Parkland Fuel Corp revenue started to decline in 2015: dropped 16.3% vs. 32.9% growth a year earliner
02.03.2016 • About Parkland Fuel Corp (
$PKI) • By InTwits
Parkland Fuel Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parkland Fuel Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 130 in FY2015, 50 in FY2014, 146 in FY2013, 176 in FY2012, 136 in FY2011
- The company has business model with low profitability: ROIC is at 7.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parkland Fuel Corp ($PKI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,980 | 4,134 | 5,663 | 7,528 | 6,300 | -16.3% |
| Gross Profit | 408 | 437 | 520 | 538 | 627 | 16.5% |
| SG&A | 87 | 80 | 112 | 133 | 162 | 21.6% |
| EBITDA | 149 | 205 | 218 | 162 | 184 | 13.2% |
| Net Income | 44 | 85 | 92 | 50 | 39 | -20.8% |
Balance Sheet
|
|---|
| Cash | 25 | 15 | 9 | 203 | 37 | -81.9% |
| Short Term Debt | 3 | 1 | 4 | 8 | 20 | 134.5% |
| Long Term Debt | 364 | 290 | 267 | 435 | 441 | 1.4% |
Cash flow
|
|---|
| Capex | 46 | 49 | 56 | 50 | 73 | 45.4% |
Ratios
|
|---|
| Revenue growth | 37.7% | 3.8% | 37.0% | 32.9% | -16.3% | |
| EBITDA growth | 50.3% | 37.4% | 6.6% | -25.5% | 13.2% | |
| Gross Margin | 10.3% | 10.6% | 9.2% | 7.1% | 9.9% | 2.8% |
| EBITDA Margin | 3.7% | 4.9% | 3.9% | 2.2% | 2.9% | 0.8% |
| Net Income Margin | 1.1% | 2.1% | 1.6% | 0.7% | 0.6% | -0.0% |
| SG&A, % of revenue | 2.2% | 1.9% | 2.0% | 1.8% | 2.6% | 0.8% |
| CAPEX, % of revenue | 1.1% | 1.2% | 1.0% | 0.7% | 1.2% | 0.5% |
| ROIC | 12.2% | 22.3% | 23.3% | 9.9% | 7.8% | -2.1% |
| ROE | 18.8% | 26.6% | 23.5% | 10.0% | 5.7% | -4.3% |
| Net Debt/EBITDA | 2.3x | 1.4x | 1.2x | 1.5x | 2.3x | 0.8x |
Revenue and profitability
Parkland Fuel Corp's Revenue dropped on 16.3% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.76 pp from 2.2% to 2.9% in 2015.
Gross Margin increased on 2.8 pp from 7.1% to 9.9% in 2015. SG&A as a % of Revenue increased slightly on 0.80 pp from 1.8% to 2.6% 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 1.2%. Parkland Fuel Corp showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.94%.
Return on investment
The company operates at low ROIC (7.82%) and ROE (5.71%). ROIC decreased on 2.1 pp from 9.9% to 7.8% in 2015. ROE decreased on 4.3 pp from 10.0% to 5.7% in 2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.8x from 1.5x to 2.3x in 2015. Debt increased on 3.9% in 2015 while cash dropped on 81.9% in 2015.
Management team
Parkland Fuel Corp's CEO is Robert Berthold Espey "Bob". Robert Berthold Espey "Bob" is a founder and has 7 years tenure at the company. The company's CFO Michael S Mcmillan "Mike" has spent 3 years at the company.
Appendix 1: Peers in Energy
Below we provide Parkland Fuel Corp benchmarking against other companies in Energy 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 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.0% | 10.4% | 16.2% | 17.6% | -27.0% |
|---|
| Parkland Fuel Corp ($PKI) | | 3.8% | 37.0% | 32.9% | -16.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 29.9% |
|---|
| Parkland Fuel Corp ($PKI) | 10.3% | 10.6% | 9.2% | 7.1% | 9.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 12.4% |
|---|
| Parkland Fuel Corp ($PKI) | 3.7% | 4.9% | 3.9% | 2.2% | 2.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 22.2% |
|---|
| Parkland Fuel Corp ($PKI) | 1.1% | 1.2% | 1.0% | 0.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -6.0% |
|---|
| Parkland Fuel Corp ($PKI) | 12.2% | 22.3% | 23.3% | 9.9% | 7.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.3x |
|---|
| Parkland Fuel Corp ($PKI) | 2.3x | 1.4x | 1.2x | 1.5x | 2.3x |
