Rifco Inc reports 28.9% revenue growth in FY2015 and 9.1 pp EBITDA Margin decline from 57.4% to 48.3%
11.06.2015 • About Rifco Inc (
$RFC) • By InTwits
Rifco Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 11.9x while industry average is 5.6x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rifco Inc ($RFC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16.581 | 16.668 | 24.005 | 30.261 | 39.002 | 28.9% |
| EBITDA | | 10.821 | 15.192 | 17.384 | 18.853 | 8.5% |
| Net Income | 2.129 | 2.521 | 4.730 | 6.378 | 5.928 | -7.1% |
Balance Sheet
|
|---|
| Cash | | 3.424 | 3.679 | 2.804 | 3.716 | 32.5% |
| Short Term Debt | | 101.597 | 137.662 | 96.836 | 131.930 | 36.2% |
| Long Term Debt | | 8.140 | 8.500 | 91.449 | 95.939 | 4.9% |
Cash flow
|
|---|
| Capex | | 0.111 | 0.087 | 0.280 | 0.656 | 134.0% |
Ratios
|
|---|
| Revenue growth | 46.9% | 0.5% | 44.0% | 26.1% | 28.9% | |
| EBITDA growth | | | 40.4% | 14.4% | 8.5% | |
| EBITDA Margin | 0.0% | 64.9% | 63.3% | 57.4% | 48.3% | -9.1% |
| Net Income Margin | 12.8% | 15.1% | 19.7% | 21.1% | 15.2% | -5.9% |
| CAPEX, % of revenue | | 0.7% | 0.4% | 0.9% | 1.7% | 0.8% |
| ROIC | | | 4.9% | | | 0.0% |
| ROE | | | 57.1% | 43.9% | 27.6% | -16.3% |
| Net Debt/EBITDA | | 9.8x | 9.4x | 10.7x | 11.9x | 1.2x |
Revenue and profitability
The company's Revenue surged on 28.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.4 pp from 25.5% to 35.9% in FY2015.
Net Income marign decreased on 5.9 pp from 21.1% to 15.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Rifco Inc's CAPEX/Revenue was 1.7% in FY2015. The company's CAPEX/Revenue increased slightly on 1.0 pp from 0.66% in FY2012 to 1.7% in FY2015. Average CAPEX/Revenue for the last three years was 0.99%.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.9x and Debt / EBITDA is 12.1x. Net Debt / EBITDA jumped on 1.2x from 10.7x to 11.9x in FY2015. Debt jumped on 21.0% in FY2015 while cash surged on 32.5% in FY2015.
Appendix 1: Peers in Financial
Below we provide Rifco Inc benchmarking against other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | 4.1% | -39.1% | 60.6% | 97.9% | |
| |
|---|
| Median (72 companies) | 11.2% | 9.3% | 7.1% | 8.4% | -35.9% |
|---|
| Rifco Inc ($RFC) | | 0.5% | 44.0% | 26.1% | 28.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 6.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (48 companies) | 35.6% | 29.5% | 32.0% | 30.5% | 14.5% |
|---|
| Rifco Inc ($RFC) | | 64.9% | 63.3% | 57.4% | 48.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| |
|---|
| Median (74 companies) | 1.3% | 1.7% | 0.8% | 1.1% | 39.0% |
|---|
| Rifco Inc ($RFC) | | 0.7% | 0.4% | 0.9% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (76 companies) | 5.0% | 4.8% | 4.5% | 4.8% | 1.3% |
|---|
| Rifco Inc ($RFC) | | | 4.9% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.2x | 4.6x | 4.2x | 11.4x |
|---|
| Rifco Inc ($RFC) | | 9.8x | 9.4x | 10.7x | 11.9x |
