Pollard Banknote Ltd revenue jumped on 13.7% in 2015 while EBITDA Margin decreased slightly on 1.1 pp from 13.1% to 12.0%
14.03.2016 • About Pollard Banknote Ltd (
$PBL) • By InTwits
Pollard Banknote Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pollard Banknote Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 15.4 in 2015, 17.6 in 2014, 4.6 in 2013, 6.5 in 2012, 2.9 in 2011
- The company has highly profitable business model: ROIC is at 15.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pollard Banknote Ltd ($PBL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 172.0 | 162.4 | 184.9 | 194.5 | 221.0 | 13.7% |
| Gross Profit | 30.1 | 32.7 | 35.2 | 41.1 | 44.4 | 8.0% |
| SG&A | | 19.7 | 22.0 | 23.8 | 26.6 | 11.4% |
| EBITDA | 18.8 | 20.8 | 22.1 | 25.4 | 26.4 | 4.0% |
| Net Income | 3.1 | 6.5 | 5.4 | 8.7 | 7.5 | -14.7% |
Balance Sheet
|
|---|
| Cash | 5.1 | 5.0 | 7.8 | 6.2 | 7.6 | 22.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.9 | 1.2 | 33.4% |
| Long Term Debt | 69.1 | 70.5 | 73.3 | 68.2 | 72.1 | 5.6% |
Cash flow
|
|---|
| Capex | 2.9 | 6.5 | 4.6 | 17.6 | 15.4 | -12.5% |
Ratios
|
|---|
| Revenue growth | 5.3% | -5.6% | 13.9% | 5.2% | 13.7% | |
| EBITDA growth | 11.5% | 10.5% | 6.6% | 15.0% | 4.0% | |
| Gross Margin | 17.5% | 20.1% | 19.0% | 21.1% | 20.1% | -1.1% |
| EBITDA Margin | 10.9% | 12.8% | 12.0% | 13.1% | 12.0% | -1.1% |
| Net Income Margin | 1.8% | 4.0% | 2.9% | 4.5% | 3.4% | -1.1% |
| SG&A, % of revenue | | 12.1% | 11.9% | 12.3% | 12.0% | -0.2% |
| CAPEX, % of revenue | 1.7% | 4.0% | 2.5% | 9.0% | 7.0% | -2.1% |
| ROIC | 10.3% | 13.5% | 13.1% | 16.2% | 15.9% | -0.4% |
| ROE | 10.8% | 24.3% | 18.3% | 25.9% | 19.3% | -6.6% |
| Net Debt/EBITDA | 3.4x | 3.2x | 3.0x | 2.5x | 2.5x | 0.0x |
Revenue and profitability
The company's Revenue surged on 13.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.9 pp from 4.7% to 10.6% in FY2015.
Gross Margin decreased slightly on 1.1 pp from 21.1% to 20.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.1 pp from 4.5% to 3.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.0%. CAPEX/Revenue increased on 2.9 pp from 4.0% in 2012 to 7.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.2%.The company invested a big chunk of EBITDA (58.2%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (15.85%) and ROE (19.26%). ROIC showed almost no change in 2015. ROE decreased on 6.6 pp from 25.9% to 19.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.8x. Net Debt / EBITDA increased slightly on 0.011x from 2.5x to 2.5x in 2015. Debt increased on 6.0% in 2015 while cash surged on 22.1% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Pollard Banknote Ltd 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% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| Hudson's Bay Co ($HBC) | | 3.5% | 5.9% | 28.1% | 56.4% |
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (56 companies) | 16.1% | 5.3% | 4.9% | 7.4% | 4.7% |
|---|
| Pollard Banknote Ltd ($PBL) | | -5.6% | 13.9% | 5.2% | 13.7% |
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 ($AC) | 62.3% | 62.4% | 63.5% | 64.0% | 71.9% |
| |
|---|
| Median (49 companies) | 37.9% | 36.5% | 34.1% | 35.4% | 35.4% |
|---|
| Pollard Banknote Ltd ($PBL) | 17.5% | 20.1% | 19.0% | 21.1% | 20.1% |
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 ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | 31.0% |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (66 companies) | 8.4% | 7.9% | 9.6% | 9.8% | 10.3% |
|---|
| Pollard Banknote Ltd ($PBL) | 10.9% | 12.8% | 12.0% | 13.1% | 12.0% |
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 ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (56 companies) | 2.9% | 2.7% | 2.9% | 2.3% | 3.0% |
|---|
| Pollard Banknote Ltd ($PBL) | 1.7% | 4.0% | 2.5% | 9.0% | 7.0% |
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 ($DOL) | 17.7% | 21.6% | 24.7% | 26.5% | 29.9% |
| |
|---|
| Median (56 companies) | 10.7% | 9.7% | 10.1% | 9.7% | 11.1% |
|---|
| Pollard Banknote Ltd ($PBL) | 10.3% | 13.5% | 13.1% | 16.2% | 15.9% |
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 ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| Performance Sports Group Ltd ($PSG) | | 2.6x | 3.5x | 12.2x | 6.5x |
| |
|---|
| Median (48 companies) | 1.3x | 1.2x | 1.8x | 2.0x | 1.5x |
|---|
| Pollard Banknote Ltd ($PBL) | 3.4x | 3.2x | 3.0x | 2.5x | 2.5x |
