Heritage Global Inc revenue jumped on 11.2% in 2015 while EBITDA Margin dropped on 46.7 pp from -9.4% to -56.1%
17.03.2016 • About Heritage Global Inc (
$HGP) • By InTwits
Heritage Global Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heritage Global Inc doesn't have a profitable business model yet: FY2015 ROIC is -97.9%
- The company operates at negative EBITDA Margin: -56.1%
- Heritage Global Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -12.1% for the sames years0
- The company has unprofitable business model: ROIC is at -97.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Heritage Global Inc ($HGP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 17.053 | 14.121 | 8.892 | 15.669 | 17.431 | 11.2% |
| Gross Profit | 16.970 | | | 14.997 | 10.894 | -27.4% |
| SG&A | | | | 12.138 | 12.774 | 5.2% |
| EBITDA | 2.376 | | | -1.473 | -9.779 | 563.7% |
| Net Income | 30.384 | -1.812 | -6.396 | -29.286 | -10.421 | -64.4% |
Balance Sheet
|
|---|
| Cash | 6.783 | | | 4.220 | 2.777 | -34.2% |
| Short Term Debt | 0.000 | | | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | | | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | | | | 0.012 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 406.9% | -17.2% | -37.0% | 76.2% | 11.2% | |
| EBITDA growth | | | | | 563.7% | |
| Gross Margin | 99.5% | | | 95.7% | 62.5% | -33.2% |
| EBITDA Margin | 13.9% | 0.0% | 0.0% | -9.4% | -56.1% | -46.7% |
| Net Income Margin | 178.2% | -12.8% | -71.9% | -186.9% | -59.8% | 127.1% |
| SG&A, % of revenue | | | | 77.5% | 73.3% | -4.2% |
| CAPEX, % of revenue | | | | 0.1% | | -0.1% |
| ROIC | | | | | -97.9% | -97.9% |
| ROE | | | | | -109.5% | -109.5% |
| Net Debt/EBITDA | -2.9x | | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 11.2% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 46.7 pp from -9.4% to -56.1% in FY2015.
Gross Margin dropped on 33.2 pp from 95.7% to 62.5% in FY2015. SG&A as a % of Revenue decreased on 4.2 pp from 77.5% to 73.3% in FY2015.
Net Income marign surged on 127 pp from -187% to -59.8% in FY2015.
Return on investment
The company operates at negative ROIC (-97.87%) and ROE (-109.50%).
Leverage (Debt)
The company has no debt. Cash dropped on 34.2% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Heritage Global Inc benchmarking vs. other companies in Consumer, Non-cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($COM) | | -47.6% | 471.7% | 566.0% | -30.4% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| |
|---|
| Median (86 companies) | 14.3% | 9.7% | 6.7% | 12.7% | 11.9% |
|---|
| Heritage Global Inc ($HGP) | | -17.2% | -37.0% | 76.2% | 11.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (74 companies) | 35.4% | 37.4% | 36.1% | 35.1% | 35.7% |
|---|
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | 62.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | 36.1% |
| |
|---|
| Median (85 companies) | 7.5% | 7.9% | 9.0% | 11.0% | 10.9% |
|---|
| Heritage Global Inc ($HGP) | 13.9% | | | -9.4% | -56.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| Heritage Global Inc ($HGP) | | | | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 7.1% |
|---|
| Heritage Global Inc ($HGP) | | | | | -97.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (71 companies) | 1.9x | 2.6x | 2.2x | 2.7x | 1.6x |
|---|
