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Amaya Inc Net Income jumped on 3,189% in 2015 and Revenue jumped on 114%

14.03.2016 • About Amaya Inc ($AYA) • By InTwits

Amaya Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is quite volatile: 31.0% in 2015, 39.3% in 2014, 38.2% in 2013, 7.2% in 2012, -5.7% in 2011
  • Amaya Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's a lot of higher than industry average of 5.1%.
  • CAPEX is quite volatile: 16.1 in 2015, 17.0 in 2014, 16.9 in 2013, 6.7 in 2012, 2.4 in 2011
  • The company has potentially unprofitable business model: ROIC is at 4.2%
  • It operates with medium-size leverage: Net Debt/EBITDA is 6.6x while industry average is 7.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Amaya Inc ($AYA) key annual financial indicators

mln. $201120122013201420152015/2014
Gross Profit1775
Net Income-2-7-28-7211-3,189.1%
Balance Sheet
Short Term Debt2621233182.6%
Long Term Debt11231813,0112,437-19.1%
Cash flow
Revenue growth216.4%311.5%85.2%254.0%113.8%
EBITDA growth-243.3%-616.8%889.7%264.0%68.6%
Gross Margin92.6%98.4%0.0%
EBITDA Margin-5.7%7.2%38.2%39.3%31.0%-8.3%
Net Income Margin-10.5%-9.3%-20.0%-1.4%19.6%21.0%
SG&A, % of revenue110.1%96.0%84.1%65.8%68.4%2.7%
CAPEX, % of revenue12.6%8.7%11.9%3.4%1.5%-1.9%
Net Debt/EBITDA17.9x1.8x13.5x6.6x-6.9x

Revenue and profitability

The company's Revenue surged on 114% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 75.6 pp from 33.3% to -42.4% in 2015.

SG&A as a % of Revenue increased on 2.7 pp from 65.8% to 68.4% in 2015.

Net Income marign surged on 21.0 pp from -1.4% to 19.6% in 2015.

Capital expenditures (CAPEX) and working capital investments

Amaya Inc's CAPEX/Revenue was 1.5% in 2015. CAPEX/Revenue decreased on 7.2 pp from 8.7% in 2012 to 1.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 5.6%.

Return on investment

The company operates at good ROE (16.72%) while ROIC is low (4.22%). ROIC showed almost no change in 2015. ROE jumped on 17.7 pp from -0.96% to 16.7% in 2015.

Leverage (Debt)

Debt level is 6.6x Net Debt / EBITDA and 7.4x Debt / EBITDA. Net Debt / EBITDA dropped on 6.9x from 13.5x to 6.6x in 2015. Debt dropped on 18.3% in 2015 while cash dropped on 25.1% in 2015.

Appendix 1: Peers in Consumer, Cyclical

Below we provide Amaya Inc 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
Restaurant Brands International Inc ($QSR)4.6%238.0%
DHX Media Ltd ($DHX.A)31.1%33.9%19.4%127.4%
Hudson's Bay Co ($HBC)3.5%5.9%28.1%56.4%
Exchange Income Corp ($EIF)56.9%-36.4%6.6%48.8%
Performance Sports Group Ltd ($PSG)6.6%11.7%46.7%
Median (56 companies)16.1%5.3%4.9%7.0%4.7%
Amaya Inc ($AYA)311.5%85.2%254.0%113.8%

Top companies by Gross margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Imvescor Restaurant Group Inc ($IRG)96.2%94.2%89.7%84.9%84.3%
Second Cup Ltd/The ($SCU)91.1%86.6%85.1%72.7%81.1%
New Look Vision Group Inc ($BCI)72.3%71.8%72.6%72.6%78.7%
Cara Operations Ltd ($CAO)79.2%78.9%78.4%
Air Canada ($AC)62.3%62.4%63.5%64.0%71.9%
Median (50 companies)36.1%34.1%32.1%34.6%34.6%

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 ($GC)34.1%16.8%41.1%40.1%36.6%
MTY Food Group Inc ($MTY)32.2%36.3%38.7%37.0%34.9%
Whistler Blackcomb Holdings Inc ($WB)34.8%36.0%35.9%36.4%35.4%
Median (66 companies)8.7%8.1%9.6%9.8%10.3%
Amaya Inc ($AYA)-5.7%7.2%38.2%39.3%31.0%

Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Holloway Lodging Corp ($HLC)3.4%8.2%6.7%14.8%26.7%
WestJet Airlines Ltd ($WJA)3.9%7.9%19.5%18.6%22.5%
Westshore Terminals Investment Corp ($WTE)25.7%11.5%6.2%21.2%
Exchange Income Corp ($EIF)8.2%7.9%15.8%15.5%15.4%
Chorus Aviation Inc ($CHR.A)12.5%9.9%9.6%3.9%15.0%
Median (56 companies)2.6%2.7%2.8%2.3%3.1%
Amaya Inc ($AYA)12.6%8.7%11.9%3.4%1.5%

Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Westshore Terminals Investment Corp ($WTE)24.0%37.8%35.0%38.3%
BRP Inc/CA ($DOO)29.8%26.8%32.3%35.3%
Cara Operations Ltd ($CAO)24.7%35.1%
Jean Coutu Group PJC Inc/The ($PJC.A)33.5%34.4%29.8%29.2%30.2%
Dollarama Inc ($DOL)17.7%21.6%24.7%26.5%29.9%
Median (56 companies)10.7%9.8%10.8%9.9%11.3%
Amaya Inc ($AYA)-10.2%-2.7%6.7%4.0%4.2%

Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Holloway Lodging Corp ($HLC)5.8x8.4x17.1x
Discovery Air Inc ($DA.A)3.2x2.8x3.8x7.5x11.4x
Second Cup Ltd/The ($SCU)0.6x1.0x0.6x0.0x7.5x
Performance Sports Group Ltd ($PSG)2.6x3.5x12.2x6.5x
Restaurant Brands International Inc ($QSR)3.8x33.6x5.8x
Median (48 companies)1.3x1.2x1.8x2.0x1.5x
Amaya Inc ($AYA)17.9x1.8x13.5x6.6x