Versatile Systems Inc revenue dropped on 16.7% in 2015 while EBITDA Margin increased on 3.6 pp from -13.6% to -10.0%
28.10.2015 • About Versatile Systems Inc (
$VV) • By InTwits
Versatile Systems Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Versatile Systems Inc is a company in decline: FY2015 revenue growth was -16.7%, 5 years revenue CAGR was -21.9%
- The company operates at negative EBITDA Margin: -10.0%
- Versatile Systems Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -4.6%0
- Versatile Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Versatile Systems Inc ($VV) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45.903 | 39.501 | 36.273 | 15.427 | 12.847 | -16.7% |
| Gross Profit | 10.129 | 8.020 | 6.424 | 2.664 | 2.261 | -15.1% |
| SG&A | 8.362 | 7.992 | 7.930 | 4.119 | 2.887 | -29.9% |
| EBITDA | 0.142 | -0.900 | -2.780 | -2.102 | -1.282 | -39.0% |
| Net Income | -0.256 | -14.717 | -3.855 | -6.438 | -2.448 | -62.0% |
Balance Sheet
|
|---|
| Cash | 0.979 | 0.435 | 0.084 | 2.440 | 0.134 | -94.5% |
| Short Term Debt | 1.008 | 1.989 | 3.602 | 4.492 | 1.190 | -73.5% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.386 | 1.383 | 258.1% |
Cash flow
|
|---|
| Capex | 0.082 | 0.193 | 0.058 | 0.072 | 0.121 | 66.9% |
Ratios
|
|---|
| Revenue growth | 3.9% | -13.9% | -8.2% | -57.5% | -16.7% | |
| EBITDA growth | -116.4% | -732.4% | 209.0% | -24.4% | -39.0% | |
| Gross Margin | 22.1% | 20.3% | 17.7% | 17.3% | 17.6% | 0.3% |
| EBITDA Margin | 0.3% | -2.3% | -7.7% | -13.6% | -10.0% | 3.6% |
| Net Income Margin | -0.6% | -37.3% | -10.6% | -41.7% | -19.1% | 22.7% |
| SG&A, % of revenue | 18.2% | 20.2% | 21.9% | 26.7% | 22.5% | -4.2% |
| CAPEX, % of revenue | 0.2% | 0.5% | 0.2% | 0.5% | 0.9% | 0.5% |
| ROIC | -0.7% | -9.6% | -44.2% | -60.2% | | 60.2% |
| ROE | -1.2% | -108.0% | -88.7% | | | 0.0% |
| Net Debt/EBITDA | 0.2x | | | | | 0.0x |
Revenue and profitability
Versatile Systems Inc's Revenue dropped on 16.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.6 pp from -13.6% to -10.0% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased on 4.2 pp from 26.7% to 22.5% in FY2015.
Net Income marign surged on 22.7 pp from -41.7% to -19.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.94% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.52%.
Leverage (Debt)
Debt level is -7.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 47.2% in FY2015 while cash dropped on 94.5% in FY2015.
Appendix 1: Peers in Technology
Below we provide Versatile Systems Inc benchmarking against other companies in Technology 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 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | 25.9% | -4.5% | 151.6% | 81.4% | |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 11.7% | 6.6% | 12.4% | 15.2% | 12.9% |
|---|
| Versatile Systems Inc ($VV) | | -13.9% | -8.2% | -57.5% | -16.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 50.9% | 59.2% | 53.2% | 52.2% | 48.1% |
|---|
| Versatile Systems Inc ($VV) | 22.1% | 20.3% | 17.7% | 17.3% | 17.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| |
|---|
| Median (33 companies) | 8.9% | 8.6% | 6.2% | 7.2% | 19.6% |
|---|
| Versatile Systems Inc ($VV) | 0.3% | -2.3% | -7.7% | -13.6% | -10.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.6% | 1.5% | 1.3% | 2.1% |
|---|
| Versatile Systems Inc ($VV) | 0.2% | 0.5% | 0.2% | 0.5% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| |
|---|
| Median (33 companies) | 5.5% | 4.4% | -4.3% | 3.3% | 7.5% |
|---|
| Versatile Systems Inc ($VV) | -0.7% | -9.6% | -44.2% | -60.2% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | |
| |
|---|
| Median (22 companies) | -0.5x | -0.4x | -0.4x | -1.3x | -0.0x |
|---|
