Earnings Analysis for NLOP
Revenue Analysis:
Total and Operating Revenue: The operating revenue remained consistent at $46,394,000 for the end of the year 2023, compared to $43,106,000 at the end of the third quarter. This indicates a stable revenue stream.
Gross Profit Margins: Gross profit increased from $33,663,000 in Q3 to $37,105,000 by year-end, indicating improvement in profitability or cost management despite consistent revenue levels.
Cost Management:
Cost of Revenue: Cost of revenue saw a moderate increase from $9,443,000 in Q3 to $9,289,000 as of year-end 2023.
Operating Expense: There was a notable reduction in operating expenses, decreasing from $22,563,000 in Q3 to $32,157,000 by year-end.
Total Expenses: Total expenses stood at $41,446,000 at year-end, increasing from $32,006,000 in Q3 2023. This increase needs further scrutiny.
Profitability Analysis:
EBITDA: EBITDA turned from a positive $30,275,000 in Q3 to a negative $(99,908,000) at year-end, indicating significant operational challenges or unusual items impacting earnings.
Operating Income: Operating income also reflected this downward trend, from $11,100,000 in Q3 to just $4,948,000 by year-end.
Pretax Income: A sharp decline from $3,022,000 in Q3 to $(142,009,000) by year-end further illustrates worsening fiscal health.
Net Income: Net income plummeted from $2,760,000 in Q3 2023 to $(142,078,000) by the end of the year, suggesting significant adverse events or accounting adjustments.
Cash Flow Indicators:
Reconciled Depreciation: There was an increase in reconciled depreciation from $19,200,000 in Q3 to $23,921,000 by year-end.
Interest Expense: Interest expense was consistent at $18,180,000 for both periods.
Taxation:
Tax Rate: The tax rate decreased slightly from 0.07677 in Q3 to 0.21 by year-end.
Tax Provision: Despite the losses, the tax provision was recorded at $122,000 by year-end and $232,000 in Q3, likely influenced by non-deductible expenses or difference in tax jurisdictions.
Tax Effect of Unusual Items: There was a substantial negative tax effect of unusual items amounting to -$27,043,170 by year-end, compared to a negligible amount in Q3, suggesting major non-recurring charges or credits.
Shareholder Metrics:
Diluted and Basic EPS: Both diluted and basic EPS figures were reported as $0.193806 in Q3, but no data is available for year-end.
Average Shares: Stood consistently at 14,261,721 for both diluted and basic calculations in Q3. No data is available for year-end.
Net Income Available to Common Stockholders: Was positive at $2,760,000 in Q3 but dropped to $(142,078,000) by year-end, aligning with the sharp decrease in net income.
Conclusion:
NLOP faced significant challenges in the last quarter of 2023, indicating severe impacts from unusual items likely leading to operational losses. Recovery strategies must focus on improving operational efficiency, scrutinizing the causes of unusual expense, and stabilizing revenue.
Appendices:
Supporting data tables and calculations omitted from this summary can be provided upon request for deeper insights into the financial health and performance trends of NLOP.