Alaris Royalty Corp EBITDA Margin dropped on 21.7 pp from 81.8% to 60.1% in 2015 while Revenue jumped on 20.1%
08.03.2016 • About Alaris Royalty Corp (
$AD) • By InTwits
Alaris Royalty Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alaris Royalty Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has business model with low profitability: ROIC is at 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alaris Royalty Corp ($AD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45.382 | 32.106 | 65.107 | 68.171 | 81.895 | 20.1% |
| SG&A | 0.860 | 0.971 | 1.371 | 1.947 | 2.849 | 46.3% |
| EBITDA | 44.003 | 26.106 | 40.241 | 55.739 | 49.187 | -11.8% |
| Net Income | 34.712 | 18.036 | 29.824 | 49.049 | 57.862 | 18.0% |
Balance Sheet
|
|---|
| Cash | 3.888 | 3.638 | 8.998 | 13.484 | 20.991 | 55.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 6.500 | 50.000 | 44.500 | 35.500 | 77.447 | 118.2% |
Cash flow
|
|---|
| Capex | 0.013 | 0.010 | 0.015 | 0.069 | 0.795 | 1,046.0% |
Ratios
|
|---|
| Revenue growth | 172.4% | -29.3% | 102.8% | 4.7% | 20.1% | |
| EBITDA growth | 246.2% | -40.7% | 54.1% | 38.5% | -11.8% | |
| EBITDA Margin | 97.0% | 81.3% | 61.8% | 81.8% | 60.1% | -21.7% |
| Net Income Margin | 76.5% | 56.2% | 45.8% | 72.0% | 70.7% | -1.3% |
| SG&A, % of revenue | 1.9% | 3.0% | 2.1% | 2.9% | 3.5% | 0.6% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.1% | 1.0% | 0.9% |
| ROIC | 20.1% | 9.5% | 10.1% | 10.7% | 7.3% | -3.4% |
| ROE | 16.1% | 7.0% | 8.4% | 10.2% | 9.6% | -0.6% |
| Net Debt/EBITDA | 0.1x | 1.8x | 0.9x | 0.4x | 1.1x | 0.8x |
Revenue and profitability
Alaris Royalty Corp's Revenue surged on 20.1% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 21.7 pp from 81.8% to 60.1% in 2015.
SG&A as a % of Revenue increased slightly on 0.62 pp from 2.9% to 3.5% in 2015.
Net Income marign decreased slightly on 1.3 pp from 72.0% to 70.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Alaris Royalty Corp had CAPEX/Revenue of 0.97%. CAPEX/Revenue increased slightly on 0.94 pp from 0.031% in 2012 to 0.97% in 2015. Average CAPEX/Revenue for the last three years was 0.37%.
Return on investment
The company operates at low ROIC (7.26%) and ROE (9.59%). ROIC decreased on 3.4 pp from 10.7% to 7.3% in 2015. ROE decreased slightly on 0.63 pp from 10.2% to 9.6% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.8x from 0.4x to 1.1x in 2015. Debt surged on 118% in 2015 while cash surged on 55.7% in 2015.
Management team
The company's CEO is Stephen Walter King "Steve". Stephen Walter King "Steve" is a founder and has 10 years tenure at the company. Alaris Royalty Corp's CFO Darren Driscoll has spent 13 years at the company.
Appendix 1: Peers in Financial
Below we provide Alaris Royalty Corp benchmarking against other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | 47.2% |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 14.7% | 9.4% | 7.1% | 8.9% | 1.3% |
|---|
| Alaris Royalty Corp ($AD) | | -29.3% | 102.8% | 4.7% | 20.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | 31.0% |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| Madison Pacific Properties Inc ($MPC) | 59.2% | | 62.9% | 65.7% | 66.0% |
| |
|---|
| Median (48 companies) | 35.6% | 32.3% | 32.0% | 30.5% | 43.0% |
|---|
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | 60.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (75 companies) | 1.3% | 1.6% | 0.8% | 1.0% | 1.4% |
|---|
| Alaris Royalty Corp ($AD) | 0.0% | 0.0% | 0.0% | 0.1% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Alaris Royalty Corp ($AD) | 20.1% | 9.5% | 10.1% | 10.7% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | 9.3x |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.3x | 5.0x | 4.5x | 4.0x |
|---|
| Alaris Royalty Corp ($AD) | 0.1x | 1.8x | 0.9x | 0.4x | 1.1x |
