US Geothermal Inc reports 84.1% Net Income decline while 3.0 pp EBITDA Margin growth from 49.6% to 52.6%
10.03.2016 • About US Geothermal Inc (
$GTH) • By InTwits
US Geothermal Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- US Geothermal Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 188.0%. At the same time it's a lot of higher than industry average of 45.8%.
- CAPEX is quite volatile: 6.6 in 2015, 3.7 in 2014, 13.9 in 2013, 26.8 in 2012, 13.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
US Geothermal Inc ($GTH) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.254 | 5.894 | 27.371 | 30.969 | 31.200 | 0.7% |
| SG&A | 0.379 | 0.203 | 0.202 | 0.200 | 0.216 | 7.9% |
| EBITDA | -2.734 | -7.634 | 14.486 | 15.364 | 16.402 | 6.8% |
| Net Income | -3.954 | -6.222 | 1.947 | 11.614 | 1.847 | -84.1% |
Balance Sheet
|
|---|
| Cash | 8.099 | 4.433 | 28.737 | 12.995 | 8.654 | -33.4% |
| Short Term Debt | 0.243 | 7.514 | 4.175 | 4.357 | 4.412 | 1.3% |
| Long Term Debt | 5.147 | 2.125 | 99.247 | 94.376 | 89.887 | -4.8% |
Cash flow
|
|---|
| Capex | 13.071 | 26.779 | 13.869 | 3.746 | 6.603 | 76.3% |
Ratios
|
|---|
| Revenue growth | 26.1% | 81.2% | 364.4% | 13.1% | 0.7% | |
| EBITDA growth | -45.2% | 179.2% | -289.8% | 6.1% | 6.8% | |
| EBITDA Margin | -84.0% | -129.5% | 52.9% | 49.6% | 52.6% | 3.0% |
| Net Income Margin | -121.5% | -105.6% | 7.1% | 37.5% | 5.9% | -31.6% |
| SG&A, % of revenue | 11.6% | 3.5% | 0.7% | 0.6% | 0.7% | 0.0% |
| CAPEX, % of revenue | 401.7% | 454.3% | 50.7% | 12.1% | 21.2% | 9.1% |
| ROIC | -6.0% | -11.0% | 4.5% | 4.0% | 4.6% | 0.6% |
| ROE | -6.2% | -9.8% | 3.0% | 15.1% | 2.0% | -13.1% |
| Net Debt/EBITDA | | | 5.2x | 5.6x | 5.2x | -0.4x |
Revenue and profitability
US Geothermal Inc's Revenue increased slightly on 0.75% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.0 pp from 49.6% to 52.6% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 31.6 pp from 37.5% to 5.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 US Geothermal Inc had CAPEX/Revenue of 21.2%. The company's CAPEX/Revenue dropped on 433 pp from 454% in 2012 to 21.2% in 2015. Average CAPEX/Revenue for the last three years was 28.0%.
Return on investment
The company operates at low ROIC (4.61%) and ROE (1.99%). ROIC increased slightly on 0.62 pp from 4.0% to 4.6% in 2015. ROE dropped on 13.1 pp from 15.1% to 2.0% in 2015.
Leverage (Debt)
Debt level is 5.2x Net Debt / EBITDA and 5.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 5.6x to 5.2x in 2015. Debt decreased on 4.5% in 2015 while cash dropped on 33.4% in 2015.
Management team
US Geothermal Inc's CEO Dennis J Gilles is a founder and has spent 5 years at the company. Kerry D Hawkley is a US Geothermal Inc's CFO. Kerry D Hawkley has spent 13 years at the company.
