Westshore Terminals Investment Corp CAPEX surged on 300% in 2015 and Revenue jumped on 17.2%
22.03.2016 • About Westshore Terminals Investment Corp (
$WTE) • By InTwits
Westshore Terminals Investment Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Westshore Terminals Investment Corp is a growth stock: 2015 revenue growth was 17.2%, 5 year revenue CAGR was 10.4% at 2015 ROIC 38.3%
- Westshore Terminals Investment Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.3%. At the same time it's a lot of higher than industry average of 5.1%.
- CAPEX is quite volatile: 77.6 in 2015, 19.4 in 2014, 33.9 in 2013, 61.9 in 2012, 15.0 in 2011
- The company has highly profitable business model: ROIC is at 38.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Westshore Terminals Investment Corp ($WTE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 212.8 | 240.7 | 295.7 | 312.1 | 365.8 | 17.2% |
| Gross Profit | 107.0 | 120.1 | 163.6 | 178.6 | 222.3 | 24.5% |
| SG&A | 9.7 | 10.0 | 13.2 | 14.6 | 14.8 | 1.1% |
| EBITDA | 107.8 | 119.6 | 195.0 | 190.1 | 218.0 | 14.7% |
| Net Income | 43.0 | 64.7 | 133.4 | 130.4 | 152.9 | 17.2% |
Balance Sheet
|
|---|
| Cash | 65.6 | 43.9 | 61.4 | 85.6 | 98.0 | 14.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 371.3 | 30.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 15.0 | 61.9 | 33.9 | 19.4 | 77.6 | 300.5% |
Ratios
|
|---|
| Revenue growth | -4.8% | 13.1% | 22.9% | 5.5% | 17.2% | |
| EBITDA growth | -0.2% | 10.9% | 63.0% | -2.5% | 14.7% | |
| Gross Margin | 50.3% | 49.9% | 55.3% | 57.2% | 60.8% | 3.5% |
| EBITDA Margin | 50.7% | 49.7% | 65.9% | 60.9% | 59.6% | -1.3% |
| Net Income Margin | 20.2% | 26.9% | 45.1% | 41.8% | 41.8% | 0.0% |
| SG&A, % of revenue | 4.6% | 4.1% | 4.5% | 4.7% | 4.0% | -0.6% |
| CAPEX, % of revenue | 7.1% | 25.7% | 11.5% | 6.2% | 21.2% | 15.0% |
| ROIC | 20.7% | 24.0% | 37.8% | 35.0% | 38.3% | 3.3% |
| ROE | 15.4% | 25.5% | 29.3% | 26.8% | 29.4% | 2.5% |
| Net Debt/EBITDA | 2.8x | -0.1x | -0.3x | -0.5x | -0.4x | 0.0x |
Revenue and profitability
Westshore Terminals Investment Corp's Revenue jumped on 17.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin increased on 3.5 pp from 57.2% to 60.8% in 2015. SG&A as a % of Revenue decreased slightly on 0.64 pp from 4.7% to 4.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 21.2% in 2015. Westshore Terminals Investment Corp showed decline in CAPEX/Revenue of 4.5 pp from 25.7% in 2012 to 21.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 13.0%.
Return on investment
The company operates at high and attractive ROIC (38.31%) and ROE (29.36%). ROIC increased on 3.3 pp from 35.0% to 38.3% in 2015. ROE increased on 2.5 pp from 26.8% to 29.4% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 14.4% in 2015.
Management team
William Wade Stinson is a Westshore Terminals Investment Corp's CEO. William Wade Stinson is a founder and has spent 21 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Westshore Terminals Investment Corp benchmarking vs. other companies in Consumer, 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 |
|---|
| 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 ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (59 companies) | -3.3% | 5.3% | 4.9% | 7.4% | 4.9% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | | 22.9% | 5.5% | 17.2% |
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 ($AC) | 62.3% | 62.4% | 63.5% | 64.0% | 71.9% |
| |
|---|
| Median (51 companies) | 37.0% | 34.1% | 31.8% | 33.5% | 33.7% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.9% | 55.3% | 57.2% | 60.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (55 companies) | 8.8% | 7.9% | 9.6% | 9.8% | 10.0% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
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% |
| 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% |
| Discovery Air Inc ($DA.A) | 11.8% | 17.1% | 16.8% | 10.1% | 13.7% |
| |
|---|
| Median (59 companies) | 2.8% | 2.7% | 2.8% | 2.3% | 2.8% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Air Canada ($AC) | 12.9% | | 37.0% | 23.2% | 28.4% |
| |
|---|
| Median (59 companies) | 10.7% | 9.7% | 10.1% | 9.7% | 10.9% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
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 |
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (50 companies) | 1.3x | 1.4x | 1.8x | 2.1x | 1.9x |
|---|
| Westshore Terminals Investment Corp ($WTE) | | -0.1x | -0.3x | -0.5x | -0.4x |
