Revenue Analysis
Total and Operating Revenue: RGEN’s operating revenue has fluctuated over the reviewed periods, with the highest recorded in the first quarter of 2023 at $182,660,000 and the lowest in September 2023 at $141,192,000. The most recent quarter in 2024 shows a moderate increase to $151,346,000.
Gross Profit: The gross profit also mirrored revenue trends, peaking in March 2023 at $100,815,000, and dipping significantly by September 2023 to $36,558,000. A rebound is observed in the first quarter of 2024 with a gross profit of $74,955,000.
Cost Management
Cost of Revenue: The cost of revenue has been reasonably consistent, ranging from around $76,391,000 to $104,634,000, suggesting a stable production or service delivery cost structure relative to revenue.
Operating Expense: Operating expenses show variability, with a noted increase in September 2023 to $66,042,000 from a lower $58,672,000 in June 2023, correlating with the reduced gross profit in the same period.
Total Expenses: Total expenses have generally increased, indicating rising operational costs or possibly expansion activities, especially evident in the jump from $137,979,000 in June 2023 to $170,676,000 by September 2023.
Profitability Analysis
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) have shown significant volatility, from a low of $9,524,000 in December 2023 to a high of $51,614,000 in March 2023.
Operating Income: The Operating Income has ranged dramatically, reflecting operational challenges particularly in September 2023 when it fell to a significant negative.
Pretax Income: Pretax Income varied widely, with notable dips into negative values in December 2023 (-$8,757,000), highlighting periods of financial stress.
Net Income: Net Income has similarly fluctuated, notably dropping to -$25,488,000 in December 2023 but recovering sharply in subsequent quarters.
Cash Flow Indicators
Reconciled Depreciation: This metric increased over time, indicating possibly higher capital expenditures or asset acquisitions.
Interest Expense: Interest expenses have been modest relative to other financial figures, suggesting controlled debt levels or favorable financing terms.
Taxation
Tax Rate: The effective tax rate has varied, affecting the after-tax income, particularly in periods where significant unusual items were recorded.
Tax Provision: Tax provisions have moved in alignment with pre-tax profits, peaking notably in periods of higher earnings.
Tax Effect of Unusual Items: These effects demonstrate adjustments due to non-recurring events, which significantly impact reported earnings in certain quarters.
Shareholder Metrics
Diluted and Basic EPS: Both EPS metrics have shown significant variances, turning negative in December 2023 but recovering thereafter. This suggests a volatile earning period for shareholders but an eventual recovery.
Average Shares: The number of shares remained stable, indicating no major equity financing or buybacks during the period.
Net Income Available to Common Stockholders: This closely tracks net income, directly affecting shareholders’ returns.
Conclusion
RGEN has experienced significant earnings volatility, attributed to operational challenges and unusual items. While troublesome periods are evident, particularly in the latter part of 2023, the recovery in early 2024 shows resilience. Recommendations would include close monitoring of costs, possibly revisiting the cost structure, and maintaining financial discipline concerning new investments and financing activities. Further investigation into the causes of unusual items could prevent future financial surprises.