Newalta Corp revenue dropped on 33.9% in 2015
02.03.2016 • About Newalta Corp (
$NAL) • By InTwits
Newalta Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Newalta Corp is a company in decline: 2015 revenue growth was -33.9%, 5 years revenue CAGR was -10.7%
- EBITDA Margin is relatively stable: -32.5% in 2015 vs. in 2014 vs. in 2011
- Newalta Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -4.0%0
- Newalta Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.1%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 80.2 in 2015, 144 in 2014, 262 in 2013, 148 in 2012, 70.1 in 2011
- The company has unprofitable business model: ROIC is at -19.8%
- It operates with high leverage: Net Debt/EBITDA is 22.4x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Newalta Corp ($NAL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 682.8 | 726.2 | 412.2 | 495.3 | 327.6 | -33.9% |
| Gross Profit | 165.5 | 169.8 | 144.9 | 162.2 | | -100.0% |
| SG&A | 87.2 | 100.0 | 92.7 | 97.1 | 45.5 | -53.2% |
| EBITDA | | | | | -106.6 | |
| Net Income | 33.6 | 42.8 | 21.9 | -142.7 | -183.1 | 28.3% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.4 | 0.0 | 4.1 | 0.7 | -83.9% |
| Short Term Debt | 6.2 | 0.0 | 1.3 | 0.0 | 0.0 | |
| Long Term Debt | 313.5 | 322.8 | 364.1 | 453.9 | 328.7 | -27.6% |
Cash flow
|
|---|
| Capex | 117.1 | 157.7 | 142.1 | 173.9 | 137.4 | -21.0% |
Ratios
|
|---|
| Revenue growth | 18.5% | 6.4% | -43.2% | 20.2% | -33.9% | |
| Gross Margin | 24.2% | 23.4% | 35.1% | 32.7% | | -32.7% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 0.0% | -32.5% | -32.5% |
| Net Income Margin | 4.9% | 5.9% | 5.3% | -28.8% | -55.9% | -27.1% |
| SG&A, % of revenue | 12.8% | 13.8% | 22.5% | 19.6% | 13.9% | -5.7% |
| CAPEX, % of revenue | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% | 6.8% |
| ROIC | 8.5% | 6.8% | 4.8% | 3.6% | -19.8% | -23.4% |
| ROE | 6.3% | 7.2% | 3.3% | -23.8% | -42.4% | -18.6% |
Revenue and profitability
The company's Revenue dropped on 33.9% in 2015.
SG&A as a % of Revenue decreased on 5.7 pp from 19.6% to 13.9% in 2015.
Net Income marign dropped on 27.1 pp from -28.8% to -55.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Newalta Corp's CAPEX/Revenue was 42.0% in 2015. The company's CAPEX/Revenue jumped on 20.2 pp from 21.7% in 2012 to 42.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 37.2%.
Return on investment
The company operates at negative ROIC (-19.83%) and ROE (-42.42%). ROIC dropped on 23.4 pp from 3.6% to -19.8% in 2015. ROE dropped on 18.6 pp from -23.8% to -42.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 22.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 27.6% in 2015 while cash dropped on 83.9% in 2015.
Management team
John Barkhouse is a the company's CEO. John Barkhouse is a founder and has spent 4 years at the company. Linda Dietsche is a Newalta Corp's CFO. Linda Dietsche has spent 4 years at the company.
Appendix 1: Peers in Industrial
Below you can find Newalta Corp benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 10.8% | 11.5% | 5.3% | 9.1% | 8.1% |
|---|
| Newalta Corp ($NAL) | | 6.4% | -43.2% | 20.2% | -33.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.8% |
|---|
| Newalta Corp ($NAL) | 24.2% | 23.4% | 35.1% | 32.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (86 companies) | 8.2% | 9.3% | 8.3% | 7.4% | 9.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| Badger Daylighting Ltd ($BAD) | 19.2% | 22.6% | 21.7% | 23.5% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.9% |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 9.5% |
|---|
| Newalta Corp ($NAL) | 8.5% | 6.8% | 4.8% | 3.6% | -19.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (73 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.6x |
|---|
