PHX Energy Services Corp reports 101% EBITDA decline and 16.2 pp EBITDA Margin decline from 16.0% to -0.17%
24.02.2016 • About PHX Energy Services Corp (
$PHX) • By InTwits
PHX Energy Services Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PHX Energy Services Corp doesn't have a profitable business model yet: 2015 ROIC is -16.9%
- The company has unprofitable business model: ROIC is at -16.9%
- It operates with high leverage: Net Debt/EBITDA is 12.9x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PHX Energy Services Corp ($PHX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 260.1 | 301.7 | 380.7 | 521.5 | 286.8 | -45.0% |
| Gross Profit | | 63.6 | 73.0 | 106.9 | 11.1 | -89.6% |
| SG&A | | | 43.6 | 57.0 | 37.3 | -34.6% |
| EBITDA | | 48.4 | 74.6 | 83.5 | -0.5 | -100.6% |
| Net Income | 18.4 | 17.7 | 36.6 | 22.0 | -42.5 | -293.2% |
Balance Sheet
|
|---|
| Cash | | 4.3 | 5.7 | 3.0 | 9.0 | 198.4% |
| Short Term Debt | | 20.9 | 0.2 | 5.7 | 0.0 | -100.0% |
| Long Term Debt | | 80.0 | 70.4 | 104.3 | 60.0 | -42.5% |
Cash flow
|
|---|
| Capex | | 51.5 | 41.8 | 68.3 | 18.0 | -73.6% |
Ratios
|
|---|
| Revenue growth | 31.8% | 16.0% | 26.2% | 37.0% | -45.0% | |
| EBITDA growth | | | 54.0% | 12.0% | -100.6% | |
| Gross Margin | | 21.1% | 19.2% | 20.5% | 3.9% | -16.6% |
| EBITDA Margin | 0.0% | 16.1% | 19.6% | 16.0% | -0.2% | -16.2% |
| Net Income Margin | 7.1% | 5.9% | 9.6% | 4.2% | -14.8% | -19.0% |
| SG&A, % of revenue | | | 11.5% | 10.9% | 13.0% | 2.1% |
| CAPEX, % of revenue | | 17.1% | 11.0% | 13.1% | 6.3% | -6.8% |
| ROIC | | | 19.8% | 17.2% | -16.9% | -34.1% |
| ROE | | | 23.3% | 11.0% | -21.2% | -32.2% |
| Net Debt/EBITDA | | 2.0x | 0.9x | 1.3x | | -1.3x |
Revenue and profitability
PHX Energy Services Corp's Revenue dropped on 45.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 16.2 pp from 16.0% to -0.17% in 2015.
Gross Margin dropped on 16.6 pp from 20.5% to 3.9% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 10.9% to 13.0% in 2015.
Net Income marign dropped on 19.0 pp from 4.2% to -14.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.3%. CAPEX/Revenue dropped on 10.8 pp from 17.1% in 2012 to 6.3% in 2015. Average CAPEX/Revenue for the last three years was 10.1%.
Return on investment
The company operates at negative ROIC (-16.89%) and ROE (-21.20%). ROIC dropped on 34.1 pp from 17.2% to -16.9% in 2015. ROE dropped on 32.2 pp from 11.0% to -21.2% in 2015.
Leverage (Debt)
Debt level is 12.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 1.3x to in 2015. Debt dropped on 45.5% in 2015 while cash surged on 198% in 2015.
Appendix 1: Peers in Energy
Below we provide PHX Energy Services Corp benchmarking against other companies in Energy 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 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.0% | 9.5% | 16.2% | 17.6% | -24.5% |
|---|
| PHX Energy Services Corp ($PHX) | | 16.0% | 26.2% | 37.0% | -45.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.6% | 30.3% | 37.2% |
|---|
| PHX Energy Services Corp ($PHX) | | 21.1% | 19.2% | 20.5% | 3.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.3% | 25.7% | 31.1% | 29.6% | 5.2% |
|---|
| PHX Energy Services Corp ($PHX) | | 16.1% | 19.6% | 16.0% | -0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.6% | 50.0% | 39.2% | 48.8% | 21.4% |
|---|
| PHX Energy Services Corp ($PHX) | | 17.1% | 11.0% | 13.1% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.3% | 4.5% | 5.0% | -6.5% |
|---|
| PHX Energy Services Corp ($PHX) | | | 19.8% | 17.2% | -16.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 4.9x |
|---|
| PHX Energy Services Corp ($PHX) | | 2.0x | 0.9x | 1.3x | |
