Revenue Analysis
Total and Operating Revenue: CZR’s operating revenue showed a trend of increase across the observed periods, growing from $2.515 billion in Q1 2023 to $2.45 billion by Q1 2024. Total revenue also displayed a similar pattern, notably peaking at $2.994 billion in Q3 2023 before adjusting to $2.742 billion in Q1 2024.
Gross Profit Margins: CZR has maintained a relatively stable gross profit margin. For instance, gross profit increased from $1.507 billion in Q1 2023 to $1.396 billion in Q1 2024, despite fluctuations in total revenue.
Cost Management
Cost of Revenue: Despite revenue growth, CZR’s cost of revenue showed slight variations but remained high, marking $1.346 billion in Q1 2024, compared with $1.323 billion in Q1 2023.
Operating Expense: Operating expenses were slightly reduced, at $0.905 billion in Q1 2024 from $0.888 billion in Q1 2023. This reduction contributes to better profit margins.
Total Expenses: Total expenses have seen corresponding trends with operating expenses, standing at $2.251 billion in Q1 2024 slightly up from $2.211 billion in Q1 2023.
Profitability Analysis
EBITDA: EBITDA decreased from its peak of $1.043 billion in Q3 2023 to $792 million by Q1 2024, suggesting a potential tightening of operational efficiency or increased costs.
Operating Income: Operating income followed a similar trend, showing a decline from $711 million in Q3 2023 to $491 million in Q1 2024.
Pretax Income: Pretax income swings were significant, turning from a loss of $185 million in Q1 2023 to a loss of $127 million in Q1 2024.
Net Income: Net income showed improving trends from a considerable loss of $136 million in Q1 2023 to a lesser loss of $158 million by Q1 2024. This improvement could indicate effective cost management and revenue growth impact.
Cash Flow Indicators
Reconciled Depreciation: Depreciation costs appear consistent, indicating steady capital expense management, with $327 million recorded in Q1 2024.
Interest Expense: Interest expenses remained high, reflecting significant debt levels. In Q1 2024, interest expense stood at $592 million.
Taxation
Tax Rate: Effective tax rates varied, marked by a noted tax rate of 0.4 in Q1 2024, compared to lower rates in prior quarters.
Tax Provision: The tax provision was $15 million in Q1 2024, which, although a cost, implies tax management adjustments aligning with earnings.
Tax Effect of Unusual Items: This figure represented significant one-time costs or benefits, like the $-21.6 million in Q1 2024 indicating non-recurring expenses influencing tax calculations.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share (EPS) showed negative values consistent with net losses, recording -$0.73 in both diluted and basic forms in Q1 2024.
Average Shares: The number of shares outstanding remained stable at 216 million, supporting consistency in shareholder metrics calculations.
Net Income Available to Common Stockholders: Reflecting the overall net loss, the net income available to common stockholders was -$158 million as of Q1 2024.
Conclusion
Overall, CZR exhibits a mixed financial landscape with increasing revenue but maintaining challenges in profitability and high interest expenses. The consistent handling of depreciations and marginal improvements in net income suggest potential slow recovery or stabilization. Strategic emphasis on optimizing operational efficiencies and reducing debt could be beneficial in enhancing profitability.