Blackline Safety Corp revenue surged on 73.8% in 2015 and EBITDA Margin surged on 51.1 pp from -104% to -53.0%
03.02.2016 • About Blackline Safety Corp (
$BLN) • By InTwits
Blackline Safety Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Blackline Safety Corp doesn't have a profitable business model yet: FY2015 ROIC is -88.9%
- The company operates at negative EBITDA Margin: -53.0%
- Blackline Safety Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -94.2%0
- Blackline Safety Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 0.60 in FY2015, 0.42 in FY2014, 0.20 in FY2013, 0.21 in FY2012, 0.31 in FY2011
- The company has unprofitable business model: ROIC is at -88.9%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Blackline Safety Corp ($BLN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1.922 | 2.635 | 2.883 | 4.182 | 7.268 | 73.8% |
| Gross Profit | 0.554 | 1.140 | 1.248 | 1.803 | 3.405 | 88.9% |
| SG&A | 2.704 | | 3.172 | 4.127 | 4.892 | 18.6% |
| EBITDA | -3.098 | -3.019 | -3.472 | -4.355 | -3.851 | -11.6% |
| Net Income | -3.181 | -3.110 | -3.586 | -4.544 | -4.152 | -8.6% |
Balance Sheet
|
|---|
| Cash | 3.803 | 3.227 | 2.247 | 3.319 | 6.729 | 102.7% |
| Short Term Debt | 0.019 | 0.005 | 0.107 | 1.102 | 0.259 | -76.4% |
| Long Term Debt | 0.009 | 0.064 | 0.147 | 0.000 | 0.108 | |
Cash flow
|
|---|
| Capex | 0.309 | 0.211 | 0.201 | 0.422 | 0.600 | 42.2% |
Ratios
|
|---|
| Revenue growth | -4.3% | 37.1% | 9.4% | 45.1% | 73.8% | |
| EBITDA growth | 6.7% | -2.6% | 15.0% | 25.4% | -11.6% | |
| Gross Margin | 28.8% | 43.3% | 43.3% | 43.1% | 46.9% | 3.7% |
| EBITDA Margin | -161.2% | -114.6% | -120.4% | -104.1% | -53.0% | 51.1% |
| Net Income Margin | -165.5% | -118.0% | -124.4% | -108.6% | -57.1% | 51.5% |
| SG&A, % of revenue | 140.7% | | 110.0% | 98.7% | 67.3% | -31.4% |
| CAPEX, % of revenue | 16.1% | 8.0% | 7.0% | 10.1% | 8.3% | -1.8% |
| ROIC | -86.4% | -48.5% | -66.4% | -112.1% | -88.9% | 23.2% |
| ROE | -85.7% | -47.8% | -67.1% | -134.3% | -105.5% | 28.8% |
Revenue and profitability
Blackline Safety Corp's Revenue surged on 73.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 51.1 pp from -104% to -53.0% in FY2015.
Gross Margin increased on 3.7 pp from 43.1% to 46.9% in FY2015. SG&A as a % of Revenue dropped on 31.4 pp from 98.7% to 67.3% in FY2015.
Net Income marign jumped on 51.5 pp from -109% to -57.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Blackline Safety Corp had CAPEX/Revenue of 8.3%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 8.4%.
Return on investment
The company operates at negative ROIC (-88.89%) and ROE (-105.50%). ROIC surged on 23.2 pp from -112% to -88.9% in FY2015. ROE jumped on 28.8 pp from -134% to -106% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 66.6% in FY2015 while cash jumped on 103% in FY2015.
Appendix 1: Peers in Communications
Below you can find Blackline Safety Corp 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 ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 7.9% | 2.5% | 1.8% | 1.9% | 2.7% |
|---|
| Blackline Safety Corp ($BLN) | | 37.1% | 9.4% | 45.1% | 73.8% |
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 ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.3% | 42.8% | 42.5% | 41.8% | 57.7% |
|---|
| Blackline Safety Corp ($BLN) | 28.8% | 43.3% | 43.3% | 43.1% | 46.9% |
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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | |
| |
|---|
| Median (49 companies) | 16.4% | 15.6% | 14.8% | 13.4% | 17.9% |
|---|
| Blackline Safety Corp ($BLN) | -161.2% | -114.6% | -120.4% | -104.1% | -53.0% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.0% | 2.1% | 2.2% |
|---|
| Blackline Safety Corp ($BLN) | 16.1% | 8.0% | 7.0% | 10.1% | 8.3% |
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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 7.2% | 9.2% | 8.3% | 8.3% | 2.6% |
|---|
| Blackline Safety Corp ($BLN) | -86.4% | -48.5% | -66.4% | -112.1% | -88.9% |
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 (42 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.5x |
|---|
