Inscape Corp revenue increased on 4.9% in 2015
25.06.2015 • About Inscape Corp (
$INQ) • By InTwits
Inscape Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Inscape Corp doesn't have a profitable business model yet: FY2015 ROIC is -19.9%
- Inscape Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's in pair with industry average of 4.5%.
- CAPEX is quite volatile: 1.8 in FY2015, 1.3 in FY2014, 1.3 in FY2013, 4.7 in FY2012, 4.1 in FY2011
- The company has unprofitable business model: ROIC is at -19.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inscape Corp ($INQ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 87.405 | 78.944 | 74.900 | 66.155 | 69.424 | 4.9% |
| Gross Profit | 25.682 | 17.997 | 19.852 | 14.742 | 14.808 | 0.4% |
| SG&A | | | 21.413 | 20.890 | 22.344 | 7.0% |
| EBITDA | 7.736 | 0.150 | | | | |
| Net Income | 3.575 | -1.989 | -1.256 | -7.092 | -13.076 | 84.4% |
Balance Sheet
|
|---|
| Cash | 7.545 | 8.921 | 8.193 | 6.029 | 3.192 | -47.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 4.058 | 4.682 | 1.342 | 1.294 | 1.760 | 36.0% |
Ratios
|
|---|
| Revenue growth | 22.9% | -9.7% | -5.1% | -11.7% | 4.9% | |
| EBITDA growth | 186.8% | -98.1% | | | | |
| Gross Margin | 29.4% | 22.8% | 26.5% | 22.3% | 21.3% | -1.0% |
| EBITDA Margin | 8.9% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | 4.1% | -2.5% | -1.7% | -10.7% | -18.8% | -8.1% |
| SG&A, % of revenue | | | 28.6% | 31.6% | 32.2% | 0.6% |
| CAPEX, % of revenue | 4.6% | 5.9% | 1.8% | 2.0% | 2.5% | 0.6% |
| ROIC | 6.3% | -7.0% | -3.1% | -13.0% | -19.9% | -6.9% |
| ROE | 6.2% | -3.8% | -2.5% | -15.5% | -35.6% | -20.1% |
| Net Debt/EBITDA | -1.0x | -59.5x | | | | 0.0x |
Revenue and profitability
Inscape Corp's Revenue increased on 4.9% in FY2015.
Gross Margin decreased slightly on 0.95 pp from 22.3% to 21.3% in FY2015. SG&A as a % of Revenue increased slightly on 0.61 pp from 31.6% to 32.2% in FY2015.
Net Income marign decreased on 8.1 pp from -10.7% to -18.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Inscape Corp's CAPEX/Revenue was 2.5% in FY2015. Inscape Corp showed decline in CAPEX/Revenue of 3.4 pp from 5.9% in FY2012 to 2.5% in FY2015. It's average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at negative ROIC (-19.88%) and ROE (-35.62%). ROIC decreased on 6.9 pp from -13.0% to -19.9% in FY2015. ROE dropped on 20.1 pp from -15.5% to -35.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 47.1% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Inscape Corp 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.5% | 5.3% | 5.3% | 7.7% | 3.2% |
|---|
| Inscape Corp ($INQ) | | -9.7% | -5.1% | -11.7% | 4.9% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.9% | 36.5% | 32.1% | 34.6% | 38.4% |
|---|
| Inscape Corp ($INQ) | 29.4% | 22.8% | 26.5% | 22.3% | 21.3% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (66 companies) | 8.4% | 8.1% | 9.8% | 9.8% | 9.4% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($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 (68 companies) | 2.6% | 2.7% | 2.9% | 2.4% | 3.1% |
|---|
| Inscape Corp ($INQ) | 4.6% | 5.9% | 1.8% | 2.0% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($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 (68 companies) | 10.7% | 9.8% | 10.8% | 9.8% | 3.1% |
|---|
| Inscape Corp ($INQ) | 6.3% | -7.0% | -3.1% | -13.0% | -19.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($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 (58 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 0.4x |
|---|
