Premium Brands Holdings Corp EBITDA jumped on 80.1% in 2015 and Revenue surged on 21.5%
10.03.2016 • About Premium Brands Holdings Corp (
$PBH) • By InTwits
Premium Brands Holdings Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Premium Brands Holdings Corp is a fast growth stock: FY2015 revenue growth was 21.5%, 5 year revenue CAGR was 22.6% at FY2015 ROIC 12.6%
- Premium Brands Holdings Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 29.4 in FY2015, 47.1 in FY2014, 15.6 in FY2013, 29.7 in FY2012, 23.5 in FY2011
- The company has highly profitable business model: ROIC is at 12.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Premium Brands Holdings Corp ($PBH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 789 | 960 | 1,073 | 1,222 | 1,485 | 21.5% |
| Gross Profit | 174 | 201 | 213 | 228 | 285 | 24.6% |
| SG&A | 119 | 134 | 142 | 151 | 173 | 14.7% |
| EBITDA | 55 | 62 | 67 | 58 | 104 | 80.1% |
| Net Income | 13 | 15 | 13 | 11 | 12 | 2.3% |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 1 | 9 | 11 | 19.2% |
| Short Term Debt | 41 | 140 | 148 | 9 | 14 | 59.7% |
| Long Term Debt | 252 | 147 | 189 | 386 | 325 | -15.9% |
Cash flow
|
|---|
| Capex | 23 | 30 | 16 | 47 | 29 | -37.6% |
Ratios
|
|---|
| Revenue growth | 47.4% | 21.7% | 11.7% | 13.9% | 21.5% | |
| EBITDA growth | 30.8% | 12.8% | 7.4% | -13.0% | 80.1% | |
| Gross Margin | 22.1% | 20.9% | 19.9% | 18.7% | 19.2% | 0.5% |
| EBITDA Margin | 7.0% | 6.5% | 6.2% | 4.7% | 7.0% | 2.3% |
| Net Income Margin | 1.6% | 1.6% | 1.2% | 0.9% | 0.8% | -0.1% |
| SG&A, % of revenue | 15.1% | 13.9% | 13.3% | 12.3% | 11.7% | -0.7% |
| CAPEX, % of revenue | 3.0% | 3.1% | 1.5% | 3.9% | 2.0% | -1.9% |
| ROIC | 10.1% | 10.3% | 9.9% | 6.9% | 12.6% | 5.7% |
| ROE | 6.7% | 7.4% | 6.1% | 5.5% | 4.5% | -1.1% |
| Net Debt/EBITDA | 5.2x | 4.6x | 5.1x | 6.7x | 3.1x | -3.5x |
Revenue and profitability
The company's Revenue surged on 21.5% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.3 pp from 4.7% to 7.0% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased slightly on 0.69 pp from 12.3% to 11.7% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.0% in FY2015. Premium Brands Holdings Corp showed small CAPEX/Revenue decline of 1.1 pp from 3.1% in FY2012 to 2.0% in FY2015. It's average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROIC (12.60%) while ROE is low (4.47%). ROIC increased on 5.7 pp from 6.9% to 12.6% in FY2015. ROE decreased slightly on 1.1 pp from 5.5% to 4.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.1x and Debt / EBITDA is 3.3x. Net Debt / EBITDA dropped on 3.5x from 6.7x to 3.1x in FY2015. Debt dropped on 14.1% in FY2015 while cash jumped on 19.2% in FY2015.
Management team
The company's CEO is George Paleologou. George Paleologou is a founder and has 10 years tenure at the company. Premium Brands Holdings Corp's CFO William D Kalutycz "Will" has spent 13 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Premium Brands Holdings 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 ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($COM) | | -47.6% | 471.7% | 566.0% | -30.4% |
| 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.4% | 8.1% | 5.3% | 12.7% | 9.3% |
|---|
| Premium Brands Holdings Corp ($PBH) | | 21.7% | 11.7% | 13.9% | 21.5% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 35.7% |
|---|
| Premium Brands Holdings Corp ($PBH) | 22.1% | 20.9% | 19.9% | 18.7% | 19.2% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 9.0% | 11.0% | 10.6% |
|---|
| Premium Brands Holdings Corp ($PBH) | 7.0% | 6.5% | 6.2% | 4.7% | 7.0% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.4% |
|---|
| Premium Brands Holdings Corp ($PBH) | 3.0% | 3.1% | 1.5% | 3.9% | 2.0% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 7.2% | 6.5% |
|---|
| Premium Brands Holdings Corp ($PBH) | 10.1% | 10.3% | 9.9% | 6.9% | 12.6% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.6x | 1.6x |
|---|
| Premium Brands Holdings Corp ($PBH) | 5.2x | 4.6x | 5.1x | 6.7x | 3.1x |
