CounterPath Corp revenue returned to growth in FY2015: increased 2.7% vs. 23.3% decline a year earliner
16.07.2015 • About CounterPath Corp (
$CCV) • By InTwits
CounterPath Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CounterPath Corp doesn't have a profitable business model yet: FY2015 ROIC is -41.9%
- The company operates at negative EBITDA Margin: -42.8%
- CounterPath Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -22.9% for the sames years0
- CounterPath Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 58.1%.
- CAPEX is quite volatile: 0.21 in FY2015, 0.24 in FY2014, 0.25 in FY2013, 0.15 in FY2012, 0.083 in FY2011
- The company has unprofitable business model: ROIC is at -41.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CounterPath Corp ($CCV) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11.040 | 14.083 | 15.240 | 11.682 | 12.003 | 2.7% |
| Gross Profit | 8.175 | 11.265 | 12.963 | 9.451 | 9.781 | 3.5% |
| SG&A | | | 8.916 | 9.146 | 9.458 | 3.4% |
| EBITDA | -2.799 | -0.524 | -1.230 | -4.967 | -5.137 | 3.4% |
| Net Income | -3.542 | -2.123 | 0.472 | -5.915 | -4.442 | -24.9% |
Balance Sheet
|
|---|
| Cash | 1.707 | 8.154 | 11.230 | 7.173 | 2.852 | -60.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 1.305 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.083 | 0.151 | 0.255 | 0.238 | 0.215 | -9.7% |
Ratios
|
|---|
| Revenue growth | 37.7% | 27.6% | 8.2% | -23.3% | 2.7% | |
| EBITDA growth | -30.0% | -81.3% | 134.8% | 303.8% | 3.4% | |
| Gross Margin | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% | 0.6% |
| EBITDA Margin | -25.3% | -3.7% | -8.1% | -42.5% | -42.8% | -0.3% |
| Net Income Margin | -32.1% | -15.1% | 3.1% | -50.6% | -37.0% | 13.6% |
| SG&A, % of revenue | | | 58.5% | 78.3% | 78.8% | 0.5% |
| CAPEX, % of revenue | 0.8% | 1.1% | 1.7% | 2.0% | 1.8% | -0.2% |
| ROIC | -30.8% | -10.3% | -7.8% | -28.4% | -41.9% | -13.5% |
| ROE | -32.1% | -16.4% | -2.5% | -32.9% | -35.5% | -2.7% |
Revenue and profitability
The company's Revenue increased on 2.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 125 pp from -54.4% to -180% in 2015.
Gross Margin increased slightly on 0.59 pp from 80.9% to 81.5% in FY2015. SG&A as a % of Revenue increased slightly on 0.50 pp from 78.3% to 78.8% in FY2015.
Net Income marign surged on 13.6 pp from -50.6% to -37.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
CounterPath Corp's CAPEX/Revenue was 1.8% in FY2015. CounterPath Corp's CAPEX/Revenue increased slightly on 0.72 pp from 1.1% in FY2012 to 1.8% in FY2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-41.87%) and ROE (-35.54%). ROIC dropped on 13.5 pp from -28.4% to -41.9% in FY2015. ROE decreased on 2.7 pp from -32.9% to -35.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 60.2% in FY2015.
Appendix 1: Peers in Communications
Below you can find CounterPath Corp 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 ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.5% | 2.5% | 1.8% | 3.1% | 41.4% |
|---|
| CounterPath Corp ($CCV) | | 27.6% | 8.2% | -23.3% | 2.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| 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 ($ADX) | | 69.4% | 67.2% | 61.7% | |
| |
|---|
| Median (40 companies) | 43.2% | 42.8% | 42.5% | 41.8% | 46.4% |
|---|
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 16.4% | 15.6% | 14.8% | 13.4% | 10.4% |
|---|
| CounterPath Corp ($CCV) | -25.3% | -3.7% | -8.1% | -42.5% | -42.8% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.3% | 2.3% | 1.6% |
|---|
| CounterPath Corp ($CCV) | 0.8% | 1.1% | 1.7% | 2.0% | 1.8% |
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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 7.2% | 9.2% | 8.3% | 8.3% | -21.2% |
|---|
| CounterPath Corp ($CCV) | -30.8% | -10.3% | -7.8% | -28.4% | -41.9% |
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 (42 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 5.0x |
|---|
