Altus Group Ltd/Canada revenue jumped on 14.5% in 2015 while EBITDA Margin decreased slightly on 1.9 pp from 17.7% to 15.8%
23.02.2016 • About Altus Group Ltd/Canada (
$AIF) • By InTwits
Altus Group Ltd/Canada reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 15.8% in 2015, 17.7% in 2014, 20.1% in 2013, 7.4% in 2012, 6.4% in 2011
- Altus Group Ltd/Canada has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: 12.3 in 2015, 7.7 in 2014, 3.9 in 2013, 4.7 in 2012, 9.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Altus Group Ltd/Canada ($AIF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 266.9 | 286.4 | 297.2 | 340.2 | 389.4 | 14.5% |
| EBITDA | 17.0 | 21.1 | 59.8 | 60.3 | 61.4 | 1.9% |
| Net Income | -18.3 | -12.7 | 18.6 | 13.2 | 9.2 | -29.8% |
Balance Sheet
|
|---|
| Cash | 6.6 | 4.7 | 16.7 | 17.5 | 19.6 | 12.3% |
| Short Term Debt | 9.3 | 6.8 | 1.7 | 128.1 | 2.1 | -98.3% |
| Long Term Debt | 214.6 | 205.4 | 155.4 | 43.2 | 134.3 | 211.2% |
Cash flow
|
|---|
| Capex | 9.6 | 4.7 | 3.9 | 7.7 | 12.3 | 59.7% |
Ratios
|
|---|
| Revenue growth | 17.5% | 7.3% | 3.8% | 14.5% | 14.5% | |
| EBITDA growth | -37.2% | 23.5% | 183.9% | 0.8% | 1.9% | |
| EBITDA Margin | 6.4% | 7.4% | 20.1% | 17.7% | 15.8% | -1.9% |
| Net Income Margin | -6.9% | -4.4% | 6.3% | 3.9% | 2.4% | -1.5% |
| CAPEX, % of revenue | 3.6% | 1.6% | 1.3% | 2.3% | 3.2% | 0.9% |
| ROIC | -2.5% | -0.4% | 11.8% | 8.8% | 4.5% | -4.3% |
| ROE | -12.5% | -9.2% | 11.4% | 5.5% | 3.0% | -2.6% |
| Net Debt/EBITDA | 12.7x | 9.9x | 2.3x | 2.6x | 1.9x | -0.6x |
Revenue and profitability
Altus Group Ltd/Canada's Revenue surged on 14.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 22.3 pp from -29.7% to -7.4% in 2015.
Net Income marign decreased slightly on 1.5 pp from 3.9% to 2.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.2%. The company showed small growth in CAPEX/Revenue of 1.5 pp from 1.6% in 2012 to 3.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low ROIC (4.53%) and ROE (2.97%). ROIC decreased on 4.3 pp from 8.8% to 4.5% in 2015. ROE decreased on 2.6 pp from 5.5% to 3.0% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.6x to 1.9x in 2015. Debt dropped on 20.3% in 2015 while cash jumped on 12.3% in 2015.
Management team
Altus Group Ltd/Canada's CEO Robert G Courteau is a founder and has spent 6 years at the company. Altus Group Ltd/Canada's CFO is Angelo Bartolini. Angelo Bartolini has 7 years tenure at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Altus Group Ltd/Canada benchmarking vs. other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 15.5% | 9.3% | 6.7% | 12.7% | 11.4% |
|---|
| Altus Group Ltd/Canada ($AIF) | | 7.3% | 3.8% | 14.5% | 14.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (75 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 33.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 8.7% | 10.6% | 8.6% |
|---|
| Altus Group Ltd/Canada ($AIF) | 6.4% | 7.4% | 20.1% | 17.7% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.1% |
|---|
| Altus Group Ltd/Canada ($AIF) | 3.6% | 1.6% | 1.3% | 2.3% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 8.0% | 7.1% | 6.7% | 6.7% | 7.5% |
|---|
| Altus Group Ltd/Canada ($AIF) | -2.5% | -0.4% | 11.8% | 8.8% | 4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.7x | 1.5x |
|---|
| Altus Group Ltd/Canada ($AIF) | 12.7x | 9.9x | 2.3x | 2.6x | 1.9x |
