Arsenal Energy Inc Net Income dropped on 272% in 2015 and Revenue dropped on 37.2%
08.03.2016 • About Arsenal Energy Inc (
$AEI) • By InTwits
Arsenal Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arsenal Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -40.4%
- EBITDA Margin is quite volatile: -52.6% in 2015, 54.5% in 2014, 51.7% in 2013, 46.8% in 2012, 46.3% in 2011
- Arsenal Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 74.0%. At the same time it's in pair with industry average of 89.0%.
- CAPEX is quite volatile: 20.3 in 2015, 53.7 in 2014, 39.7 in 2013, 42.7 in 2012, 79.0 in 2011
- The company has unprofitable business model: ROIC is at -40.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arsenal Energy Inc ($AEI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 50.045 | 65.197 | 73.530 | 93.024 | 58.406 | -37.2% |
| Gross Profit | 21.325 | 13.015 | 18.913 | 31.404 | 36.513 | 16.3% |
| SG&A | | | | | 4.096 | |
| EBITDA | 23.179 | 30.524 | 38.021 | 50.671 | -30.717 | -160.6% |
| Net Income | -2.545 | -0.112 | -2.714 | 25.641 | -43.980 | -271.5% |
Balance Sheet
|
|---|
| Cash | 0.626 | 0.000 | 1.219 | 2.573 | 2.561 | -0.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 15.000 | |
| Long Term Debt | 52.062 | 62.447 | 69.100 | 60.000 | 37.464 | -37.6% |
Cash flow
|
|---|
| Capex | 79.046 | 42.681 | 39.743 | 53.686 | 20.302 | -62.2% |
Ratios
|
|---|
| Revenue growth | 33.0% | 30.3% | 12.8% | 26.5% | -37.2% | |
| EBITDA growth | 49.8% | 31.7% | 24.6% | 33.3% | -160.6% | |
| Gross Margin | 42.6% | 20.0% | 25.7% | 33.8% | 62.5% | 28.8% |
| EBITDA Margin | 46.3% | 46.8% | 51.7% | 54.5% | -52.6% | -107.1% |
| Net Income Margin | -5.1% | -0.2% | -3.7% | 27.6% | -75.3% | -102.9% |
| SG&A, % of revenue | | | | | 7.0% | 7.0% |
| CAPEX, % of revenue | 157.9% | 65.5% | 54.1% | 57.7% | 34.8% | -23.0% |
| ROIC | 12.7% | 5.1% | 9.3% | 12.8% | -40.4% | -53.3% |
| ROE | -5.3% | -0.2% | -5.0% | 35.7% | -60.1% | -95.8% |
| Net Debt/EBITDA | 2.2x | 2.0x | 1.8x | 1.1x | | -1.1x |
Revenue and profitability
Arsenal Energy Inc's Revenue dropped on 37.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 107 pp from 54.5% to -52.6% in 2015.
Gross Margin surged on 28.8 pp from 33.8% to 62.5% in 2015.
Net Income marign dropped on 103 pp from 27.6% to -75.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Arsenal Energy Inc's CAPEX/Revenue was 34.8% in 2015. CAPEX/Revenue dropped on 30.7 pp from 65.5% in 2012 to 34.8% in 2015. Average CAPEX/Revenue for the last three years was 48.8%.
Return on investment
The company operates at negative ROIC (-40.41%) and ROE (-60.07%). ROIC dropped on 53.3 pp from 12.8% to -40.4% in 2015. ROE dropped on 95.8 pp from 35.7% to -60.1% in 2015.
Leverage (Debt)
Debt level is 7.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 1.1x to in 2015. Debt dropped on 12.6% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Energy
Below we provide Arsenal Energy 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.7% | 9.5% | 17.1% | 17.6% | -27.5% |
|---|
| Arsenal Energy Inc ($AEI) | | 30.3% | 12.8% | 26.5% | -37.2% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.6% | 29.6% | 30.2% |
|---|
| Arsenal Energy Inc ($AEI) | 42.6% | 20.0% | 25.7% | 33.8% | 62.5% |
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% | 70.1% |
| 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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 12.7% |
|---|
| Arsenal Energy Inc ($AEI) | 46.3% | 46.8% | 51.7% | 54.5% | -52.6% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 27.8% |
|---|
| Arsenal Energy Inc ($AEI) | 157.9% | 65.5% | 54.1% | 57.7% | 34.8% |
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 ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -6.0% |
|---|
| Arsenal Energy Inc ($AEI) | 12.7% | 5.1% | 9.3% | 12.8% | -40.4% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.9x |
|---|
| Arsenal Energy Inc ($AEI) | 2.2x | 2.0x | 1.8x | 1.1x | |
