Cineplex Inc Net Income surged on 76.6% in 2015 and EBITDA Margin increased on 4.7 pp from 15.7% to 20.4%
09.02.2016 • About Cineplex Inc (
$CGX) • By InTwits
Cineplex Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cineplex Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 168 in 2015, 601 in 2014, 342 in 2013, 307 in 2012, 387 in 2011
- The company has highly profitable business model: ROIC is at 17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cineplex Inc ($CGX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 998 | 1,093 | 1,171 | 1,235 | 1,371 | 11.0% |
| Gross Profit | 638 | 693 | 750 | 804 | 901 | 12.1% |
| EBITDA | 171 | 224 | 194 | 194 | 279 | 44.2% |
| Net Income | 49 | 120 | 84 | 76 | 135 | 76.6% |
Balance Sheet
|
|---|
| Cash | 49 | 49 | 44 | 34 | 36 | 3.9% |
| Short Term Debt | 79 | 2 | 2 | 3 | 7 | 150.7% |
| Long Term Debt | 194 | 169 | 332 | 343 | 335 | -2.4% |
Cash flow
|
|---|
| Capex | 61 | 72 | 62 | 106 | 96 | -9.6% |
Ratios
|
|---|
| Revenue growth | -0.8% | 9.4% | 7.2% | 5.4% | 11.0% | |
| EBITDA growth | 1.2% | 31.3% | -13.5% | -0.2% | 44.2% | |
| Gross Margin | 63.9% | 63.4% | 64.1% | 65.1% | 65.7% | 0.7% |
| EBITDA Margin | 17.1% | 20.5% | 16.6% | 15.7% | 20.4% | 4.7% |
| Net Income Margin | 4.9% | 11.0% | 7.1% | 6.2% | 9.8% | 3.6% |
| CAPEX, % of revenue | 6.1% | 6.6% | 5.3% | 8.6% | 7.0% | -1.6% |
| ROIC | 11.1% | 18.2% | 12.7% | 10.8% | 17.1% | 6.2% |
| ROE | 8.1% | 17.6% | 11.2% | 10.3% | 18.0% | 7.7% |
| Net Debt/EBITDA | 1.3x | 0.5x | 1.5x | 1.6x | 1.1x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 11.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 1.6% to -0.83% in FY2015.
Gross Margin increased slightly on 0.65 pp from 65.1% to 65.7% in 2015.
Net Income marign increased on 3.6 pp from 6.2% to 9.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.0% in 2015. Cineplex Inc's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 7.0%.
Return on investment
The company operates at good ROIC (17.06%) and ROE (17.97%). ROIC increased on 6.2 pp from 10.8% to 17.1% in 2015. ROE increased on 7.7 pp from 10.3% to 18.0% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.6x to 1.1x in 2015. Debt decreased slightly on 1.3% in 2015 while cash increased on 3.9% in 2015.
Management team
Ellis Jacob is a the company's CEO. Ellis Jacob is a founder and has spent 15 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Cineplex 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 12.0% | 5.3% | 4.9% | 7.7% | 3.3% |
|---|
| Cineplex Inc ($CGX) | | 9.4% | 7.2% | 5.4% | 11.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| 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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 31.6% | 32.5% | 36.8% |
|---|
| Cineplex Inc ($CGX) | 63.9% | 63.4% | 64.1% | 65.1% | 65.7% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 9.4% |
|---|
| Cineplex Inc ($CGX) | 17.1% | 20.5% | 16.6% | 15.7% | 20.4% |
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% | 22.5% |
| 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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.7% |
|---|
| Cineplex Inc ($CGX) | 6.1% | 6.6% | 5.3% | 8.6% | 7.0% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 9.4% |
|---|
| Cineplex Inc ($CGX) | 11.1% | 18.2% | 12.7% | 10.8% | 17.1% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 0.8x |
|---|
| Cineplex Inc ($CGX) | 1.3x | 0.5x | 1.5x | 1.6x | 1.1x |
