BlackPearl Resources Inc Net Income dropped on 274% in 2015 and EBITDA Margin dropped on 56.6 pp from 56.6% to 0.022%
25.02.2016 • About BlackPearl Resources Inc (
$PXX) • By InTwits
BlackPearl Resources Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BlackPearl Resources Inc doesn't have a profitable business model yet: 2015 ROIC is -7.2%
- EBITDA Margin is quite volatile: 0.0% in 2015, 56.6% in 2014, 45.7% in 2013, 45.3% in 2012, 51.7% in 2011
- BlackPearl Resources Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 94.6%. At the same time it's in pair with industry average of 92.3%.
- CAPEX is quite volatile: 68.4 in 2015, 235 in 2014, 93.1 in 2013, 139 in 2012, 189 in 2011
- The company has unprofitable business model: ROIC is at -7.2%
- It operates with high leverage: Net Debt/EBITDA is 3,726.1x while industry average is 33.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BlackPearl Resources Inc ($PXX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 133.9 | 159.0 | 178.4 | 184.5 | 106.0 | -42.5% |
| Gross Profit | 23.5 | 30.1 | 34.2 | 35.6 | -2.2 | -106.1% |
| SG&A | 6.9 | 7.5 | 8.6 | 8.4 | 7.7 | -9.1% |
| EBITDA | 69.3 | 72.0 | 81.6 | 104.5 | 0.0 | -100.0% |
| Net Income | 18.9 | 0.0 | 6.4 | 26.8 | -46.8 | -274.4% |
Balance Sheet
|
|---|
| Cash | 59.7 | 17.0 | 8.4 | 2.9 | 2.3 | -21.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 29.0 | 88.0 | 203.4% |
Cash flow
|
|---|
| Capex | 189.1 | 139.2 | 93.1 | 235.1 | 68.4 | -70.9% |
Ratios
|
|---|
| Revenue growth | 26.2% | 18.7% | 12.2% | 3.4% | -42.5% | |
| EBITDA growth | 27.0% | 4.0% | 13.3% | 28.0% | -100.0% | |
| Gross Margin | 17.5% | 18.9% | 19.1% | 19.3% | -2.1% | -21.4% |
| EBITDA Margin | 51.7% | 45.3% | 45.7% | 56.6% | 0.0% | -56.6% |
| Net Income Margin | 14.1% | 0.0% | 3.6% | 14.5% | -44.1% | -58.7% |
| SG&A, % of revenue | 5.1% | 4.7% | 4.8% | 4.6% | 7.2% | 2.7% |
| CAPEX, % of revenue | 141.2% | 87.5% | 52.2% | 127.4% | 64.5% | -63.0% |
| ROIC | 1.6% | 0.5% | 1.7% | 5.9% | -7.2% | -13.1% |
| ROE | 3.8% | 0.0% | 1.2% | 4.3% | -7.1% | -11.4% |
| Net Debt/EBITDA | -0.9x | -0.2x | -0.1x | 0.2x | 3,726.1x | 3,725.8x |
Revenue and profitability
BlackPearl Resources Inc's Revenue dropped on 42.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 56.6 pp from 56.6% to 0.022% in 2015.
Gross Margin dropped on 21.4 pp from 19.3% to -2.1% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 4.6% to 7.2% in 2015.
Net Income marign dropped on 58.7 pp from 14.5% to -44.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 64.5%. The company showed big decline in CAPEX/Revenue of 23.0 pp from 87.5% in 2012 to 64.5% in 2015. It's average CAPEX/Revenue for the last three years was 81.4%.BlackPearl Resources Inc has spent a lot to CAPEX (297,226% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-7.20%) and ROE (-7.10%). ROIC dropped on 13.1 pp from 5.9% to -7.2% in 2015. ROE dropped on 11.4 pp from 4.3% to -7.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3,726.1x and Debt / EBITDA is 3,826.1x. Net Debt / EBITDA surged on 3,725.8x from 0.2x to 3,726.1x in 2015. Debt jumped on 203% in 2015 while cash dropped on 21.2% in 2015.
Management team
John L Festival is a BlackPearl Resources Inc's CEO. John L Festival is a founder and has spent 9 years at the company. Donald W Cook "Don" is a BlackPearl Resources Inc's CFO. Donald W Cook "Don" has spent 9 years at the company.
Appendix 1: Peers in Energy
Below we provide BlackPearl Resources Inc 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.6% | 9.5% | 17.1% | 18.5% | -24.0% |
|---|
| BlackPearl Resources Inc ($PXX) | | 18.7% | 12.2% | 3.4% | -42.5% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 34.0% |
|---|
| BlackPearl Resources Inc ($PXX) | 17.5% | 18.9% | 19.1% | 19.3% | -2.1% |
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 ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 11.5% |
|---|
| BlackPearl Resources Inc ($PXX) | 51.7% | 45.3% | 45.7% | 56.6% | 0.0% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 21.2% |
|---|
| BlackPearl Resources Inc ($PXX) | 141.2% | 87.5% | 52.2% | 127.4% | 64.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.0% | -6.0% |
|---|
| BlackPearl Resources Inc ($PXX) | 1.6% | 0.5% | 1.7% | 5.9% | -7.2% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 4.1x |
|---|
| BlackPearl Resources Inc ($PXX) | -0.9x | -0.2x | -0.1x | 0.2x | 3,726.1x |
