Manitoba Telecom Services Inc Net Income dropped on 119% in 2015 and Revenue increased slightly on 0.82%
04.02.2016 • About Manitoba Telecom Services Inc (
$MBT) • By InTwits
Manitoba Telecom Services Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Manitoba Telecom Services Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.9%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 17.9 in FY2015, 27.3 in FY2014, 14.7 in FY2013, 12.7 in FY2012, 7.0 in FY2011
- The company has business model with low profitability: ROIC is at 8.8%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Manitoba Telecom Services Inc ($MBT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,766 | 1,704 | 1,634 | 987 | 995 | 0.8% |
| EBITDA | 594 | 585 | 551 | 468 | 421 | -10.1% |
| Net Income | 167 | 145 | -84 | 132 | -24 | -118.5% |
Balance Sheet
|
|---|
| Cash | 17 | 0 | 88 | 33 | 0 | -100.0% |
| Short Term Debt | 105 | 67 | 275 | 0 | 432 | |
| Long Term Debt | 930 | 922 | 648 | 873 | 677 | -22.5% |
Cash flow
|
|---|
| Capex | 288 | 338 | 296 | 221 | 228 | 3.0% |
Ratios
|
|---|
| Revenue growth | -1.0% | -3.5% | -4.1% | -39.6% | 0.8% | |
| EBITDA growth | 5.2% | -1.5% | -5.8% | -15.1% | -10.1% | |
| EBITDA Margin | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% | -5.1% |
| Net Income Margin | 9.5% | 8.5% | -5.2% | 13.3% | -2.5% | -15.8% |
| CAPEX, % of revenue | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% | 0.5% |
| ROIC | 17.8% | 20.3% | 17.0% | 14.8% | 8.8% | -6.1% |
| ROE | 16.1% | 17.9% | -8.8% | 12.3% | -2.3% | -14.6% |
| Net Debt/EBITDA | 1.7x | 1.7x | 1.5x | 1.8x | 2.6x | 0.8x |
Revenue and profitability
Manitoba Telecom Services Inc's Revenue increased slightly on 0.82% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 20.4% to 22.6% in 2015.
Net Income marign dropped on 15.8 pp from 13.3% to -2.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Manitoba Telecom Services Inc's CAPEX/Revenue was 22.9% in 2015. Manitoba Telecom Services Inc's CAPEX/Revenue increased on 3.1 pp from 19.8% in 2012 to 22.9% in 2015. Average CAPEX/Revenue for the last three years was 21.2%.The company maintained rich investment policy and has spent a big chunk of EBITDA (54.2%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (8.76%) and negative ROE (-2.32%). ROIC decreased on 6.1 pp from 14.8% to 8.8% in 2015. ROE dropped on 14.6 pp from 12.3% to -2.3% in 2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.8x from 1.8x to 2.6x in 2015. Debt surged on 27.1% in 2015 while cash dropped on 100% in 2015.
Appendix 1: Peers in Communications
Below you can find Manitoba Telecom Services Inc 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 ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 10.2% | 5.0% | 2.1% | 3.1% | 2.7% |
|---|
| Manitoba Telecom Services Inc ($MBT) | | -3.5% | -4.1% | -39.6% | 0.8% |
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 ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (41 companies) | 43.2% | 43.0% | 42.6% | 41.9% | 49.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| Rogers Communications Inc ($RCI.A) | 38.0% | 37.3% | 38.4% | 37.9% | 36.9% |
| |
|---|
| Median (49 companies) | 14.1% | 13.5% | 14.1% | 11.7% | 17.7% |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($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 ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Cogeco Cable Inc ($CCA) | 24.6% | 28.1% | 23.0% | 20.6% | 20.7% |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.0% | 2.1% | 2.3% |
|---|
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($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) | 6.3% | 8.0% | 8.2% | 8.0% | 2.6% |
|---|
| Manitoba Telecom Services Inc ($MBT) | 17.8% | 20.3% | 17.0% | 14.8% | 8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($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 | 1.5x |
|---|
| Manitoba Telecom Services Inc ($MBT) | 1.7x | 1.7x | 1.5x | 1.8x | 2.6x |
