Black Diamond Group Ltd Net Income dropped on 76.0% in 2015 and Revenue dropped on 27.0%
03.03.2016 • About Black Diamond Group Ltd (
$BDI) • By InTwits
Black Diamond Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 29.9% in 2015 vs. 34.8% in 2014 vs. 38.1% in 2011
- Black Diamond Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 35.4%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 49.6 in 2015, 120 in 2014, 95.6 in 2013, 164 in 2012, 94.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Black Diamond Group Ltd ($BDI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 241.8 | 264.3 | 347.1 | 386.6 | 282.2 | -27.0% |
| Gross Profit | 122.3 | 145.9 | 191.7 | 190.3 | 134.7 | -29.3% |
| SG&A | 30.1 | 37.8 | 53.8 | 56.0 | 50.3 | -10.1% |
| EBITDA | 92.2 | 108.1 | 137.8 | 134.4 | 84.4 | -37.2% |
| Net Income | 41.0 | 47.4 | 53.2 | 35.0 | 8.4 | -76.0% |
Balance Sheet
|
|---|
| Cash | 23.0 | 2.7 | 31.8 | 20.5 | 5.9 | -71.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 86.1 | 96.4 | 184.3 | 196.4 | 159.2 | -19.0% |
Cash flow
|
|---|
| Capex | 94.7 | 163.6 | 95.6 | 119.8 | 49.6 | -58.6% |
Ratios
|
|---|
| Revenue growth | 73.0% | 9.3% | 31.3% | 11.4% | -27.0% | |
| EBITDA growth | 91.7% | 17.2% | 27.6% | -2.5% | -37.2% | |
| Gross Margin | 50.6% | 55.2% | 55.2% | 49.2% | 47.7% | -1.5% |
| EBITDA Margin | 38.1% | 40.9% | 39.7% | 34.8% | 29.9% | -4.9% |
| Net Income Margin | 16.9% | 17.9% | 15.3% | 9.1% | 3.0% | -6.1% |
| SG&A, % of revenue | 12.4% | 14.3% | 15.5% | 14.5% | 17.8% | 3.3% |
| CAPEX, % of revenue | 39.1% | 61.9% | 27.5% | 31.0% | 17.6% | -13.4% |
| ROIC | 18.4% | 16.0% | 15.2% | 12.6% | 4.5% | -8.1% |
| ROE | 17.6% | 15.2% | 14.4% | 9.3% | 2.3% | -7.0% |
| Net Debt/EBITDA | 0.7x | 0.9x | 1.1x | 1.3x | 1.8x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 27.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 34.8% to 29.9% in 2015.
Gross Margin decreased slightly on 1.5 pp from 49.2% to 47.7% in 2015. SG&A as a % of Revenue increased on 3.3 pp from 14.5% to 17.8% in 2015.
Net Income marign decreased on 6.1 pp from 9.1% to 3.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Black Diamond Group Ltd's CAPEX/Revenue was 17.6% in 2015. CAPEX/Revenue dropped on 44.4 pp from 61.9% in 2012 to 17.6% in 2015. Average CAPEX/Revenue for the last three years was 25.4%.Battling declining revenue the company invested a large share of EBITDA (58.7%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.47%) and ROE (2.31%). ROIC decreased on 8.1 pp from 12.6% to 4.5% in 2015. ROE decreased on 7.0 pp from 9.3% to 2.3% in 2015.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.3x to 1.8x in 2015. Debt dropped on 19.0% in 2015 while cash dropped on 71.3% in 2015.
Management team
Trevor Haynes is a the company's CEO. Trevor Haynes is a founder and has spent 8 years at the company. Black Diamond Group Ltd's CFO Toby Labrie has spent 2 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Black Diamond Group Ltd 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.7% | 8.1% | 5.3% | 13.2% | 7.0% |
|---|
| Black Diamond Group Ltd ($BDI) | | 9.3% | 31.3% | 11.4% | -27.0% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 31.0% |
|---|
| Black Diamond Group Ltd ($BDI) | 50.6% | 55.2% | 55.2% | 49.2% | 47.7% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 10.3% |
|---|
| Black Diamond Group Ltd ($BDI) | 38.1% | 40.9% | 39.7% | 34.8% | 29.9% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.2% |
|---|
| Black Diamond Group Ltd ($BDI) | 39.1% | 61.9% | 27.5% | 31.0% | 17.6% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 6.7% | 6.5% |
|---|
| Black Diamond Group Ltd ($BDI) | 18.4% | 16.0% | 15.2% | 12.6% | 4.5% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Black Diamond Group Ltd ($BDI) | 0.7x | 0.9x | 1.1x | 1.3x | 1.8x |
