Cardiome Pharma Corp revenue started to decline in 2015: dropped 30.4% vs. 566% growth a year earliner
10.03.2016 • About Cardiome Pharma Corp (
$COM) • By InTwits
Cardiome Pharma Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cardiome Pharma Corp is a company in decline: 2015 revenue growth was -30.4%, 5 years revenue CAGR was -20.6%
- The company operates at negative EBITDA Margin: -95.2%
- Cardiome Pharma Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -59.5%0
- Cardiome Pharma Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.2%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 0.13 in 2015, 0.52 in 2014, 0.039 in 2013, 0.14 in 2012, 0.68 in 2011
- The company has unprofitable business model: ROIC is at -73.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cardiome Pharma Corp ($COM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1.505 | 0.789 | 4.511 | 30.042 | 20.910 | -30.4% |
| Gross Profit | | | 3.575 | 20.015 | 14.323 | -28.4% |
| SG&A | 11.549 | 9.611 | 16.446 | 33.813 | 31.004 | -8.3% |
| EBITDA | | | | -14.435 | -19.904 | 37.9% |
| Net Income | -27.920 | -18.315 | 4.773 | -18.227 | -24.462 | 34.2% |
Balance Sheet
|
|---|
| Cash | 48.644 | 41.267 | 10.984 | 12.708 | 17.661 | 39.0% |
| Short Term Debt | 0.000 | 32.500 | 0.000 | 1.714 | 4.000 | 133.4% |
| Long Term Debt | 25.000 | 0.000 | 0.000 | 10.286 | 6.000 | -41.7% |
Cash flow
|
|---|
| Capex | 0.676 | 0.141 | 0.039 | 0.522 | 0.132 | -74.7% |
Ratios
|
|---|
| Revenue growth | -97.7% | -47.6% | 471.7% | 566.0% | -30.4% | |
| EBITDA growth | | | | | 37.9% | |
| Gross Margin | | | 79.3% | 66.6% | 68.5% | 1.9% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | -48.0% | -95.2% | -47.1% |
| Net Income Margin | -1,855.1% | -2,321.3% | 105.8% | -60.7% | -117.0% | -56.3% |
| SG&A, % of revenue | 767.4% | 1,218.1% | 364.6% | 112.6% | 148.3% | 35.7% |
| CAPEX, % of revenue | 44.9% | 17.9% | 0.9% | 1.7% | 0.6% | -1.1% |
| ROIC | -41.9% | -57.3% | -53.0% | -63.3% | -73.5% | -10.2% |
| ROE | -73.3% | -110.5% | 31.3% | -91.6% | -132.0% | -40.3% |
Revenue and profitability
Cardiome Pharma Corp's Revenue dropped on 30.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 47.1 pp from -48.0% to -95.2% in 2015.
Gross Margin increased slightly on 1.9 pp from 66.6% to 68.5% in 2015. SG&A as a % of Revenue surged on 35.7 pp from 113% to 148% in 2015.
Net Income marign dropped on 56.3 pp from -60.7% to -117% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.63%. Cardiome Pharma Corp showed big decline in CAPEX/Revenue of 17.2 pp from 17.9% in 2012 to 0.63% in 2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-73.49%) and ROE (-131.96%). ROIC dropped on 10.2 pp from -63.3% to -73.5% in 2015. ROE dropped on 40.3 pp from -91.6% to -132% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 16.7% in 2015 while cash jumped on 39.0% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Cardiome Pharma Corp benchmarking against other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Patient Home Monitoring Corp ($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% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (86 companies) | 17.4% | 9.3% | 5.3% | 12.7% | 11.9% |
|---|
| Cardiome Pharma Corp ($COM) | | -47.6% | 471.7% | 566.0% | -30.4% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.4% | 37.4% | 35.9% | 35.1% | 34.5% |
|---|
| Cardiome Pharma Corp ($COM) | | | 79.3% | 66.6% | 68.5% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.9% | 7.9% | 9.0% | 11.0% | 10.6% |
|---|
| Cardiome Pharma Corp ($COM) | | | | -48.0% | -95.2% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 2.4% |
|---|
| Cardiome Pharma Corp ($COM) | 44.9% | 17.9% | 0.9% | 1.7% | 0.6% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 8.0% | 7.1% | 6.9% | 7.3% | 6.7% |
|---|
| Cardiome Pharma Corp ($COM) | -41.9% | -57.3% | -53.0% | -63.3% | -73.5% |
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 (71 companies) | 1.8x | 2.6x | 2.2x | 2.7x | 1.7x |
|---|
