Titan Logix Corp reports 57.2% Net Income decline and 6.7 pp EBITDA Margin decline from 22.0% to 15.3%
26.11.2015 • About Titan Logix Corp (
$TLA) • By InTwits
Titan Logix Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Titan Logix Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is at 7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Titan Logix Corp ($TLA) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11.105 | 17.942 | 16.493 | 17.193 | 13.303 | -22.6% |
| Gross Profit | 4.961 | 9.376 | 8.896 | 8.771 | 6.505 | -25.8% |
| SG&A | | 4.008 | 4.133 | 4.330 | 3.790 | -12.5% |
| EBITDA | 1.319 | 4.739 | 4.302 | 3.779 | 2.033 | -46.2% |
| Net Income | 1.710 | 3.871 | 3.243 | 2.661 | 1.140 | -57.2% |
Balance Sheet
|
|---|
| Cash | 1.457 | 5.060 | 5.060 | 11.845 | 14.774 | 24.7% |
| Short Term Debt | 0.000 | 0.000 | 0.049 | 0.175 | 0.118 | -32.6% |
| Long Term Debt | 0.000 | 0.000 | 0.221 | 0.125 | 0.052 | -58.5% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.358 | 0.068 | -81.1% |
Ratios
|
|---|
| Revenue growth | 66.8% | 61.6% | -8.1% | 4.2% | -22.6% | |
| EBITDA growth | -599.8% | 259.4% | -9.2% | -12.1% | -46.2% | |
| Gross Margin | 44.7% | 52.3% | 53.9% | 51.0% | 48.9% | -2.1% |
| EBITDA Margin | 11.9% | 26.4% | 26.1% | 22.0% | 15.3% | -6.7% |
| Net Income Margin | 15.4% | 21.6% | 19.7% | 15.5% | 8.6% | -6.9% |
| SG&A, % of revenue | | 22.3% | 25.1% | 25.2% | 28.5% | 3.3% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 2.1% | 0.5% | -1.6% |
| ROIC | 20.1% | 52.6% | 30.5% | 19.3% | 7.7% | -11.6% |
| ROE | 24.9% | 39.8% | 24.2% | 16.2% | 6.1% | -10.0% |
| Net Debt/EBITDA | -1.1x | -1.1x | -1.1x | -3.1x | -7.2x | -4.1x |
Revenue and profitability
Titan Logix Corp's Revenue dropped on 22.6% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 6.7 pp from 22.0% to 15.3% in FY2015.
Gross Margin decreased on 2.1 pp from 51.0% to 48.9% in FY2015. SG&A as a % of Revenue increased on 3.3 pp from 25.2% to 28.5% in FY2015.
Net Income marign decreased on 6.9 pp from 15.5% to 8.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.51%. Titan Logix Corp showed small growth in CAPEX/Revenue0.51 pp from 0% in FY2012 to 0.51% in FY2015.
Return on investment
The company operates at low ROIC (7.68%) and ROE (6.14%). ROIC dropped on 11.6 pp from 19.3% to 7.7% in FY2015. ROE dropped on 10.0 pp from 16.2% to 6.1% in FY2015.
Leverage (Debt)
Debt level is -7.2x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 4.1x from -3.1x to -7.2x in FY2015. Debt dropped on 43.4% in FY2015 while cash jumped on 24.7% in FY2015.
Appendix 1: Peers in Industrial
Below we provide Titan Logix Corp benchmarking against other companies in Industrial 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 |
|---|
| Electrovaya Inc ($EFL) | 104.3% | -4.0% | -71.2% | 160.5% | |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | 22.4% | 19.7% | 0.9% | 50.5% | |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 12.5% | 10.4% | 5.3% | 9.4% | 23.9% |
|---|
| Titan Logix Corp ($TLA) | | 61.6% | -8.1% | 4.2% | -22.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 26.1% |
|---|
| Titan Logix Corp ($TLA) | 44.7% | 52.3% | 53.9% | 51.0% | 48.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 10.8% |
|---|
| Titan Logix Corp ($TLA) | 11.9% | 26.4% | 26.1% | 22.0% | 15.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.0% |
|---|
| Titan Logix Corp ($TLA) | 0.0% | 0.0% | 0.0% | 2.1% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 10.3% |
|---|
| Titan Logix Corp ($TLA) | 20.1% | 52.6% | 30.5% | 19.3% | 7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 0.7x |
|---|
| Titan Logix Corp ($TLA) | -1.1x | -1.1x | -1.1x | -3.1x | -7.2x |
