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Critical Control Energy Services Corp reports 20.4% revenue decline in FY2016

27.03.2017 • About Critical Control Energy Services Corp ($CCZ) • By InTwits

Critical Control Energy Services Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Critical Control Energy Services Corp is a company in decline: FY2016 revenue growth was -20.4%, 5 years revenue CAGR was -8.4%
  • EBITDA Margin is declining: in FY2016 vs. -9.4% in FY2015 vs. in FY2012
  • It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Critical Control Energy Services Corp ($CCZ) key annual financial indicators

mln. CAD201220132014201520162016/2015
P&L
Revenue46.82345.74935.38639.91931.766-20.4%
Gross Profit16.792
SG&A14.82512.566-100.0%
EBITDA3.2431.584-3.761
Net Income0.3100.165-1.223-3.523-1.997
Balance Sheet
Cash0.4341.8050.815-100.0%
Short Term Debt3.9803.77412.121-100.0%
Long Term Debt1.0902.3120.056-100.0%
Cash flow
Capex0.2430.3440.654-100.0%
Ratios
Revenue growth-5.2%-2.3%-22.7%12.8%-20.4%
EBITDA growth-51.2%-337.4%
Gross Margin36.7%0.0%
EBITDA Margin0.0%7.1%4.5%-9.4%0.0%9.4%
Net Income Margin0.7%0.4%-3.5%-8.8%-6.3%2.5%
SG&A, % of revenue32.4%31.5%-31.5%
CAPEX, % of revenue0.5%1.0%1.6%-1.6%
ROIC-2.1%-17.1%17.1%
ROE-4.5%-13.0%13.0%
Net Debt/EBITDA1.4x2.7x0.0x


Critical Control Energy Services Corp ($CCZ) key quoterly financial indicators

mln. CADFY16Q1FY16Q2FY16Q3FY16Q4YoY change
P&L
Revenue9887-3.8%-26.9%-26.4%-21.9%
Net Income-1-10-0-334.5%
Balance Sheet
Ratios
Net Income Margin -15.1% -6.7% 4.4% -4.0%-21.4%1.6%28.1%4.2%

Revenue and profitability


Critical Control Energy Services Corp's Revenue dropped on 20.4%. Revenue decline showed acceleration in FY16Q4 - it was 21.9% YoY.

Net Income marign increased on 2.5 pp from -8.8% to -6.3% in FY2016.


Appendix 1: Peers in Technology


Below we provide Critical Control Energy Services Corp benchmarking against other companies in Technology industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Intrinsyc Technologies Corp ($ITC)-21.7%70.8%24.5%39.2%
ProntoForms Corp ($PFM)75.4%43.9%46.4%28.2%
Kinaxis Inc ($KXS)30.3%15.2%30.3%27.0%
NexJ Systems Inc ($NXJ)4.3%-12.6%19.7%17.3%
Constellation Software Inc/Canada ($CSU)35.9%37.9%10.1%15.6%
 
Median (11 companies)2.3%15.2%10.1%15.3%
Critical Control Energy Services Corp ($CCZ)-2.3%-22.7%12.8%-20.4%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Constellation Software Inc/Canada ($CSU)86.2%85.5%86.1%86.2%87.1%
ProntoForms Corp ($PFM)96.1%98.1%98.0%79.4%
Espial Group Inc ($ESP)77.5%81.7%78.5%74.3%74.7%
Halogen Software Inc ($HGN)72.0%74.8%71.8%73.8%76.2%
Kinaxis Inc ($KXS)71.8%70.4%70.4%71.8%69.1%
 
Median (12 companies)71.8%63.0%61.9%61.9%71.9%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Wi-LAN Inc ($WIN)40.9%12.2%56.2%53.2%57.8%
Kinaxis Inc ($KXS)18.7%23.0%19.2%28.0%17.6%
Constellation Software Inc/Canada ($CSU)20.9%20.1%21.8%25.2%26.0%
Intrinsyc Technologies Corp ($ITC)-10.5%-38.8%2.2%10.8%
Mitel Networks Corp ($MNW)10.2%10.0%7.0%7.7%
 
Median (13 companies)0.9%2.2%4.3%2.1%7.1%
Critical Control Energy Services Corp ($CCZ)7.1%4.5%-9.4%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Kinaxis Inc ($KXS)2.9%2.3%5.0%4.7%5.0%
Halogen Software Inc ($HGN)4.9%9.0%8.4%2.9%2.6%
Espial Group Inc ($ESP)1.6%0.2%1.9%2.1%1.5%
ProntoForms Corp ($PFM)1.1%0.8%3.6%1.9%
Data Group Ltd ($DGI)0.6%0.7%1.0%1.4%1.0%
 
Median (13 companies)1.1%1.2%1.2%1.1%1.0%
Critical Control Energy Services Corp ($CCZ)0.5%1.0%1.6%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Constellation Software Inc/Canada ($CSU)45.9%22.4%24.7%38.5%40.5%
Kinaxis Inc ($KXS)61.8%63.6%44.0%22.6%
Halogen Software Inc ($HGN)-28.4%-45.9%-40.5%12.6%
Wi-LAN Inc ($WIN)2.6%-7.6%8.9%7.4%8.4%
NexJ Systems Inc ($NXJ)-44.6%-19.8%-13.9%4.5%
 
Median (13 companies)-7.5%-17.5%0.9%0.1%8.4%
Critical Control Energy Services Corp ($CCZ)-2.1%-17.1%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Mitel Networks Corp ($MNW)3.7x3.8x2.6x6.2x
Pivot Technology Solutions Inc ($PTG)-0.4x1.1x4.8x
Constellation Software Inc/Canada ($CSU)0.0x1.6x0.6x0.4x-0.0x
Wi-LAN Inc ($WIN)-4.9x-12.1x-2.3x-1.7x-2.0x
Kinaxis Inc ($KXS)1.9x4.7x-4.2x-3.9x-6.3x
 
Median (7 companies)0.9x1.6x-2.3x-1.7x-6.3x