LAMR Financial Analysis Report
Revenue Analysis
Total and Operating Revenue: LAMR has shown a progressive increase in both total and operating revenue over the past quarters. From Q1 2023 ($471.33 million) to Q4 2023 ($555.91 million), and a further increase to $498.15 million in Q1 2024. This indicates consistent growth in the company’s main business operations.
Gross Profit Margins: Similarly, gross profit has increased from $302.9 million in Q1 2023 to $374.51 million in Q4 2023, and $322.51 million in Q1 2024. This reflects efficient control over the cost of goods sold and operational scalability.
Cost Management
Cost of Revenue: The cost of revenue fluctuated, increasing from $168.43 million in Q1 2023 to $181.4 million in Q4 2023, and then slightly decreasing to $175.65 million in Q1 2024, which appears aligned with the variations in revenue.
Operating Expense: Operating expenses have seen minor fluctuations but generally demonstrate upward movement, indicating increased operational activity, with $200.09 million recorded in Q1 2024.
Total Expenses: Total expenses peaked in Q4 2023 at $364.43 million before reducing to $375.74 million in Q1 2024, tracking closely with revenue trends and operational scaling.
Profitability Analysis
EBITDA: EBITDA has seen an upward trend, rising from $192.57 million in Q1 2023 to $265.14 million in Q4 2023, and slightly reducing to $199.74 million in Q1 2024. This reflects effective management and improved operational efficiency.
Operating Income: Operating income increased from $116.11 million in Q1 2023 to $191.48 million in Q4 2023, which then adjusted to $122.41 million in Q1 2024.
Pretax Income: There’s an increase in pretax income from $77.99 million in Q1 2023 to $150.29 million in Q4 2023, decreasing slightly to $80.02 million in Q1 2024, reflecting the broader profitability metrics.
Net Income Metrics: Net Income has also increased, marking from $76.04 million in Q1 2023 to $149.09 million in Q4 2023, and $78.22 million in Q1 2024 which is a crucial indicator of the company’s bottom line efficiency.
Cash Flow Indicators
Reconciled Depreciation: There has been a consistent increase in depreciation from $73.13 million in Q1 2023 to $75.23 million by the end of 2023, sustaining a similar value into 2024. This can highlight asset utilization rates and capital investment.
Interest Expense: Interest expenses have slightly varied, showing management’s approach in finance cost handling, with $44.49 million in Q4 2023 and slightly adjusted to $44.49 million in Q1 2024.
Taxation
Tax Rate: The corporation experienced fluctuations in its tax rates, from 2.3% in Q1 2023, decreasing to a historical low of 0.64% in Q4 2023, and slightly increasing to 1.902% in Q1 2024.
Tax Provision: Tax provisions fluctuated respective to changes in profiteering, peaking at $1.96 million in Q4 2023, slightly reduced to $1.52 million in Q1 2024. This denotes effective tax management.
Tax Effect of Unusual Items: The tax effect varied from $61,965 in Q1 2023 to only $1,477 in Q4 2023, a significant reduction representing fewer anomalies in regular operations.
Shareholder Metrics
Diluted and Basic EPS: Diluted EPS showed improvement, moving from 0.74 in Q1 2023 to 1.46 by Q4 2023, although a slight decrease to 0.76 in Q1 2024. Basic EPS followed a similar trend.
Average Shares: There have been minor increments in both diluted and basic average shares, reflecting slight dilution but consistent shareholder returns overall.
Net Income Available to Common Stockholders: This metric improved from $75.95 million in Q1 2023 to $148.99 million in Q4 2023, slightly reducing to $78.13 million in Q1 2024.
Conclusion
LAMR’s financial analysis over the past year indicates robust operational performance and effective revenue generation and management. The consistent increase in gross profit, combined with controlled expense management and rising net income indices, suggests a strong growth trajectory. However, the latest slight reduction in some profitability metrics in Q1 2024 necessitates a cautiously optimistic outlook for maintaining growth momentum, emphasizing continual financial discipline, and strategic capital allocation.