DHX Media Ltd Net Income jumped on 150% in 2015 and EBITDA Margin showed almost no change
28.09.2015 • About DHX Media Ltd (
$DHX.A) • By InTwits
DHX Media Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DHX Media Ltd is a growth stock: FY2015 revenue growth was 127%, 5 year revenue CAGR was 45.5% at FY2015 ROIC 11.2%
- DHX Media Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 90.1%.
- CAPEX is quite volatile: 4.8 in FY2015, 2.4 in FY2014, 1.5 in FY2013, 1.2 in FY2012, 1.9 in FY2011
- The company has business model with average profitability: ROIC is at 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DHX Media Ltd ($DHX.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55.4 | 72.6 | 97.3 | 116.1 | 264.0 | 127.4% |
| Gross Profit | 22.3 | 24.7 | 45.8 | 60.6 | 133.9 | 121.0% |
| SG&A | 15.9 | 16.1 | 31.9 | 34.3 | 59.1 | 72.3% |
| EBITDA | 19.3 | 19.2 | 13.2 | 26.0 | 59.4 | 128.5% |
| Net Income | 1.3 | 3.0 | 1.9 | 7.8 | 19.5 | 150.1% |
Balance Sheet
|
|---|
| Cash | 19.5 | 19.2 | 12.6 | 26.7 | 42.9 | 60.8% |
| Short Term Debt | 6.2 | 4.6 | 9.0 | 13.5 | 12.9 | -4.0% |
| Long Term Debt | 2.9 | 3.8 | 45.5 | 61.9 | 269.9 | 335.9% |
Cash flow
|
|---|
| Capex | 1.9 | 1.2 | 1.5 | 2.4 | 4.8 | 99.3% |
Ratios
|
|---|
| Revenue growth | 36.9% | 31.1% | 33.9% | 19.4% | 127.4% | |
| EBITDA growth | -10.8% | -0.4% | -31.6% | 97.5% | 128.5% | |
| Gross Margin | 40.2% | 34.0% | 47.1% | 52.2% | 50.7% | -1.5% |
| EBITDA Margin | 34.9% | 26.5% | 13.5% | 22.4% | 22.5% | 0.1% |
| Net Income Margin | 2.4% | 4.2% | 1.9% | 6.7% | 7.4% | 0.7% |
| SG&A, % of revenue | 28.7% | 22.1% | 32.8% | 29.5% | 22.4% | -7.1% |
| CAPEX, % of revenue | 3.5% | 1.6% | 1.5% | 2.1% | 1.8% | -0.3% |
| ROIC | 4.7% | 7.6% | 5.6% | 7.6% | 11.2% | 3.6% |
| ROE | 1.6% | 3.8% | 1.5% | 4.0% | 8.0% | 4.0% |
| Net Debt/EBITDA | -0.5x | -0.6x | 3.2x | 1.9x | 4.0x | 2.2x |
Revenue and profitability
The company's Revenue surged on 127% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 12.9% to 16.0% in 2015.
Gross Margin decreased slightly on 1.5 pp from 52.2% to 50.7% in FY2015. SG&A as a % of Revenue decreased on 7.1 pp from 29.5% to 22.4% in FY2015.
Net Income marign increased slightly on 0.67 pp from 6.7% to 7.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2015. DHX Media Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at low ROIC (11.17%) and ROE (8.05%). ROIC increased on 3.6 pp from 7.6% to 11.2% in FY2015. ROE increased on 4.0 pp from 4.0% to 8.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.8x. Net Debt / EBITDA jumped on 2.2x from 1.9x to 4.0x in FY2015. Debt surged on 275% in FY2015 while cash jumped on 60.8% in FY2015.
Management team
The company's CEO is Dana Sean Landry. Dana Sean Landry is a founder and has 4 years tenure at the company. The company's CFO Keith Benjamin Abriel has spent 4 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide DHX Media Ltd 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 10.9% | 5.3% | 4.9% | 7.2% | 3.2% |
|---|
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 36.5% | 31.6% | 32.5% | 34.7% |
|---|
| DHX Media Ltd ($DHX.A) | 40.2% | 34.0% | 47.1% | 52.2% | 50.7% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 8.2% |
|---|
| DHX Media Ltd ($DHX.A) | 34.9% | 26.5% | 13.5% | 22.4% | 22.5% |
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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.9% | 2.4% | 2.8% |
|---|
| DHX Media Ltd ($DHX.A) | 3.5% | 1.6% | 1.5% | 2.1% | 1.8% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (68 companies) | 10.7% | 9.8% | 10.8% | 9.8% | 3.1% |
|---|
| DHX Media Ltd ($DHX.A) | 4.7% | 7.6% | 5.6% | 7.6% | 11.2% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.6x | 2.0x | 1.1x |
|---|
| DHX Media Ltd ($DHX.A) | -0.5x | -0.6x | 3.2x | 1.9x | 4.0x |
