Orbit Garant Drilling Inc EBITDA dropped on 48.9% in 2015 while Revenue surged on 10.4%
22.09.2015 • About Orbit Garant Drilling Inc (
$OGD) • By InTwits
Orbit Garant Drilling Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orbit Garant Drilling Inc doesn't have a profitable business model yet: FY2015 ROIC is -9.3%
- EBITDA Margin is declining: 2.2% in FY2015 vs. 4.8% in FY2014 vs. 20.0% in FY2011
- EBITDA Margin is quite volatile: 2.2% in FY2015, 4.8% in FY2014, 14.8% in FY2013, 18.0% in FY2012, 20.0% in FY2011
- Orbit Garant Drilling Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 4.0 in FY2015, 3.1 in FY2014, 9.3 in FY2013, 18.4 in FY2012, 18.6 in FY2011
- The company has unprofitable business model: ROIC is at -9.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.0x while industry average is 3.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orbit Garant Drilling Inc ($OGD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 127.7 | 154.8 | 104.2 | 71.5 | 79.0 | 10.4% |
| Gross Profit | 28.5 | 33.7 | 15.5 | 3.8 | 3.2 | -14.4% |
| SG&A | | | | | 12.0 | |
| EBITDA | 25.5 | 27.9 | 15.4 | 3.4 | 1.8 | -48.9% |
| Net Income | 11.4 | 10.4 | -26.5 | -6.3 | -7.4 | 17.2% |
Balance Sheet
|
|---|
| Cash | 0.0 | 2.0 | 1.5 | 0.3 | 0.4 | 18.2% |
| Short Term Debt | 0.9 | 0.4 | 0.3 | 8.5 | 0.0 | -100.0% |
| Long Term Debt | 14.7 | 26.0 | 14.4 | 0.0 | 7.4 | |
Cash flow
|
|---|
| Capex | 18.6 | 18.4 | 9.3 | 3.1 | 4.0 | 30.0% |
Ratios
|
|---|
| Revenue growth | 16.2% | 21.2% | -32.7% | -31.3% | 10.4% | |
| EBITDA growth | -5.6% | 9.2% | -44.7% | -77.8% | -48.9% | |
| Gross Margin | 22.3% | 21.8% | 14.9% | 5.2% | 4.1% | -1.2% |
| EBITDA Margin | 20.0% | 18.0% | 14.8% | 4.8% | 2.2% | -2.6% |
| Net Income Margin | 9.0% | 6.7% | -25.4% | -8.8% | -9.4% | -0.5% |
| SG&A, % of revenue | | | | | 15.2% | 15.2% |
| CAPEX, % of revenue | 14.6% | 11.9% | 8.9% | 4.3% | 5.1% | 0.8% |
| ROIC | 15.9% | 12.3% | 2.1% | -7.3% | -9.3% | -2.0% |
| ROE | 11.9% | 9.5% | -25.7% | -7.2% | -9.1% | -1.9% |
| Net Debt/EBITDA | 0.6x | 0.9x | 0.9x | 2.4x | 4.0x | 1.6x |
Revenue and profitability
Orbit Garant Drilling Inc's Revenue surged on 10.4% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 4.8% to 2.2% in FY2015.
Gross Margin decreased slightly on 1.2 pp from 5.2% to 4.1% in FY2015.
Net Income marign decreased slightly on 0.55 pp from -8.8% to -9.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Orbit Garant Drilling Inc had CAPEX/Revenue of 5.1%. Orbit Garant Drilling Inc's CAPEX/Revenue decreased on 6.8 pp from 11.9% in FY2012 to 5.1% in FY2015. For the last three years the average CAPEX/Revenue was 6.1%.To fuel this fast growth the company made large investments to CAPEX (230% of EBITDA).
Return on investment
The company operates at negative ROIC (-9.34%) and ROE (-9.11%). ROIC decreased on 2.0 pp from -7.3% to -9.3% in FY2015. ROE decreased slightly on 1.9 pp from -7.2% to -9.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.3x. Net Debt / EBITDA surged on 1.6x from 2.4x to 4.0x in FY2015. Debt dropped on 12.9% in FY2015 while cash surged on 18.2% in FY2015.
Appendix 1: Peers in Basic Materials
Below you can find Orbit Garant Drilling Inc benchmarking vs. other companies in Basic Materials 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 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.0% | -4.8% | -1.1% | 18.5% |
|---|
| Orbit Garant Drilling Inc ($OGD) | | 21.2% | -32.7% | -31.3% | 10.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (132 companies) | 31.2% | 31.8% | 21.9% | 17.2% | 23.8% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 22.3% | 21.8% | 14.9% | 5.2% | 4.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.5% | 10.8% | 9.8% | 5.3% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 20.0% | 18.0% | 14.8% | 4.8% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 24.1% | 26.3% | 25.4% | 16.1% | 13.7% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 14.6% | 11.9% | 8.9% | 4.3% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 5.4% | 4.8% | -0.1% | 0.2% | -2.4% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 15.9% | 12.3% | 2.1% | -7.3% | -9.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (93 companies) | -0.1x | 0.3x | 0.7x | 0.9x | -0.6x |
|---|
| Orbit Garant Drilling Inc ($OGD) | 0.6x | 0.9x | 0.9x | 2.4x | 4.0x |
