Danier Leather Inc revenue dropped on 11.2% in 2015
18.09.2015 • About Danier Leather Inc (
$DL) • By InTwits
Danier Leather Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Danier Leather Inc is a company in decline: FY2015 revenue growth was -11.2%, 5 years revenue CAGR was -5.2%
- EBITDA Margin is declining: in FY2015 vs. -4.6% in FY2014 vs. 9.2% in FY2011
- Danier Leather Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 6.3%.
- CAPEX is quite volatile: 4.4 in 2015, 11.4 in 2014, 3.4 in 2013, 3.1 in 2012, 3.0 in 2011
- The company has unprofitable business model: ROIC is at -57.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Danier Leather Inc ($DL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 157.6 | 148.2 | 155.0 | 141.9 | 126.0 | -11.2% |
| Gross Profit | 86.3 | 76.7 | 78.4 | 68.2 | 55.8 | -18.2% |
| SG&A | | 71.4 | 76.6 | 79.1 | 72.9 | -7.8% |
| EBITDA | 14.6 | 9.0 | 5.4 | -6.5 | | -100.0% |
| Net Income | 7.6 | 4.0 | 1.4 | -7.7 | -19.9 | 159.3% |
Balance Sheet
|
|---|
| Cash | 28.7 | 34.3 | 24.5 | 13.5 | 0.9 | -93.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 2.3 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.2 | 4.0 | 4.5 | 5.0 | 2.7 | -45.1% |
Ratios
|
|---|
| Revenue growth | -4.0% | -6.0% | 4.6% | -8.4% | -11.2% | |
| EBITDA growth | -3.9% | -38.0% | -40.7% | -222.2% | | |
| Gross Margin | 54.7% | 51.8% | 50.6% | 48.1% | 44.3% | -3.8% |
| EBITDA Margin | 9.2% | 6.1% | 3.5% | -4.6% | 0.0% | 4.6% |
| Net Income Margin | 4.8% | 2.7% | 0.9% | -5.4% | -15.8% | -10.4% |
| SG&A, % of revenue | | 48.1% | 49.4% | 55.7% | 57.8% | 2.1% |
| CAPEX, % of revenue | 1.4% | 2.7% | 2.9% | 3.5% | 2.2% | -1.3% |
| ROIC | 18.1% | 8.6% | 3.1% | -21.8% | -57.0% | -35.2% |
| ROE | 13.0% | 6.3% | 2.3% | -14.7% | -51.5% | -36.8% |
| Net Debt/EBITDA | -2.0x | -3.8x | -4.6x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 11.2% in FY2015.
Gross Margin decreased on 3.8 pp from 48.1% to 44.3% in FY2015. SG&A as a % of Revenue increased on 2.1 pp from 55.7% to 57.8% in FY2015.
Net Income marign dropped on 10.4 pp from -5.4% to -15.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Danier Leather Inc's CAPEX/Revenue was 2.2% in FY2015. Danier Leather Inc's CAPEX/Revenue decreased slightly on 0.52 pp from 2.7% in FY2012 to 2.2% in FY2015. For the last three years the average CAPEX/Revenue was 2.9%.
Return on investment
The company operates at negative ROIC (-56.98%) and ROE (-51.49%). ROIC dropped on 35.2 pp from -21.8% to -57.0% in FY2015. ROE dropped on 36.8 pp from -14.7% to -51.5% in FY2015.
Leverage (Debt)
Debt surged while cash dropped on 93.1% in FY2015.
Management team
Jeffrey Wortsman is a Danier Leather Inc's CEO. Jeffrey Wortsman is a founder and has spent 21 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Danier Leather Inc benchmarking against other companies in Consumer, 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.0% | 5.3% | 5.3% | 7.7% | 4.1% |
|---|
| Danier Leather Inc ($DL) | | | 4.6% | -8.4% | -11.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.0% | 34.1% | 31.6% | 32.5% | 32.6% |
|---|
| Danier Leather Inc ($DL) | | 51.8% | 50.6% | 48.1% | 44.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.7% | 8.1% | 9.8% | 10.0% | 8.2% |
|---|
| Danier Leather Inc ($DL) | | 6.1% | 3.5% | -4.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.8% | 2.7% | 2.7% | 2.2% | 2.9% |
|---|
| Danier Leather Inc ($DL) | | 2.7% | 2.9% | 3.5% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (68 companies) | 10.6% | 9.8% | 10.8% | 9.8% | 4.4% |
|---|
| Danier Leather Inc ($DL) | | 8.6% | 3.1% | -21.8% | -57.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (58 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.1x |
|---|
