Pulse Seismic Inc CAPEX surged on 3,873% in 2015 while Revenue dropped on 31.6%
03.03.2016 • About Pulse Seismic Inc (
$PSD) • By InTwits
Pulse Seismic Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pulse Seismic Inc is a company in decline: 2015 revenue growth was -31.6%, 5 years revenue CAGR was -5.9%
- EBITDA Margin is declining: 70.3% in 2015 vs. 79.0% in 2014 vs. 83.4% in 2011
- Pulse Seismic Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.1%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 4.0 in 2015, 0.10 in 2014, 21.4 in 2013, 0.79 in 2012, 0.13 in 2011
- The company has unprofitable business model: ROIC is at -10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pulse Seismic Inc ($PSD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 51.474 | 86.353 | 40.508 | 35.743 | 24.434 | -31.6% |
| Gross Profit | 19.458 | 49.491 | | | | |
| SG&A | | 3.071 | 3.117 | 2.735 | 2.327 | -14.9% |
| EBITDA | 42.942 | 75.357 | 32.018 | 28.236 | 17.181 | -39.2% |
| Net Income | 5.203 | 27.446 | -18.834 | 3.478 | -5.308 | -252.6% |
Balance Sheet
|
|---|
| Cash | 17.024 | 20.311 | 1.745 | 0.901 | 0.000 | -100.0% |
| Short Term Debt | 12.998 | 12.998 | 0.000 | 0.000 | 0.222 | |
| Long Term Debt | 33.564 | 13.690 | 21.850 | 5.367 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.132 | 0.790 | 21.392 | 0.100 | 3.973 | 3,873.0% |
Ratios
|
|---|
| Revenue growth | 55.8% | 67.8% | -53.1% | -11.8% | -31.6% | |
| EBITDA growth | 76.0% | 75.5% | -57.5% | -11.8% | -39.2% | |
| Gross Margin | 37.8% | 57.3% | | | | 0.0% |
| EBITDA Margin | 83.4% | 87.3% | 79.0% | 79.0% | 70.3% | -8.7% |
| Net Income Margin | 10.1% | 31.8% | -46.5% | 9.7% | -21.7% | -31.5% |
| SG&A, % of revenue | | 3.6% | 7.7% | 7.7% | 9.5% | 1.9% |
| CAPEX, % of revenue | 0.3% | 0.9% | 52.8% | 0.3% | 16.3% | 16.0% |
| ROIC | 7.8% | 28.3% | -20.6% | 6.5% | -10.6% | -17.1% |
| ROE | 6.3% | 30.6% | -23.2% | 5.6% | -10.2% | -15.8% |
| Net Debt/EBITDA | 0.7x | 0.1x | 0.6x | 0.2x | 0.0x | -0.1x |
Revenue and profitability
The company's Revenue dropped on 31.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.7 pp from 79.0% to 70.3% in 2015.
SG&A as a % of Revenue increased slightly on 1.9 pp from 7.7% to 9.5% in 2015.
Net Income marign dropped on 31.5 pp from 9.7% to -21.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 16.3% in 2015. Pulse Seismic Inc's CAPEX/Revenue jumped on 15.3 pp from 0.91% in 2012 to 16.3% in 2015. Average CAPEX/Revenue for the last three years was 23.1%.
Return on investment
The company operates at negative ROIC (-10.59%) and ROE (-10.23%). ROIC dropped on 17.1 pp from 6.5% to -10.6% in 2015. ROE dropped on 15.8 pp from 5.6% to -10.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.1x from 0.2x to 0.013x in 2015. Debt dropped on 95.9% in 2015 while cash dropped on 100% in 2015.
Appendix 1: Peers in Energy
Below we provide Pulse Seismic Inc 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.5% | 17.1% | 18.5% | -27.7% |
|---|
| Pulse Seismic Inc ($PSD) | | 67.8% | -53.1% | -11.8% | -31.6% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 33.3% | 29.3% | 31.6% | 29.6% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($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) | 24.7% | 25.0% | 30.5% | 28.9% | 12.2% |
|---|
| Pulse Seismic Inc ($PSD) | 83.4% | 87.3% | 79.0% | 79.0% | 70.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 39.1% | 48.8% | 25.4% |
|---|
| Pulse Seismic Inc ($PSD) | 0.3% | 0.9% | 52.8% | 0.3% | 16.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | 5.0% | -5.1% |
|---|
| Pulse Seismic Inc ($PSD) | 7.8% | 28.3% | -20.6% | 6.5% | -10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 3.2x |
|---|
| Pulse Seismic Inc ($PSD) | 0.7x | 0.1x | 0.6x | 0.2x | 0.0x |
