Thu, May 15, 10:14 AM (32 days ago)
**Nuvera Communications, Inc. (NUVR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $17,880,769 (Q1 2025) vs. $16,945,125 (Q1 2024), a 5.52% increase. - **Net Income:** $1,028,920 (Q1 2025) vs. $735,985 (Q1 2024), a 39.80% increase. - **Operating Income:** $2,414,901 (Q1 2025) vs. $1,920,113 (Q1 2024), a 25.77% increase. - **Cash Flow from Operations:** $4,962,822 (Q1 2025) vs. $2,654,586 (Q1 2024). **Profit Margins:** - **Operating Margin:** 13.50% (Q1 2025) vs. 11.33% (Q1 2024). - **Net Margin:** 5.75% (Q1 2025) vs. 4.34% (Q1 2024). **Cash Flow:** - **Net Change in Cash:** -$1,429,217 (Q1 2025) vs. -$1,051,594 (Q1 2024). - **Cash at End of Period:** $457,480 (Q1 2025) vs. $1,886,697 (Q1 2024). **Earnings Changes:** - **Earnings per Share (EPS):** $0.20 (Q1 2025) vs. $0.14 (Q1 2024). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increases in governmental support revenues, data services, and other revenue, partially offset by decreases in legacy service revenues and video services. - **Operating Income Growth:** Primarily due to increased governmental support revenues and data services, partially offset by higher depreciation and selling, general, and administrative expenses. - **Cash Flow:** Increased cash from operations due to higher net income and timing of changes in assets and liabilities. **Trends & Uncertainties:** - **Voice and Video Services:** Continued declines due to customer preferences and market trends. - **Data Services:** Growth expected from FTTP network expansion and higher connectivity speeds. - **Governmental Support:** Increased funding from programs like A-CAM and CBOL, subject to annual reviews and updates. - **Debt and Interest Rates:** Variable-rate debt exposes the company to interest rate fluctuations, partially hedged by IRSAs. **Future Operations Impact:** - **Fiber Network Expansion:** Ongoing investments in FTTP network to meet customer demands and capture growth opportunities. - **Capital Expenditures:** $8,640,431 (Q1 2025) for fiber initiative and ongoing operations, financed through operations, credit facilities, and grants. - **Liquidity:** Adequate working capital and credit facilities to support short-term and long-term needs. **Key Metrics:** - **Access Lines:** Decreased by 1,927 (14.73%) due to industry trends. - **Video Customers:** Decreased by 809 (10.08%) due to market trends. - **Broadband Customers:** Increased by 1,456 (4.46%) due to network expansion. **Outlook:** - Nuvera continues to invest in its fiber network to drive growth and offset declines in legacy services. - The company expects to manage liquidity needs through operational cash flows and debt financing. - Future performance will depend on successful network expansion, customer acquisition, and regulatory support.