Critical Control Energy Services Corp EBITDA dropped on 337% in 2015 and EBITDA Margin dropped on 13.9 pp from 4.5% to -9.4%
24.03.2016 • About Critical Control Energy Services Corp (
$CCZ) • By InTwits
Critical Control Energy Services Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Critical Control Energy Services Corp doesn't have a profitable business model yet: 2015 ROIC is -17.1%
- The company has unprofitable business model: ROIC is at -17.1%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Critical Control Energy Services Corp ($CCZ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 49.371 | 46.823 | 45.749 | 35.386 | 39.919 | 12.8% |
| Gross Profit | 17.783 | | 16.792 | | | |
| SG&A | | | 14.825 | | 12.566 | |
| EBITDA | 4.508 | | 3.243 | 1.584 | -3.761 | -337.4% |
| Net Income | 1.319 | 0.310 | 0.165 | -1.223 | -3.523 | 188.1% |
Balance Sheet
|
|---|
| Cash | 0.143 | | 0.434 | 1.805 | 0.815 | -54.8% |
| Short Term Debt | 3.608 | | 3.980 | 3.774 | 12.121 | 221.2% |
| Long Term Debt | 5.113 | | 1.090 | 2.312 | 0.056 | -97.6% |
Cash flow
|
|---|
| Capex | 0.412 | | 0.243 | 0.344 | 0.654 | 90.1% |
Ratios
|
|---|
| Revenue growth | -2.7% | -5.2% | -2.3% | -22.7% | 12.8% | |
| EBITDA growth | -9.1% | | | -51.2% | -337.4% | |
| Gross Margin | 36.0% | | 36.7% | | | 0.0% |
| EBITDA Margin | 9.1% | 0.0% | 7.1% | 4.5% | -9.4% | -13.9% |
| Net Income Margin | 2.7% | 0.7% | 0.4% | -3.5% | -8.8% | -5.4% |
| SG&A, % of revenue | | | 32.4% | | 31.5% | 31.5% |
| CAPEX, % of revenue | 0.8% | | 0.5% | 1.0% | 1.6% | 0.7% |
| ROIC | 7.0% | | | -2.1% | -17.1% | -15.0% |
| ROE | 5.4% | | | -4.5% | -13.0% | -8.5% |
| Net Debt/EBITDA | 1.9x | | 1.4x | 2.7x | | -2.7x |
Revenue and profitability
Critical Control Energy Services Corp's Revenue surged on 12.8% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 13.9 pp from 4.5% to -9.4% in 2015.
Net Income marign decreased on 5.4 pp from -3.5% to -8.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Critical Control Energy Services Corp had CAPEX/Revenue of 1.6%. The company's CAPEX/Revenue increased slightly1.6 pp from in 2012 to 1.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at negative ROIC (-17.06%) and ROE (-13.04%). ROIC dropped on 15.0 pp from -2.1% to -17.1% in 2015. ROE decreased on 8.5 pp from -4.5% to -13.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.7x from 2.7x to in 2015. Debt jumped on 100% in 2015 while cash dropped on 54.8% in 2015.
Appendix 1: Peers in Technology
Below we provide Critical Control Energy Services Corp benchmarking against other companies in Technology 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 |
|---|
| Mitel Networks Corp ($MNW) | | 3.8% | -5.7% | 91.4% | 4.9% |
| Redknee Solutions Inc ($RKN) | | -4.5% | 151.6% | 81.4% | -13.6% |
| Intrinsyc Technologies Corp ($ITC) | | -26.8% | -21.7% | 70.8% | 24.5% |
| Espial Group Inc ($ESP) | | -9.5% | -5.5% | 59.4% | 24.2% |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (34 companies) | 21.3% | 3.7% | 11.9% | 14.4% | 13.4% |
|---|
| Critical Control Energy Services Corp ($CCZ) | | -5.2% | -2.3% | -22.7% | 12.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | 79.4% |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | 86.2% |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | 74.3% |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (32 companies) | 49.9% | 53.8% | 53.2% | 51.7% | 55.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | 35.1% |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | 21.9% |
| |
|---|
| Median (34 companies) | 8.3% | 8.3% | 5.3% | 7.1% | 15.4% |
|---|
| Critical Control Energy Services Corp ($CCZ) | 9.1% | | 7.1% | 4.5% | -9.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | 2.9% |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | 4.7% |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | 1.9% |
| |
|---|
| Median (34 companies) | 1.3% | 1.5% | 1.5% | 1.2% | 1.4% |
|---|
| Critical Control Energy Services Corp ($CCZ) | 0.8% | | 0.5% | 1.0% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | 44.0% |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | 38.5% |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | 21.7% |
| |
|---|
| Median (34 companies) | 5.1% | 3.1% | -4.8% | 0.9% | 7.4% |
|---|
| Critical Control Energy Services Corp ($CCZ) | 7.0% | | | -2.1% | -17.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mad Catz Interactive Inc ($MCZ) | 0.7x | 32.2x | 1.2x | | 9.4x |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | 6.2x |
| BlackBerry Ltd ($BB) | -0.3x | -0.5x | -2.3x | | 1.7x |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| SMART Technologies Inc ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (20 companies) | -0.3x | -0.4x | -0.6x | -1.3x | -0.8x |
|---|
