A recent discussion reminded me of something I've been hearing...

A recent discussion reminded me of something I've been hearing for a long time: "Back in 2014 in the good times, AGI....."

Well that got me thinking, I've never gone back and looked at AGI's numbers to see just how good the times were for AGI so with nothing better to do I figured I'd have a look at the numbers to see how good those times were. I'm only looking at headline numbers for now, but you make up your own mind.

Back in 2014 AGI reported total revenue of $244.1 million for the FY. In their latest FY results ('24) AGI reported revenue of $264.1. Revenue growth of around 8% in 10 years--at least it's revenue growth because I was expecting to have seen their revenue contract. So let's look at gross profit, in FY24 they reported gross profit of $160.3 million and way back in 2014 they reported gross profit of $155.6 million. That's an increase of 3% in ten years--not great but I was expecting the gross profit to have dropped off.

EBITDA, this is very interesting for me. Since 2014 we have seen their EBITDA drop of by 34%. Hmmm, well with their revenue and gross profit up I'll jump to the conclusion that AGI's internal operational efficiency has worsened over the past decade. AGI's recent blow out in COGS and the AU headcount is, I suspect, a significant contributor to the decrease in AGI's internal operational efficiency.

To me it seems like AGI's good times back in 2014 can probably be put down to a far more efficient and leaner organization. Will be an interesting exercise to dig a little deeper into the numbers of each of their segments, but that's a post for another day.