What was the net cash (used in) provided by operating activities for Clear Pest Pros in 2024?
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) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the net cash (used in) provided by operating activities in 2024 was $(1,283). This indicates that Clear Pest Pros used $1,283 more cash than it generated from its core business operations during that year.
For a prospective franchisee, this figure is important because it provides insight into the company's financial health and its ability to generate cash from its operations. A negative number, as in this case, could suggest that the company is facing challenges in managing its cash flow or that it is investing heavily in growth initiatives. It's important to note that this is just one year's data, and it should be considered in the context of the company's overall financial performance and trends over time.
A potential franchisee should investigate the reasons behind the negative cash flow from operating activities. This could involve analyzing the various adjustments made to reconcile the consolidated net loss to net cash flow, such as depreciation, amortization, and changes in operating assets and liabilities. Understanding these factors can provide a more complete picture of the company's financial situation and its prospects for future profitability. It is also worth comparing this figure to previous years to see if there is a trend and to understand the reasons for any significant changes.