CIBT Education Group Inc Debt jumped on 1,550% in 2015 and EBITDA jumped on 431%
02.12.2015 • About CIBT Education Group Inc (
$MBA) • By InTwits
CIBT Education Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIBT Education Group Inc is a company in decline: FY2015 revenue growth was -13.7%, 5 years revenue CAGR was -13.0%
- EBITDA Margin is quite volatile: 3.4% in FY2015, -0.9% in FY2014, 0.0% in FY2013, 2.4% in FY2012, -1.8% in FY2011
- CIBT Education Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 0.57 in FY2015, 0.38 in FY2014, 1.3 in FY2013, 1.6 in FY2012, 0.49 in FY2011
- The company has unprofitable business model: ROIC is at -0.7%
- It operates with high leverage: Net Debt/EBITDA is 18.4x while industry average is 6.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIBT Education Group Inc ($MBA) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 58.575 | 33.724 | 30.431 | 30.916 | 26.686 | -13.7% |
| Gross Profit | 29.313 | 18.616 | 16.720 | 18.100 | 16.697 | -7.8% |
| SG&A | | | | | 16.035 | |
| EBITDA | -1.047 | 0.821 | 0.003 | -0.275 | 0.908 | -430.5% |
| Net Income | -9.814 | -1.172 | -1.885 | 5.125 | 0.863 | -83.2% |
Balance Sheet
|
|---|
| Cash | 6.457 | 8.075 | 3.377 | 2.706 | 1.731 | -36.0% |
| Short Term Debt | 2.254 | 1.745 | 2.920 | 0.608 | 18.077 | 2,873.4% |
| Long Term Debt | 0.283 | 0.615 | 0.456 | 0.509 | 0.346 | -32.0% |
Cash flow
|
|---|
| Capex | 0.488 | 1.604 | 1.340 | 0.377 | 0.567 | 50.2% |
Ratios
|
|---|
| Revenue growth | 9.3% | -42.4% | -9.8% | 1.6% | -13.7% | |
| EBITDA growth | -134.7% | -178.4% | -99.6% | -8,747.4% | -430.5% | |
| Gross Margin | 50.0% | 55.2% | 54.9% | 58.5% | 62.6% | 4.0% |
| EBITDA Margin | -1.8% | 2.4% | 0.0% | -0.9% | 3.4% | 4.3% |
| Net Income Margin | -16.8% | -3.5% | -6.2% | 16.6% | 3.2% | -13.3% |
| SG&A, % of revenue | | | | | 60.1% | 60.1% |
| CAPEX, % of revenue | 0.8% | 4.8% | 4.4% | 1.2% | 2.1% | 0.9% |
| ROIC | -13.3% | -8.5% | -15.5% | -10.6% | -0.7% | 9.9% |
| ROE | -46.2% | -7.3% | -13.0% | 32.8% | 5.1% | -27.7% |
| Net Debt/EBITDA | | -7.0x | -0.3x | | 18.4x | 18.4x |
Revenue and profitability
CIBT Education Group Inc's Revenue dropped on 13.7% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.3 pp from -0.89% to 3.4% in FY2015.
Gross Margin increased on 4.0 pp from 58.5% to 62.6% in FY2015.
Net Income marign dropped on 13.3 pp from 16.6% to 3.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 CIBT Education Group Inc had CAPEX/Revenue of 2.1%. CAPEX/Revenue decreased on 2.6 pp from 4.8% in FY2012 to 2.1% in FY2015. For the last three years the average CAPEX/Revenue was 2.6%.Battling declining revenue CIBT Education Group Inc invested a large share of EBITDA (62.4%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.68%) and low but positive ROE (5.12%). ROIC increased on 9.9 pp from -10.6% to -0.68% in FY2015. ROE dropped on 27.7 pp from 32.8% to 5.1% in FY2015.
Leverage (Debt)
Debt level is 18.4x Net Debt / EBITDA and 20.3x Debt / EBITDA. Net Debt / EBITDA surged18.4x from to 18.4x in FY2015. Debt jumped on 1,550% in FY2015 while cash dropped on 36.0% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide CIBT Education Group Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.3% | 8.7% | 6.9% | 13.2% | 6.3% |
|---|
| CIBT Education Group Inc ($MBA) | | -42.4% | -9.8% | 1.6% | -13.7% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 33.7% | 35.8% | 35.5% | 34.6% | 26.2% |
|---|
| CIBT Education Group Inc ($MBA) | 50.0% | 55.2% | 54.9% | 58.5% | 62.6% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.2% | 8.5% | 9.0% | 10.8% | 7.0% |
|---|
| CIBT Education Group Inc ($MBA) | -1.8% | 2.4% | 0.0% | -0.9% | 3.4% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 2.9% |
|---|
| CIBT Education Group Inc ($MBA) | 0.8% | 4.8% | 4.4% | 1.2% | 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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 8.0% | 7.2% | 6.7% | 7.8% | 8.0% |
|---|
| CIBT Education Group Inc ($MBA) | -13.3% | -8.5% | -15.5% | -10.6% | -0.7% |
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 (70 companies) | 1.8x | 2.8x | 2.2x | 2.7x | 1.5x |
|---|
