Revenue Analysis:
Total and Operating Revenue: Over the past three years, TTEK’s total and operating revenue depicted growth. Starting from $1,158,226,000 in Q1 2023 and rising to $1,251,616,000 by Q1 2024. This indicates a sustainable upward trend in revenue generation.
Gross Profit Margins: Gross profit has similarly shown an increase from $170,846,000 in Q1 2023 to $207,495,000 in Q1 2024. This enhancement in gross profit alongside revenue growth suggests improved efficiency in managing production or service delivery costs.
Cost Management:
Cost of Revenue: The cost of revenue has been increasing, from $987,380,000 in Q1 2023 to $1,044,121,000 in Q1 2024, tracking closely with revenue increments, indicating managed proportionate spending relative to revenue.
Operating Expense: Operating expenses have seen fluctuations but demonstrated a general increase from $82,347,000 in Q1 2023 to $89,812,000 in Q1 2024, suggesting elevated operational activities.
Total Expenses: There has been a notable rise in total expenses from $1,069,727,000 in Q1 2023 to $1,133,933,000 in Q1 2024 which aligns with the observed revenue and operational enhancements.
Profitability Analysis:
EBITDA: EBITDA showed significant growth from $99,339,000 in Q1 2023 to $135,414,000 in Q1 2024, illustrating an improvement in operational efficiency and profitability.
Operating Income: Operating income grew from $88,499,000 in Q1 2023 to $117,683,000 in Q1 2024, reinforcing the effectiveness of operational management.
Pretax Income: This metric increased from $69,095,000 in Q1 2023 to $107,800,000 in Q1 2024, suggesting better pre-tax earnings power.
Net Income Metrics: Net income escalated from $42,830,000 in Q1 2023 to $76,446,000 in Q1 2024, marking significant profitability growth.
Cash Flow Indicators:
Reconciled Depreciation: There has been a rise in depreciation from $16,921,000 in Q1 2023 to $17,731,000 in Q1 2024, reflecting ongoing asset utilization.
Interest Expense: Interest expense has also shown an increasing trend, which is normal with elevated levels of funding for expansion or refinancing activities.
Taxation:
Tax Rate: The tax rate observed a reduction from 37.997% in Q1 2023 to 29.0733% in Q1 2024. This reduction could influence net income positively.
Tax Provision: Increased substantially from $26,254,000 in Q1 2023 to $31,341,000 in Q1 2024, aligned with higher pre-tax income.
Tax Effect of Unusual Items: There were adjustments, particularly visible in Q1 and Q3 2023, which reflected corrections or exclusions impacting tax calculations.
Shareholder Metrics:
Diluted and Basic EPS: EPS both diluted and basic have shown improvements from Q1 2023 at 0.8 to Q1 2024 at 1.42 and 1.43 respectively, providing an attractive return profile for shareholders.
Average Shares: The number of shares used in EPS calculations has remained fairly stable, indicating no significant dilution or stock buybacks.
Net Income Available to Common Stockholders: There was an uplift in net income available to common stockholders reflecting the overall profitability boosts.
Conclusion:
The financial data from the last three years for TTEK displays a company on an upward trajectory with improvements across major financial metrics including revenue, profitability, and shareholder returns. With a decreasing tax rate, stability in share counts, and enhanced earnings per share, TTEK presents a promising financial outlook. Operational efficiencies, prudent cost management, and strategic capital allocation likely contribute significantly to this favorable scenario.