TIO Networks Corp reports 126% EBITDA growth and 1.7 pp EBITDA Margin growth from 2.0% to 3.7%
24.11.2015 • About TIO Networks Corp (
$TNC) • By InTwits
TIO Networks Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TIO Networks Corp doesn't have a profitable business model yet: FY2015 ROIC is 1.5%
- EBITDA Margin is quite volatile: 3.7% in FY2015, 2.0% in FY2014, -1.1% in FY2013, 3.3% in FY2012, 4.8% in FY2011
- TIO Networks Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TIO Networks Corp ($TNC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36.565 | 42.248 | 40.457 | 50.870 | 62.511 | 22.9% |
| Gross Profit | 6.567 | 8.695 | 8.938 | 14.970 | 25.307 | 69.1% |
| SG&A | | | 6.926 | 11.156 | 17.674 | 58.4% |
| EBITDA | 1.757 | 1.398 | -0.426 | 1.013 | 2.295 | 126.5% |
| Net Income | -0.086 | 0.284 | -0.722 | -0.600 | 0.041 | -106.8% |
Balance Sheet
|
|---|
| Cash | 2.912 | 3.758 | 4.579 | 24.157 | 31.168 | 29.0% |
| Short Term Debt | 0.020 | 0.002 | 0.105 | 2.422 | 2.866 | 18.4% |
| Long Term Debt | 0.006 | 0.003 | 0.321 | 0.534 | 0.364 | -31.8% |
Cash flow
|
|---|
| Capex | 0.081 | 0.177 | 0.233 | 0.328 | 0.937 | 185.6% |
Ratios
|
|---|
| Revenue growth | 31.7% | 15.5% | -4.2% | 25.7% | 22.9% | |
| EBITDA growth | 555.2% | -20.4% | -130.5% | -338.0% | 126.5% | |
| Gross Margin | 18.0% | 20.6% | 22.1% | 29.4% | 40.5% | 11.1% |
| EBITDA Margin | 4.8% | 3.3% | -1.1% | 2.0% | 3.7% | 1.7% |
| Net Income Margin | -0.2% | 0.7% | -1.8% | -1.2% | 0.1% | 1.2% |
| SG&A, % of revenue | | | 17.1% | 21.9% | 28.3% | 6.3% |
| CAPEX, % of revenue | 0.2% | 0.4% | 0.6% | 0.6% | 1.5% | 0.9% |
| ROIC | 3.3% | 13.7% | -14.5% | -5.4% | 1.5% | 6.9% |
| ROE | -2.3% | 7.9% | -20.7% | -12.0% | 0.5% | 12.5% |
| Net Debt/EBITDA | -1.6x | -2.7x | | -20.9x | -12.2x | 8.7x |
Revenue and profitability
TIO Networks Corp's Revenue surged on 22.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 2.0% to 3.7% in FY2015.
Gross Margin jumped on 11.1 pp from 29.4% to 40.5% in FY2015. SG&A as a % of Revenue increased on 6.3 pp from 21.9% to 28.3% in FY2015.
Net Income marign increased slightly on 1.2 pp from -1.2% to 0.065% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.5%. The company's CAPEX/Revenue increased slightly on 1.1 pp from 0.42% in FY2012 to 1.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.91%.
Return on investment
The company operates at low ROIC (1.50%) and ROE (0.51%). ROIC increased on 6.9 pp from -5.4% to 1.5% in FY2015. ROE surged on 12.5 pp from -12.0% to 0.51% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.2x and Debt / EBITDA is 1.4x. Net Debt / EBITDA surged on 8.7x from -20.9x to -12.2x in FY2015. Debt increased on 9.3% in FY2015 while cash surged on 29.0% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find TIO Networks Corp 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.1% | 7.7% | 6.9% | 12.2% | 6.0% |
|---|
| TIO Networks Corp ($TNC) | | 15.5% | -4.2% | 25.7% | 22.9% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 26.1% |
|---|
| TIO Networks Corp ($TNC) | 18.0% | 20.6% | 22.1% | 29.4% | 40.5% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.2% | 8.5% | 9.0% | 10.8% | 8.6% |
|---|
| TIO Networks Corp ($TNC) | 4.8% | 3.3% | -1.1% | 2.0% | 3.7% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.5% | 2.6% | 3.0% |
|---|
| TIO Networks Corp ($TNC) | 0.2% | 0.4% | 0.6% | 0.6% | 1.5% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 8.0% | 6.7% | 6.7% | 7.8% | 8.4% |
|---|
| TIO Networks Corp ($TNC) | 3.3% | 13.7% | -14.5% | -5.4% | 1.5% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| TIO Networks Corp ($TNC) | -1.6x | -2.7x | | -20.9x | -12.2x |
