Axia NetMedia Corp Net Income jumped on 3,616% in 2015 and EBITDA Margin increased on 3.1 pp from 16.6% to 19.7%
09.03.2016 • About Axia NetMedia Corp (
$AXX) • By InTwits
Axia NetMedia Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Axia NetMedia Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.4%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 23.0 in 2015, 15.3 in 2014, 13.6 in 2013, 22.4 in 2012, 8.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Axia NetMedia Corp ($AXX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 78.159 | 72.857 | 50.036 | 56.722 | 63.687 | 12.3% |
| SG&A | 14.228 | 11.352 | 11.405 | 16.426 | 18.600 | 13.2% |
| EBITDA | 16.636 | 12.745 | 12.203 | 9.432 | 12.563 | 33.2% |
| Net Income | 6.554 | 8.684 | 1.870 | -0.134 | 4.712 | -3,616.4% |
Balance Sheet
|
|---|
| Cash | 14.703 | 9.083 | 38.789 | 29.336 | 17.253 | -41.2% |
| Short Term Debt | 0.268 | 0.774 | 0.990 | 1.052 | 5.038 | 378.9% |
| Long Term Debt | 7.717 | 15.034 | 1.297 | 8.885 | 11.987 | 34.9% |
Cash flow
|
|---|
| Capex | 8.363 | 22.427 | 13.603 | 15.336 | 23.049 | 50.3% |
Ratios
|
|---|
| Revenue growth | 14.1% | -6.8% | -31.3% | 13.4% | 12.3% | |
| EBITDA growth | 38.5% | -23.4% | -4.3% | -22.7% | 33.2% | |
| EBITDA Margin | 21.3% | 17.5% | 24.4% | 16.6% | 19.7% | 3.1% |
| Net Income Margin | 8.4% | 11.9% | 3.7% | -0.2% | 7.4% | 7.6% |
| SG&A, % of revenue | 18.2% | 15.6% | 22.8% | 29.0% | 29.2% | 0.2% |
| CAPEX, % of revenue | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% | 9.2% |
| ROIC | 9.4% | 3.6% | 7.9% | 4.0% | 3.8% | -0.2% |
| ROE | 6.6% | 8.2% | 1.6% | -0.1% | 4.1% | 4.2% |
| Net Debt/EBITDA | -0.4x | 0.5x | -3.0x | -2.1x | -0.0x | 2.0x |
Revenue and profitability
Axia NetMedia Corp's Revenue surged on 12.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 23.1% to 27.0% in FY2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 7.6 pp from -0.24% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Axia NetMedia Corp had CAPEX/Revenue of 36.2%. Axia NetMedia Corp showed CAPEX/Revenue growth of 5.4 pp from 30.8% in 2012 to 36.2% in 2015. For the last three years the average CAPEX/Revenue was 30.1%.The company has spent a lot to CAPEX (183% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (3.77%) and ROE (4.10%). ROIC showed almost no change in 2015. ROE increased on 4.2 pp from -0.12% to 4.1% in 2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA jumped on 2.0x from -2.1x to -0.018x in 2015. Debt jumped on 71.3% in 2015 while cash dropped on 41.2% in 2015.
Appendix 1: Peers in Communications
Below you can find Axia NetMedia Corp benchmarking vs. other companies in Communications 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 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 842.9% |
| DragonWave Inc ($DWI) | | -61.3% | 171.3% | -27.3% | 75.3% |
| Blackline Safety Corp ($BLN) | | 37.1% | 9.4% | 45.1% | 73.8% |
| NeuLion Inc ($NLN) | | -1.7% | 20.8% | 17.9% | 69.4% |
| TVA Group Inc ($TVA.B) | | 1.7% | -1.8% | -1.2% | 34.3% |
| |
|---|
| Median (39 companies) | 10.4% | 5.0% | 2.1% | 1.9% | 2.7% |
|---|
| Axia NetMedia Corp ($AXX) | | -6.8% | -31.3% | 13.4% | 12.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | 81.1% |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (41 companies) | 43.2% | 43.0% | 42.6% | 41.9% | 46.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| |
|---|
| Median (49 companies) | 14.1% | 13.5% | 14.1% | 11.7% | 13.2% |
|---|
| Axia NetMedia Corp ($AXX) | 21.3% | 17.5% | 24.4% | 16.6% | 19.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | 5.9% |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| Cogeco Cable Inc ($CCA) | 24.6% | 28.1% | 23.0% | 20.6% | 20.7% |
| |
|---|
| Median (52 companies) | 4.3% | 2.2% | 3.0% | 2.1% | 2.4% |
|---|
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | -3.7% |
| |
|---|
| Median (53 companies) | 6.3% | 9.2% | 8.3% | 8.3% | 5.1% |
|---|
| Axia NetMedia Corp ($AXX) | 9.4% | 3.6% | 7.9% | 4.0% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | 4.8x |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.8x |
|---|
| Axia NetMedia Corp ($AXX) | -0.4x | 0.5x | -3.0x | -2.1x | -0.0x |
