International Datacasting Corp revenue dropped on 36.7% in 2015 and EBITDA Margin dropped on 11.2 pp from -28.7% to -39.9%
29.04.2015 • About International Datacasting Corp (
$IDC) • By InTwits
International Datacasting Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- International Datacasting Corp is a company in decline: FY2015 revenue growth was -36.7%, 5 years revenue CAGR was -15.1%
- The company operates at negative EBITDA Margin: -39.9%
- International Datacasting Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -7.5% for the sames years0
- International Datacasting Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 59.2%.
- CAPEX is quite volatile: 0.23 in FY2015, 0.24 in FY2014, 0.15 in FY2013, 0.50 in FY2012, 0.32 in FY2011
- The company has unprofitable business model: ROIC is at -74.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Datacasting Corp ($IDC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34.411 | 29.406 | 29.236 | 16.302 | 10.314 | -36.7% |
| Gross Profit | 14.864 | 11.314 | 11.090 | 6.833 | 4.789 | -29.9% |
| SG&A | | 8.244 | 7.956 | 7.487 | 4.716 | -37.0% |
| EBITDA | 1.415 | -1.522 | -0.111 | -4.680 | -4.114 | -12.1% |
| Net Income | 1.026 | -2.314 | -1.015 | -8.174 | -4.331 | -47.0% |
Balance Sheet
|
|---|
| Cash | 6.703 | 4.840 | 4.943 | 2.735 | 0.615 | -77.5% |
| Short Term Debt | 0.053 | 0.037 | 0.003 | 0.000 | 0.144 | |
| Long Term Debt | 0.040 | 0.003 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.322 | 0.503 | 0.155 | 0.239 | 0.225 | -5.9% |
Ratios
|
|---|
| Revenue growth | 47.5% | -14.5% | -0.6% | -44.2% | -36.7% | |
| EBITDA growth | -151.1% | -207.6% | -92.7% | 4,102.0% | -12.1% | |
| Gross Margin | 43.2% | 38.5% | 37.9% | 41.9% | 46.4% | 4.5% |
| EBITDA Margin | 4.1% | -5.2% | -0.4% | -28.7% | -39.9% | -11.2% |
| Net Income Margin | 3.0% | -7.9% | -3.5% | -50.1% | -42.0% | 8.2% |
| SG&A, % of revenue | | 28.0% | 27.2% | 45.9% | 45.7% | -0.2% |
| CAPEX, % of revenue | 0.9% | 1.7% | 0.5% | 1.5% | 2.2% | 0.7% |
| ROIC | 0.8% | -16.7% | -7.6% | -53.0% | -74.5% | -21.6% |
| ROE | 5.8% | -13.2% | -6.4% | -72.5% | -75.9% | -3.4% |
| Net Debt/EBITDA | -4.7x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 36.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 26.1 pp from 9.3% to 35.4% in 2015.
Gross Margin increased on 4.5 pp from 41.9% to 46.4% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 8.2 pp from -50.1% to -42.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.2%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at negative ROIC (-74.51%) and ROE (-75.93%). ROIC dropped on 21.6 pp from -53.0% to -74.5% in FY2015. ROE decreased on 3.4 pp from -72.5% to -75.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged while cash dropped on 77.5% in FY2015.
Appendix 1: Peers in Communications
Below you can find International Datacasting Corp benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Telehop Communications Inc ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | |
| Plaintree Systems Inc ($NPT) | 20.1% | 14.5% | 9.1% | 50.8% | |
| Aimia Inc ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| Blackline Safety Corp ($BLN) | -4.3% | 37.1% | 9.4% | 45.1% | |
| |
|---|
| Median (47 companies) | 7.5% | 5.1% | 2.1% | 3.1% | 842.9% |
|---|
| International Datacasting Corp ($IDC) | | -14.5% | -0.6% | -44.2% | -36.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | |
| |
|---|
| Median (37 companies) | 43.3% | 43.3% | 42.8% | 43.2% | |
|---|
| International Datacasting Corp ($IDC) | 43.2% | 38.5% | 37.9% | 41.9% | 46.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (47 companies) | 18.4% | 17.0% | 15.3% | 13.4% | 10.4% |
|---|
| International Datacasting Corp ($IDC) | 4.1% | -5.2% | -0.4% | -28.7% | -39.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (49 companies) | 4.3% | 2.5% | 3.5% | 2.4% | 0.1% |
|---|
| International Datacasting Corp ($IDC) | 0.9% | 1.7% | 0.5% | 1.5% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| Yellow Pages Ltd/Canada ($Y) | 8.9% | 18.0% | 28.4% | 17.9% | |
| |
|---|
| Median (50 companies) | 8.2% | 9.4% | 8.7% | 8.3% | -9.2% |
|---|
| International Datacasting Corp ($IDC) | 0.8% | -16.7% | -7.6% | -53.0% | -74.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 9.4x |
|---|
