Le Chateau Inc revenue growth accelerated to 27.0% in FY2015 vs. 22.3% a year earliner
01.05.2015 • About Le Chateau Inc (
$CTU.A) • By InTwits
Le Chateau Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Le Chateau Inc is a company in decline: FY2015 revenue growth was -9.0%, 5 years revenue CAGR was -4.9%
- The company operates at negative EBITDA Margin: -7.9%
- EBITDA Margin is quite volatile: -7.9% in FY2015, -0.1% in FY2014, 3.8% in FY2013, 6.0% in FY2012, 14.4% in FY2011
- Le Chateau Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.0%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 8.5 in FY2015, 6.3 in FY2014, 9.2 in FY2013, 23.8 in FY2012, 42.0 in FY2011
- The company has unprofitable business model: ROIC is at -23.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Le Chateau Inc ($CTU.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 319.0 | 302.7 | 274.8 | 274.8 | 250.2 | -9.0% |
| Gross Profit | 220.7 | 206.6 | 182.3 | 173.1 | 151.5 | -12.4% |
| SG&A | 155.9 | 168.0 | 155.6 | 155.9 | 189.1 | 21.3% |
| EBITDA | 46.0 | 18.1 | 10.4 | -0.3 | -19.8 | 6,872.9% |
| Net Income | 19.6 | -2.4 | -8.7 | -16.0 | -38.7 | 141.9% |
Balance Sheet
|
|---|
| Cash | 17.7 | 7.2 | 1.8 | 1.4 | 1.2 | -17.4% |
| Short Term Debt | 15.9 | 16.3 | 22.9 | 38.8 | 16.7 | -56.8% |
| Long Term Debt | 20.3 | 29.1 | 14.3 | 7.8 | 39.5 | 403.8% |
Cash flow
|
|---|
| Capex | 42.0 | 23.8 | 9.2 | 6.3 | 8.5 | 35.0% |
Ratios
|
|---|
| Revenue growth | -0.8% | -5.1% | -9.2% | 0.0% | -9.0% | |
| EBITDA growth | -25.4% | -60.6% | -42.5% | -102.7% | 6,872.9% | |
| Gross Margin | 69.2% | 68.2% | 66.3% | 63.0% | 60.6% | -2.4% |
| EBITDA Margin | 14.4% | 6.0% | 3.8% | -0.1% | -7.9% | -7.8% |
| Net Income Margin | 6.1% | -0.8% | -3.2% | -5.8% | -15.5% | -9.6% |
| SG&A, % of revenue | 48.9% | 55.5% | 56.6% | 56.7% | 75.6% | 18.8% |
| CAPEX, % of revenue | 13.2% | 7.8% | 3.4% | 2.3% | 3.4% | 1.1% |
| ROIC | 14.7% | -0.6% | -4.9% | -10.8% | -23.3% | -12.5% |
| ROE | 12.5% | -1.6% | -6.2% | -12.1% | -35.6% | -23.6% |
| Net Debt/EBITDA | 0.4x | 2.1x | 3.4x | | | 0.0x |
Revenue and profitability
Le Chateau Inc's Revenue decreased on 9.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 62.5 pp from 28.2% to 90.7% in 2015.
Gross Margin decreased on 2.4 pp from 63.0% to 60.6% in FY2015. SG&A as a % of Revenue jumped on 18.8 pp from 56.7% to 75.6% in FY2015.
Net Income marign decreased on 9.6 pp from -5.8% to -15.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.4% in FY2015. Le Chateau Inc showed decline in CAPEX/Revenue of 4.4 pp from 7.8% in FY2012 to 3.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at negative ROIC (-23.32%) and ROE (-35.63%). ROIC dropped on 12.5 pp from -10.8% to -23.3% in FY2015. ROE dropped on 23.6 pp from -12.1% to -35.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 20.7% in FY2015 while cash dropped on 17.4% in FY2015.
Management team
The company's CEO Jane Silverstone Segal is a founder and has spent 18 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Le Chateau Inc benchmarking against other companies in Consumer, 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (66 companies) | 11.5% | 5.3% | 5.3% | 7.4% | 2.9% |
|---|
| Le Chateau Inc ($CTU.A) | | -5.1% | -9.2% | 0.0% | -9.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (58 companies) | 36.1% | 34.1% | 31.8% | 33.5% | 34.7% |
|---|
| Le Chateau Inc ($CTU.A) | 69.2% | 68.2% | 66.3% | 63.0% | 60.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (64 companies) | 8.4% | 8.1% | 9.8% | 9.8% | 10.0% |
|---|
| Le Chateau Inc ($CTU.A) | 14.4% | 6.0% | 3.8% | -0.1% | -7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (67 companies) | 2.6% | 2.7% | 2.7% | 2.5% | 3.2% |
|---|
| Le Chateau Inc ($CTU.A) | 13.2% | 7.8% | 3.4% | 2.3% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (67 companies) | 10.4% | 9.8% | 10.8% | 9.9% | 5.6% |
|---|
| Le Chateau Inc ($CTU.A) | 14.7% | -0.6% | -4.9% | -10.8% | -23.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.2x | 1.5x | 1.9x | 1.5x |
|---|
