Brick Brewing Co Ltd CAPEX dropped on 34.0% in 2015 and Revenue decreased on 3.6%
13.04.2015 • About Brick Brewing Co Ltd (
$BRB) • By InTwits
Brick Brewing Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brick Brewing Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.2%. At the same time it's in pair with industry average of 7.6%.
- CAPEX is quite volatile: 11.7 in 2015, 101 in 2014, 119 in 2013, 62.6 in 2012, 46.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brick Brewing Co Ltd ($BRB) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30.106 | 34.078 | 35.295 | 37.674 | 36.333 | -3.6% |
| Gross Profit | 6.995 | 7.987 | 8.621 | 9.816 | 10.197 | 3.9% |
| SG&A | | | 6.971 | 7.771 | 7.564 | -2.7% |
| EBITDA | 4.318 | 3.782 | 3.822 | 4.414 | 5.704 | 29.2% |
| Net Income | 2.744 | 0.657 | 0.351 | 0.525 | 1.395 | 165.6% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.000 | 0.595 | |
| Short Term Debt | 1.158 | 3.505 | 3.966 | 3.251 | 1.670 | -48.6% |
| Long Term Debt | 3.051 | 5.890 | 6.079 | 4.265 | 3.910 | -8.3% |
Cash flow
|
|---|
| Capex | 3.425 | 1.780 | 3.917 | 2.983 | 1.968 | -34.0% |
Ratios
|
|---|
| Revenue growth | 0.6% | 13.2% | 3.6% | 6.7% | -3.6% | |
| EBITDA growth | 37.1% | -12.4% | 1.1% | 15.5% | 29.2% | |
| Gross Margin | 23.2% | 23.4% | 24.4% | 26.1% | 28.1% | 2.0% |
| EBITDA Margin | 14.3% | 11.1% | 10.8% | 11.7% | 15.7% | 4.0% |
| Net Income Margin | 9.1% | 1.9% | 1.0% | 1.4% | 3.8% | 2.4% |
| SG&A, % of revenue | | | 19.8% | 20.6% | 20.8% | 0.2% |
| CAPEX, % of revenue | 11.4% | 5.2% | 11.1% | 7.9% | 5.4% | -2.5% |
| ROIC | 6.6% | 4.6% | 3.6% | 3.8% | 6.8% | 2.9% |
| ROE | 11.2% | 2.4% | 1.2% | 1.7% | 4.2% | 2.5% |
| Net Debt/EBITDA | 1.0x | 2.5x | 2.6x | 1.7x | 0.9x | -0.8x |
Revenue and profitability
Brick Brewing Co Ltd's Revenue decreased on 3.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.0 pp from 11.7% to 15.7% in FY2015.
Gross Margin increased on 2.0 pp from 26.1% to 28.1% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 2.4 pp from 1.4% to 3.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Brick Brewing Co Ltd's CAPEX/Revenue was 5.4% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 8.1%.
Return on investment
The company operates at low ROIC (6.77%) and ROE (4.17%). ROIC increased on 2.9 pp from 3.8% to 6.8% in FY2015. ROE increased on 2.5 pp from 1.7% to 4.2% in FY2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 1.7x to 0.9x in FY2015. Debt dropped on 25.8% in FY2015 while cash surged.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Brick Brewing Co Ltd benchmarking against other companies in Consumer, Non-cyclical 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| Covalon Technologies Ltd ($COV) | -19.9% | 46.6% | 9.0% | 119.2% | |
| |
|---|
| Median (77 companies) | 10.8% | 7.0% | 5.3% | 12.2% | 5.9% |
|---|
| Brick Brewing Co Ltd ($BRB) | | 13.2% | 3.6% | 6.7% | -3.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (65 companies) | 32.6% | 34.5% | 35.6% | 34.6% | 47.5% |
|---|
| Brick Brewing Co Ltd ($BRB) | 23.2% | 23.4% | 24.4% | 26.1% | 28.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (77 companies) | 8.3% | 8.6% | 9.0% | 11.0% | -195.9% |
|---|
| Brick Brewing Co Ltd ($BRB) | 14.3% | 11.1% | 10.8% | 11.7% | 15.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (77 companies) | 2.4% | 2.8% | 2.4% | 2.4% | 13.2% |
|---|
| Brick Brewing Co Ltd ($BRB) | 11.4% | 5.2% | 11.1% | 7.9% | 5.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Nobilis Health Corp ($NHC) | -20.2% | 49.4% | 29.7% | 39.0% | |
| |
|---|
| Median (77 companies) | 8.5% | 7.8% | 6.9% | 8.0% | -4.1% |
|---|
| Brick Brewing Co Ltd ($BRB) | 6.6% | 4.6% | 3.6% | 3.8% | 6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | |
| Sienna Senior Living Inc ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | |
| |
|---|
| Median (64 companies) | 1.9x | 2.6x | 2.1x | 2.6x | |
|---|
| Brick Brewing Co Ltd ($BRB) | 1.0x | 2.5x | 2.6x | 1.7x | 0.9x |
