Lightstream Resources Ltd EBITDA dropped on 1,214% in 2015 and EBITDA Margin dropped on 123 pp from 5.6% to -118%
03.03.2016 • About Lightstream Resources Ltd (
$LTS) • By InTwits
Lightstream Resources Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lightstream Resources Ltd is a company in decline: 2015 revenue growth was -47.0%, 5 years revenue CAGR was -10.2%
- The company operates at negative EBITDA Margin: -117.7%
- Lightstream Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 67.7%. At the same time it's in pair with industry average of 90.1%.
- CAPEX is quite volatile: 107 in 2015, 476 in 2014, 760 in 2013, 956 in 2012, 967 in 2011
- The company has unprofitable business model: ROIC is at -33.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lightstream Resources Ltd ($LTS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,005 | 951 | 1,075 | 955 | 506 | -47.0% |
| Gross Profit | 815 | 750 | 844 | 740 | 358 | -51.5% |
| SG&A | 40 | 45 | 48 | 43 | 40 | -7.1% |
| EBITDA | 773 | 745 | -645 | 53 | -595 | -1,213.9% |
| Net Income | -8 | -98 | -1,384 | -446 | -946 | 112.1% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | 0 | |
| Short Term Debt | 1 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 1,902 | 1,480 | 2,097 | 1,485 | 1,586 | 6.8% |
Cash flow
|
|---|
| Capex | 967 | 956 | 760 | 476 | 107 | -77.5% |
Ratios
|
|---|
| Revenue growth | 16.0% | -5.4% | 13.1% | -11.2% | -47.0% | |
| EBITDA growth | 3.9% | -3.6% | -186.5% | -108.3% | -1,213.9% | |
| Gross Margin | 81.1% | 78.9% | 78.5% | 77.5% | 70.8% | -6.6% |
| EBITDA Margin | 76.9% | 78.4% | -60.0% | 5.6% | -117.7% | -123.3% |
| Net Income Margin | -0.8% | -10.3% | -128.8% | -46.7% | -186.9% | -140.2% |
| SG&A, % of revenue | 3.9% | 4.7% | 4.5% | 4.5% | 7.9% | 3.4% |
| CAPEX, % of revenue | 96.2% | 100.6% | 70.7% | 49.8% | 21.2% | -28.6% |
| ROIC | 6.4% | 5.1% | -23.1% | -10.5% | -33.1% | -22.7% |
| ROE | -0.3% | -3.4% | -51.6% | -26.8% | -102.1% | -75.3% |
| Net Debt/EBITDA | 2.5x | 2.0x | | 27.8x | | -27.8x |
Revenue and profitability
The company's Revenue dropped on 47.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 64.8 pp from -38.2% to 26.5% in 2015.
Gross Margin decreased on 6.6 pp from 77.5% to 70.8% in 2015. SG&A as a % of Revenue increased on 3.4 pp from 4.5% to 7.9% in 2015.
Net Income marign dropped on 140 pp from -46.7% to -187% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Lightstream Resources Ltd had CAPEX/Revenue of 21.2%. Lightstream Resources Ltd showed big decline in CAPEX/Revenue of 79.4 pp from 101% in 2012 to 21.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 47.2%.
Return on investment
The company operates at negative ROIC (-33.15%) and ROE (-102.10%). ROIC dropped on 22.7 pp from -10.5% to -33.1% in 2015. ROE dropped on 75.3 pp from -26.8% to -102% in 2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 27.8x from 27.8x to in 2015. Debt increased on 6.8% in 2015 while cash didn't change in 2015.
Management team
John D Wright is a the company's CEO. John D Wright is a founder and has spent 9 years at the company. Peter D Scott is a The company's CFO. Peter D Scott has spent 8 years at the company.
Appendix 1: Peers in Energy
Below we provide Lightstream Resources Ltd 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.6% | 17.1% | 18.5% | -27.7% |
|---|
| Lightstream Resources Ltd ($LTS) | | | 13.1% | -11.2% | -47.0% |
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% | 88.5% |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | 86.3% |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 30.2% |
|---|
| Lightstream Resources Ltd ($LTS) | | 78.9% | 78.5% | 77.5% | 70.8% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.3% | 25.0% | 31.1% | 29.6% | 12.6% |
|---|
| Lightstream Resources Ltd ($LTS) | | 78.4% | -60.0% | 5.6% | -117.7% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.6% | 47.3% | 39.1% | 47.1% | 25.4% |
|---|
| Lightstream Resources Ltd ($LTS) | | 100.6% | 70.7% | 49.8% | 21.2% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.6% | 5.1% | -5.1% |
|---|
| Lightstream Resources Ltd ($LTS) | | 5.1% | -23.1% | -10.5% | -33.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Petroshale Inc ($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 | |
| Etrion Corp ($ETX) | 12.5x | 8.2x | 8.3x | 12.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.1x |
|---|
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
