Trilogy Energy Corp Net Debt / EBITDA jumped on 23.2x from 2.3x to 25.5x in 2015 while EBITDA dropped on 93.2%
03.03.2016 • About Trilogy Energy Corp (
$TET) • By InTwits
Trilogy Energy Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trilogy Energy Corp doesn't have a profitable business model yet: 2015 ROIC is -15.1%
- EBITDA Margin is quite volatile: 7.9% in 2015, 56.5% in 2014, 61.7% in 2013, 57.3% in 2012, 61.4% in 2011
- Trilogy Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 71.7%. At the same time it's in pair with industry average of 90.1%.
- CAPEX is quite volatile: 73.6 in 2015, 388 in 2014, 329 in 2013, 354 in 2012, 354 in 2011
- The company has unprofitable business model: ROIC is at -15.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Trilogy Energy Corp ($TET) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 342.1 | 396.3 | 485.1 | 548.9 | 266.8 | -51.4% |
| Gross Profit | 244.2 | 278.5 | 103.8 | 172.8 | -38.2 | -122.1% |
| SG&A | 12.1 | 11.5 | 10.0 | 11.2 | 14.5 | 29.0% |
| EBITDA | 210.0 | 227.3 | 299.5 | 310.1 | 20.9 | -93.2% |
| Net Income | 17.4 | -12.1 | 11.5 | -61.0 | -137.7 | 125.6% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 413.2 | 592.3 | 550.5 | 701.1 | 533.5 | -23.9% |
Cash flow
|
|---|
| Capex | 353.9 | 353.7 | 328.6 | 387.6 | 73.6 | -81.0% |
Ratios
|
|---|
| Revenue growth | 39.0% | 15.8% | 22.4% | 13.1% | -51.4% | |
| EBITDA growth | 57.0% | 8.2% | 31.8% | 3.5% | -93.2% | |
| Gross Margin | 71.4% | 70.3% | 21.4% | 31.5% | -14.3% | -45.8% |
| EBITDA Margin | 61.4% | 57.3% | 61.7% | 56.5% | 7.9% | -48.7% |
| Net Income Margin | 5.1% | -3.1% | 2.4% | -11.1% | -51.6% | -40.5% |
| SG&A, % of revenue | 3.5% | 2.9% | 2.1% | 2.0% | 5.4% | 3.4% |
| CAPEX, % of revenue | 103.4% | 89.2% | 67.7% | 70.6% | 27.6% | -43.0% |
| ROIC | 6.5% | 0.3% | 6.8% | 6.8% | -15.1% | -22.0% |
| ROE | 3.3% | -2.4% | 2.0% | -9.9% | -27.0% | -17.1% |
| Net Debt/EBITDA | 2.0x | 2.6x | 1.8x | 2.3x | 25.5x | 23.2x |
Revenue and profitability
Trilogy Energy Corp's Revenue dropped on 51.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 48.7 pp from 56.5% to 7.9% in 2015.
Gross Margin dropped on 45.8 pp from 31.5% to -14.3% in 2015. SG&A as a % of Revenue increased on 3.4 pp from 2.0% to 5.4% in 2015.
Net Income marign dropped on 40.5 pp from -11.1% to -51.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 27.6% in 2015. CAPEX/Revenue dropped on 61.7 pp from 89.2% in 2012 to 27.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 55.3%.Battling declining revenue Trilogy Energy Corp made large investments to CAPEX (351% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-15.11%) and ROE (-27.00%). ROIC dropped on 22.0 pp from 6.8% to -15.1% in 2015. ROE dropped on 17.1 pp from -9.9% to -27.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 25.5x and Debt / EBITDA is 25.5x. Net Debt / EBITDA jumped on 23.2x from 2.3x to 25.5x in 2015. Debt dropped on 23.9% in 2015 while cash didn't change in 2015.
Management team
Trilogy Energy Corp's CEO is James H T Riddell "Jim". James H T Riddell "Jim" is a founder and has 13 years tenure at the company. The company's CFO Michael G Kohut "Mike" has spent 12 years at the company.
Appendix 1: Peers in Energy
Below we provide Trilogy Energy 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.5% | 16.2% | 18.5% | -27.7% |
|---|
| Trilogy Energy Corp ($TET) | | 15.8% | 22.4% | 13.1% | -51.4% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.6% | 29.6% | 30.7% |
|---|
| Trilogy Energy Corp ($TET) | 71.4% | 70.3% | 21.4% | 31.5% | -14.3% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 12.6% |
|---|
| Trilogy Energy Corp ($TET) | 61.4% | 57.3% | 61.7% | 56.5% | 7.9% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 22.8% |
|---|
| Trilogy Energy Corp ($TET) | 103.4% | 89.2% | 67.7% | 70.6% | 27.6% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.5% | 4.5% | 5.0% | -5.1% |
|---|
| Trilogy Energy Corp ($TET) | 6.5% | 0.3% | 6.8% | 6.8% | -15.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.0x |
|---|
| Trilogy Energy Corp ($TET) | 2.0x | 2.6x | 1.8x | 2.3x | 25.5x |
