Revenue Analysis
Total and Operating Revenue: Over the past year, STWD has shown a varied trend in total and operating revenue. In the first quarter, revenue was recorded at $159.44 million, which increased to $407.20 million in the second quarter but was followed by a reduction to $152.43 million in the third quarter. By the final quarter, the revenue rose significantly to $297.41 million. This indicates a fluctuating operational scale across different quarters.
Cost Management
Operating Expense: The general and administrative expenses have been fairly stable, reflecting consistent overhead costs. For instance, expenses were approximately $81.65 million in Q1, around $74.13 million in Q2 and Q3, and $92.14 million in Q4.
Profitability Analysis
EBITDA: EBITDA is not directly provided but can be approximated considering depreciation and amortization alongside operating revenues. Depreciation values ranged about $12.3 million to $13.6 million across quarters.
Pretax Income: Pretax income showcased substantial variability, from as low as $39.98 million in Q3 to a high of $223.58 million in Q2, highlighting significant profit impact by operational activities and non-operating income fluctuations.
Net Income: Net income metrics similarly varied, with $51.97 million in Q1 escalating to $222.38 million in Q2, before dropping to $51.38 million in Q3 and rebounding to $84.64 million in the final quarter.
Cash Flow Indicators
Reconciled Depreciation: This has remained consistently within the range of $12.3 million to $13.6 million, indicating steady property, plant, and equipment capital expenditure scales.
Interest Expense: Interest expense was high throughout the year, reflecting substantial debt servicing costs, ranging from $335.30 million to $369.12 million.
Taxation
Tax Rate and Provisions: The effective tax rate showed notable variability, complicating direct tax expense predictions. The tax provision moved from a negative $8.80 million (credit) in Q1 to around $18.32 million in Q4, suggesting fluctuating taxable income influenced by exceptional items and financial structuring.
Tax Effect of Unusual Items: These effects ranged from negative values in Q1, Q2, and Q3 to a significant positive effect of $127.73 thousand in Q4, showing that unusual items had varying impacts on tax calculations.
Shareholder Metrics
Diluted and Basic EPS: Earnings Per Share (EPS) showed growth from $0.16 in Q1 to $0.54 in Q2, maintaining stability in Q3 and not reported in Q4, indicating profitability per share was highest in mid-year.
Average Shares and Net Income Available to Common Stockholders: The average shares outstanding were stable around 308 to 310 million. Net income available to common shareholders has followed the net income trend, peaking in the second quarter.
Conclusion
STWD’s financial performance over the past year presented considerable fluctuation in revenue and income metrics, with notable variances in net income and tax figures. The stable administrative expenses and depreciation suggest consistent operational control, whereas varying non-operating incomes and unusual items impacted overall profitability. Future outlooks should consider potential strategies to stabilize income sources and manage tax liabilities effectively.