ZoomerMedia Ltd reports 1.9% EBITDA decline and 1.2% Revenue decline
24.12.2015 • About ZoomerMedia Ltd (
$ZUM) • By InTwits
ZoomerMedia Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ZoomerMedia Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 1.0 in FY2015, 1.9 in FY2014, 3.2 in FY2013, 2.6 in FY2012, 1.6 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ZoomerMedia Ltd ($ZUM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 59.988 | 55.977 | 56.271 | 55.057 | 54.390 | -1.2% |
| Gross Profit | 57.846 | | | | | |
| EBITDA | 17.940 | 18.259 | 19.033 | 16.158 | 15.844 | -1.9% |
| Net Income | -6.807 | -3.559 | 5.278 | -1.772 | 0.137 | -107.8% |
Balance Sheet
|
|---|
| Cash | 0.000 | 5.070 | 2.830 | 0.000 | 0.000 | |
| Short Term Debt | 2.200 | 1.895 | 10.922 | 3.224 | 15.993 | 396.1% |
| Long Term Debt | 21.323 | 33.404 | 22.538 | 21.597 | 5.975 | -72.3% |
Cash flow
|
|---|
| Capex | 1.643 | 2.619 | 3.176 | 1.886 | 1.034 | -45.1% |
Ratios
|
|---|
| Revenue growth | 482.9% | -6.7% | 0.5% | -2.2% | -1.2% | |
| EBITDA growth | -901.4% | 1.8% | 4.2% | -15.1% | -1.9% | |
| Gross Margin | 96.4% | | | | | 0.0% |
| EBITDA Margin | 29.9% | 32.6% | 33.8% | 29.3% | 29.1% | -0.2% |
| Net Income Margin | -11.3% | -6.4% | 9.4% | -3.2% | 0.3% | 3.5% |
| CAPEX, % of revenue | 2.7% | 4.7% | 5.6% | 3.4% | 1.9% | -1.5% |
| ROIC | -6.0% | 4.0% | 8.2% | 2.3% | 3.6% | 1.4% |
| ROE | -16.2% | -10.4% | 15.1% | -4.8% | | 4.8% |
| Net Debt/EBITDA | 1.3x | 1.7x | 1.6x | 1.5x | 1.4x | -0.1x |
Revenue and profitability
The company's Revenue decreased slightly on 1.2% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased on 3.5 pp from -3.2% to 0.25% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in FY2015. ZoomerMedia Ltd's CAPEX/Revenue decreased on 2.8 pp from 4.7% in FY2012 to 1.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 0.1x from 1.5x to 1.4x in FY2015. Debt dropped on 11.5% in FY2015 while cash didn't change in FY2015.
Appendix 1: Peers in Communications
Below you can find ZoomerMedia Ltd benchmarking vs. other companies in Communications 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 |
|---|
| Telehop Communications Inc ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | 2.7% |
| Plaintree Systems Inc ($NPT) | | 14.5% | 9.1% | 50.8% | -7.1% |
| Aimia Inc ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.2% | 5.0% | 2.1% | 3.1% | 2.7% |
|---|
| ZoomerMedia Ltd ($ZUM) | | -6.7% | 0.5% | -2.2% | -1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (41 companies) | 43.2% | 43.0% | 42.6% | 41.9% | 60.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 14.1% | 13.5% | 14.1% | 11.7% | 14.0% |
|---|
| ZoomerMedia Ltd ($ZUM) | 29.9% | 32.6% | 33.8% | 29.3% | 29.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.0% | 2.1% | 2.2% |
|---|
| ZoomerMedia Ltd ($ZUM) | 2.7% | 4.7% | 5.6% | 3.4% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 7.2% | 9.2% | 8.3% | 8.3% | 1.6% |
|---|
| ZoomerMedia Ltd ($ZUM) | -6.0% | 4.0% | 8.2% | 2.3% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 0.9x | 1.4x | 1.3x | 1.4x | 1.2x |
|---|
| ZoomerMedia Ltd ($ZUM) | 1.3x | 1.7x | 1.6x | 1.5x | 1.4x |
