Temple Hotels Inc CAPEX dropped on 71.5% in 2015 and Revenue decreased on 5.7%
25.02.2016 • About Temple Hotels Inc (
$TPH) • By InTwits
Temple Hotels Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Temple Hotels Inc doesn't have a profitable business model yet: 2015 ROIC is 1.8%
- EBITDA Margin is declining: 24.9% in 2015 vs. 27.9% in 2014 vs. 32.6% in 2011
- Temple Hotels Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.3%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 19.8 in 2015, 69.4 in 2014, 67.3 in 2013, 50.2 in 2012, 14.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
- It operates with high leverage: Net Debt/EBITDA is 11.7x while industry average is 6.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Temple Hotels Inc ($TPH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 71.2 | 99.8 | 156.4 | 188.4 | 177.8 | -5.7% |
| EBITDA | 23.2 | 35.2 | 50.1 | 52.6 | 44.3 | -15.9% |
| Net Income | -3.0 | 2.5 | 2.3 | -7.8 | -55.5 | 607.8% |
Balance Sheet
|
|---|
| Cash | 4.9 | 15.0 | 35.3 | 14.0 | 23.2 | 65.2% |
| Short Term Debt | 80.1 | 117.2 | 131.6 | 109.6 | 277.4 | 153.1% |
| Long Term Debt | 130.9 | 271.3 | 345.2 | 496.3 | 264.5 | -46.7% |
Cash flow
|
|---|
| Capex | 14.2 | 50.2 | 67.3 | 69.4 | 19.8 | -71.5% |
Ratios
|
|---|
| Revenue growth | 12.0% | 40.2% | 56.8% | 20.5% | -5.7% | |
| EBITDA growth | 14.3% | 51.7% | 42.6% | 5.0% | -15.9% | |
| EBITDA Margin | 32.6% | 35.3% | 32.1% | 27.9% | 24.9% | -3.0% |
| Net Income Margin | -4.3% | 2.5% | 1.5% | -4.2% | -31.2% | -27.0% |
| CAPEX, % of revenue | 20.0% | 50.3% | 43.0% | 36.8% | 11.1% | -25.7% |
| ROIC | 6.1% | 6.6% | 5.3% | 3.2% | 1.8% | -1.4% |
| ROE | -5.8% | 3.2% | 1.9% | -5.4% | -45.9% | -40.5% |
| Net Debt/EBITDA | 8.9x | 10.6x | 8.8x | 11.2x | 11.7x | 0.5x |
Revenue and profitability
The company's Revenue decreased on 5.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from 27.9% to 24.9% in 2015.
Net Income marign dropped on 27.0 pp from -4.2% to -31.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Temple Hotels Inc's CAPEX/Revenue was 11.1% in 2015. CAPEX/Revenue dropped on 39.2 pp from 50.3% in 2012 to 11.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 30.3%.
Return on investment
The company operates at low but positive ROIC (1.77%) and negative ROE (-45.90%). ROIC decreased slightly on 1.4 pp from 3.2% to 1.8% in 2015. ROE dropped on 40.5 pp from -5.4% to -45.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.7x and Debt / EBITDA is 12.2x. Net Debt / EBITDA jumped on 0.5x from 11.2x to 11.7x in 2015. Debt dropped on 10.6% in 2015 while cash surged on 65.2% in 2015.
Appendix 1: Peers in Financial
Below we provide Temple Hotels Inc benchmarking against other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 11.6% | 8.5% | 7.1% | 8.9% | 1.2% |
|---|
| Temple Hotels Inc ($TPH) | | 40.2% | 56.8% | 20.5% | -5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 28.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (48 companies) | 36.1% | 32.3% | 32.0% | 34.8% | 43.3% |
|---|
| Temple Hotels Inc ($TPH) | 32.6% | 35.3% | 32.1% | 27.9% | 24.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (75 companies) | 1.2% | 1.2% | 0.7% | 1.0% | 1.3% |
|---|
| Temple Hotels Inc ($TPH) | 20.0% | 50.3% | 43.0% | 36.8% | 11.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Temple Hotels Inc ($TPH) | 6.1% | 6.6% | 5.3% | 3.2% | 1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 2.9x | 5.1x | 4.6x | 4.2x | 2.9x |
|---|
| Temple Hotels Inc ($TPH) | 8.9x | 10.6x | 8.8x | 11.2x | 11.7x |
