Centric Health Corp Net Income surged on 180% in 2015 while EBITDA Margin decreased on 6.8 pp from 16.8% to 10.1%
08.03.2016 • About Centric Health Corp (
$CHH) • By InTwits
Centric Health Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Centric Health Corp doesn't have a profitable business model yet: 2015 ROIC is -4.5%
- Centric Health Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 4.4%.
- CAPEX is quite volatile: 0.20 in FY2015, 0.62 in FY2014, 0.27 in FY2013, 9.7 in FY2012, 14.4 in FY2011
- The company has unprofitable business model: ROIC is at -4.5%
- It operates with high leverage: Net Debt/EBITDA is 15.6x while industry average is 5.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Centric Health Corp ($CHH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 201.0 | 436.7 | 281.1 | 135.2 | 162.4 | 20.1% |
| Gross Profit | 73.6 | 215.6 | 110.2 | 48.4 | 58.0 | 19.8% |
| SG&A | | | | | 64.4 | |
| EBITDA | 18.2 | 37.6 | 25.4 | 22.7 | 16.4 | -28.1% |
| Net Income | -9.0 | -7.3 | -91.1 | -57.4 | 46.1 | -180.2% |
Balance Sheet
|
|---|
| Cash | 0.4 | 0.6 | 0.0 | 0.2 | 14.9 | 6,178.9% |
| Short Term Debt | 178.0 | 20.5 | 2.7 | 15.1 | 54.8 | 262.5% |
| Long Term Debt | 9.6 | 191.4 | 257.7 | 240.3 | 215.2 | -10.5% |
Cash flow
|
|---|
| Capex | 4.1 | 7.9 | 8.1 | 6.9 | 5.2 | -24.9% |
Ratios
|
|---|
| Revenue growth | 221.7% | 117.2% | -35.6% | -51.9% | 20.1% | |
| EBITDA growth | 152.0% | 106.3% | -32.4% | -10.6% | -28.1% | |
| Gross Margin | 36.6% | 49.4% | 39.2% | 35.8% | 35.7% | -0.1% |
| EBITDA Margin | 9.1% | 8.6% | 9.0% | 16.8% | 10.1% | -6.8% |
| Net Income Margin | -4.5% | -1.7% | -32.4% | -42.5% | 28.4% | 70.9% |
| SG&A, % of revenue | | | | | 39.6% | 39.6% |
| CAPEX, % of revenue | 2.1% | 1.8% | 2.9% | 5.1% | 3.2% | -1.9% |
| ROIC | 2.4% | 0.8% | -3.1% | -2.8% | -4.5% | -1.7% |
| ROE | -22.9% | -9.9% | -178.6% | | | 0.0% |
| Net Debt/EBITDA | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x | 4.4x |
Revenue and profitability
The company's Revenue surged on 20.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 10.7% to 9.4% in FY2015.
Gross Margin showed almost no change in 2015.
Net Income marign jumped on 70.9 pp from -42.5% to 28.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.2%. Centric Health Corp's CAPEX/Revenue increased slightly on 1.4 pp from 1.8% in 2012 to 3.2% in 2015. It's average CAPEX/Revenue for the last three years was 3.7%.
Leverage (Debt)
Debt level is 15.6x Net Debt / EBITDA and 16.5x Debt / EBITDA. Net Debt / EBITDA jumped on 4.4x from 11.2x to 15.6x in 2015. Debt increased on 5.7% in 2015 while cash jumped on 6,179% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Centric Health Corp benchmarking vs. other companies in Consumer, Non-cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 16.6% | 8.1% | 6.7% | 13.2% | 9.3% |
|---|
| Centric Health Corp ($CHH) | | 117.2% | -35.6% | -51.9% | 20.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 35.5% |
|---|
| Centric Health Corp ($CHH) | 36.6% | 49.4% | 39.2% | 35.8% | 35.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 10.6% |
|---|
| Centric Health Corp ($CHH) | 9.1% | 8.6% | 9.0% | 16.8% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.5% | 2.2% |
|---|
| Centric Health Corp ($CHH) | 2.1% | 1.8% | 2.9% | 5.1% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 8.0% | 7.1% | 6.9% | 7.3% | 6.5% |
|---|
| Centric Health Corp ($CHH) | 2.4% | 0.8% | -3.1% | -2.8% | -4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.6x | 1.7x |
|---|
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
