Rogers Sugar Inc reports 17.8% Net Income decline and 1.1 pp EBITDA Margin decline from 11.7% to 10.6%
19.11.2015 • About Rogers Sugar Inc (
$RSI) • By InTwits
Rogers Sugar Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rogers Sugar Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 6.7%.
- CAPEX is quite volatile: 140 in 2015, 277 in 2014, 90.3 in 2013, 186 in 2012, 182 in 2011
- The company has business model with average profitability: ROIC is at 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rogers Sugar Inc ($RSI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 612.6 | 618.1 | 558.4 | 532.3 | 541.5 | 1.7% |
| Gross Profit | 96.8 | 77.9 | 84.8 | 82.9 | 76.3 | -8.0% |
| SG&A | | | 18.2 | 24.3 | 22.4 | -7.7% |
| EBITDA | 80.3 | 62.5 | 71.1 | 62.1 | 57.4 | -7.5% |
| Net Income | 41.9 | 30.3 | 36.5 | 29.2 | 24.0 | -17.8% |
Balance Sheet
|
|---|
| Cash | 25.3 | 27.9 | 3.2 | 0.1 | 1.4 | 1,182.1% |
| Short Term Debt | 0.1 | 60.1 | 25.0 | 35.8 | 7.0 | -80.3% |
| Long Term Debt | 195.2 | 106.2 | 155.9 | 156.7 | 177.8 | 13.5% |
Cash flow
|
|---|
| Capex | 7.0 | 8.5 | 9.1 | 11.6 | 11.4 | -1.1% |
Ratios
|
|---|
| Revenue growth | 0.9% | 0.9% | -9.7% | -4.7% | 1.7% | |
| EBITDA growth | 10.6% | -22.2% | 13.8% | -12.7% | -7.5% | |
| Gross Margin | 15.8% | 12.6% | 15.2% | 15.6% | 14.1% | -1.5% |
| EBITDA Margin | 13.1% | 10.1% | 12.7% | 11.7% | 10.6% | -1.1% |
| Net Income Margin | 6.8% | 4.9% | 6.5% | 5.5% | 4.4% | -1.1% |
| SG&A, % of revenue | | | 3.3% | 4.6% | 4.1% | -0.4% |
| CAPEX, % of revenue | 1.1% | 1.4% | 1.6% | 2.2% | 2.1% | -0.1% |
| ROIC | 14.3% | 11.0% | 13.0% | 11.0% | 10.0% | -1.0% |
| ROE | 15.8% | 11.3% | 13.7% | 11.6% | 9.8% | -1.8% |
| Net Debt/EBITDA | 2.1x | 2.2x | 2.5x | 3.1x | 3.2x | 0.1x |
Revenue and profitability
The company's Revenue increased slightly on 1.7% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 11.7% to 10.6% in FY2015.
Gross Margin decreased slightly on 1.5 pp from 15.6% to 14.1% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased slightly on 1.1 pp from 5.5% to 4.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Rogers Sugar Inc had CAPEX/Revenue of 2.1%. CAPEX/Revenue increased slightly on 0.74 pp from 1.4% in FY2012 to 2.1% in FY2015. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (10.02%) and ROE (9.81%). ROIC decreased slightly on 1.0 pp from 11.0% to 10.0% in FY2015. ROE decreased slightly on 1.8 pp from 11.6% to 9.8% in FY2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 3.1x to 3.2x in FY2015. Debt decreased on 4.0% in FY2015 while cash surged on 1,182% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Rogers Sugar Inc benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.3% | 8.7% | 6.9% | 13.2% | 6.3% |
|---|
| Rogers Sugar Inc ($RSI) | | 0.9% | -9.7% | -4.7% | 1.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 26.2% |
|---|
| Rogers Sugar Inc ($RSI) | 15.8% | 12.6% | 15.2% | 15.6% | 14.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 7.9% | 7.9% | 8.3% | 10.5% | 7.0% |
|---|
| Rogers Sugar Inc ($RSI) | 13.1% | 10.1% | 12.7% | 11.7% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.5% | 2.6% | 3.1% |
|---|
| Rogers Sugar Inc ($RSI) | 1.1% | 1.4% | 1.6% | 2.2% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 8.0% |
|---|
| Rogers Sugar Inc ($RSI) | 14.3% | 11.0% | 13.0% | 11.0% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.8x | 2.8x | 2.1x | 2.7x | 1.5x |
|---|
| Rogers Sugar Inc ($RSI) | 2.1x | 2.2x | 2.5x | 3.1x | 3.2x |
