Revenue Analysis:
Total and Operating Revenue: Over the observed periods, Total Revenue increased, reaching an all-time high in the 2024-03-31 period with $212.6 million. Similarly, Operating Revenue mirrored this pattern, evidencing consistent operational performance.
Gross Profit Margins: Gross Profit was highest during the December 2023 quarter at $137.1 million, suggesting improved profitability or cost management. Margins varied across quarters, reflecting different business conditions and strategies.
Cost Management:
Cost of Revenue: Increased in proportion to revenue, peaking at $141.3 million in December 2023, aligning with the highest revenue period, signifying potential volume growth and associated costs.
Operating Expense: Also correlated with revenue, peaking concurrently in December 2023 at $74.7 million, indicating controlled spending relative to business scale.
Total Expenses: Echoed the trends seen in revenue and other cost metrics, reaching $215.9 million by December 2023.
Profitability Analysis:
EBITDA: Showed significant fluctuations but improved sequentially, climaxing at $44.9 million in March 2024, suggesting increasing operational efficiency or cost optimisation strategies.
Operating Income: Reflected a robust income base, peaking at $62.5 million in June 2023 before slightly decreasing to $31.4 million by March 2024, indicating variable operational efficiency.
Pretax Income: Fluctuated but generally trended upwards, reaching $12.9 million by March 2024.
Net Income: Varied across periods, peaking at $31.0 million in December 2023, correlating with high revenue and operational metrics.
Cash Flow Indicators:
Reconciled Depreciation: Remained relatively stable across periods, suggesting a consistent asset base and depreciation policy.
Interest Expense: Was notably high, peaking at $19.4 million in March 2023, which could have significant implications for net earnings and cash flow health.
Taxation:
Tax Rate: Experienced variations, from a high of 0.319 in June 2023 to a low of 0.09 in March 2023.
Tax Provision: Corresponded to profit levels, peaking at $8.1 million in December 2023. The tax provision changes reflect the pre-tax profitability and underlying tax strategies.
Tax Effect of Unusual Items: Showed significant impacts from unusual items, especially with a tax benefit of $1.4 million in December 2023, which could distort the typical tax provision calculations.
Shareholder Metrics:
Diluted and Basic EPS: Both metrics varied across periods, with a peak of $0.13 diluted EPS in June 2023. This suggests strong profitability during this period from a shareholder’s perspective.
Average Shares: Remained relatively constant with minor fluctuations, indicating no significant equity dilution or repurchase activity that would materially impact per-share metrics.
Net Income Available to Common Stockholders: Was consistent with reported Net Income, signifying straightforward earnings allocation without complex preferred shares or other interests.
Conclusion:
HAYW has demonstrated a growing revenue base coupled with controlled cost management, although fluctuations in profitability indicate either varying operational conditions or non-consistent execution of strategy. Tax impacts and interest expenses remain areas to watch for potential improvement in net earnings. Overall, the firm is growing, but attention to consistency in operational efficiency and cost control could lead to improved shareholder returns.
Appendices:
Supporting data tables and calculations are noted within each analysis section, using data from the observations at annual and quarterly intervals from the year 2023 to the first quarter of 2024.