Revenue Analysis:
Total Revenue for NNN has shown some fluctuation over the past periods. As of the first quarter of 2024, Total Revenue stood at approximately $215 million, slightly down from $216 million in the final quarter of 2023. The Operating Revenue has tracked the Total Revenue closely, indicating most revenue is from core operations. Gross Profit margins remained stable, evidenced by the Gross Profit of $208 million in the first quarter of 2024 compared to $208 million in the last quarter of 2023.
Cost Management:
Cost of Revenue decreased in 2024 to $7.1 million from $8.2 million the previous quarter, reflecting improved cost management or possibly reduced sales costs. Operating Expenses and Total Expenses have shown a relatively stable trajectory, with Operating Expenses around $73 million in early 2024, consistent with $73 million in late 2023.
Profitability Analysis:
EBITDA was approximately $199 million at the start of 2024, showing a slight decrease from $200 million at the end of 2023. Operating Income also slightly decreased to $134.7 million from $134.74 million. This suggests a slight tightening in operational effectiveness. Pretax Income and Net Income were stable at around $94 million in early 2024.
Cash Flow Indicators:
The Reconciled Depreciation was about $61 million in the first quarter of 2024, maintaining levels from the previous year. The Interest Expense stood at about $44 million, indicating significant financing costs which may impact cash flow.
Taxation:
The Tax Rate for Calculations was consistently noted at 21%. The Tax Effect of Unusual Items increased over the last three quarters, suggesting some one-off tax implications. This metric reached approximately $1.4 million in early 2024, up from around $1 million at the end of 2023.
Shareholder Metrics:
Diluted and Basic EPS were both at 0.52 in the first quarter of 2024, indicating stable earnings per share for shareholders. The number of Average Shares has shown a slight increase, indicating possibly a dilution of share value. Net Income available to Common Stockholders was about $94.2 million in early 2024.
Conclusion:
NNN appears to maintain steady operational performance with consistent revenue, manageable costs, and stable profitability. Although the revenue and profits are stable, cost management and dealing with financing costs should be a continuous focus area. Shareholders should note the slight increase in average shares, which may dilute individual share value over time. Strategies to boost operational efficiencies and reduce dependency on external financing might be beneficial.
Appendices:
Included are detailed financial data tables and calculations which form the basis of this analysis.