Westbond Enterprises Corp CAPEX surged on 838% in 2015 and Revenue jumped on 11.4%
28.07.2015 • About Westbond Enterprises Corp (
$WBE) • By InTwits
Westbond Enterprises Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Westbond Enterprises Corp doesn't have a profitable business model yet: FY2015 ROIC is 0.1%
- Westbond Enterprises Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 2.9 in FY2015, 0.31 in FY2014, 0.15 in FY2013, 0.46 in FY2012, 0.21 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Westbond Enterprises Corp ($WBE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.085 | 6.078 | 6.324 | 6.599 | 7.349 | 11.4% |
| Gross Profit | 1.146 | 1.292 | 1.352 | 1.343 | 1.368 | 1.9% |
| SG&A | | | 1.189 | 1.221 | 1.364 | 11.7% |
| EBITDA | 0.291 | 0.442 | 0.480 | 0.454 | 0.348 | -23.2% |
| Net Income | 0.029 | 0.124 | 0.121 | 0.047 | -0.431 | -1,024.3% |
Balance Sheet
|
|---|
| Cash | 0.159 | 0.098 | 0.076 | 1.638 | 0.096 | -94.1% |
| Short Term Debt | 0.337 | 0.555 | 0.354 | 0.044 | 0.358 | 706.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.291 | |
Cash flow
|
|---|
| Capex | 0.210 | 0.462 | 0.150 | 0.309 | 2.901 | 838.4% |
Ratios
|
|---|
| Revenue growth | -1.8% | -0.1% | 4.0% | 4.3% | 11.4% | |
| EBITDA growth | -32.3% | 52.1% | 8.6% | -5.5% | -23.2% | |
| Gross Margin | 18.8% | 21.2% | 21.4% | 20.3% | 18.6% | -1.7% |
| EBITDA Margin | 4.8% | 7.3% | 7.6% | 6.9% | 4.7% | -2.1% |
| Net Income Margin | 0.5% | 2.0% | 1.9% | 0.7% | -5.9% | -6.6% |
| SG&A, % of revenue | | | 18.8% | 18.5% | 18.6% | 0.1% |
| CAPEX, % of revenue | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% | 34.8% |
| ROIC | 1.6% | 4.7% | 4.0% | 2.6% | 0.1% | -2.5% |
| ROE | 1.0% | 4.2% | 3.9% | 1.1% | -9.0% | -10.1% |
| Net Debt/EBITDA | 0.6x | 1.0x | 0.6x | -3.5x | 1.6x | 5.1x |
Revenue and profitability
Westbond Enterprises Corp's Revenue surged on 11.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.0 pp from 30.2% to -6.8% in FY2015.
Gross Margin decreased slightly on 1.7 pp from 20.3% to 18.6% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased on 6.6 pp from 0.71% to -5.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 39.5% in FY2015. The company showed fast CAPEX/Revenue growth of 31.9 pp from 7.6% in FY2012 to 39.5% in FY2015. It's average CAPEX/Revenue for the last three years was 15.5%.To fuel this fast growth Westbond Enterprises Corp made large investments to CAPEX (834% of EBITDA).
Return on investment
The company operates at low but positive ROIC (0.07%) and negative ROE (-8.97%). ROIC decreased on 2.5 pp from 2.6% to 0.071% in FY2015. ROE dropped on 10.1 pp from 1.1% to -9.0% in FY2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA surged on 5.1x from -3.5x to 1.6x in FY2015. Debt jumped on 1,360% in FY2015 while cash dropped on 94.1% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Westbond Enterprises Corp benchmarking against other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.5% | 8.7% | 6.9% | 13.2% | 6.3% |
|---|
| Westbond Enterprises Corp ($WBE) | | -0.1% | 4.0% | 4.3% | 11.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 28.3% |
|---|
| Westbond Enterprises Corp ($WBE) | 18.8% | 21.2% | 21.4% | 20.3% | 18.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.2% | 8.5% | 9.0% | 10.8% | 10.3% |
|---|
| Westbond Enterprises Corp ($WBE) | 4.8% | 7.3% | 7.6% | 6.9% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.3% | 2.6% | 2.5% | 2.4% | 4.2% |
|---|
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 8.0% | 7.2% | 6.7% | 7.8% | 8.0% |
|---|
| Westbond Enterprises Corp ($WBE) | 1.6% | 4.7% | 4.0% | 2.6% | 0.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Westbond Enterprises Corp ($WBE) | 0.6x | 1.0x | 0.6x | -3.5x | 1.6x |
