Killam Properties Inc CAPEX dropped on 63.4% in 2015 while Revenue surged on 12.4%
16.02.2016 • About Killam Properties Inc (
$KMP) • By InTwits
Killam Properties Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Killam Properties Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 91.7%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 78.5 in 2015, 215 in 2014, 164 in 2013, 110 in 2012, 93.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 11.5x while industry average is 5.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Killam Properties Inc ($KMP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 126.7 | 135.8 | 143.5 | 149.6 | 168.1 | 12.4% |
| EBITDA | 70.7 | 75.4 | 79.2 | 79.9 | 89.9 | 12.6% |
| Net Income | 66.0 | 51.7 | 39.8 | 29.8 | 34.6 | 16.1% |
Balance Sheet
|
|---|
| Cash | 43.3 | 56.7 | 27.7 | 18.8 | 11.7 | -38.1% |
| Short Term Debt | 103.4 | 105.4 | 96.4 | 98.0 | 99.6 | 1.7% |
| Long Term Debt | 630.2 | 624.6 | 699.1 | 876.7 | 945.0 | 7.8% |
Cash flow
|
|---|
| Capex | 93.2 | 109.7 | 163.8 | 214.6 | 78.5 | -63.4% |
Ratios
|
|---|
| Revenue growth | 9.4% | 7.2% | 5.6% | 4.2% | 12.4% | |
| EBITDA growth | 8.1% | 6.7% | 5.0% | 0.9% | 12.6% | |
| EBITDA Margin | 55.8% | 55.5% | 55.2% | 53.4% | 53.5% | 0.1% |
| Net Income Margin | 52.1% | 38.1% | 27.7% | 19.9% | 20.6% | 0.7% |
| CAPEX, % of revenue | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% | -96.8% |
| ROIC | 5.7% | 5.4% | 5.3% | 4.8% | 4.9% | 0.1% |
| ROE | 14.4% | 9.6% | 6.8% | 4.8% | 5.2% | 0.4% |
| Net Debt/EBITDA | 9.8x | 8.9x | 9.7x | 12.0x | 11.5x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 12.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.2 pp from 19.2% to 75.4% in 2015.
Net Income marign increased slightly on 0.65 pp from 19.9% to 20.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 46.7%. The company's CAPEX/Revenue dropped on 34.0 pp from 80.7% in 2012 to 46.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 101%.The company invested a big chunk of EBITDA (87.3%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (4.86%) and ROE (5.25%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.5x and Debt / EBITDA is 11.6x. Net Debt / EBITDA dropped on 0.5x from 12.0x to 11.5x in 2015. Debt increased on 7.2% in 2015 while cash dropped on 38.1% in 2015.
Appendix 1: Peers in Financial
Below we provide Killam Properties Inc benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 10.3% | 9.4% | 7.4% | 8.9% | 0.5% |
|---|
| Killam Properties Inc ($KMP) | | 7.2% | 5.6% | 4.2% | 12.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 27.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (48 companies) | 35.6% | 32.3% | 32.0% | 30.5% | 43.2% |
|---|
| Killam Properties Inc ($KMP) | 55.8% | 55.5% | 55.2% | 53.4% | 53.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| Gazit-Globe Ltd ($GZT) | 111.1% | 80.2% | 43.3% | 52.1% | |
| |
|---|
| Median (75 companies) | 1.2% | 1.2% | 0.7% | 1.0% | 1.1% |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 5.2% |
|---|
| Killam Properties Inc ($KMP) | 5.7% | 5.4% | 5.3% | 4.8% | 4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 2.9x | 5.1x | 4.6x | 4.2x | 2.4x |
|---|
| Killam Properties Inc ($KMP) | 9.8x | 8.9x | 9.7x | 12.0x | 11.5x |
