Revenue Analysis:
Examining Total and Operating Revenue, VSTS has shown a slight increase over the quarters from $699.31 million in Q1 2023 to $717.92 million in Q4 2023. The Operating Revenue mirrors the Total Revenue, indicating all revenues are from core business operations. Gross Profit has also increased from $199.84 million in Q1 2023 to $215.54 million in Q4 2023, reflecting improved profitability or cost management within the core operations.
Cost Management:
The Cost of Revenue was highest in Q1 2024 at $502.38 million and lowest at $483.41 million in Q3 2023. Operating Expenses fluctuated mildly, showing a peak at $165.40 million in Q2 2023. Total Expenses followed a similar trend as Operating Expenses, increasing from $643.70 million in Q3 2023 to $670.33 million in Q4 2023, suggesting an increase in overall spending.
Profitability Analysis:
EBITDA ranged from $82.20 million in Q1 2023 to $147.05 million in Q2 2023, showing significant variance. Operating Income increased slightly from $47.43 million in Q1 2023 to $60.43 million in Q2 2023, though with fluctuations across quarters. Pretax Income and Net Income from operational activities have been highly variable, with Net Income peaking at $160.35 million in Q2 2023 and recording a loss in Q1 2023 (-$6.15 million).
Cash Flow Indicators:
Reconciled Depreciation gradually increased from $33.62 million in Q1 2023 to $35.36 million in Q4 2023. Interest Expense presented an irregular pattern, notably flipping from expense to income between the first two quarters of 2023.
Taxation:
The tax rate has ranged from 19.31% in Q2 2023 to approximately 27% in Q4 2023. The Tax Provision has been correlated to the pretax income, indicating normal tax behavior. There have been no Tax Effects of Unusual Items, suggesting straightforward tax entries without exceptional items.
Shareholder Metrics:
There is a lack of data for Diluted and Basic EPS, and Average Shares for the first two quarters of 2023. However, for Q3 and Q4 2023, the EPS metrics indicate significant earnings per share in Q2 2023 ($0.72) compared to Q1 2023 ($0.09). Net Income Available to Common Stockholders followed the Net Income metrics closely.
Conclusion:
VSTS has shown increased revenue and gross profit along with somewhat stable operating expenses throughout 2023. However, fluctuations in net income, including a loss in Q1 2023, indicate potential volatility in earnings. The company should focus on stability in its financial management to ensure consistent profitability and build shareholder confidence. Monitoring the variability in cash flows, particularly the changes in interest expenses and their impact, would also be prudent.