Mad Catz Interactive Inc Net Income surged on 164% in 2015 while Revenue decreased on 3.8%
25.06.2015 • About Mad Catz Interactive Inc (
$MCZ) • By InTwits
Mad Catz Interactive Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mad Catz Interactive Inc is a company in decline: FY2015 revenue growth was -3.8%, 5 years revenue CAGR was -6.2%
- EBITDA Margin is quite volatile: 0.5% in FY2015, -4.3% in FY2014, 4.1% in FY2013, 0.4% in FY2012, 12.3% in FY2011
- Mad Catz Interactive Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 1.8%.
- CAPEX is quite volatile: 107 in 2015, 264 in 2014, 143 in 2013, 234 in 2012, 156 in 2011
- The company has unprofitable business model: ROIC is at -9.0%
- It operates with high leverage: Net Debt/EBITDA is 9.4x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mad Catz Interactive Inc ($MCZ) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 184.0 | 117.6 | 122.7 | 89.6 | 86.2 | -3.8% |
| Gross Profit | 53.4 | 31.5 | 34.5 | 22.9 | 23.8 | 4.1% |
| SG&A | 28.1 | 27.7 | 27.3 | 24.3 | 22.1 | -9.3% |
| EBITDA | 22.6 | 0.4 | 5.1 | -3.8 | 0.4 | -110.7% |
| Net Income | 10.9 | -1.6 | -11.2 | -7.4 | 4.7 | -163.8% |
Balance Sheet
|
|---|
| Cash | 3.7 | 2.5 | 2.8 | 1.5 | 5.1 | 243.7% |
| Short Term Debt | 19.9 | 16.7 | 8.9 | 6.9 | 8.9 | 28.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 1.0 | 0.0 | -96.5% |
Cash flow
|
|---|
| Capex | 2.1 | 2.4 | 1.0 | 1.5 | 2.1 | 41.5% |
Ratios
|
|---|
| Revenue growth | 54.6% | -36.1% | 4.3% | -26.9% | -3.8% | |
| EBITDA growth | 83.3% | -98.1% | 1,050.5% | -175.5% | -110.7% | |
| Gross Margin | 29.0% | 26.8% | 28.1% | 25.5% | 27.7% | 2.1% |
| EBITDA Margin | 12.3% | 0.4% | 4.1% | -4.3% | 0.5% | 4.7% |
| Net Income Margin | 5.9% | -1.4% | -9.1% | -8.3% | 5.5% | 13.8% |
| SG&A, % of revenue | 15.3% | 23.6% | 22.3% | 27.1% | 25.6% | -1.5% |
| CAPEX, % of revenue | 1.1% | 2.1% | 0.9% | 1.6% | 2.4% | 0.8% |
| ROIC | 45.1% | -5.3% | 4.7% | -24.4% | -9.0% | 15.4% |
| ROE | 61.7% | -6.1% | -48.3% | -51.3% | 34.0% | 85.3% |
| Net Debt/EBITDA | 0.7x | 32.2x | 1.2x | | 9.4x | 9.4x |
Revenue and profitability
The company's Revenue decreased on 3.8% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.7 pp from -4.3% to 0.47% in FY2015.
Gross Margin increased on 2.1 pp from 25.5% to 27.7% in FY2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 27.1% to 25.6% in FY2015.
Net Income marign surged on 13.8 pp from -8.3% to 5.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mad Catz Interactive Inc's CAPEX/Revenue was 2.4% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 1.6%.Battling declining revenue Mad Catz Interactive Inc made large investments to CAPEX (508% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-8.98%) and low but positive ROE (34.01%). ROIC surged on 15.4 pp from -24.4% to -9.0% in FY2015. ROE jumped on 85.3 pp from -51.3% to 34.0% in FY2015.
Leverage (Debt)
Debt level is 9.4x Net Debt / EBITDA and 22.0x Debt / EBITDA. Net Debt / EBITDA surged9.4x from to 9.4x in FY2015. Debt surged on 12.5% in FY2015 while cash surged on 244% in FY2015.
Appendix 1: Peers in Technology
Below you can find Mad Catz Interactive Inc benchmarking vs. other companies in Technology 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 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | 25.9% | -4.5% | 151.6% | 81.4% | |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 10.2% | 6.6% | 12.4% | 15.2% | -1.7% |
|---|
| Mad Catz Interactive Inc ($MCZ) | | -36.1% | 4.3% | -26.9% | -3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | |
| |
|---|
| Median (31 companies) | 50.9% | 59.2% | 53.2% | 52.2% | 48.1% |
|---|
| Mad Catz Interactive Inc ($MCZ) | 29.0% | 26.8% | 28.1% | 25.5% | 27.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| |
|---|
| Median (33 companies) | 8.5% | 8.6% | 6.2% | 7.2% | 22.5% |
|---|
| Mad Catz Interactive Inc ($MCZ) | 12.3% | 0.4% | 4.1% | -4.3% | 0.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.5% | 1.5% | 1.2% | 1.8% |
|---|
| Mad Catz Interactive Inc ($MCZ) | 1.1% | 2.1% | 0.9% | 1.6% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| |
|---|
| Median (33 companies) | 4.7% | 4.4% | -4.8% | 3.3% | 25.3% |
|---|
| Mad Catz Interactive Inc ($MCZ) | 45.1% | -5.3% | 4.7% | -24.4% | -9.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | |
| |
|---|
| Median (22 companies) | -0.5x | -0.4x | -0.6x | -1.3x | -0.2x |
|---|
