Chorus Aviation Inc reports 252% CAPEX growth while 7.3% Revenue decline
19.02.2016 • About Chorus Aviation Inc (
$CHR.A) • By InTwits
Chorus Aviation Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.5% in 2015 vs. 12.2% in 2014 vs. 8.8% in 2011
- Chorus Aviation Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.2%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 231 in 2015, 65.5 in 2014, 160 in 2013, 170 in 2012, 208 in 2011
- The company has highly profitable business model: ROIC is at 21.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chorus Aviation Inc ($CHR.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,664 | 1,711 | 1,672 | 1,666 | 1,545 | -7.3% |
| Gross Profit | 949 | 1,010 | 1,006 | 1,032 | 1,038 | 0.6% |
| SG&A | 284 | 294 | 286 | 296 | 266 | -10.1% |
| EBITDA | 146 | 184 | 187 | 204 | 209 | 2.6% |
| Net Income | 68 | 100 | 62 | 65 | 25 | -60.6% |
Balance Sheet
|
|---|
| Cash | 108 | 118 | 160 | 115 | 33 | -71.5% |
| Short Term Debt | 38 | 23 | 35 | 39 | 60 | 55.7% |
| Long Term Debt | 245 | 340 | 375 | 369 | 544 | 47.7% |
Cash flow
|
|---|
| Capex | 208 | 170 | 160 | 66 | 231 | 252.3% |
Ratios
|
|---|
| Revenue growth | 12.0% | 2.8% | -2.3% | -0.3% | -7.3% | |
| EBITDA growth | 13.5% | 26.0% | 1.5% | 9.1% | 2.6% | |
| Gross Margin | 57.0% | 59.0% | 60.1% | 61.9% | 67.2% | 5.3% |
| EBITDA Margin | 8.8% | 10.8% | 11.2% | 12.2% | 13.5% | 1.3% |
| Net Income Margin | 4.1% | 5.9% | 3.7% | 3.9% | 1.6% | -2.2% |
| SG&A, % of revenue | 17.1% | 17.2% | 17.1% | 17.8% | 17.2% | -0.5% |
| CAPEX, % of revenue | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% | 11.0% |
| ROIC | 32.0% | 28.0% | 22.1% | 22.7% | 21.5% | -1.2% |
| ROE | 44.8% | 72.8% | 38.9% | 41.0% | 21.2% | -19.8% |
| Net Debt/EBITDA | 1.2x | 1.3x | 1.3x | 1.4x | 2.7x | 1.3x |
Revenue and profitability
Chorus Aviation Inc's Revenue decreased on 7.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 12.2% to 13.5% in 2015.
Gross Margin increased on 5.3 pp from 61.9% to 67.2% in 2015. SG&A as a % of Revenue decreased slightly on 0.53 pp from 17.8% to 17.2% in 2015.
Net Income marign decreased on 2.2 pp from 3.9% to 1.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Chorus Aviation Inc had CAPEX/Revenue of 15.0%. The company showed CAPEX/Revenue growth of 5.0 pp from 9.9% in 2012 to 15.0% in 2015. For the last three years the average CAPEX/Revenue was 9.5%.The company has spent a lot to CAPEX (110% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at high and attractive ROIC (21.51%) and ROE (21.16%). ROIC decreased slightly on 1.2 pp from 22.7% to 21.5% in 2015. ROE dropped on 19.8 pp from 41.0% to 21.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 2.9x. Net Debt / EBITDA jumped on 1.3x from 1.4x to 2.7x in 2015. Debt surged on 48.4% in 2015 while cash dropped on 71.5% in 2015.
Management team
Chorus Aviation Inc's CEO Joseph D Randell "Joe" is a founder and has spent 17 years at the company. Jolene Mahody is a Chorus Aviation Inc's CFO. Jolene Mahody has spent 3 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Chorus Aviation 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 13.3% | 5.3% | 5.3% | 7.7% | 3.3% |
|---|
| Chorus Aviation Inc ($CHR.A) | | 2.8% | -2.3% | -0.3% | -7.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 31.6% | 32.5% | 36.8% |
|---|
| Chorus Aviation Inc ($CHR.A) | 57.0% | 59.0% | 60.1% | 61.9% | 67.2% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 9.7% |
|---|
| Chorus Aviation Inc ($CHR.A) | 8.8% | 10.8% | 11.2% | 12.2% | 13.5% |
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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.8% |
|---|
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 10.9% |
|---|
| Chorus Aviation Inc ($CHR.A) | 32.0% | 28.0% | 22.1% | 22.7% | 21.5% |
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 | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.3x | 1.8x | 2.0x | 1.3x |
|---|
| Chorus Aviation Inc ($CHR.A) | 1.2x | 1.3x | 1.3x | 1.4x | 2.7x |
