Tue, May 6, 6:48 PM (12 days ago)
**The Davey Tree Expert Company (Ticker: Not Listed) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $434.8 million, up 7.4% from Q1 2024. - **Net Loss:** $3.3 million, wider than the $2.3 million loss in Q1 2024. - **Operating Loss:** $1.6 million, compared to a $234,000 profit in Q1 2024. - **Cash Flow:** Negative $4.4 million from operations, a significant decline from positive $23.1 million in Q1 2024. **Profit Margins:** - **Operating Margin:** -0.4% (loss), down from 0.1% in Q1 2024. - **Net Margin:** -0.7% (loss), compared to -0.6% in Q1 2024. **Segment Performance:** - **Utility Services:** Revenue up 5.7%, operating income down 32.2%. - **Residential and Commercial Services:** Revenue up 10.0%, operating loss widened by 100.8%. **Cash Flow:** - **Operating Cash Flow:** Negative $4.4 million, a $27.5 million decrease. - **Investing Cash Flow:** Negative $26.4 million, an $8.9 million improvement. - **Financing Cash Flow:** Positive $25.0 million, an $8.8 million increase. **Trends and Uncertainties:** - **Inflation and Cost Pressures:** Higher labor, material, and transportation costs. - **Legal and Regulatory:** Ongoing lawsuits and regulatory challenges. - **Seasonality:** Higher revenues expected in Q2 and Q3. **Future Operations Impact:** - **Capital Resources:** Adequate liquidity with $142.8 million available under the revolving credit facility. - **Strategic Initiatives:** Focus on productivity, cost reduction, and price adjustments to mitigate inflationary impacts. **Key Metrics:** - **Days Sales Outstanding (DSO):** Increased to 82 days, up from 74 days in Q1 2024. - **Debt Covenants:** Compliance with all debt covenants as of Q1 2025. **Conclusion:** Davey Tree faced significant cost pressures and operational challenges in Q1 2025, leading to a wider net loss and negative cash flow from operations. The company is focusing on strategic initiatives to mitigate these impacts and maintain financial flexibility.