Imvescor Restaurant Group Inc Net Income jumped on 72.5% in 2015 and EBITDA Margin surged on 10.4 pp from 25.5% to 35.9%
14.01.2016 • About Imvescor Restaurant Group Inc (
$IRG) • By InTwits
Imvescor Restaurant Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imvescor Restaurant Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 93.9%.
- CAPEX is quite volatile: 0.29 in FY2015, 0.12 in FY2014, 1.4 in FY2013, 1.2 in FY2012, 0.23 in FY2011
- The company has highly profitable business model: ROIC is at 14.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imvescor Restaurant Group Inc ($IRG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 44.389 | 47.305 | 45.136 | 46.619 | 44.478 | -4.6% |
| Gross Profit | 42.716 | 44.570 | 40.491 | 39.575 | 37.515 | -5.2% |
| SG&A | | 31.969 | | | | |
| EBITDA | 11.770 | 13.194 | 12.306 | 11.906 | 15.973 | 34.2% |
| Net Income | 1.835 | 1.848 | 2.570 | 5.876 | 10.139 | 72.5% |
Balance Sheet
|
|---|
| Cash | 7.249 | 7.310 | 5.364 | 10.398 | 3.624 | -65.1% |
| Short Term Debt | 45.966 | 2.902 | 3.059 | 30.540 | 0.000 | -100.0% |
| Long Term Debt | 17.724 | 35.887 | 30.120 | 0.000 | 11.798 | |
Cash flow
|
|---|
| Capex | 0.233 | 1.156 | 1.431 | 0.121 | 0.294 | 143.0% |
Ratios
|
|---|
| Revenue growth | -3.3% | 6.6% | -4.6% | 3.3% | -4.6% | |
| EBITDA growth | -9.1% | 12.1% | -6.7% | -3.3% | 34.2% | |
| Gross Margin | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% | -0.5% |
| EBITDA Margin | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% | 10.4% |
| Net Income Margin | 4.1% | 3.9% | 5.7% | 12.6% | 22.8% | 10.2% |
| SG&A, % of revenue | | 67.6% | | | | 0.0% |
| CAPEX, % of revenue | 0.5% | 2.4% | 3.2% | 0.3% | 0.7% | 0.4% |
| ROIC | 10.9% | 12.3% | 11.2% | 10.2% | 14.1% | 4.0% |
| ROE | 5.1% | 3.9% | 4.2% | 8.8% | 13.3% | 4.5% |
| Net Debt/EBITDA | 4.8x | 2.4x | 2.3x | 1.7x | 0.5x | -1.2x |
Revenue and profitability
The company's Revenue decreased on 4.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.4 pp from 25.5% to 35.9% in FY2015.
Gross Margin decreased slightly on 0.55 pp from 84.9% to 84.3% in FY2015.
Net Income marign jumped on 10.2 pp from 12.6% to 22.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Imvescor Restaurant Group Inc had CAPEX/Revenue of 0.66%. Imvescor Restaurant Group Inc showed small CAPEX/Revenue decline of 1.8 pp from 2.4% in FY2012 to 0.66% in FY2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (14.14%) and ROE (13.31%). ROIC increased on 4.0 pp from 10.2% to 14.1% in FY2015. ROE increased on 4.5 pp from 8.8% to 13.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 1.2x from 1.7x to 0.5x in FY2015. Debt dropped on 61.4% in FY2015 while cash dropped on 65.1% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Imvescor Restaurant 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 12.0% | 5.3% | 5.3% | 7.7% | 3.7% |
|---|
| Imvescor Restaurant Group Inc ($IRG) | | 6.6% | -4.6% | 3.3% | -4.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| DEQ Systems Corp ($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% | |
| Spot Coffee Canada Ltd ($SPP) | 66.9% | 66.5% | 68.8% | 67.7% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 31.6% | 32.5% | 36.8% |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 8.0% |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.9% | 2.7% | 2.7% | 2.4% | 2.7% |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 0.5% | 2.4% | 3.2% | 0.3% | 0.7% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 7.8% |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 10.9% | 12.3% | 11.2% | 10.2% | 14.1% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.2x | 1.6x | 2.0x | 1.3x |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 4.8x | 2.4x | 2.3x | 1.7x | 0.5x |
