Liquor Stores N.A. Ltd Debt surged on 40.9% in 2015 and Net Debt / EBITDA jumped on 1.0x from 2.4x to 3.4x
09.03.2016 • About Liquor Stores N.A. Ltd (
$LIQ) • By InTwits
Liquor Stores N.A. Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Liquor Stores N.A. Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 25.9 in 2015, 10.9 in 2014, 11.9 in 2013, 11.8 in 2012, 4.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Liquor Stores N.A. Ltd ($LIQ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 591.5 | 630.1 | 661.0 | 694.2 | 746.4 | 7.5% |
| Gross Profit | 140.1 | 159.5 | 165.8 | 176.4 | 191.4 | 8.5% |
| SG&A | | | | | 154.5 | |
| EBITDA | 45.9 | 45.7 | 43.2 | 36.5 | 36.9 | 0.9% |
| Net Income | 24.5 | 18.8 | 11.3 | 12.7 | -99.6 | -883.3% |
Balance Sheet
|
|---|
| Cash | 1.7 | 5.7 | 4.5 | 3.0 | 3.8 | 26.2% |
| Short Term Debt | 96.1 | 3.9 | 0.0 | 0.0 | 0.1 | |
| Long Term Debt | 46.5 | 146.6 | 133.8 | 92.0 | 129.6 | 40.8% |
Cash flow
|
|---|
| Capex | 4.5 | 11.8 | 11.9 | 10.9 | 25.9 | 138.6% |
Ratios
|
|---|
| Revenue growth | 2.0% | 6.5% | 4.9% | 5.0% | 7.5% | |
| EBITDA growth | 10.2% | -0.5% | -5.3% | -15.5% | 0.9% | |
| Gross Margin | 23.7% | 25.3% | 25.1% | 25.4% | 25.6% | 0.2% |
| EBITDA Margin | 7.8% | 7.2% | 6.5% | 5.3% | 4.9% | -0.3% |
| Net Income Margin | 4.1% | 3.0% | 1.7% | 1.8% | -13.3% | -15.2% |
| SG&A, % of revenue | | | | | 20.7% | 20.7% |
| CAPEX, % of revenue | 0.8% | 1.9% | 1.8% | 1.6% | 3.5% | 1.9% |
| ROIC | 8.1% | 7.9% | 7.0% | 5.6% | 6.1% | 0.5% |
| ROE | 7.8% | 5.9% | 3.6% | 3.8% | -32.1% | -35.9% |
| Net Debt/EBITDA | 3.1x | 3.2x | 3.0x | 2.4x | 3.4x | 1.0x |
Revenue and profitability
The company's Revenue increased on 7.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 11.2% to 13.0% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign dropped on 15.2 pp from 1.8% to -13.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Liquor Stores N.A. Ltd had CAPEX/Revenue of 3.5%. The company showed small growth in CAPEX/Revenue of 1.6 pp from 1.9% in 2012 to 3.5% in 2015. For the last three years the average CAPEX/Revenue was 2.3%.Liquor Stores N.A. Ltd invested a large share of EBITDA (70.3%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (6.06%) and negative ROE (-32.11%). ROIC showed almost no change in 2015. ROE dropped on 35.9 pp from 3.8% to -32.1% in 2015.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 3.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.0x from 2.4x to 3.4x in 2015. Debt surged on 40.9% in 2015 while cash surged on 26.2% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Liquor Stores N.A. Ltd benchmarking against other companies in Consumer, Cyclical 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | | -24.6% | 2.7% | 62.7% | 13.5% |
| |
|---|
| Median (68 companies) | 16.1% | 5.3% | 5.3% | 7.4% | 4.0% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | | 6.5% | 4.9% | 5.0% | 7.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| |
|---|
| Median (60 companies) | 37.9% | 36.5% | 34.1% | 35.4% | 36.8% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 23.7% | 25.3% | 25.1% | 25.4% | 25.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (66 companies) | 8.7% | 8.1% | 9.8% | 10.1% | 10.6% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 7.8% | 7.2% | 6.5% | 5.3% | 4.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (69 companies) | 2.9% | 2.7% | 2.9% | 2.5% | 3.1% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 0.8% | 1.9% | 1.8% | 1.6% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (69 companies) | 10.7% | 9.8% | 10.8% | 9.9% | 11.2% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 8.1% | 7.9% | 7.0% | 5.6% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (58 companies) | 1.3x | 1.2x | 1.8x | 2.0x | 1.4x |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 3.1x | 3.2x | 3.0x | 2.4x | 3.4x |
