My take on 2014 Q4 Financials
Its always great to have some different opinions from everybody on the latest financial release, and I've enjoyed reading everyones thoughts. Heres a bit of a collection of what I've put together so far:
At first I was concerned with the big jump in overhead expenses (admin, interest, etc.) from 2013 to 2014, but upon further review, percentage wise vs revenue its a decrease. The reported 2013 value was 9,093,437 (26.1% of revenue), and the reported 2014 value was 17,413,771 (21.9%).
Utilities group made 13,232,467 more in 2014 then 2013, but its EBITDA went down by 351,922. They explain this being from high repair and maintenance costs and a high use of rental equipment. Also, the utility groups EBITDA vs Revenue was only 15% in 2014 Q4, which is performing far worse then the rest of the company. Assuming management isn't holding much back and it really is repair/maintenance cost, 2015 should be doing better.
Overall 2014 vs 2013, Revenue and EBITDA have both doubled, but Net Income has shrunk by 25%. Their are now twice as many shares outstanding at the end of 2014 vs 2013 at 148,256,628. Market Cap at the end of 2014 vs 2013 has shrunk from 68 million to 59 million.
The rental business was actually still strong in Q4, which I expected since Q4 ended December 31st and really the s*** didn't hit the fan with oil prices until early/mid December. I think Q1 the rental business is going to do rather poorly which a reduced workload and seasonal demand, but hopefully the Utilities division can pick up its socks.
I'm not ready to give up on this company, I think at times like these its important to watch certain factors such as overhead costs to make sure this company is trimming some of the fat when it needs to.