Financial Analysis of CABO
Revenue Analysis
Total and Operating Revenue: CABO displayed escalating revenue figures over the analyzed period with Total Revenue growing from $421.9 million in Q1 2023 to $404.3 million in Q1 2024. Operating Revenue similarly exhibited growth from $398.99 million to $380.56 million over the same periods.
Gross Profit Margin: Gross Profit has seen variations, beginning at $309.73 million in Q1 2023 and reaching a peak of $311.22 million in Q3 2023 before settling at $297.8 million in Q1 2024. These figures suggest fluctuations but generally healthy margins.
Cost Management
Cost of Revenue: The cost of revenue has remained relatively stable, ranging from $106.26 million in Q4 2023 to $112.16 million in Q1 2023, indicating consistency in the cost structures relative to revenue.
Operating Expense: Operating expenses have varied, with a notable increase seen from $172.17 million in Q1 2023 to $176.03 million in Q1 2024, mirroring the revenue growth and pointing towards scalable operations.
Total Expenses: Total expenses have increased slightly from $284.33 million in Q1 2023 to $282.54 million in Q1 2024, aligning with the overall growth strategy but needing careful management to enhance profitability.
Profitability Analysis
EBITDA: CABO’s EBITDA showcased a significant growth from $218.89 million in Q1 2023 to $198.39 million in Q1 2024. Despite a slight decline in the most recent quarter, the figure remains robust.
Operating Income: Operating income has increased remarkably from $137.56 million in Q1 2023 to $121.77 million in Q1 2024, aligning with increased revenues but showing a slight dip in the latest period.
Pretax Income: Pretax income saw a high of $156.84 million in Q4 2023, decreasing to $76.96 million in Q1 2024, nudging the firm to evaluate operational or market challenges.
Net Income: Net income variations are profound, from $57.43 million in Q1 2023 peaking at $115.29 million in Q4 2023, and then dropping to $47.34 million in Q1 2024, indicating volatile profitability that demands attention.
Cash Flow Indicators
Reconciled Depreciation: Reconciled depreciation remained fairly stable, indicative of consistent asset depreciation schedules.
Interest Expense: Interest expense consistently ranged around $35-43 million across the quarters, forming a significant part of the firm’s financial costs and impacting net income.
Taxation
Tax Rate: Fluctuations in tax rate are noted, from 0.232 in Q1 2023 to 0.274 by Q1 2024, affecting net income figures post-tax.
Tax Provision: The tax provision oscillated, mirroring the changes in pretax income and impacting the remaining profit margins across the periods.
Tax Effect of Unusual Items: The tax effects of unusual items showed significant swings, which inherently impacted the reported net income figures.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share (EPS) saw a varying trend, with diluted EPS peaking at 9.62 in Q1 2023 and decreasing to 8.11 by Q1 2024. The trend indicates variable profitability available to shareholders.
Average Shares: The average shares accounted for ranged from around 5.62 million to 6.13 million, slightly increasing, which dilutes EPS.
Net Income Available to Common Stockholders: This metric right aligns with the overall net income, exposing shareholders to the direct impacts of financial operational performances.
Conclusion
CABO has demonstrated revenue growth amidst fluctuating profitability. While operational income has increased, net income’s volatility suggests potential inefficiencies or external pressures. The stable cost of revenue and operating costs are positive signs, but escalating interest expenses and tax provisions imply areas for potential improvement to enhance shareholder value. Strategic adjustments focused on cost management, careful leveraging, and tax optimization appear imperative.