Xtreme Drilling & Coil Services Corp reports 69.4% CAPEX decline and 17.2% Revenue decline
10.03.2016 • About Xtreme Drilling & Coil Services Corp (
$XDC) • By InTwits
Xtreme Drilling & Coil Services Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xtreme Drilling & Coil Services Corp doesn't have a profitable business model yet: 2015 ROIC is -8.4%
- Xtreme Drilling & Coil Services Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 43.4%. At the same time it's in pair with industry average of 26.4%.
- CAPEX is quite volatile: 20.0 in 2015, 65.3 in 2014, 23.1 in 2013, 112 in 2012, 115 in 2011
- The company has unprofitable business model: ROIC is at -8.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xtreme Drilling & Coil Services Corp ($XDC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 104.0 | 179.4 | 229.8 | 267.4 | 221.4 | -17.2% |
| Gross Profit | 17.2 | 24.3 | 33.8 | 37.1 | 80.1 | 116.1% |
| SG&A | | | | | 19.0 | |
| EBITDA | 17.8 | 40.1 | 72.3 | 73.9 | 57.4 | -22.4% |
| Net Income | 0.2 | -0.2 | -0.3 | 0.6 | -68.3 | -11,703.4% |
Balance Sheet
|
|---|
| Cash | 5.9 | 5.9 | 12.2 | 13.1 | 11.2 | -14.3% |
| Short Term Debt | 0.5 | 22.0 | 0.7 | 0.0 | 107.3 | |
| Long Term Debt | 80.9 | 125.7 | 128.4 | 128.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 115.3 | 112.4 | 23.1 | 65.3 | 20.0 | -69.4% |
Ratios
|
|---|
| Revenue growth | 21.5% | 72.5% | 28.1% | 16.4% | -17.2% | |
| EBITDA growth | -14.7% | 125.3% | 80.5% | 2.2% | -22.4% | |
| Gross Margin | 16.6% | 13.5% | 14.7% | 13.9% | 36.2% | 22.3% |
| EBITDA Margin | 17.1% | 22.3% | 31.5% | 27.6% | 25.9% | -1.7% |
| Net Income Margin | 0.2% | -0.1% | -0.1% | 0.2% | -30.9% | -31.1% |
| SG&A, % of revenue | | | | | 8.6% | 8.6% |
| CAPEX, % of revenue | 110.9% | 62.6% | 10.0% | 24.4% | 9.0% | -15.4% |
| ROIC | 1.7% | 3.0% | 4.6% | 3.7% | -8.4% | -12.0% |
| ROE | 0.1% | -0.1% | -0.1% | 0.2% | -18.3% | -18.4% |
| Net Debt/EBITDA | 4.2x | 3.5x | 1.6x | 1.6x | 1.7x | 0.1x |
Revenue and profitability
The company's Revenue dropped on 17.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 27.6% to 25.9% in 2015.
Gross Margin surged on 22.3 pp from 13.9% to 36.2% in 2015.
Net Income marign dropped on 31.1 pp from 0.22% to -30.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Xtreme Drilling & Coil Services Corp's CAPEX/Revenue was 9.0% in 2015. The company showed big decline in CAPEX/Revenue of 53.6 pp from 62.6% in 2012 to 9.0% in 2015. It's average CAPEX/Revenue for the last three years was 14.5%.
Return on investment
The company operates at negative ROIC (-8.35%) and ROE (-18.28%). ROIC dropped on 12.0 pp from 3.7% to -8.4% in 2015. ROE dropped on 18.4 pp from 0.16% to -18.3% in 2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.1x from 1.6x to 1.7x in 2015. Debt dropped on 16.5% in 2015 while cash dropped on 14.3% in 2015.
Appendix 1: Peers in Energy
Below we provide Xtreme Drilling & Coil Services Corp benchmarking against other companies in Energy 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 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (160 companies) | 43.4% | 9.5% | 16.2% | 18.5% | -27.3% |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | | 72.5% | 28.1% | 16.4% | -17.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | 86.3% |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 33.5% |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | 16.6% | 13.5% | 14.7% | 13.9% | 36.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | 70.0% |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | 70.1% |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 30.5% | 29.6% | 10.1% |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | 17.1% | 22.3% | 31.5% | 27.6% | 25.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.2% | 48.8% | 29.1% |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | 110.9% | 62.6% | 10.0% | 24.4% | 9.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.5% | 5.1% | -6.9% |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | 1.7% | 3.0% | 4.6% | 3.7% | -8.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.7x |
|---|
| Xtreme Drilling & Coil Services Corp ($XDC) | 4.2x | 3.5x | 1.6x | 1.6x | 1.7x |
