Extendicare Inc Net Income surged on 1,338% in 2015 and Revenue surged on 15.6%
26.02.2016 • About Extendicare Inc (
$EXE) • By InTwits
Extendicare Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Extendicare Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 6.3%.
- CAPEX is quite volatile: 35.5 in 2015, 30.2 in 2014, 55.8 in 2013, 84.1 in 2012, 64.3 in 2011
- The company has business model with low profitability: ROIC is at 9.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.3x while industry average is 5.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Extendicare Inc ($EXE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,094 | 2,037 | 784 | 816 | 943 | 15.6% |
| Gross Profit | 280 | 257 | 106 | 108 | 120 | 10.9% |
| SG&A | 69 | 63 | 31 | 28 | 30 | 6.5% |
| EBITDA | 200 | 183 | 124 | 116 | 81 | -30.3% |
| Net Income | -30 | 63 | 5 | -19 | 232 | -1,337.6% |
Balance Sheet
|
|---|
| Cash | 80 | 71 | 96 | 35 | 104 | 191.9% |
| Short Term Debt | 193 | 93 | 148 | 26 | 25 | -1.5% |
| Long Term Debt | 942 | 1,039 | 1,017 | 453 | 429 | -5.4% |
Cash flow
|
|---|
| Capex | 64 | 84 | 56 | 30 | 35 | 17.4% |
Ratios
|
|---|
| Revenue growth | -0.2% | -2.7% | -61.5% | 4.1% | 15.6% | |
| EBITDA growth | -17.3% | -8.5% | -32.4% | -6.6% | -30.3% | |
| Gross Margin | 13.4% | 12.6% | 13.5% | 13.2% | 12.7% | -0.5% |
| EBITDA Margin | 9.6% | 9.0% | 15.8% | 14.2% | 8.5% | -5.6% |
| Net Income Margin | -1.5% | 3.1% | 0.7% | -2.3% | 24.6% | 26.9% |
| SG&A, % of revenue | 3.3% | 3.1% | 4.0% | 3.5% | 3.2% | -0.3% |
| CAPEX, % of revenue | 3.1% | 4.1% | 7.1% | 3.7% | 3.8% | 0.1% |
| ROIC | 8.5% | 7.8% | 3.3% | 5.0% | 9.4% | 4.4% |
| ROE | -37.7% | 121.7% | 11.5% | | | 0.0% |
| Net Debt/EBITDA | 5.3x | 5.8x | 8.6x | 3.8x | 4.3x | 0.5x |
Revenue and profitability
The company's Revenue jumped on 15.6% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 14.2% to 8.5% in 2015.
Gross Margin decreased slightly on 0.54 pp from 13.2% to 12.7% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign surged on 26.9 pp from -2.3% to 24.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Extendicare Inc had CAPEX/Revenue of 3.8%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 4.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 5.6x. Net Debt / EBITDA jumped on 0.5x from 3.8x to 4.3x in 2015. Debt decreased on 5.2% in 2015 while cash jumped on 192% in 2015.
Management team
Extendicare Inc's CEO Timothy Louis Lukenda "Tim" is a founder and has spent 10 years at the company. The company's CFO Elaine E Everson has spent 3 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Extendicare 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 ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.4% | 9.3% | 6.7% | 13.2% | 9.3% |
|---|
| Extendicare Inc ($EXE) | | -2.7% | -61.5% | 4.1% | 15.6% |
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% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 34.5% |
|---|
| Extendicare Inc ($EXE) | 13.4% | 12.6% | 13.5% | 13.2% | 12.7% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 10.9% |
|---|
| Extendicare Inc ($EXE) | 9.6% | 9.0% | 15.8% | 14.2% | 8.5% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.1% |
|---|
| Extendicare Inc ($EXE) | 3.1% | 4.1% | 7.1% | 3.7% | 3.8% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.9% | 7.3% | 7.2% |
|---|
| Extendicare Inc ($EXE) | 8.5% | 7.8% | 3.3% | 5.0% | 9.4% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.6x | 1.6x |
|---|
| Extendicare Inc ($EXE) | 5.3x | 5.8x | 8.6x | 3.8x | 4.3x |
