Revenue Analysis:
Total and Operating Revenue: EGP has shown fluctuating but generally increasing revenue over the past three years. From Q1 2023 to Q1 2024, total revenue rose from approximately $135.025 million to $154.224 million. Operating revenue followed a similar trend.
Gross Profit Margins: Gross profit has also increased from $98.839 million in Q1 2023 to $111.221 million by Q1 2024. This indicates improved efficiency in revenue generation relative to cost of sales.
Cost Management:
Cost of Revenue: Cost of revenue has escalated from $36.186 million in Q1 2023 to $43.003 million in Q1 2024, suggesting increased costs associated with revenue generation.
Operating Expense: Operating expenses have seen a significant rise from $46.358 million in Q1 2023 to $52.027 million in Q1 2024, indicating higher operational costs.
Total Expenses: Total expenses trended upwards from $82.544 million in Q1 2023 to $95.03 million in Q1 2024, aligning with the increase in operating costs and cost of revenue.
Profitability Analysis:
EBITDA: EBITDA increased from $98.017 million in Q1 2023 to $113.157 million by Q1 2024, reflecting stronger earnings before interest, taxes, depreciation, and amortization.
Operating Income: Operating income grew from $52.481 million in Q1 2023 to $59.194 million in Q1 2024, showing enhanced profitability from core operations.
Pretax Income: Pretax income has been rising, from $44.704 million in Q1 2023 to $58.658 million in Q1 2024, indicative of overall profit growth before taxation.
Net Income: Net income shows considerable growth, climbing from $44.69 million in Q1 2023 to $58.644 million in Q1 2024, highlighting increased bottom-line profitability.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation expenses have been relatively stable, slightly increasing from $41.014 million in Q1 2023 to $45.169 million by Q1 2024, reflecting ongoing asset depreciation.
Interest Expense: Interest expenses have also been consistent, though slightly elevated from $12.299 million in Q1 2023 to $9.33 million in Q1 2024, influencing finance costs.
Taxation:
Tax Rate: The effective tax rate was maintained at 0.21 across all periods except for Q1 2024, where it was 0.4, indicating a higher tax provision in the latest quarter.
Tax Provision and the Tax Effect of Unusual Items: The tax effect of unusual items has been quite variable, reaching up to $3.5004 million in Q1 2024 from a lower $1.00989 million in Q1 2023.
Shareholder Metrics:
Diluted and Basic EPS: Earnings per share (both diluted and basic) have increased from 1.02 in Q1 2023 to 1.22 in Q1 2024, suggesting positive outcomes for shareholders.
Average Shares: The number of average diluted shares has risen from approximately 43.823 million in Q1 2023 to around 47.961 million in Q1 2024, indicating dilution.
Net Income Available to Common Stockholders: This figure has grown significantly from $44.69 million in Q1 2023 to $58.644 million in Q1 2024, reflecting increased allocable profits to shareholders.
Conclusion:
EGP’s financial performance has shown robust growth in revenue and net income alongside stable cash flow management. However, increasing costs and a higher tax rate in the latest quarter require strategic review. The company might consider optimizing operational efficiencies and a strategic review of tax management practices to bolster profitability further.