Appendix 1: Peers in Utilities
Below we provide US Geothermal Inc benchmarking against other companies in Utilities 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 |
|---|
| Boralex Inc ($BLX) | | -5.3% | -6.7% | 13.5% | 37.1% |
| Fortis Inc/Canada ($FTS) | | -2.2% | 10.8% | 33.5% | 25.1% |
| Just Energy Group Inc ($JE) | | -10.1% | 13.4% | 17.4% | 10.2% |
| Algonquin Power & Utilities Corp ($AQN) | | 28.8% | 93.6% | 39.4% | 9.2% |
| Capital Power Corp ($CPX) | | -26.8% | 7.5% | -11.8% | 1.1% |
| |
|---|
| Median (13 companies) | 6.6% | 0.1% | 10.9% | 12.0% | -5.1% |
|---|
| US Geothermal Inc ($GTH) | | 81.2% | 364.4% | 13.1% | 0.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atco Ltd/Canada ($ACO.X) | 82.3% | 85.6% | 85.1% | 82.3% | 85.0% |
| Canadian Utilities Ltd ($CU) | 76.5% | 81.0% | 80.8% | 77.7% | 81.0% |
| Boralex Inc ($BLX) | 31.6% | 32.5% | 37.1% | 36.1% | 70.7% |
| Northland Power Inc ($NPI) | 47.7% | 52.5% | 63.7% | 61.8% | 69.0% |
| Fortis Inc/Canada ($FTS) | 31.9% | 34.6% | 34.4% | 59.3% | 61.7% |
| |
|---|
| Median (13 companies) | 39.3% | 34.2% | 36.1% | 45.5% | 56.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boralex Inc ($BLX) | 51.8% | 52.8% | 58.4% | 55.9% | 60.4% |
| Northland Power Inc ($NPI) | 48.1% | 54.2% | 52.4% | 51.2% | 57.5% |
| Canadian Utilities Ltd ($CU) | 42.9% | 45.9% | 45.7% | 47.4% | 45.8% |
| Atco Ltd/Canada ($ACO.X) | 36.7% | 39.8% | 41.0% | 41.4% | 38.7% |
| Capital Power Corp ($CPX) | 24.2% | 28.3% | 35.7% | 33.6% | 37.1% |
| |
|---|
| Median (13 companies) | 31.5% | 29.7% | 33.2% | 32.4% | 33.2% |
|---|
| US Geothermal Inc ($GTH) | -84.0% | -129.5% | 52.9% | 49.6% | 52.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 101.7% | 84.0% | 60.2% | 238.7% | 265.9% |
| Boralex Inc ($BLX) | 17.7% | 5.6% | 62.5% | 85.9% | 123.1% |
| Canadian Utilities Ltd ($CU) | 43.7% | 70.7% | 66.4% | 58.5% | 47.2% |
| Caribbean Utilities Co Ltd ($CUP.U) | 18.2% | 13.8% | 13.0% | 17.0% | 41.3% |
| Atco Ltd/Canada ($ACO.X) | 36.2% | 58.8% | 54.2% | 48.3% | 39.6% |
| |
|---|
| Median (13 companies) | 22.7% | 26.5% | 24.0% | 21.2% | 28.0% |
|---|
| US Geothermal Inc ($GTH) | 401.7% | 454.3% | 50.7% | 12.1% | 21.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Energy Group Inc ($JE) | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% |
| Keyera Corp ($KEY) | 13.1% | 13.8% | 12.7% | 14.3% | 12.6% |
| Fortis Inc/Canada ($FTS) | 6.7% | 6.4% | 6.1% | 5.4% | 6.0% |
| Canadian Utilities Ltd ($CU) | 10.9% | 10.0% | 9.4% | 9.2% | 5.9% |
| Caribbean Utilities Co Ltd ($CUP.U) | 6.6% | 5.8% | 6.3% | 6.1% | 5.7% |
| |
|---|
| Median (13 companies) | 6.7% | 5.8% | 6.1% | 5.8% | 5.6% |
|---|
| US Geothermal Inc ($GTH) | -6.0% | -11.0% | 4.5% | 4.0% | 4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atlantic Power Corp ($ATP) | 44.8x | 12.6x | 13.0x | 22.4x | 251.1x |
| Northland Power Inc ($NPI) | 5.9x | 6.4x | 5.8x | 6.9x | 11.1x |
| Boralex Inc ($BLX) | 5.9x | 6.6x | 7.6x | 12.1x | 9.0x |
| TransAlta Corp ($TA) | 3.4x | 6.9x | 5.5x | 3.9x | 5.9x |
| Fortis Inc/Canada ($FTS) | 5.3x | 5.0x | 5.6x | 6.7x | 5.3x |
| |
|---|
| Median (13 companies) | 4.0x | 5.0x | 5.6x | 4.3x | 4.6x |
|---|
| US Geothermal Inc ($GTH) | | | 5.2x | 5.6x | 5.2x |
