Revenue Analysis
Total and Operating Revenue: AMED showed a stable total and operating revenue over the observed period with the highest revenue recorded in Q1 2024 ($571.4M). 2023-Q1’s revenue was the lowest at $556.4M but not significantly far from other quarters.
Gross Profit Margins: The gross profit had a slight increase from $241.4M in 2023-Q1 to around $250M in subsequent quarters, peaking at $249.9M in 2023-Q4 and slightly less in 2024-Q1. The gross profit margin has therefore remained relatively stable.
Cost Management
Cost of Revenue: Cost of revenue was highest in Q1 2024 at $321.5M and lowest in 2023-Q3 at $287.6M. The variations in cost of revenue are consistent with changes in operating revenue.
Operating Expense: Operating expenses were fairly consistent, with a slight drop in Q3 2023. Most quarters maintained expenses around $197M to $199M, except in 2023-Q4 and 2024-Q1 where it saw a bit of a hike.
Total Expenses: Total expenses peaked in Q3 2023 at $525.3M, mainly due to high special charges related to restructuring recorded during the year.
Profitability Analysis
EBITDA: EBITDA was notably variable; the lowest being a negative EBITDA (-$40.2M) in Q3 2023, attributed to the substantial unusual item charges affecting overall profitability.
Operating Income: There was a considerable variation, hitting its highest at $52.3M in Q1 2024, which suggests improved operational management over time.
Pretax Income: Pretax income rose gradually, recovering from a low of -$62.2M in Q3 2023 to a positive $27.2M in Q2 2023 and reaching $27.3M by Q1 2024.
Net Income: Net income demonstrated significant recovery from a loss of -$80.3M in Q3 2023 to $14.4M in Q1 2024 as operations stabilized and unusual costs were managed.
Cash Flow Indicators
Reconciled Depreciation: Depreciation values were stable, fluctuating slightly around $14.5M each quarter, indicating a consistent capital expenditure on depreciating assets.
Interest Expense: Interest expense displayed mild fluctuations, increasing slightly in some quarters, which might reflect varying debt levels or changes in interest rates.
Taxation
Tax Rate: The tax rate varied from 21% to about 40%, impacting the net income substantially especially with the presence of major unusual items affecting taxable income.
Tax Provision: The tax provision fluctuated in line with the pretax income, ranging from $9.8M in Q1 2023 to $12.6M in Q1 2024.
Tax Effect of Unusual Items: There was a significant tax effect due to unusual items, notably in Q3 2023 when it reached a high of -$22.6M.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share varied significantly. The EPS was negatively impacted in Q3 2023 due to large losses but showed recovery in subsequent quarters.
Average Shares: Average numbers of shares outstanding were fairly constant, suggesting no major buybacks or dilutions over the period.
Net Income Available to Common Stockholders: This closely tracked net income figures, reflecting direct profitability available to shareholders.
Conclusion
The key findings indicate that AMED has managed to stabilize and improve its financial health after experiencing significant losses related to unusual items in mid-2023. Cost management has been effective, and gross margins have been maintained. Moving forward, continued focus on operational efficiency and careful management of unusual items and tax expenses could enhance profitability.