TVA Group Inc EBITDA dropped on 163% in 2015 while Revenue jumped on 34.3%
26.02.2016 • About TVA Group Inc (
$TVA.B) • By InTwits
TVA Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TVA Group Inc doesn't have a profitable business model yet: 2015 ROIC is -14.5%
- EBITDA Margin is quite volatile: -3.2% in 2015, 6.7% in 2014, 13.7% in 2013, 9.5% in 2012, 11.4% in 2011
- TVA Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 27.4%.
- CAPEX is quite volatile: 1,811 in 2015, 140 in 2014, 2,026 in 2013, 641 in 2012, 141 in 2011
- The company has unprofitable business model: ROIC is at -14.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TVA Group Inc ($TVA.B) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 445.5 | 453.1 | 444.8 | 439.3 | 589.9 | 34.3% |
| Gross Profit | 428.1 | 170.3 | 169.9 | 133.7 | 206.7 | 54.7% |
| EBITDA | 50.9 | 42.9 | 60.8 | 29.6 | -18.7 | -163.1% |
| Net Income | 25.6 | -6.5 | 15.7 | -41.1 | -55.2 | 34.4% |
Balance Sheet
|
|---|
| Cash | 1.8 | 10.6 | 7.7 | 0.0 | 12.0 | |
| Short Term Debt | 21.7 | 0.0 | 74.6 | 5.4 | 4.2 | -22.2% |
| Long Term Debt | 74.6 | 74.4 | 0.0 | 72.8 | 68.8 | -5.4% |
Cash flow
|
|---|
| Capex | 30.0 | 21.8 | 16.2 | 22.2 | 23.9 | 7.9% |
Ratios
|
|---|
| Revenue growth | -0.6% | 1.7% | -1.8% | -1.2% | 34.3% | |
| EBITDA growth | -32.4% | -15.7% | 41.7% | -51.2% | -163.1% | |
| Gross Margin | 96.1% | 37.6% | 38.2% | 30.4% | 35.0% | 4.6% |
| EBITDA Margin | 11.4% | 9.5% | 13.7% | 6.7% | -3.2% | -9.9% |
| Net Income Margin | 5.7% | -1.4% | 3.5% | -9.4% | -9.4% | -0.0% |
| CAPEX, % of revenue | 6.7% | 4.8% | 3.7% | 5.0% | 4.1% | -1.0% |
| ROIC | 8.7% | 6.0% | 10.4% | 2.0% | -14.5% | -16.5% |
| ROE | 9.4% | -2.4% | 5.5% | -14.5% | -19.5% | -5.0% |
| Net Debt/EBITDA | 1.9x | 1.5x | 1.1x | 2.6x | | -2.6x |
Revenue and profitability
The company's Revenue surged on 34.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.3 pp from 32.6% to 40.9% in 2015.
Gross Margin increased on 4.6 pp from 30.4% to 35.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.1%. TVA Group Inc's CAPEX/Revenue decreased slightly on 0.77 pp from 4.8% in 2012 to 4.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at negative ROIC (-14.52%) and ROE (-19.48%). ROIC dropped on 16.5 pp from 2.0% to -14.5% in 2015. ROE decreased on 5.0 pp from -14.5% to -19.5% in 2015.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 2.6x to in 2015. Debt decreased on 6.6% in 2015 while cash jumped.
Appendix 1: Peers in Communications
Below we provide TVA Group Inc benchmarking against other companies in Communications 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 |
|---|
| Telehop Communications Inc ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | 2.7% |
| Plaintree Systems Inc ($NPT) | | 14.5% | 9.1% | 50.8% | -7.1% |
| Aimia Inc ($AIM) | | 6.3% | -25.6% | 47.5% | -0.3% |
| |
|---|
| Median (49 companies) | 10.4% | 5.0% | 2.1% | 3.1% | 2.7% |
|---|
| TVA Group Inc ($TVA.B) | | 1.7% | -1.8% | -1.2% | 34.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.2% | 43.3% | 42.7% | 42.5% | 46.6% |
|---|
| TVA Group Inc ($TVA.B) | 96.1% | 37.6% | 38.2% | 30.4% | 35.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| |
|---|
| Median (49 companies) | 16.4% | 15.6% | 14.8% | 13.4% | 17.9% |
|---|
| TVA Group Inc ($TVA.B) | 11.4% | 9.5% | 13.7% | 6.7% | -3.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.0% | 2.1% | 2.4% |
|---|
| TVA Group Inc ($TVA.B) | 6.7% | 4.8% | 3.7% | 5.0% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| |
|---|
| Median (53 companies) | 6.3% | 9.2% | 8.2% | 8.3% | 5.1% |
|---|
| TVA Group Inc ($TVA.B) | 8.7% | 6.0% | 10.4% | 2.0% | -14.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 0.9x | 1.4x | 1.3x | 1.4x | 1.9x |
|---|
| TVA Group Inc ($TVA.B) | 1.9x | 1.5x | 1.1x | 2.6x | |
