made for patents and trade names | (54) | (78) | (170) |
| Net Cash Used in Investing Activities | (647) | (1,187) | (751) |
| Net (Decrease) Increase in Cash | (1,930) | 2,765 | (2,122) |
| Cash, beginning of year | 4,482 | 1,717 | 3,839 |
| Cash, end of year | $ 2,552 | $ 4,482 | $ 1,717 |
| Classification of Cash | |||
| Cash | $ 1,242 | $ 3,701 | $ 1,372 |
| Restricted cash | 1,310 | 781 | 345 |
| Total Cash | $ 2,552 | $ 4,482 | $ 1,717 |
| Supplemental Cash Flow Information | |||
| Cash paid for taxes | $ 139 | $ 185 | $ 161 |
| Sig |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the change in accounts receivable during 2023 was an increase of $1, as detailed in the consolidated statement of cash flows. This figure reflects the net effect of all transactions affecting accounts receivable during that year.
For a prospective Clear Pest Pros franchisee, this indicates a minimal change in the amount of money owed to the company by its customers. This could imply efficient collection processes or stable customer payment behavior during that period.
However, it is important to consider this figure in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and operational efficiency. A single-year change in accounts receivable provides limited insight without considering factors such as revenue growth, credit policies, and industry trends.