Yellow Pages Ltd/Canada Net Income dropped on 67.6% in 2015 and EBITDA Margin decreased on 8.3 pp from 36.0% to 27.7%
11.02.2016 • About Yellow Pages Ltd/Canada (
$Y) • By InTwits
Yellow Pages Ltd/Canada reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yellow Pages Ltd/Canada is a company in decline: 2015 revenue growth was -5.4%, 5 years revenue CAGR was -9.9%
- EBITDA Margin is declining: 27.7% in 2015 vs. 36.0% in 2014 vs. 51.1% in 2011
- Yellow Pages Ltd/Canada has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 6.2 in 2015, 14.8 in 2014, 11.7 in 2013, 5.1 in 2012, 15.6 in 2011
- The company has business model with average profitability: ROIC is at 11.1%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yellow Pages Ltd/Canada ($Y) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,329 | 1,108 | 972 | 878 | 830 | -5.4% |
| Gross Profit | 519 | 569 | 416 | 316 | 261 | -17.5% |
| EBITDA | 680 | 569 | 416 | 316 | 230 | -27.3% |
| Net Income | -2,833 | -1,962 | 176 | 189 | 61 | -67.6% |
Balance Sheet
|
|---|
| Cash | 84 | 107 | 202 | 103 | 67 | -34.6% |
| Short Term Debt | 102 | 101 | 89 | 103 | 99 | -4.5% |
| Long Term Debt | 1,695 | 788 | 646 | 494 | 399 | -19.1% |
Cash flow
|
|---|
| Capex | 16 | 5 | 12 | 15 | 6 | -57.8% |
Ratios
|
|---|
| Revenue growth | -5.2% | -16.6% | -12.3% | -9.7% | -5.4% | |
| EBITDA growth | -10.2% | -16.2% | -26.9% | -24.1% | -27.3% | |
| Gross Margin | 39.0% | 51.4% | 42.8% | 36.0% | 31.4% | -4.6% |
| EBITDA Margin | 51.1% | 51.4% | 42.8% | 36.0% | 27.7% | -8.3% |
| Net Income Margin | -213.2% | -177.1% | 18.1% | 21.5% | 7.4% | -14.1% |
| CAPEX, % of revenue | 1.2% | 0.5% | 1.2% | 1.7% | 0.8% | -0.9% |
| ROIC | 8.9% | 18.0% | 28.4% | 17.9% | 11.1% | -6.7% |
| ROE | -77.6% | -167.4% | 42.5% | 30.7% | 8.5% | -22.2% |
| Net Debt/EBITDA | 2.5x | 1.4x | 1.3x | 1.6x | 1.9x | 0.3x |
Revenue and profitability
Yellow Pages Ltd/Canada's Revenue decreased on 5.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.3 pp from 36.0% to 27.7% in 2015.
Gross Margin decreased on 4.6 pp from 36.0% to 31.4% in 2015.
Net Income marign dropped on 14.1 pp from 21.5% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Yellow Pages Ltd/Canada had CAPEX/Revenue of 0.75%. CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at low ROIC (11.14%) and ROE (8.46%). ROIC decreased on 6.7 pp from 17.9% to 11.1% in 2015. ROE dropped on 22.2 pp from 30.7% to 8.5% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 1.6x to 1.9x in 2015. Debt dropped on 16.6% in 2015 while cash dropped on 34.6% in 2015.
Appendix 1: Peers in Communications
Below you can find Yellow Pages Ltd/Canada 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 ($AIM) | 2.9% | 6.3% | -25.6% | 47.5% | |
| |
|---|
| Median (49 companies) | 10.2% | 5.0% | 2.1% | 3.1% | 2.7% |
|---|
| Yellow Pages Ltd/Canada ($Y) | | -16.6% | -12.3% | -9.7% | -5.4% |
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 ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.3% | 42.8% | 42.5% | 42.5% | 49.7% |
|---|
| Yellow Pages Ltd/Canada ($Y) | 39.0% | 51.4% | 42.8% | 36.0% | 31.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Cogeco Cable Inc ($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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| |
|---|
| Median (49 companies) | 14.1% | 13.5% | 14.1% | 11.7% | 18.2% |
|---|
| Yellow Pages Ltd/Canada ($Y) | 51.1% | 51.4% | 42.8% | 36.0% | 27.7% |
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 ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.3% | 2.3% | 2.4% |
|---|
| Yellow Pages Ltd/Canada ($Y) | 1.2% | 0.5% | 1.2% | 1.7% | 0.8% |
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% | 51.4% |
| 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 ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 6.3% | 8.0% | 8.2% | 8.0% | 3.8% |
|---|
| Yellow Pages Ltd/Canada ($Y) | 8.9% | 18.0% | 28.4% | 17.9% | 11.1% |
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 ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 0.9x | 1.4x | 1.3x | 1.4x | 2.0x |
|---|
| Yellow Pages Ltd/Canada ($Y) | 2.5x | 1.4x | 1.3x | 1.6x | 1.9x |
