Exchange Income Corp EBITDA surged on 83.6% in 2015 and Revenue jumped on 48.8%
23.02.2016 • About Exchange Income Corp (
$EIF) • By InTwits
Exchange Income Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Exchange Income Corp is a growth stock: 2015 revenue growth was 48.8%, 5 year revenue CAGR was 27.0% at 2015 ROIC 11.5%
- EBITDA Margin is expanding: 22.2% in 2015 vs. 18.0% in 2014 vs. 14.7% in 2011
- Exchange Income Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.6%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 124 in 2015, 84.1 in 2014, 80.3 in 2013, 63.3 in 2012, 42.0 in 2011
- The company has business model with average profitability: ROIC is at 11.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Exchange Income Corp ($EIF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 510.3 | 800.6 | 509.1 | 542.5 | 807.4 | 48.8% |
| Gross Profit | 291.5 | 328.0 | 151.0 | 169.8 | 286.2 | 68.6% |
| SG&A | | | | | 106.9 | |
| EBITDA | 74.8 | 94.5 | 85.6 | 97.6 | 179.2 | 83.6% |
| Net Income | 20.7 | 25.4 | 9.0 | 8.3 | 40.2 | 387.4% |
Balance Sheet
|
|---|
| Cash | 11.5 | 4.2 | 23.2 | 15.0 | 15.5 | 3.5% |
| Short Term Debt | 1.2 | 1.4 | 5.7 | 1.1 | 1.0 | -6.9% |
| Long Term Debt | 169.9 | 238.8 | 434.5 | 271.7 | 507.8 | 86.9% |
Cash flow
|
|---|
| Capex | 42.0 | 63.3 | 80.3 | 84.1 | 124.1 | 47.7% |
Ratios
|
|---|
| Revenue growth | 108.8% | 56.9% | -36.4% | 6.6% | 48.8% | |
| EBITDA growth | 69.1% | 26.3% | -9.4% | 14.0% | 83.6% | |
| Gross Margin | 57.1% | 41.0% | 29.7% | 31.3% | 35.4% | 4.2% |
| EBITDA Margin | 14.7% | 11.8% | 16.8% | 18.0% | 22.2% | 4.2% |
| Net Income Margin | 4.1% | 3.2% | 1.8% | 1.5% | 5.0% | 3.5% |
| SG&A, % of revenue | | | | | 13.2% | 13.2% |
| CAPEX, % of revenue | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% | -0.1% |
| ROIC | 14.0% | 12.2% | 5.8% | 6.4% | 11.5% | 5.1% |
| ROE | 10.5% | 10.1% | 3.0% | 2.7% | 10.8% | 8.1% |
| Net Debt/EBITDA | 2.1x | 2.5x | 4.9x | 2.6x | 2.8x | 0.1x |
Revenue and profitability
The company's Revenue surged on 48.8% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Gross Margin increased on 4.2 pp from 31.3% to 35.4% in 2015.
Net Income marign increased on 3.5 pp from 1.5% to 5.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 15.4% in 2015. Exchange Income Corp showed CAPEX/Revenue growth of 7.5 pp from 7.9% in 2012 to 15.4% in 2015. For the last three years the average CAPEX/Revenue was 15.5%.To secure this fast growth the company invested a large share of EBITDA (69.3%) to CAPEX.
Return on investment
The company operates at low ROIC (11.51%) and ROE (10.78%). ROIC increased on 5.1 pp from 6.4% to 11.5% in 2015. ROE increased on 8.1 pp from 2.7% to 10.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 2.8x. Net Debt / EBITDA surged on 0.1x from 2.6x to 2.8x in 2015. Debt surged on 86.5% in 2015 while cash increased on 3.5% in 2015.
Management team
Exchange Income Corp's CEO is Michael Pyle. Michael Pyle is a founder and has 9 years tenure at the company. Tamara Schock is a The company's CFO. Tamara Schock has spent 3 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Exchange Income Corp benchmarking against other companies in Consumer, Cyclical 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 |
|---|
| 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 13.3% | 5.3% | 5.3% | 7.7% | 3.3% |
|---|
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
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% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 32.1% | 34.6% | 38.2% |
|---|
| Exchange Income Corp ($EIF) | 57.1% | 41.0% | 29.7% | 31.3% | 35.4% |
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 ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 9.7% |
|---|
| Exchange Income Corp ($EIF) | 14.7% | 11.8% | 16.8% | 18.0% | 22.2% |
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% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| Gildan Activewear Inc ($GIL) | 9.0% | 3.7% | 7.4% | 12.1% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.8% |
|---|
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.8% | 9.8% | 10.9% |
|---|
| Exchange Income Corp ($EIF) | 14.0% | 12.2% | 5.8% | 6.4% | 11.5% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.2x | 1.6x | 1.9x | 1.4x |
|---|
| Exchange Income Corp ($EIF) | 2.1x | 2.5x | 4.9x | 2.6x | 2.8x |
