Revenue Analysis
Total and Operating Revenue: Over the past three fiscal quarters, FRT displayed a consistent range in operating revenue: Q1 2023 ($273.1 million), Q2 2023 ($280.7 million), Q3 2023 ($286.6 million), Q4 2023 ($291.8 million), and Q1 2024 ($291.3 million). This indicates a growing trend in revenue generation.
Gross Profit Margins: The gross profit has similarly shown growth aligning with revenue, moving from $185.3 million in Q1 2023 to $195.6 million in Q4 2023, slightly declining to $195.6 million in Q1 2024. This reflects effective revenue management and possibly an improving margin efficiency over the year.
Cost Management
Cost of Revenue: Cost of Revenue has been managed efficiently with a slight uptick Q1 2023: $87.8 million to Q4 2023: $95.7 million, and stabilizing in Q1 2024 at $95.7 million.
Operating Expense: Operating expenses have slightly fluctuated but mostly decreased from $91.2 million in Q1 2023 to $90.9 million in Q2 2024.
Total Expenses: FRT’s total expenses have shown a general decrease from $178.95 million in Q1 2023 to $178.87 million in Q2 2023, ultimately reducing further in subsequent quarters.
Profitability Analysis
EBITDA: EBITDA saw a significant rising trend from $175.6 million in Q1 2023 to $185.1 million in Q1 2024 indicating improved operational efficiency.
Operating Income: There has been noticeable growth in operating income from $94.1 million in Q1 2023 to $100.2 million in Q1 2024.
Pretax Income and Net Income: Both pretax and net income increased over the period, noting a peak in Q4 2023 and slight diminish in Q1 2024 but still higher than Q1 2023 levels.
Cash Flow Indicators
Reconciled Depreciation: This rose from $78.6 million in Q1 2023 to $83.4 million in Q1 2024, reflecting sustained capital expenditure.
Interest Expense: Interest expenses have incrementally increased, which might indicate higher debt levels or rising interest rates impacts.
Taxation
Tax Rate: The tax rate remained steady at 21% throughout the observed quarters.
Tax Effect of Unusual Items: Notably in Q4 2023, there was a significant tax effect from unusual items amounting to approximately $1.72 million. Otherwise, this was typically negligible or zero.
Shareholder Metrics
Diluted and Basic EPS: Both metrics showed growth from $0.65 in Q1 2023 to $0.76 in Q4 2023, slightly dropping to $0.66 in Q1 2024, reflecting the pattern in net income.
Average Shares: There’s been a gradual increase in average shares, from about 81.141 million to 82.605 million, indicating possible equity financing.
Net Income Available to Common Stockholders: Demonstrated a parallel trend with net income, culminating in a noticeable rise by the end of Q4 2023 before a decline in Q1 2024.
Conclusion
FRT has shown a positive trend in revenue, EBITDA, and earnings per share over the last fiscal year, although there is a noticeable provision for unusual items impacting the financials. The management has effectively controlled cost of revenue and operating expenses. Continued monitoring of increasing interest expenses and the effect of the upcoming fiscal policies on taxation will be crucial. Strategic financial planning focusing on enhancing shareholder value and maintaining profitability should be prioritized.