Absolute Software Corp reports 15.5% EBITDA growth and 10.1% Revenue growth
17.08.2015 • About Absolute Software Corp (
$ABT) • By InTwits
Absolute Software Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 22.1% in FY2015 vs. 21.1% in FY2014 vs. 8.3% in FY2011
- Absolute Software Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 1.9%.
- CAPEX is quite volatile: 2.9 in FY2015, 1.6 in FY2014, 0.97 in FY2013, 1.3 in FY2012, 1.2 in FY2011
- It operates with high leverage: Net Debt/EBITDA is -2.1x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Absolute Software Corp ($ABT) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 67.924 | 74.335 | 82.838 | 85.087 | 93.650 | 10.1% |
| Gross Profit | 48.661 | 54.694 | 63.192 | 66.706 | 75.905 | 13.8% |
| SG&A | | | 47.143 | 48.980 | 52.300 | 6.8% |
| EBITDA | 5.639 | 12.444 | 15.400 | 17.954 | 20.734 | 15.5% |
| Net Income | 2.144 | -1.412 | 1.731 | 3.341 | 4.615 | 38.2% |
Balance Sheet
|
|---|
| Cash | 30.976 | 44.583 | 29.557 | 38.373 | 44.106 | 14.9% |
| 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 | 1.219 | 1.275 | 0.969 | 1.616 | 2.909 | 80.0% |
Ratios
|
|---|
| Revenue growth | 11.8% | 9.4% | 11.4% | 2.7% | 10.1% | |
| EBITDA growth | -481.3% | 120.7% | 23.8% | 16.6% | 15.5% | |
| Gross Margin | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% | 2.7% |
| EBITDA Margin | 8.3% | 16.7% | 18.6% | 21.1% | 22.1% | 1.0% |
| Net Income Margin | 3.2% | -1.9% | 2.1% | 3.9% | 4.9% | 1.0% |
| SG&A, % of revenue | | | 56.9% | 57.6% | 55.8% | -1.7% |
| CAPEX, % of revenue | 1.8% | 1.7% | 1.2% | 1.9% | 3.1% | 1.2% |
| Net Debt/EBITDA | -5.5x | -3.6x | -1.9x | -2.1x | -2.1x | 0.0x |
Revenue and profitability
Absolute Software Corp's Revenue surged on 10.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.4 pp from 7.4% to -7.0% in 2015.
Gross Margin increased on 2.7 pp from 78.4% to 81.1% in FY2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 57.6% to 55.8% in FY2015.
Net Income marign increased slightly on 1.0 pp from 3.9% to 4.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Absolute Software Corp's CAPEX/Revenue was 3.1% in FY2015. CAPEX/Revenue increased slightly on 1.4 pp from 1.7% in FY2012 to 3.1% in FY2015. Average CAPEX/Revenue for the last three years was 2.1%.
Leverage (Debt)
The company has no debt. Cash surged on 14.9% in FY2015.
Management team
Absolute Software Corp's CEO Geoffrey Haydon "Geoff" is a founder and has spent 4 years at the company. The company's CFO is Errol Olsen. Errol Olsen has 8 years tenure at the company.
Appendix 1: Peers in Technology
Below you can find Absolute Software Corp 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 ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 7.1% | 3.7% | 12.4% | 15.2% | 12.9% |
|---|
| Absolute Software Corp ($ABT) | | 9.4% | 11.4% | 2.7% | 10.1% |
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% | |
| Sandvine Corp ($SVC) | 74.3% | 67.5% | 74.1% | 76.8% | |
| |
|---|
| Median (31 companies) | 49.7% | 52.4% | 48.8% | 51.1% | 48.1% |
|---|
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
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 ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| |
|---|
| Median (33 companies) | 8.9% | 8.3% | 5.5% | 7.0% | 17.1% |
|---|
| Absolute Software Corp ($ABT) | 8.3% | 16.7% | 18.6% | 21.1% | 22.1% |
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 ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.5% | 1.5% | 1.2% | 2.1% |
|---|
| Absolute Software Corp ($ABT) | 1.8% | 1.7% | 1.2% | 1.9% | 3.1% |
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 ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| |
|---|
| Median (33 companies) | 5.1% | 3.1% | -4.5% | 0.9% | 8.3% |
|---|
| Absolute Software Corp ($ABT) | | | | | |
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 | 1.5x |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.2x | -0.2x | -1.3x | 1.3x |
|---|
| Absolute Software Corp ($ABT) | -5.5x | -3.6x | -1.9x | -2.1x | -2.1x |
