Sportscene Group Inc reports 75.4% EBITDA decline while 3.3% Revenue growth
25.11.2015 • About Sportscene Group Inc (
$SPS.A) • By InTwits
Sportscene Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sportscene Group Inc doesn't have a profitable business model yet: FY2015 ROIC is -4.5%
- EBITDA Margin is quite volatile: 2.5% in FY2015, 10.3% in FY2014, 11.3% in FY2013, 11.1% in FY2012, 12.8% in FY2011
- Sportscene Group Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 3.2 in FY2015, 4.6 in FY2014, 2.0 in FY2013, 7.4 in FY2012, 5.2 in FY2011
- The company has unprofitable business model: ROIC is at -4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sportscene Group Inc ($SPS.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 80.250 | 84.295 | 67.355 | 75.425 | 77.922 | 3.3% |
| Gross Profit | 55.774 | 59.517 | 43.749 | 47.780 | 52.017 | 8.9% |
| SG&A | | 50.128 | 39.730 | 43.779 | 48.622 | 11.1% |
| EBITDA | 10.296 | 9.389 | 7.588 | 7.801 | 1.921 | -75.4% |
| Net Income | 4.014 | 3.256 | 2.892 | 3.099 | -2.227 | -171.9% |
Balance Sheet
|
|---|
| Cash | 9.453 | 10.729 | 3.878 | 8.528 | 3.059 | -64.1% |
| Short Term Debt | 1.953 | 2.648 | 2.109 | 2.052 | 7.407 | 261.0% |
| Long Term Debt | 11.196 | 14.554 | 10.748 | 14.531 | 6.614 | -54.5% |
Cash flow
|
|---|
| Capex | 5.224 | 7.411 | 1.993 | 4.594 | 3.192 | -30.5% |
Ratios
|
|---|
| Revenue growth | 4.7% | 5.0% | -20.1% | 12.0% | 3.3% | |
| EBITDA growth | -3.9% | -8.8% | -19.2% | 2.8% | -75.4% | |
| Gross Margin | 69.5% | 70.6% | 65.0% | 63.3% | 66.8% | 3.4% |
| EBITDA Margin | 12.8% | 11.1% | 11.3% | 10.3% | 2.5% | -7.9% |
| Net Income Margin | 5.0% | 3.9% | 4.3% | 4.1% | -2.9% | -7.0% |
| SG&A, % of revenue | | 59.5% | 59.0% | 58.0% | 62.4% | 4.4% |
| CAPEX, % of revenue | 6.5% | 8.8% | 3.0% | 6.1% | 4.1% | -2.0% |
| ROIC | 16.4% | 11.8% | 8.6% | 8.3% | -4.5% | -12.8% |
| ROE | 14.0% | 10.9% | 8.9% | 9.1% | -6.7% | -15.8% |
| Net Debt/EBITDA | 0.4x | 0.7x | 1.2x | 1.0x | 5.7x | 4.7x |
Revenue and profitability
Sportscene Group Inc's Revenue increased on 3.3% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.9 pp from 10.3% to 2.5% in FY2015.
Gross Margin increased on 3.4 pp from 63.3% to 66.8% in FY2015. SG&A as a % of Revenue increased on 4.4 pp from 58.0% to 62.4% in FY2015.
Net Income marign decreased on 7.0 pp from 4.1% to -2.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sportscene Group Inc's CAPEX/Revenue was 4.1% in FY2015. CAPEX/Revenue decreased on 4.7 pp from 8.8% in FY2012 to 4.1% in FY2015. It's average CAPEX/Revenue for the last three years was 4.4%.The company investments to CAPEX were large: 166% of EBITDA.
Return on investment
The company operates at negative ROIC (-4.54%) and ROE (-6.68%). ROIC dropped on 12.8 pp from 8.3% to -4.5% in FY2015. ROE dropped on 15.8 pp from 9.1% to -6.7% in FY2015.
Leverage (Debt)
Debt level is 5.7x Net Debt / EBITDA and 7.3x Debt / EBITDA. Net Debt / EBITDA surged on 4.7x from 1.0x to 5.7x in FY2015. Debt dropped on 15.4% in FY2015 while cash dropped on 64.1% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Sportscene Group Inc benchmarking vs. other companies in Consumer, 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 10.9% | 5.3% | 5.3% | 7.2% | 4.9% |
|---|
| Sportscene Group Inc ($SPS.A) | | 5.0% | -20.1% | 12.0% | 3.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 31.6% | 32.5% | 34.7% |
|---|
| Sportscene Group Inc ($SPS.A) | 69.5% | 70.6% | 65.0% | 63.3% | 66.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 9.7% |
|---|
| Sportscene Group Inc ($SPS.A) | 12.8% | 11.1% | 11.3% | 10.3% | 2.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.7% |
|---|
| Sportscene Group Inc ($SPS.A) | 6.5% | 8.8% | 3.0% | 6.1% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.8% | 9.8% | 5.6% |
|---|
| Sportscene Group Inc ($SPS.A) | 16.4% | 11.8% | 8.6% | 8.3% | -4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.4x |
|---|
| Sportscene Group Inc ($SPS.A) | 0.4x | 0.7x | 1.2x | 1.0x | 5.7x |
