BRP Inc/CA CAPEX jumped on 22.3% in 2016 and Revenue increased on 8.6%
18.03.2016 • About BRP Inc/CA (
$DOO) • By InTwits
BRP Inc/CA reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BRP Inc/CA is a growth stock: FY2016 revenue growth was 8.6%, 5 year revenue CAGR was 12.4% at FY2016 ROIC 26.6%
- BRP Inc/CA has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 925 in 2016, 906 in 2015, 741 in 2014, 715 in 2013, 269 in 2012
- The company has highly profitable business model: ROIC is at 26.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BRP Inc/CA ($DOO) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,653 | 2,896 | 3,194 | 3,525 | 3,829 | 8.6% |
| Gross Profit | 652 | 738 | 808 | 846 | 914 | 8.1% |
| SG&A | 343 | 356 | 374 | 387 | 408 | 5.7% |
| EBITDA | 270 | 305 | 390 | 418 | 392 | -6.4% |
| Net Income | 84 | 119 | 60 | 70 | 52 | -26.5% |
Balance Sheet
|
|---|
| Cash | 27 | 542 | 75 | 232 | 235 | 1.3% |
| Short Term Debt | 95 | 48 | 17 | 11 | 15 | 31.0% |
| Long Term Debt | 666 | 1,042 | 884 | 1,024 | 1,132 | 10.5% |
Cash flow
|
|---|
| Capex | 113 | 143 | 134 | 159 | 194 | 22.3% |
Ratios
|
|---|
| Revenue growth | 24.4% | 9.2% | 10.3% | 10.4% | 8.6% | |
| EBITDA growth | 62.8% | 13.0% | 28.0% | 7.2% | -6.4% | |
| Gross Margin | 24.6% | 25.5% | 25.3% | 24.0% | 23.9% | -0.1% |
| EBITDA Margin | 10.2% | 10.5% | 12.2% | 11.9% | 10.2% | -1.6% |
| Net Income Margin | 3.2% | 4.1% | 1.9% | 2.0% | 1.3% | -0.6% |
| SG&A, % of revenue | 12.9% | 12.3% | 11.7% | 11.0% | 10.7% | -0.3% |
| CAPEX, % of revenue | 4.3% | 4.9% | 4.2% | 4.5% | 5.1% | 0.6% |
| ROIC | 29.8% | 26.8% | 32.3% | 35.3% | 26.6% | -8.7% |
| Net Debt/EBITDA | 2.7x | 1.8x | 2.1x | 1.9x | 2.3x | 0.4x |
BRP Inc/CA ($DOO) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 898 | 812 | 1,010 | 1,109 | 18.4% | 4.1% | 10.0% | 3.8% |
| EBITDA | 91 | 53 | 136 | 112 | 65.3% | 69.5% | 6.8% | -45.3% |
| Net Income | 83 | -68 | 66 | -29 | 196.8% | | 76.1% | -437.6% |
Balance Sheet
|
|---|
| Cash | 235 | 157 | 94 | 235 | 206.0% | 610.9% | 109.3% | 1.3% |
| Short Term Debt | 11 | 19 | 13 | 15 | 49.3% | -63.0% | 10.4% | 31.0% |
| Long Term Debt | 980 | 1,049 | 1,054 | 1,132 | 10.3% | 19.4% | 15.2% | 10.5% |
Ratios
|
|---|
| Gross Margin | 23.7% | 20.9% | 24.4% | 25.8% | 0.8% | 2.5% | -1.7% | -1.3% |
| EBITDA Margin | 10.1% | 6.5% | 13.5% | 10.1% | 2.9% | 2.5% | -0.4% | -9.1% |
| Net Income Margin | 9.3% | -8.4% | 6.5% | -2.6% | 5.6% | -8.0% | 2.4% | -3.4% |
Revenue and profitability
The company's Revenue increased on 8.6%. Revenue growth showed slow down in FY16Q4 - it was 3.8% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.6 pp from 0.49% to 5.1% in 2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 0.64 pp from 2.0% to 1.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
BRP Inc/CA's CAPEX/Revenue was 5.1% in FY2016. BRP Inc/CA's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 4.6%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is 2.9x. Net Debt / EBITDA jumped on 0.4x from 1.9x to 2.3x in FY2016. Debt surged on 10.7% while cash increased slightly on 1.3%.
Management team
The company's CEO is Jose Boisjoli. Jose Boisjoli is a founder and has 15 years tenure at the company. The company's CFO is Sebastien Martel. Sebastien Martel has 4 years tenure at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide BRP Inc/CA 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 539.9% | |
| Restaurant Brands International Inc ($QSR) | | | 4.6% | 238.0% | |
| Amaya Inc ($AYA) | 311.5% | 85.2% | 254.0% | 113.8% | |
| NYX Gaming Group Ltd ($NYX) | 65.2% | 52.8% | 45.8% | 91.8% | |
| Rainmaker Entertainment Inc ($RNK) | -24.6% | -45.0% | 30.1% | 56.4% | |
| |
|---|
| Median (49 companies) | 5.3% | 4.9% | 7.8% | 8.6% | |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NYX Gaming Group Ltd ($NYX) | 91.3% | 86.7% | 88.3% | 85.6% | |
| DEQ Systems Corp ($DEQ) | 77.5% | 78.4% | 84.7% | 82.7% | |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| |
|---|
| Median (42 companies) | 34.1% | 31.8% | 31.9% | 30.6% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (46 companies) | 7.5% | 9.7% | 10.2% | 9.0% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | |
| WestJet Airlines Ltd ($WJA) | 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) | 7.9% | 15.8% | 15.5% | 15.4% | |
| Chorus Aviation Inc ($CHR.A) | 9.9% | 9.6% | 3.9% | 15.0% | |
| |
|---|
| Median (49 companies) | 2.7% | 3.1% | 3.4% | 2.8% | |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Partner Jet Corp ($PJT) | -51.6% | -50.8% | 85.1% | 51.1% | |
| Westshore Terminals Investment Corp ($WTE) | 24.0% | 37.8% | 35.0% | 38.3% | |
| Cara Operations Ltd ($CAO) | | | 24.7% | 35.1% | |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | |
| BMTC Group Inc ($GBT) | 33.0% | 32.5% | 25.2% | 25.2% | |
| |
|---|
| Median (49 companies) | 9.2% | 9.7% | 9.9% | 7.7% | |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 39.7x | |
| Mountain China Resorts Holding Ltd ($MCG) | | | 317.1x | 29.0x | |
| Rainmaker Entertainment Inc ($RNK) | | | | 18.6x | |
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | |
| |
|---|
| Median (38 companies) | 1.6x | 2.0x | 2.4x | 2.7x | |
|---|
