Indigo Books & Music Inc revenue increased on 3.2% in 2015 and EBITDA Margin increased on 2.6 pp from -0.29% to 2.3%
26.05.2015 • About Indigo Books & Music Inc (
$IDG) • By InTwits
Indigo Books & Music Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indigo Books & Music Inc doesn't have a profitable business model yet: FY2015 ROIC is -2.1%
- EBITDA Margin is quite volatile: 2.3% in FY2015, -0.3% in FY2014, 3.3% in FY2013, -0.3% in FY2012, 5.4% in FY2011
- Indigo Books & Music Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 28.4%.
- CAPEX is quite volatile: 10.8 in FY2015, 18.7 in FY2014, 9.5 in FY2013, 12.1 in FY2012, 24.6 in FY2011
- The company has unprofitable business model: ROIC is at -2.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Indigo Books & Music Inc ($IDG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 956.4 | 934.0 | 892.5 | 867.7 | 895.4 | 3.2% |
| Gross Profit | 413.4 | 389.1 | 391.8 | 373.7 | 392.3 | 5.0% |
| SG&A | | | | 403.7 | 398.0 | -1.4% |
| EBITDA | 51.5 | -3.0 | 29.8 | -2.5 | 21.0 | -939.9% |
| Net Income | -5.7 | 92.7 | 4.3 | -31.0 | -3.5 | -88.6% |
Balance Sheet
|
|---|
| Cash | 83.7 | 207.6 | 211.7 | 157.6 | 203.2 | 28.9% |
| Short Term Debt | 1.3 | 1.1 | 0.8 | 0.6 | 0.2 | -70.5% |
| Long Term Debt | 2.0 | 1.1 | 0.7 | 0.2 | 0.1 | -75.3% |
Cash flow
|
|---|
| Capex | 24.6 | 12.1 | 9.5 | 18.7 | 10.8 | -42.1% |
Ratios
|
|---|
| Revenue growth | -1.3% | -2.3% | -4.4% | -2.8% | 3.2% | |
| EBITDA growth | -29.4% | -105.8% | -1,100.7% | -108.4% | -939.9% | |
| Gross Margin | 43.2% | 41.7% | 43.9% | 43.1% | 43.8% | 0.7% |
| EBITDA Margin | 5.4% | -0.3% | 3.3% | -0.3% | 2.3% | 2.6% |
| Net Income Margin | -0.6% | 9.9% | 0.5% | -3.6% | -0.4% | 3.2% |
| SG&A, % of revenue | | | | 46.5% | 44.5% | -2.1% |
| CAPEX, % of revenue | 2.6% | 1.3% | 1.1% | 2.2% | 1.2% | -0.9% |
| ROIC | 11.1% | -10.9% | 0.6% | -10.5% | -2.1% | 8.4% |
| ROE | -2.2% | 30.3% | 1.2% | -9.4% | -1.1% | 8.2% |
| Net Debt/EBITDA | -1.6x | | -7.1x | | -9.7x | -9.7x |
Revenue and profitability
The company's Revenue increased on 3.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 20.4% to 22.6% in 2015.
Gross Margin increased slightly on 0.74 pp from 43.1% to 43.8% in FY2015. SG&A as a % of Revenue decreased on 2.1 pp from 46.5% to 44.5% in FY2015.
Net Income marign increased on 3.2 pp from -3.6% to -0.39% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Indigo Books & Music Inc's CAPEX/Revenue was 1.2% 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 1.5%.The company invested a large share of EBITDA (51.6%) to CAPEX.
Return on investment
The company operates at negative ROIC (-2.14%) and ROE (-1.13%). ROIC increased on 8.4 pp from -10.5% to -2.1% in FY2015. ROE increased on 8.2 pp from -9.4% to -1.1% in FY2015.
Leverage (Debt)
Debt level is -9.7x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped9.7x from to -9.7x in FY2015. Debt dropped on 71.9% in FY2015 while cash surged on 28.9% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Indigo Books & Music 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (66 companies) | 12.0% | 5.3% | 5.3% | 7.4% | 0.4% |
|---|
| Indigo Books & Music Inc ($IDG) | | -2.3% | -4.4% | -2.8% | 3.2% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (58 companies) | 36.1% | 34.1% | 31.8% | 33.5% | 36.9% |
|---|
| Indigo Books & Music Inc ($IDG) | 43.2% | 41.7% | 43.9% | 43.1% | 43.8% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (64 companies) | 8.7% | 8.1% | 9.8% | 9.8% | 10.0% |
|---|
| Indigo Books & Music Inc ($IDG) | 5.4% | -0.3% | 3.3% | -0.3% | 2.3% |
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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (67 companies) | 2.9% | 2.7% | 2.8% | 2.5% | 3.3% |
|---|
| Indigo Books & Music Inc ($IDG) | 2.6% | 1.3% | 1.1% | 2.2% | 1.2% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (67 companies) | 10.4% | 9.8% | 10.8% | 9.9% | 4.4% |
|---|
| Indigo Books & Music Inc ($IDG) | 11.1% | -10.9% | 0.6% | -10.5% | -2.1% |
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 | 1.3x | 1.8x | 1.9x | 1.5x |
|---|
