Revenue Analysis
Total and Operating Revenue: WH has shown a fluctuating trend in its total and operating revenues over the observed period. From Q1 2023 to Q1 2024, the total revenue increased from $313 million to $305 million, showing a slight decline. Operating revenue also followed a similar trend, moving from $267 million to $261 million.
Gross Profit Margins: WH’s gross profit followed a consistent trend, with an increase from $184 million in Q1 2023 to $197 million in Q4 2023. The gross profit value is missing for Q1 2024, which restricts further comparative analysis.
Cost Management
Cost of Revenue: There is an inconsistent reporting of the cost of revenue over the quarters. For instance, it is $129 million in Q1 2023 and increases to $164 million by Q3 2023. A lack of data in Q1 2024 limits a year-over-year comparison.
Operating Expense and Total Expenses: Operating expenses steadily increase from $198 million in Q1 2023 to $199 million in Q1 2024. Total expenses saw a decrease from $238 million in Q3 2023 to $199 million by Q1 2024.
Profitability Analysis
EBITDA, Operating Income and Pretax Income: EBITDA was reported at $132 million in Q1 2023 and slightly decreased to $70 million by Q1 2024. Operating income was $115 million in Q1 2023, which exhibited an upward trend reaching $106 million in Q1 2024. Pretax income also exhibited fluctuations, peaking at $136 million in Q3 2023 and then decreasing to $22 million by Q1 2024.
Net Income Metrics: Net income showed significant variability, with $67 million in Q1 2023 and a decrease to $16 million by Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation was consistently reported around $19 million to $20 million across the periods.
Interest Expense: Interest expense also showed consistency in values but with slight fluctuations ranging from $22 million in Q1 2023 to $28 million by Q1 2024.
Taxation
Tax Rate, Tax Provision and Tax Effect of Unusual Items: The tax rate fluctuated within the range of 24.3% to 34.7% across the observed quarters. Tax provisions adjusted accordingly, with a visible increase in tax provision from $24 million in Q1 2023 to $6 million in Q1 2024.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share (EPS) decreased from $0.77 in both diluted and basic EPS in Q1 2023 to $0.19 in diluted and $0.2 in basic EPS by Q1 2024.
Average Shares and Net Income Available to Common Stockholders: There was limited variability in the average shares, yet it is noteworthy that diluted average shares were 81.8 million in Q1 2023 which slightly decreased to 81.8 million in Q1 2024. Net income available to common stockholders mirrors the net income values.
Conclusion
WH has demonstrated a decreasing trend in profitability, especially looking at the sharp decline in net income from $67 million in Q1 2023 to $16 million in Q1 2024. Revenue shows slight declines while costs are relatively stable, suggesting that profit margins are under pressure. It is imperative for WH to scrutinize the factors contributing to reduced profitability, possibly enhancing operational efficiencies or revising pricing strategies.