Mediagrif Interactive Technologies Inc reports 23.0% Net Income growth and 1.9 pp EBITDA Margin growth from 37.2% to 39.0%
09.06.2015 • About Mediagrif Interactive Technologies Inc (
$MDF) • By InTwits
Mediagrif Interactive Technologies Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mediagrif Interactive Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 26.9%.
- CAPEX is quite volatile: 0.77 in FY2015, 1.1 in FY2014, 0.39 in FY2013, 0.49 in FY2012, 1.6 in FY2011
- The company has highly profitable business model: ROIC is at 12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mediagrif Interactive Technologies Inc ($MDF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 47.076 | 53.824 | 60.711 | 65.376 | 70.247 | 7.5% |
| Gross Profit | 36.820 | 42.972 | 48.450 | 51.520 | 56.275 | 9.2% |
| SG&A | | | 18.273 | 22.681 | 23.112 | 1.9% |
| EBITDA | 15.076 | 17.479 | 25.071 | 24.293 | 27.417 | 12.9% |
| Net Income | 7.995 | 9.505 | 13.973 | 12.711 | 15.633 | 23.0% |
Balance Sheet
|
|---|
| Cash | 30.026 | 5.409 | 14.252 | 6.937 | 7.546 | 8.8% |
| Short Term Debt | 0.243 | 4.225 | 0.180 | 0.124 | 0.150 | 21.0% |
| Long Term Debt | 0.163 | 34.377 | 0.000 | 36.920 | 26.100 | -29.3% |
Cash flow
|
|---|
| Capex | 1.559 | 0.494 | 0.394 | 1.061 | 0.766 | -27.8% |
Ratios
|
|---|
| Revenue growth | 3.0% | 14.3% | 12.8% | 7.7% | 7.5% | |
| EBITDA growth | 24.0% | 15.9% | 43.4% | -3.1% | 12.9% | |
| Gross Margin | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% | 1.3% |
| EBITDA Margin | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% | 1.9% |
| Net Income Margin | 17.0% | 17.7% | 23.0% | 19.4% | 22.3% | 2.8% |
| SG&A, % of revenue | | | 30.1% | 34.7% | 32.9% | -1.8% |
| CAPEX, % of revenue | 3.3% | 0.9% | 0.6% | 1.6% | 1.1% | -0.5% |
| ROIC | 20.9% | 16.0% | 18.4% | 12.4% | 12.9% | 0.5% |
| ROE | 12.6% | 14.3% | 15.4% | 11.0% | 13.0% | 2.0% |
| Net Debt/EBITDA | -2.0x | 1.9x | -0.6x | 1.2x | 0.7x | -0.6x |
Revenue and profitability
Mediagrif Interactive Technologies Inc's Revenue increased on 7.5% 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 increased slightly on 1.3 pp from 78.8% to 80.1% in FY2015. SG&A as a % of Revenue decreased slightly on 1.8 pp from 34.7% to 32.9% in FY2015.
Net Income marign increased on 2.8 pp from 19.4% to 22.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Mediagrif Interactive Technologies Inc had CAPEX/Revenue of 1.1%. Mediagrif Interactive Technologies Inc showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.1%.
Return on investment
The company operates at good ROIC (12.88%) and ROE (13.01%). ROIC increased slightly on 0.51 pp from 12.4% to 12.9% in FY2015. ROE increased slightly on 2.0 pp from 11.0% to 13.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.6x from 1.2x to 0.7x in FY2015. Debt dropped on 29.1% in FY2015 while cash increased on 8.8% in FY2015.
Appendix 1: Peers in Communications
Below you can find Mediagrif Interactive Technologies Inc 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 ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | |
| Plaintree Systems Inc ($NPT) | 20.1% | 14.5% | 9.1% | 50.8% | |
| Aimia Inc ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.7% | 2.5% | 1.8% | 1.9% | 75.3% |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | | 14.3% | 12.8% | 7.7% | 7.5% |
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% | |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | |
| Advantex Marketing International Inc ($ADX) | | 69.4% | 67.2% | 61.7% | |
| |
|---|
| Median (40 companies) | 43.2% | 42.8% | 42.5% | 41.8% | 32.1% |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 14.1% | 13.5% | 14.1% | 11.7% | -14.8% |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.3% | 2.3% | 2.2% |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | 3.3% | 0.9% | 0.6% | 1.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 6.3% | 8.0% | 8.2% | 8.0% | -33.3% |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | 20.9% | 16.0% | 18.4% | 12.4% | 12.9% |
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 ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 9.4x |
|---|
| Mediagrif Interactive Technologies Inc ($MDF) | -2.0x | 1.9x | -0.6x | 1.2x | 0.7x |
