Response Biomedical Corp EBITDA Margin surged on 45.0 pp from -36.7% to 8.4% in 2015 and Revenue surged on 40.0%
21.03.2016 • About Response Biomedical Corp (
$RBM) • By InTwits
Response Biomedical Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Response Biomedical Corp is a fast growth stock: 2015 revenue growth was 40.0%, 5 year revenue CAGR was 16.7% at 2015 ROIC 52.0%
- Response Biomedical Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -19.8% for the sames years0
- Response Biomedical Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 88.3%.
- CAPEX is quite volatile: 0.45 in 2015, 0.41 in 2014, 0.20 in 2013, 0.31 in 2012, 0.11 in 2011
- The company has highly profitable business model: ROIC is at 52.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Response Biomedical Corp ($RBM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9.473 | 11.750 | 11.531 | 11.014 | 15.418 | 40.0% |
| Gross Profit | 2.505 | 4.246 | 4.943 | 4.367 | 8.079 | 85.0% |
| SG&A | | 5.495 | 5.745 | 5.875 | 4.893 | -16.7% |
| EBITDA | -3.720 | -3.059 | -2.212 | -4.039 | 1.288 | -131.9% |
| Net Income | -5.371 | -5.281 | -5.998 | -2.090 | -0.150 | -92.8% |
Balance Sheet
|
|---|
| Cash | 7.355 | 2.080 | 2.958 | 3.221 | 2.511 | -22.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.494 | 0.843 | 70.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 1.004 | 0.360 | -64.1% |
Cash flow
|
|---|
| Capex | 0.106 | 0.311 | 0.196 | 0.410 | 0.449 | 9.5% |
Ratios
|
|---|
| Revenue growth | 33.2% | 24.0% | -1.9% | -4.5% | 40.0% | |
| EBITDA growth | -53.4% | -17.8% | -27.7% | 82.6% | -131.9% | |
| Gross Margin | 26.4% | 36.1% | 42.9% | 39.6% | 52.4% | 12.8% |
| EBITDA Margin | -39.3% | -26.0% | -19.2% | -36.7% | 8.4% | 45.0% |
| Net Income Margin | -56.7% | -44.9% | -52.0% | -19.0% | -1.0% | 18.0% |
| SG&A, % of revenue | | 46.8% | 49.8% | 53.3% | 31.7% | -21.6% |
| CAPEX, % of revenue | 1.1% | 2.6% | 1.7% | 3.7% | 2.9% | -0.8% |
| ROIC | -75.0% | -158.5% | | | 52.0% | 52.0% |
| ROE | -82.4% | -199.4% | | | | 0.0% |
| Net Debt/EBITDA | | | | | -1.0x | -1.0x |
Revenue and profitability
Response Biomedical Corp's Revenue surged on 40.0% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 45.0 pp from -36.7% to 8.4% in 2015.
Gross Margin jumped on 12.8 pp from 39.6% to 52.4% in 2015. SG&A as a % of Revenue dropped on 21.6 pp from 53.3% to 31.7% in 2015.
Net Income marign jumped on 18.0 pp from -19.0% to -0.97% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Response Biomedical Corp had CAPEX/Revenue of 2.9%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is 0.9x. Net Debt / EBITDA dropped1.0x from to -1.0x in 2015. Debt dropped on 19.7% in 2015 while cash dropped on 22.0% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Response Biomedical Corp benchmarking against other companies in Consumer, Non-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 |
|---|
| 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 ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| |
|---|
| Median (86 companies) | 13.6% | 8.7% | 6.7% | 13.2% | 11.9% |
|---|
| Response Biomedical Corp ($RBM) | | 24.0% | -1.9% | -4.5% | 40.0% |
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% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | 62.5% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.6% | 38.6% | 35.9% | 35.1% | 35.7% |
|---|
| Response Biomedical Corp ($RBM) | 26.4% | 36.1% | 42.9% | 39.6% | 52.4% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | 36.1% |
| |
|---|
| Median (85 companies) | 7.9% | 8.5% | 9.0% | 11.0% | 10.6% |
|---|
| Response Biomedical Corp ($RBM) | -39.3% | -26.0% | -19.2% | -36.7% | 8.4% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.5% | 2.3% |
|---|
| Response Biomedical Corp ($RBM) | 1.1% | 2.6% | 1.7% | 3.7% | 2.9% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.7% | 7.1% | 6.7% | 6.9% | 7.1% |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Sienna Senior Living Inc ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | 9.1x |
| |
|---|
| Median (56 companies) | 1.9x | 2.6x | 2.2x | 2.7x | 1.6x |
|---|
| Response Biomedical Corp ($RBM) | | | | | -1.0x |
