Theratechnologies Inc reports 346% revenue growth in FY2015 and 194 pp EBITDA Margin growth from -174% to 20.2%
24.02.2016 • About Theratechnologies Inc (
$TH) • By InTwits
Theratechnologies Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Theratechnologies Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -47.3%0
- Theratechnologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 0 in FY2015, 0.83 in FY2014, 0 in FY2013, 0.069 in FY2012, 0.23 in FY2011
- The company has highly profitable business model: ROIC is at 18.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Theratechnologies Inc ($TH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14.928 | 13.567 | 7.553 | 6.732 | 30.055 | 346.4% |
| Gross Profit | 5.782 | 8.511 | 3.842 | 4.277 | 26.031 | 508.6% |
| SG&A | | | 4.065 | 11.529 | 16.981 | 47.3% |
| EBITDA | -17.720 | -3.580 | -7.473 | -11.727 | 6.062 | -151.7% |
| Net Income | -17.730 | -13.940 | -4.055 | -10.541 | 1.571 | -114.9% |
Balance Sheet
|
|---|
| Cash | 2.559 | 1.512 | 0.967 | 0.694 | 15.350 | 2,111.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 3.682 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 13.470 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.234 | 0.069 | 0.000 | 0.829 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | -53.2% | -9.1% | -44.3% | -10.9% | 346.4% | |
| EBITDA growth | -348.6% | -79.8% | 108.7% | 56.9% | -151.7% | |
| Gross Margin | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% | 23.1% |
| EBITDA Margin | -118.7% | -26.4% | -98.9% | -174.2% | 20.2% | 194.4% |
| Net Income Margin | -118.8% | -102.7% | -53.7% | -156.6% | 5.2% | 161.8% |
| SG&A, % of revenue | | | 53.8% | 171.3% | 56.5% | -114.8% |
| CAPEX, % of revenue | 1.6% | 0.5% | 0.0% | 12.3% | 0.0% | -12.3% |
| ROIC | -40.6% | -14.0% | -36.9% | -59.1% | 18.4% | 77.5% |
| ROE | -39.8% | -47.2% | -19.7% | -79.9% | 11.3% | 91.1% |
| Net Debt/EBITDA | | | | | -2.5x | -2.5x |
Revenue and profitability
The company's Revenue surged on 346% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 194 pp from -174% to 20.2% in FY2015.
Gross Margin jumped on 23.1 pp from 63.5% to 86.6% in FY2015. SG&A as a % of Revenue dropped on 115 pp from 171% to 56.5% in FY2015.
Net Income marign jumped on 162 pp from -157% to 5.2% in FY2015.
Return on investment
The company operates at good ROIC (18.40%) while ROE is low (11.26%). ROIC jumped on 77.5 pp from -59.1% to 18.4% in FY2015. ROE jumped on 91.1 pp from -79.9% to 11.3% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash jumped on 2,112% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Theratechnologies Inc benchmarking against other companies in Consumer, Non-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 |
|---|
| 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.0% | 9.3% | 6.7% | 13.2% | 6.6% |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
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% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 33.1% |
|---|
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 9.0% | 11.0% | 10.8% |
|---|
| Theratechnologies Inc ($TH) | -118.7% | -26.4% | -98.9% | -174.2% | 20.2% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.5% | 2.1% |
|---|
| Theratechnologies Inc ($TH) | 1.6% | 0.5% | 0.0% | 12.3% | 0.0% |
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% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 8.0% | 7.1% | 6.9% | 7.3% | 6.8% |
|---|
| Theratechnologies Inc ($TH) | -40.6% | -14.0% | -36.9% | -59.1% | 18.4% |
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 (71 companies) | 1.8x | 2.6x | 2.2x | 2.7x | 1.6x |
|---|
