Catalyst Paper Corp revenue growth accelerated to 79.5% in 2015 vs. 5.5% a year earliner
29.02.2016 • About Catalyst Paper Corp (
$CYT) • By InTwits
Catalyst Paper Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Catalyst Paper Corp doesn't have a profitable business model yet: 2015 ROIC is -7.1%
- Catalyst Paper Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 31.7 in 2015, 58.0 in 2014, 41.5 in 2013, 13.2 in 2012, 26.6 in 2011
- The company has unprofitable business model: ROIC is at -7.1%
- It operates with high leverage: Net Debt/EBITDA is 10.1x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Catalyst Paper Corp ($CYT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,262 | 1,058 | 1,051 | 1,109 | 1,991 | 79.5% |
| Gross Profit | -25 | 58 | 34 | 36 | 109 | 197.8% |
| SG&A | | 34 | 33 | 33 | 58 | 76.4% |
| EBITDA | 48 | 61 | 47 | 48 | 49 | 1.2% |
| Net Income | -974 | 583 | -128 | -72 | -49 | -31.7% |
Balance Sheet
|
|---|
| Cash | 25 | 17 | 12 | 11 | 8 | -23.9% |
| Short Term Debt | 467 | 7 | 2 | 3 | 3 | 6.7% |
| Long Term Debt | 376 | 422 | 302 | 326 | 495 | 51.7% |
Cash flow
|
|---|
| Capex | 20 | 23 | 23 | 22 | 35 | 57.5% |
Ratios
|
|---|
| Revenue growth | 2.7% | -16.1% | -0.6% | 5.5% | 79.5% | |
| EBITDA growth | -33.7% | 27.8% | -22.1% | 1.7% | 1.2% | |
| Gross Margin | -2.0% | 5.5% | 3.2% | 3.3% | 5.5% | 2.2% |
| EBITDA Margin | 3.8% | 5.7% | 4.5% | 4.3% | 2.4% | -1.9% |
| Net Income Margin | -77.2% | 55.1% | -12.1% | -6.5% | -2.5% | 4.0% |
| SG&A, % of revenue | | 3.2% | 3.2% | 3.0% | 2.9% | -0.1% |
| CAPEX, % of revenue | 1.6% | 2.1% | 2.2% | 2.0% | 1.7% | -0.2% |
| ROIC | -8.9% | 6.2% | 0.1% | 2.4% | -7.1% | -9.5% |
| ROE | | | -197.5% | | | 0.0% |
| Net Debt/EBITDA | 17.2x | 6.8x | 6.2x | 6.6x | 10.1x | 3.4x |
Revenue and profitability
The company's Revenue jumped on 79.5% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 4.3% to 2.4% in 2015.
Gross Margin increased on 2.2 pp from 3.3% to 5.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 4.0 pp from -6.5% to -2.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 2.0%.To secure this fast growth the company invested a large share of EBITDA (70.8%) to CAPEX.
Leverage (Debt)
Debt level is 10.1x Net Debt / EBITDA and 10.2x Debt / EBITDA. Net Debt / EBITDA surged on 3.4x from 6.6x to 10.1x in 2015. Debt jumped on 51.3% in 2015 while cash dropped on 23.9% in 2015.
Management team
The company's CEO is Joe Nemeth. Joe Nemeth is a founder and has 5 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below we provide Catalyst Paper Corp benchmarking against other companies in Basic Materials 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 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | 42.7% |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 39.5% | 8.4% | -5.1% | -1.1% | -4.9% |
|---|
| Catalyst Paper Corp ($CYT) | | | -0.6% | 5.5% | 79.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.7% | 32.0% | 21.8% | 17.6% | 15.6% |
|---|
| Catalyst Paper Corp ($CYT) | | 5.5% | 3.2% | 3.3% | 5.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 22.6% | 18.6% | 11.7% | 9.9% | 6.9% |
|---|
| Catalyst Paper Corp ($CYT) | | 5.7% | 4.5% | 4.3% | 2.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 15.8% |
|---|
| Catalyst Paper Corp ($CYT) | | 2.1% | 2.2% | 2.0% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | 13.8% |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | 10.4% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 6.2% | 4.9% | -0.1% | -0.1% | -3.5% |
|---|
| Catalyst Paper Corp ($CYT) | | 6.2% | 0.1% | 2.4% | -7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| Ur-Energy Inc ($URE) | | | | 55.1x | 6.7x |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.4x |
|---|
| Catalyst Paper Corp ($CYT) | | 6.8x | 6.2x | 6.6x | 10.1x |
