Plaintree Systems Inc reports 2,782% EBITDA growth and 4.7 pp EBITDA Margin growth from 0.16% to 4.9%
27.07.2015 • About Plaintree Systems Inc (
$NPT) • By InTwits
Plaintree Systems Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Plaintree Systems Inc doesn't have a profitable business model yet: FY2015 ROIC is -1.3%
- The company has unprofitable business model: ROIC is at -1.3%
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is -0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Plaintree Systems Inc ($NPT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11.041 | 12.641 | 13.791 | 20.804 | 19.319 | -7.1% |
| Gross Profit | 4.160 | 3.034 | | 2.703 | 3.502 | 29.6% |
| SG&A | | | | 1.934 | 2.099 | 8.5% |
| EBITDA | 1.174 | -0.146 | | 0.033 | 0.944 | 2,781.6% |
| Net Income | 0.313 | -0.632 | 0.373 | -1.711 | -0.401 | -76.5% |
Balance Sheet
|
|---|
| Cash | 0.371 | 0.680 | | 0.000 | 0.058 | |
| Short Term Debt | 1.208 | 3.698 | | 4.067 | 3.565 | -12.3% |
| Long Term Debt | 0.000 | 0.750 | | 0.000 | 0.164 | |
Cash flow
|
|---|
| Capex | 1.132 | 0.425 | | 1.619 | 0.658 | -59.4% |
Ratios
|
|---|
| Revenue growth | 20.1% | 14.5% | 9.1% | 50.8% | -7.1% | |
| EBITDA growth | 80.9% | -112.4% | | | 2,781.6% | |
| Gross Margin | 37.7% | 24.0% | | 13.0% | 18.1% | 5.1% |
| EBITDA Margin | 10.6% | -1.2% | 0.0% | 0.2% | 4.9% | 4.7% |
| Net Income Margin | 2.8% | -5.0% | 2.7% | -8.2% | -2.1% | 6.1% |
| SG&A, % of revenue | | | | 9.3% | 10.9% | 1.6% |
| CAPEX, % of revenue | 10.3% | 3.4% | | 7.8% | 3.4% | -4.4% |
| ROIC | 22.4% | -11.0% | | | -1.3% | -1.3% |
| ROE | -65.1% | -113.5% | | | -198.9% | -198.9% |
| Net Debt/EBITDA | 0.7x | | | 124.2x | 3.9x | -120.3x |
Revenue and profitability
Plaintree Systems Inc's Revenue decreased on 7.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.7 pp from 0.16% to 4.9% in FY2015.
Gross Margin increased on 5.1 pp from 13.0% to 18.1% in FY2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 9.3% to 10.9% in FY2015.
Net Income marign increased on 6.1 pp from -8.2% to -2.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Plaintree Systems Inc's CAPEX/Revenue was 3.4% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015.Battling declining revenue the company invested a large share of EBITDA (69.7%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.27%) and ROE (-198.86%).
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 120.3x from 124.2x to 3.9x in FY2015. Debt decreased on 8.3% in FY2015 while cash surged.
Appendix 1: Peers in Communications
Below you can find Plaintree Systems 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 ($GPS) | | | 39.1% | 55.5% | |
| Aimia Inc ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| Blackline Safety Corp ($BLN) | -4.3% | 37.1% | 9.4% | 45.1% | |
| |
|---|
| Median (49 companies) | 7.3% | 2.5% | 1.8% | 1.9% | 7.5% |
|---|
| Plaintree Systems Inc ($NPT) | | 14.5% | 9.1% | 50.8% | -7.1% |
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% | 81.5% |
| 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 ($STC) | 74.5% | 68.8% | | 66.9% | |
| |
|---|
| Median (40 companies) | 43.3% | 43.3% | 42.6% | 42.5% | 63.3% |
|---|
| Plaintree Systems Inc ($NPT) | 37.7% | 24.0% | | 13.0% | 18.1% |
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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 16.4% | 15.6% | 14.6% | 13.4% | -14.8% |
|---|
| Plaintree Systems Inc ($NPT) | 10.6% | -1.2% | | 0.2% | 4.9% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.2% | 2.1% | 1.8% |
|---|
| Plaintree Systems Inc ($NPT) | 10.3% | 3.4% | | 7.8% | 3.4% |
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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 6.3% | 9.2% | 8.3% | 8.3% | -33.3% |
|---|
| Plaintree Systems Inc ($NPT) | 22.4% | -11.0% | | | -1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| GVIC Communications Corp ($GCT) | 3.1x | 3.4x | 3.9x | 3.3x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.4x | 5.0x |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
