Revenue Analysis:
Total and Operating Revenue: From the data, we see fluctuations in both total and operating revenue over the last three quarters. At the year-end of 2023 (Dec), total revenue was $249 million while operating revenue was $230 million. Comparatively, revenues were higher in September at $371 million total and $351 million operating, with the highest noted in June at $406 million total and $358 million operating.
Gross Profit Margins: Gross profit saw an increase from $136 million in December to $237 million in September and slightly more to $288 million by June. Margins have shown a decent increase, indicating improved efficiency or pricing strategies over the year.
Cost Management:
Cost of Revenue: The cost of revenue rose significantly from $113 million in March to $118 million in June, then decreased across the subsequent quarters to $89 million in September and $67 million in December.
Operating Expenses: Operating expenses for March were $138 million, showing a slight decrease to $137 million in June, then increased to $142 million in September, and then considerably dropped to $145 million in December.
Total Expenses: There has been a slight decrease in total expenses from $246 million in March, $255 million in June, to $276 million in September, and then down to $258 million in December.
Profitability Analysis:
EBITDA: EBITDA progressively increased from $222 million in March to $336 million in June, to $298 million in September, before slightly reducing to $176 million in December.
Operating Income: Operating income was recorded at $42 million in March, which then skyrocketed to $151 million in June and slightly decreased to $95 million in September, before dropping significantly to a negative $9 million in December.
Pretax Income: There was a major turnaround in pretax income from negative $52 million in March to $106 million in June, $72 million in September, then a sharp decline to negative $142 million in December.
Net Income Metrics: Net income reflects a similar trend, though December showed a sharp negative turnaround after positive postings in earlier quarters.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation remained relatively stable with $128 million reported in March and June, slightly increased to $133 million in September and peaking at $137 million in December.
Interest Expense: Interest expense showed a gradual increase, costing the company $99 million in March, $55 million in June, $48 million in September, and $135 million in December.
Taxation:
Tax Rate: The effective tax rate varied, starting at 23.1% in March, then slightly decreasing to 20.8% in June, maintaining at 21% for the remainder of the year.
Tax Provision: Tax provision showed significant variability, from negative ($12 million) in March to $22 million in June, $57 million in September, and a substantial negative provision of $69 million in December.
Tax Effect of Unusual Items: The tax effect of unusual items ranged from negligible in the first half of the year to much more significant negatives in the subsequent quarters, impacting overall effective tax considerations.
Shareholder Metrics:
Diluted and Basic EPS: Earnings per share (EPS) showed notable volatility; March ended with no EPS, June saw an EPS of $0.33, and December concluded without available records.
Average Shares: The total count of average shares (both diluted and basic) remained constant at 117 million from June to December.
Net Income Available to Common Stockholders: There was a significant disparity in net income available to common stockholders, especially noted by the year-end negative postings, as opposed to positive figures in other quarters.
Conclusion:
CWEN’s financial performance in 2023 displayed strong revenue growth through the year, however, ended with a dip in profitability metrics like operating income, pretax income, and net income in the face of rising costs and taxes. Strategic focus on cost management, maintaining operational efficiencies, and a thorough review of tax obligations and financing costs are recommended going forward to capitalize on revenue achievements and stabilize profitability.