Rockwell Diamonds Inc EBITDA dropped on 401% in 2015 and EBITDA Margin dropped on 21.5 pp from 7.2% to -14.3%
28.05.2015 • About Rockwell Diamonds Inc (
$RDI) • By InTwits
Rockwell Diamonds Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rockwell Diamonds Inc doesn't have a profitable business model yet: FY2015 ROIC is -31.3%
- The company operates at negative EBITDA Margin: -14.3%
- Rockwell Diamonds Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -1.2% for the sames years0
- Rockwell Diamonds Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.7%. At the same time it's in pair with industry average of 4.5%.
- CAPEX is quite volatile: 4.7 in FY2015, 8.9 in FY2014, 4.8 in FY2013, 6.8 in FY2012, 11.6 in FY2011
- The company has unprofitable business model: ROIC is at -31.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rockwell Diamonds Inc ($RDI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 42.508 | 34.221 | 32.405 | 45.169 | 67.998 | 50.5% |
| Gross Profit | 14.428 | 7.284 | 1.067 | 0.033 | -8.888 | -27,342.1% |
| SG&A | | | | | 5.895 | |
| EBITDA | 7.649 | 0.441 | -4.141 | 3.233 | -9.741 | -401.3% |
| Net Income | -4.963 | -11.637 | -10.901 | -10.618 | -13.980 | 31.7% |
Balance Sheet
|
|---|
| Cash | 4.771 | 10.741 | 5.571 | 1.324 | 0.576 | -56.5% |
| Short Term Debt | 1.930 | 1.919 | 4.476 | 5.204 | 3.004 | -42.3% |
| Long Term Debt | | 5.037 | 4.171 | 3.350 | 5.120 | 52.8% |
Cash flow
|
|---|
| Capex | 11.636 | 6.803 | 4.751 | 8.907 | 4.733 | -46.9% |
Ratios
|
|---|
| Revenue growth | 42.8% | -19.5% | -5.3% | 39.4% | 50.5% | |
| EBITDA growth | 3,749.9% | -94.2% | -1,039.2% | -178.1% | -401.3% | |
| Gross Margin | 33.9% | 21.3% | 3.3% | 0.1% | -13.1% | -13.1% |
| EBITDA Margin | 18.0% | 1.3% | -12.8% | 7.2% | -14.3% | -21.5% |
| Net Income Margin | -11.7% | -34.0% | -33.6% | -23.5% | -20.6% | 2.9% |
| SG&A, % of revenue | | | | | 8.7% | 8.7% |
| CAPEX, % of revenue | 27.4% | 19.9% | 14.7% | 19.7% | 7.0% | -12.8% |
| ROIC | | | -14.0% | -4.1% | -31.3% | -27.3% |
| ROE | -6.2% | -14.6% | -16.2% | -19.9% | -32.6% | -12.7% |
| Net Debt/EBITDA | -0.4x | -8.6x | | 2.2x | | -2.2x |
Revenue and profitability
Rockwell Diamonds Inc's Revenue surged on 50.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.7 pp from 29.2% to 12.5% in 2015.
Gross Margin dropped on 13.1 pp from 0.072% to -13.1% in FY2015.
Net Income marign increased on 2.9 pp from -23.5% to -20.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.0% in FY2015. The company showed big decline in CAPEX/Revenue of 12.9 pp from 19.9% in FY2012 to 7.0% in FY2015. Average CAPEX/Revenue for the last three years was 13.8%.
Return on investment
The company operates at negative ROIC (-31.34%) and ROE (-32.61%). ROIC dropped on 27.3 pp from -4.1% to -31.3% in FY2015. ROE dropped on 12.7 pp from -19.9% to -32.6% in FY2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 2.2x to in FY2015. Debt decreased on 5.0% in FY2015 while cash dropped on 56.5% in FY2015.
Appendix 1: Peers in Basic Materials
Below you can find Rockwell Diamonds Inc benchmarking vs. other companies in Basic Materials 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 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.5% | -4.8% | -1.1% | 11.4% |
|---|
| Rockwell Diamonds Inc ($RDI) | | -19.5% | -5.3% | 39.4% | 50.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | |
| |
|---|
| Median (132 companies) | 30.1% | 31.8% | 21.9% | 17.2% | 28.2% |
|---|
| Rockwell Diamonds Inc ($RDI) | 33.9% | 21.3% | 3.3% | 0.1% | -13.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.5% | 11.5% | 9.8% | 14.1% |
|---|
| Rockwell Diamonds Inc ($RDI) | 18.0% | 1.3% | -12.8% | 7.2% | -14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 23.9% | 26.3% | 25.4% | 16.0% | 18.4% |
|---|
| Rockwell Diamonds Inc ($RDI) | 27.4% | 19.9% | 14.7% | 19.7% | 7.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 6.2% | 4.9% | 0.0% | 0.2% | -1.5% |
|---|
| Rockwell Diamonds Inc ($RDI) | | | -14.0% | -4.1% | -31.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (93 companies) | -0.0x | 0.3x | 0.7x | 0.9x | -0.3x |
|---|
| Rockwell Diamonds Inc ($RDI) | -0.4x | -8.6x | | 2.2x | |
