Executive Summary
LRDC QQ3 2024 results show a modest top-line reported figure but an outsized cost base that drives a meaningful operating loss and negative free cash flow. Revenue is reported at 12,701 (USD units as disclosed) with gross profit of 6,058 and a gross margin of approximately 47.7%. However, General and Administrative expenses of 563,073 overwhelm current-quarter operating performance, resulting in EBITDA of -223,959 and net income of -336,409. The company posted negative operating income (-550,370) with an operating margin of -43.33% and a tax line of only -3, suggesting little tax sheltering in the period. Cash generation from operations was negative (-188,767) and free cash flow was also negative (-227,786), while financing activities provided a material inflow (+2,086,869) to support liquidity. On the balance sheet, LRDC carries a high debt load (total debt of 3,890,209) and negative stockholders’ equity (-5,898,873), with a very tight liquidity profile indicated by current and quick ratios of 0.191. Ending cash stood at 1,894,962. The results underscore a high-risk, leveraged business with limited near-term visibility for meaningful profitability absent either a substantial revenue uplift or aggressive cost rationalization. Management commentary is not available in the provided transcript data, so this analysis relies on disclosed financials and standard sector considerations.
Key Performance Indicators
Key Insights
Revenue: 12,701; Gross Profit: 6,058; Gross Margin: 0.477; EBITDA: -223,959; EBITDA Margin: -17.63%; Operating Income: -550,370; Operating Margin: -43.33%; Net Income: -336,409; Net Margin: -26.49%; EPS: -0.0047; Revenue YoY: N/A; Revenue QoQ: N/A; Operating Income YoY: 6.74%; Operating Income QoQ: 28.73%; Net Income YoY: 51.87%; Net Income QoQ: 50.94%; EPS YoY: 61.48%; EPS QoQ: 53.47%. Note: Several line items (e.g., G&A vs. revenue size) imply a scale mismatch in the reported figures; unit...
Financial Highlights
Revenue: 12,701; Gross Profit: 6,058; Gross Margin: 0.477; EBITDA: -223,959; EBITDA Margin: -17.63%; Operating Income: -550,370; Operating Margin: -43.33%; Net Income: -336,409; Net Margin: -26.49%; EPS: -0.0047; Revenue YoY: N/A; Revenue QoQ: N/A; Operating Income YoY: 6.74%; Operating Income QoQ: 28.73%; Net Income YoY: 51.87%; Net Income QoQ: 50.94%; EPS YoY: 61.48%; EPS QoQ: 53.47%. Note: Several line items (e.g., G&A vs. revenue size) imply a scale mismatch in the reported figures; unit normalization may be required for cross-period comparability. The company also reported total other income of 213,963 which more than offsets some operating losses on a pretax basis, but pretax income remains negative at -336,409 and net income -336,409.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
12.70K |
N/A |
N/A |
| Gross Profit |
6.06K |
N/A |
191.18% |
| Operating Income |
-550.37K |
6.74% |
28.73% |
| Net Income |
-336.41K |
51.87% |
50.94% |
| EPS |
0.00 |
61.48% |
53.47% |
Key Financial Ratios
operatingProfitMargin
-4333%
operatingCashFlowPerShare
$-0
priceEarningsRatio
-16.95
Management Commentary
No earnings call transcript is available in the provided data. Consequently, there are no management quotes or theme-level takeaways to summarize in this section. If a transcript becomes available, this section should capture themes by discipline (strategy, operations, market conditions) and annotate quotes with their context and significance.
Forward Guidance
No explicit forward guidance was disclosed in the QQ3 2024 data provided, and no transcript was available to extract management outlook. Absent new guidance, the investment horizon hinges on external oil price dynamics, potential cost-reduction initiatives, and any strategic actions LRDC may undertake (e.g., asset optimization, deleveraging, or partnerships). Investors should monitor: (1) liquidity trajectory and any covenant headwinds, (2) any updates to capex plans or EOR project economics, (3) changes in debt structure or refinancing activity, and (4) any company commentary on expected production trends from mature fields.