Revenue Analysis
Total and Operating Revenue:
- 2024 projected revenue shows a substantial increase with a total of $431.5 million compared to previous quarters ranging from $365.9 million to $399.7 million.
- There’s consistent growth in revenue across quarters confirming positive sales and market traction.
Gross Profit Margins:
- Gross profit for 2024 is estimated at $205.4 million, up from $169.8 million in 2023 and similar figures through 2023, indicating improving profitability or cost management.
- Gross profit margins have been moderately improving, beneficial for overall financial health.
Cost Management
Cost of Revenue:
- The cost of revenue remains high, around $226.1 million in 2024, only slightly reducing from previous quarters.
Operating Expense:
- Operating expenses have increased significantly to approximately $164.7 million in 2024, from $121.9 million to $131 million in earlier quarters, possibly due to increased sales activities or administrative expenses.
Total Expenses:
- Total expenses in 2024 are substantially higher at $390.8 million, compared to $332.2 million in 2023, hinting at escalating operational or production costs.
Profitability Analysis
EBITDA:
- EBITDA in 2024 is roughly $80.5 million, showing strong earnings before interest, taxes, depreciation, and amortization. It shows an improvement over earlier quarters that hovered between $52 million and $92.8 million.
Operating Income:
- Operating income for 2024 is estimated at about $40.7 million, up from $26.5 million to $38.8 million in previous periods, indicating better operational efficiency.
Pretax Income:
- The pretax income in 2024 rose to $18.4 million, reflecting more robust profitability despite high operational costs.
Net Income:
- Net Income has observed a severe drop in 2024 to $7.1 million from higher figures around $45.6 million and $9.9 million in preceding quarters, which needs further examination.
Cash Flow Indicators
Reconciled Depreciation:
- Depreciation expenses seem consistent, contributing to a continuous reduction in asset values, impacting financial stability and reporting lower profits.
Interest Expense:
- Interest expenses have increased steadily, reflecting possibly higher debt levels which might affect future profitability and cash flows.
Taxation
Tax Rates:
- The tax rate has seen significant variances, notably jumping from 0.21 to 0.4, impacting net income and profitability.
Tax Provisions:
- Tax provisions show fluctuations suggesting variable pre-tax earnings and differing tax planning strategies.
Shareholder Metrics
Diluted and Basic EPS:
- There’s been a decline in both diluted and basic EPS in 2024 to $0.04 and $0.05 respectively from higher values in previous quarters, indicating diluted shareholder value.
Average Shares:
- Shares outstanding have remained relatively stable, reflecting no major share buybacks or dilutions.
Conclusion
Overall, DAY shows mixed financial health. Revenue and operating income growth are positives, but the substantial drop in net income, rising costs, and heavy tax impacts in 2024 are areas of concern. Enhancing cost efficiencies and managing debt could be vital. Investors might be cautious, given the EPS drop despite revenue growth.
Appendices
Data tables and calculations used in the analysis are not displayed but are available upon request, detailing each financial metric referenced in the study.