What was the consolidated net loss for Clear Pest Pros in 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
84,979 | $ 130,969 |
Consolidated Statements of Operations (dollars in thousands)
| Year ended December 31, | 2024 | 2023 | 2022 (as restated) |
|---|---|---|---|
| Net Revenue | $ 29,538 | $ 31,072 | $ 33,483 |
| Cost of Revenue | 10,816 | 9,613 | 9,055 |
| Gross Profit | 18,722 | 21,459 | 24,428 |
| Operating Expenses, | 19,569 | 20,604 | 27,789 |
| before impairment | |||
| Impairment of Goodwill | 10,519 | 45,537 | 1,266 |
| Impairment of Intangible Assets | - | - | 4,952 |
| Operating Loss | (11,366) | (44,682) | (9,579) |
| Non-Operating Income Interest income Other income | 336 404 | 496 386 | 1,112 268 |
| Total Non-Operating Income | 740 | 882 | 1,380 |
| Loss, before income taxes | (10,626) | (43,800) | (8,199) |
| Income Tax Expense (Recovery) | 482 | 477 | (1,86 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the consolidated net loss for the year ended December 31, 2023, was $(44,277). This means that Clear Pest Pros's expenses and losses exceeded its revenues by $44,277 during that fiscal year. This figure is important for potential franchisees to consider as it provides insight into the company's financial performance.
It's worth noting that Clear Pest Pros adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as of January 1, 2023. The adoption of this standard affected the financial statement line items for the fiscal year 2023. The FDD includes a table that shows the impact of this change on the consolidated net loss. The consolidated net loss as computed under the previous standard was $(43,044), while as reported under the new standard, it was $(44,277). The effect of the change was $(1,233).
Prospective franchisees should be aware that a net loss indicates the company is not currently profitable. While not uncommon for companies, especially during growth phases or periods of significant investment, it is crucial to understand the reasons behind the loss. A potential franchisee should investigate the factors contributing to this loss, such as operating expenses, impairment of goodwill, and other financial adjustments. Understanding the context of these losses can help a franchisee assess the financial stability and future prospects of Clear Pest Pros.
It is also important to compare these figures with previous years and industry benchmarks to assess whether the loss is part of a trend or a one-time occurrence. Reviewing the complete financial statements and notes, along with seeking professional financial advice, is recommended for any prospective franchisee to make an informed decision about investing in a Clear Pest Pros franchise.