Alterra Power Corp Net Debt / EBITDA jumped on 3.8x from 11.5x to 15.3x in 2015 while EBITDA dropped on 18.6%
15.03.2016 • About Alterra Power Corp (
$AXY) • By InTwits
Alterra Power Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alterra Power Corp doesn't have a profitable business model yet: 2015 ROIC is 1.0%
- Alterra Power Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 54.5%. At the same time it's in pair with industry average of 89.0%.
- CAPEX is quite volatile: 56.5 in 2015, 62.5 in 2014, 21.4 in 2013, 20.6 in 2012, 6.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alterra Power Corp ($AXY) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34.660 | 61.112 | 63.872 | 70.952 | 57.835 | -18.5% |
| Gross Profit | 8.625 | 14.524 | 13.021 | 17.092 | 16.131 | -5.6% |
| SG&A | | | | | 9.895 | |
| EBITDA | 4.118 | 10.847 | 11.268 | 19.657 | 15.998 | -18.6% |
| Net Income | -13.813 | -19.849 | -110.831 | -36.340 | -16.717 | -54.0% |
Balance Sheet
|
|---|
| Cash | 22.239 | 39.211 | 41.743 | 63.216 | 10.345 | -83.6% |
| Short Term Debt | 17.215 | 18.600 | 19.304 | 17.752 | 135.386 | 662.7% |
| Long Term Debt | 249.174 | 250.843 | 228.067 | 272.378 | 120.153 | -55.9% |
Cash flow
|
|---|
| Capex | 6.759 | 20.629 | 21.392 | 62.480 | 56.545 | -9.5% |
Ratios
|
|---|
| Revenue growth | 623.1% | 76.3% | 4.5% | 11.1% | -18.5% | |
| EBITDA growth | -161.5% | 163.4% | 3.9% | 74.4% | -18.6% | |
| Gross Margin | 24.9% | 23.8% | 20.4% | 24.1% | 27.9% | 3.8% |
| EBITDA Margin | 11.9% | 17.7% | 17.6% | 27.7% | 27.7% | -0.0% |
| Net Income Margin | -39.9% | -32.5% | -173.5% | -51.2% | -28.9% | 22.3% |
| SG&A, % of revenue | | | | | 17.1% | 17.1% |
| CAPEX, % of revenue | 19.5% | 33.8% | 33.5% | 88.1% | 97.8% | 9.7% |
| ROIC | -0.6% | -0.2% | -0.2% | 1.2% | 1.0% | -0.2% |
| ROE | -6.3% | -6.7% | -46.0% | -21.6% | -12.6% | 8.9% |
| Net Debt/EBITDA | 59.3x | 21.2x | 18.2x | 11.5x | 15.3x | 3.8x |
Revenue and profitability
Alterra Power Corp's Revenue dropped on 18.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 107 pp from 54.5% to -52.6% in 2015.
Gross Margin increased on 3.8 pp from 24.1% to 27.9% in 2015.
Net Income marign surged on 22.3 pp from -51.2% to -28.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 97.8%. The company showed fast CAPEX/Revenue growth of 64.0 pp from 33.8% in 2012 to 97.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 73.1%.Alterra Power Corp has spent a lot to CAPEX (353% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.98%) and negative ROE (-12.65%). ROIC showed almost no change in 2015. ROE increased on 8.9 pp from -21.6% to -12.6% in 2015.
Leverage (Debt)
Debt level is 15.3x Net Debt / EBITDA and 16.0x Debt / EBITDA. Net Debt / EBITDA surged on 3.8x from 11.5x to 15.3x in 2015. Debt dropped on 11.9% in 2015 while cash dropped on 83.6% in 2015.
Appendix 1: Peers in Energy
Below we provide Alterra Power 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (161 companies) | 43.4% | 9.4% | 17.3% | 18.7% | -27.0% |
|---|
| Alterra Power Corp ($AXY) | | 76.3% | 4.5% | 11.1% | -18.5% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 33.6% |
|---|
| Alterra Power Corp ($AXY) | 24.9% | 23.8% | 20.4% | 24.1% | 27.9% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (160 companies) | 25.7% | 25.3% | 31.5% | 29.7% | 10.8% |
|---|
| Alterra Power Corp ($AXY) | 11.9% | 17.7% | 17.6% | 27.7% | 27.7% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (163 companies) | 42.6% | 50.5% | 39.2% | 48.6% | 29.3% |
|---|
| Alterra Power Corp ($AXY) | 19.5% | 33.8% | 33.5% | 88.1% | 97.8% |
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% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (166 companies) | 4.5% | 3.3% | 4.7% | 5.3% | -7.0% |
|---|
| Alterra Power Corp ($AXY) | -0.6% | -0.2% | -0.2% | 1.2% | 1.0% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.6x |
|---|
| Alterra Power Corp ($AXY) | 59.3x | 21.2x | 18.2x | 11.5x | 15.3x |
