Advantex Marketing International Inc EBITDA dropped on 143% in 2015 and Revenue dropped on 19.6%
28.10.2015 • About Advantex Marketing International Inc (
$ADX) • By InTwits
Advantex Marketing International Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Advantex Marketing International Inc doesn't have a profitable business model yet: FY2015 ROIC is -15.6%
- EBITDA Margin is declining: -6.0% in FY2015 vs. 11.2% in FY2014 vs. in FY2011
- The company has unprofitable business model: ROIC is at -15.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Advantex Marketing International Inc ($ADX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13.523 | 15.895 | 16.910 | 16.535 | 13.298 | -19.6% |
| Gross Profit | | 11.033 | 11.360 | 10.210 | 8.132 | -20.4% |
| SG&A | | | 8.037 | 8.359 | 7.923 | -5.2% |
| EBITDA | | 3.214 | 3.323 | 1.851 | -0.793 | -142.8% |
| Net Income | -0.492 | 0.227 | 0.036 | -0.715 | -3.071 | 329.3% |
Balance Sheet
|
|---|
| Cash | | 1.085 | 1.774 | 1.816 | 1.163 | -36.0% |
| Short Term Debt | | 6.716 | 7.099 | 6.454 | 5.712 | -11.5% |
| Long Term Debt | | 9.665 | 2.114 | 4.662 | 4.865 | 4.4% |
Cash flow
|
|---|
| Capex | | 0.226 | 0.828 | 0.402 | 0.321 | -20.1% |
Ratios
|
|---|
| Revenue growth | -5.3% | 17.5% | 6.4% | -2.2% | -19.6% | |
| EBITDA growth | | | 3.4% | -44.3% | -142.8% | |
| Gross Margin | | 69.4% | 67.2% | 61.7% | 61.1% | -0.6% |
| EBITDA Margin | 0.0% | 20.2% | 19.7% | 11.2% | -6.0% | -17.2% |
| Net Income Margin | -3.6% | 1.4% | 0.2% | -4.3% | -23.1% | -18.8% |
| SG&A, % of revenue | | | 47.5% | 50.6% | 59.6% | 9.0% |
| CAPEX, % of revenue | | 1.4% | 4.9% | 2.4% | 2.4% | -0.0% |
| ROIC | | | 28.9% | 17.5% | -15.6% | -33.1% |
| Net Debt/EBITDA | | 4.8x | 2.2x | 5.0x | | -5.0x |
Revenue and profitability
The company's Revenue dropped on 19.6% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 17.2 pp from 11.2% to -6.0% in FY2015.
Gross Margin decreased slightly on 0.60 pp from 61.7% to 61.1% in FY2015. SG&A as a % of Revenue increased on 9.0 pp from 50.6% to 59.6% in FY2015.
Net Income marign dropped on 18.8 pp from -4.3% to -23.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Advantex Marketing International Inc's CAPEX/Revenue was 2.4% in FY2015. Advantex Marketing International Inc's CAPEX/Revenue increased slightly on 0.99 pp from 1.4% in FY2012 to 2.4% in FY2015. It's average CAPEX/Revenue for the last three years was 3.2%.
Leverage (Debt)
Debt level is -7.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 5.0x from 5.0x to in FY2015. Debt decreased on 4.9% in FY2015 while cash dropped on 36.0% in FY2015.
Appendix 1: Peers in Communications
Below we provide Advantex Marketing International Inc benchmarking against other companies in Communications 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 |
|---|
| 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 ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.8% | 2.5% | 1.8% | 3.1% | 2.7% |
|---|
| Advantex Marketing International Inc ($ADX) | | 17.5% | 6.4% | -2.2% | -19.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($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 ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.2% | 42.8% | 42.5% | 41.8% | 54.8% |
|---|
| Advantex Marketing International Inc ($ADX) | | 69.4% | 67.2% | 61.7% | 61.1% |
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% | 46.2% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 14.4% | 13.5% | 14.1% | 13.4% | 14.3% |
|---|
| Advantex Marketing International Inc ($ADX) | | 20.2% | 19.7% | 11.2% | -6.0% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.0% | 2.1% | 2.2% |
|---|
| Advantex Marketing International Inc ($ADX) | | 1.4% | 4.9% | 2.4% | 2.4% |
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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 6.7% | 8.6% | 8.2% | 8.0% | 2.7% |
|---|
| Advantex Marketing International Inc ($ADX) | | | 28.9% | 17.5% | -15.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| MDC Partners Inc ($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 | |
| GVIC Communications Corp ($GCT) | 3.1x | 3.4x | 3.9x | 3.3x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.4x | 2.6x |
|---|
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
