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. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 19 | 76 | 142 | 501 | 1,072 | 113.8% |
| Gross Profit | 17 | 75 | | | | |
| SG&A | 20 | 73 | 119 | 330 | 734 | 122.5% |
| EBITDA | -1 | 5 | 54 | 197 | 332 | 68.6% |
| Net Income | -2 | -7 | -28 | -7 | 211 | -3,189.1% |
Balance Sheet
|
|---|
| Cash | 3 | 31 | 88 | 366 | 274 | -25.1% |
| Short Term Debt | 2 | 6 | 2 | 12 | 33 | 182.6% |
| Long Term Debt | 1 | 123 | 181 | 3,011 | 2,437 | -19.1% |
Cash flow
|
|---|
| Capex | 2 | 7 | 17 | 17 | 16 | -5.6% |
Ratios
|
|---|
| Revenue growth | 216.4% | 311.5% | 85.2% | 254.0% | 113.8% | |
| EBITDA growth | -243.3% | -616.8% | 889.7% | 264.0% | 68.6% | |
| Gross Margin | 92.6% | 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 revenue | 110.1% | 96.0% | 84.1% | 65.8% | 68.4% | 2.7% |
| CAPEX, % of revenue | 12.6% | 8.7% | 11.9% | 3.4% | 1.5% | -1.9% |
| ROIC | -10.2% | -2.7% | 6.7% | 4.0% | 4.2% | 0.2% |
| ROE | -6.4% | -7.6% | -17.2% | -1.0% | 16.7% | 17.7% |
| Net Debt/EBITDA | | 17.9x | 1.8x | 13.5x | 6.6x | -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) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | 3.2x | 2.8x | 3.8x | 7.5x | 11.4x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Performance Sports Group Ltd ($PSG) | | 2.6x | 3.5x | 12.2x | 6.5x |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| |
|---|
| Median (48 companies) | 1.3x | 1.2x | 1.8x | 2.0x | 1.5x |
|---|
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
