Revenue Analysis
Total and Operating Revenue: Over the period from Q1 2023 to Q1 2024, WELL’s total and operating revenue grew from $1.55 billion to $1.83 billion, indicating a steady increase in revenue generation capability.
Gross Profit: Consistent with the revenue growth, gross profit increased from $594.4 million in Q1 2023 to $733.7 million in Q1 2024, underlining an improvement in profitability from core operations.
Cost Management
Cost of Revenue: Cost of revenue saw an incline from $957.8 million in Q1 2023 to $1.1 billion in Q1 2024, aligning with the increased revenue and suggesting scale effects are maintained.
Operating Expense: Operating expenses spiked from $384.3 million in Q1 2023 to $420.2 million in Q1 2024. Attention might be needed to control these increases to maintain profit margins.
Total Expenses: Corresponding to rising revenues and costs, total expenses advanced from $1.34 billion in Q1 2023 to $1.52 billion in Q1 2024.
Profitability Analysis
EBITDA: EBITDA has grown from $531.2 million in Q1 2023 to $667.2 million in Q1 2024, showcasing enhanced operational efficiency and profitability.
Operating Income: Operating income followed a positive trajectory, from $210.1 million in Q1 2023 to $313.5 million in Q1 2024, reinforcing strong management of operating expenses relative to revenues.
Pretax Income: Pretax income rose considerably from $38.0 million in Q1 2023 to $140.9 million in Q1 2024, reflecting good control over non-operating costs and improvements in operating performance.
Net Income: Similarly, net income demonstrated a significant rise from $25.7 million in Q1 2023 to $127.1 million in Q1 2024, underpinning the overall growth in profitability.
Cash Flow Indicators
Reconciled Depreciation: Reconciled Depreciation ranged from $348.8 million in Q1 2023 to $378.9 million in Q1 2024, indicating substantial ongoing investment in capital assets.
Interest Expense: Interest expenses remained consistent around $144.4 million to $147.3 million from Q1 2023 to Q1 2024, reflecting stable financing costs.
Taxation
Tax Rate: The effective tax rate varied significantly, ranging from about 2.2% in Q2 2023 to 4.4% in Q1 2024, suggesting varying pre-tax income levels and potential changes in tax planning.
Tax Provision: Tax provisions have been increasing, especially notable from a negative $4.8 million in Q4 2023 to $6.2 million in Q1 2024, perhaps due to increased profits and subsequent tax liabilities.
Tax Effect Of Unusual Items: The tax effect of unusual items has shown wide fluctuations but has generally diminished as less non-typical events are recorded.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share both diluted and basic have seen growth from approximately $0.05 in Q1 2023 to $0.22 in Q1 2024, likely very positively viewed by investors.
Average Shares: There was a noticeable increase in the number of shares, from about 494.5 million to 577.5 million diluted average shares over the periods, indicating possible equity financing.
Net Income Available to Common Stockholders: This figure substantially increased from $25.6 million in Q1 2023 to $126.8 million in Q1 2024, reflecting the strong earnings growth.
Conclusion: WELL’s financial performance over the period has shown considerable improvement in key metrics such as revenue, net income, and EBITDA. The company has effectively managed its cost base and enhanced profitability. Continued control of operating expenses and effective tax management will be crucial for sustaining this growth. The increases in EPS and net income available to common stockholders should continue to appeal to investors.