Wanted Technologies Corp Net Income dropped on 81.6% in 2015 and EBITDA Margin dropped on 29.4 pp from 36.4% to 6.9%
20.10.2015 • About Wanted Technologies Corp (
$WAN) • By InTwits
Wanted Technologies Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 0.0x while industry average is -0.1x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wanted Technologies Corp ($WAN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.329 | 6.028 | 7.231 | 10.057 | 9.957 | -1.0% |
| Gross Profit | 4.614 | 5.453 | 6.739 | 9.484 | 9.515 | 0.3% |
| SG&A | 3.161 | | 3.079 | 4.042 | 5.907 | 46.1% |
| EBITDA | -0.135 | | | 3.657 | 0.691 | -81.1% |
| Net Income | -0.665 | -0.014 | 1.363 | 2.635 | 0.484 | -81.6% |
Balance Sheet
|
|---|
| Cash | 0.903 | | | 4.687 | | -100.0% |
| Short Term Debt | 0.080 | | | 0.064 | | -100.0% |
| Long Term Debt | 0.111 | | | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.319 | | | 0.179 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.5% | 13.1% | 20.0% | 39.1% | -1.0% | |
| EBITDA growth | -203.3% | | | | -81.1% | |
| Gross Margin | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% | 1.3% |
| EBITDA Margin | -2.5% | 0.0% | 0.0% | 36.4% | 6.9% | -29.4% |
| Net Income Margin | -12.5% | -0.2% | 18.8% | 26.2% | 4.9% | -21.3% |
| SG&A, % of revenue | 59.3% | | 42.6% | 40.2% | 59.3% | 19.1% |
| CAPEX, % of revenue | 6.0% | | | 1.8% | | -1.8% |
| ROIC | -11.0% | | | | | 0.0% |
| ROE | -15.2% | | | | | 0.0% |
| Net Debt/EBITDA | | | | -1.3x | 0.0x | 1.3x |
Revenue and profitability
Wanted Technologies Corp's Revenue decreased slightly on 0.99% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 29.4 pp from 36.4% to 6.9% in FY2015.
Gross Margin increased slightly on 1.3 pp from 94.3% to 95.6% in FY2015. SG&A as a % of Revenue jumped on 19.1 pp from 40.2% to 59.3% in FY2015.
Net Income marign dropped on 21.3 pp from 26.2% to 4.9% in FY2015.
Appendix 1: Peers in Communications
Below you can find Wanted Technologies Corp benchmarking vs. other companies in Communications 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 |
|---|
| Telehop Communications Inc ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | |
| Plaintree Systems Inc ($NPT) | | 14.5% | 9.1% | 50.8% | -7.1% |
| Aimia Inc ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.1% | 2.5% | 1.8% | 1.9% | 1.5% |
|---|
| Wanted Technologies Corp ($WAN) | | 13.1% | 20.0% | 39.1% | -1.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | |
| Advantex Marketing International Inc ($ADX) | | 69.4% | 67.2% | 61.7% | |
| |
|---|
| Median (40 companies) | 43.2% | 42.8% | 42.5% | 41.8% | 54.8% |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 16.4% | 14.6% | 14.6% | 11.7% | 4.9% |
|---|
| Wanted Technologies Corp ($WAN) | -2.5% | | | 36.4% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.2% | 2.3% | 2.2% |
|---|
| Wanted Technologies Corp ($WAN) | 6.0% | | | 1.8% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 7.2% | 8.6% | 8.3% | 8.3% | -5.2% |
|---|
| Wanted Technologies Corp ($WAN) | -11.0% | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 0.7x |
|---|
| Wanted Technologies Corp ($WAN) | | | | -1.3x | 0.0x |
