TearLab Corp CAPEX jumped on 40.2% in 2015 and Revenue surged on 27.6%
08.03.2016 • About TearLab Corp (
$TLB) • By InTwits
TearLab Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TearLab Corp doesn't have a profitable business model yet: 2015 ROIC is -136.9%
- The company operates at negative EBITDA Margin: -110.9%
- TearLab Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -126.9% for the sames years0
- TearLab Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.5%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 3.4 in 2015, 2.4 in 2014, 2.9 in 2013, 0.57 in 2012, 0.16 in 2011
- The company has unprofitable business model: ROIC is at -136.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TearLab Corp ($TLB) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.124 | 3.960 | 14.645 | 19.718 | 25.156 | 27.6% |
| Gross Profit | 0.498 | 1.665 | 6.499 | 9.622 | 12.599 | 30.9% |
| SG&A | 4.737 | 8.041 | 21.963 | 30.372 | 34.284 | 12.9% |
| EBITDA | -6.732 | -10.652 | -15.907 | -22.066 | -27.894 | 26.4% |
| Net Income | -8.809 | -19.312 | -28.990 | -23.722 | -33.229 | 40.1% |
Balance Sheet
|
|---|
| Cash | 2.807 | 15.437 | 37.778 | 16.338 | 13.838 | -15.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 24.859 | |
Cash flow
|
|---|
| Capex | 0.156 | 0.569 | 2.905 | 2.416 | 3.388 | 40.2% |
Ratios
|
|---|
| Revenue growth | 24.9% | 86.4% | 269.8% | 34.6% | 27.6% | |
| EBITDA growth | 19.6% | 58.2% | 49.3% | 38.7% | 26.4% | |
| Gross Margin | 23.4% | 42.0% | 44.4% | 48.8% | 50.1% | 1.3% |
| EBITDA Margin | -316.9% | -269.0% | -108.6% | -111.9% | -110.9% | 1.0% |
| Net Income Margin | -414.7% | -487.7% | -198.0% | -120.3% | -132.1% | -11.8% |
| SG&A, % of revenue | 223.0% | 203.1% | 150.0% | 154.0% | 136.3% | -17.7% |
| CAPEX, % of revenue | 7.3% | 14.4% | 19.8% | 12.3% | 13.5% | 1.2% |
| ROIC | -106.7% | -117.7% | -62.7% | -75.1% | -136.9% | -61.9% |
| ROE | -131.5% | -189.7% | -103.1% | -72.2% | | 72.2% |
Revenue and profitability
TearLab Corp's Revenue surged on 27.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.0 pp from -112% to -111% in 2015.
Gross Margin increased slightly on 1.3 pp from 48.8% to 50.1% in 2015. SG&A as a % of Revenue dropped on 17.7 pp from 154% to 136% in 2015.
Net Income marign dropped on 11.8 pp from -120% to -132% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 13.5%. CAPEX/Revenue decreased slightly on 0.90 pp from 14.4% in 2012 to 13.5% in 2015. For the last three years the average CAPEX/Revenue was 15.2%.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped while cash dropped on 15.3% in 2015.
Management team
The company's CEO is Joseph Jensen "Seph". Joseph Jensen "Seph" is a founder and has 2 years tenure at the company. The company's CFO Wes Brazell has spent 3 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find TearLab 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 16.6% | 8.1% | 5.3% | 12.7% | 9.3% |
|---|
| TearLab Corp ($TLB) | | 86.4% | 269.8% | 34.6% | 27.6% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 36.1% | 35.9% | 35.1% | 35.1% |
|---|
| TearLab Corp ($TLB) | 23.4% | 42.0% | 44.4% | 48.8% | 50.1% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 9.0% | 11.0% | 10.6% |
|---|
| TearLab Corp ($TLB) | -316.9% | -269.0% | -108.6% | -111.9% | -110.9% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.2% |
|---|
| TearLab Corp ($TLB) | 7.3% | 14.4% | 19.8% | 12.3% | 13.5% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 8.0% | 7.1% | 6.9% | 7.3% | 6.5% |
|---|
| TearLab Corp ($TLB) | -106.7% | -117.7% | -62.7% | -75.1% | -136.9% |
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 (71 companies) | 1.8x | 2.6x | 2.2x | 2.7x | 1.8x |
|---|
