AgJunction Inc reports 573% EBITDA decline and 12.9% Revenue decline
28.03.2016 • About AgJunction Inc (
$AJX) • By InTwits
AgJunction Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AgJunction Inc is a company in decline: 2015 revenue growth was -12.9%, 5 years revenue CAGR was -7.0%
- EBITDA Margin is quite volatile: -10.8% in 2015, 2.0% in 2014, 7.7% in 2013, 3.6% in 2012, 9.7% in 2011
- AgJunction Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -12.4%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AgJunction Inc ($AJX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 52.752 | 55.432 | 58.220 | 44.810 | 39.048 | -12.9% |
| Gross Profit | 25.353 | 24.486 | 25.507 | 20.308 | 14.828 | -27.0% |
| SG&A | | 15.983 | 14.004 | 13.922 | 13.836 | -0.6% |
| EBITDA | 5.112 | 1.991 | 4.504 | 0.895 | -4.236 | -573.3% |
| Net Income | -1.537 | -34.598 | 5.176 | -16.657 | -9.139 | -45.1% |
Balance Sheet
|
|---|
| Cash | 6.721 | 2.646 | 2.044 | 11.224 | 13.048 | 16.3% |
| Short Term Debt | 0.110 | 2.243 | 0.020 | 0.014 | 0.001 | -91.7% |
| Long Term Debt | 0.052 | 0.000 | 0.018 | 0.001 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.583 | 0.646 | 0.515 | 0.278 | 0.413 | 48.4% |
Ratios
|
|---|
| Revenue growth | -5.8% | 5.1% | 5.0% | -23.0% | -12.9% | |
| EBITDA growth | -252.8% | -61.0% | 126.2% | -80.1% | -573.3% | |
| Gross Margin | 48.1% | 44.2% | 43.8% | 45.3% | 38.0% | -7.3% |
| EBITDA Margin | 9.7% | 3.6% | 7.7% | 2.0% | -10.8% | -12.8% |
| Net Income Margin | -2.9% | -62.4% | 8.9% | -37.2% | -23.4% | 13.8% |
| SG&A, % of revenue | | 28.8% | 24.1% | 31.1% | 35.4% | 4.4% |
| CAPEX, % of revenue | 1.1% | 1.2% | 0.9% | 0.6% | 1.1% | 0.4% |
| ROIC | 3.8% | -1.9% | 5.3% | -1.5% | -12.4% | -10.8% |
| ROE | -2.1% | -55.4% | 10.1% | -36.1% | -19.9% | 16.2% |
| Net Debt/EBITDA | -1.3x | -0.2x | -0.4x | -12.5x | | 12.5x |
Revenue and profitability
The company's Revenue dropped on 12.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.8 pp from 2.0% to -10.8% in 2015.
Gross Margin decreased on 7.3 pp from 45.3% to 38.0% in 2015. SG&A as a % of Revenue increased on 4.4 pp from 31.1% to 35.4% in 2015.
Net Income marign jumped on 13.8 pp from -37.2% to -23.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
AgJunction Inc's CAPEX/Revenue was 1.1% in 2015. AgJunction Inc's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.85%.
Return on investment
The company operates at negative ROIC (-12.37%) and ROE (-19.90%). ROIC dropped on 10.8 pp from -1.5% to -12.4% in 2015. ROE jumped on 16.2 pp from -36.1% to -19.9% in 2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 12.5x from -12.5x to in 2015. Debt dropped on 92.3% in 2015 while cash jumped on 16.3% in 2015.
Appendix 1: Peers in Communications
Below we provide AgJunction Inc benchmarking against other companies in Communications 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 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 842.9% |
| DragonWave Inc ($DWI) | | -61.3% | 171.3% | -27.3% | 75.3% |
| Blackline Safety Corp ($BLN) | | 37.1% | 9.4% | 45.1% | 73.8% |
| NeuLion Inc ($NLN) | | -1.7% | 20.8% | 17.9% | 69.4% |
| TVA Group Inc ($TVA.B) | | 1.7% | -1.8% | -1.2% | 34.3% |
| |
|---|
| Median (44 companies) | 10.2% | 3.8% | 1.9% | 2.5% | 3.2% |
|---|
| AgJunction Inc ($AJX) | | 5.1% | 5.0% | -23.0% | -12.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | 81.1% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| TeraGo Inc ($TGO) | 65.0% | 62.9% | 61.8% | 59.8% | 77.2% |
| |
|---|
| Median (34 companies) | 43.2% | 43.0% | 42.6% | 41.9% | 49.9% |
|---|
| AgJunction Inc ($AJX) | 48.1% | 44.2% | 43.8% | 45.3% | 38.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Mediagrif Interactive Technologies Inc ($MDF) | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% |
| |
|---|
| Median (43 companies) | 14.4% | 14.6% | 14.6% | 12.6% | 15.0% |
|---|
| AgJunction Inc ($AJX) | 9.7% | 3.6% | 7.7% | 2.0% | -10.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| Shaw Communications Inc ($SJR.B) | 17.4% | 18.2% | 18.2% | 19.7% | 22.2% |
| Cogeco Cable Inc ($CCA) | 24.6% | 28.1% | 23.0% | 20.6% | 20.7% |
| TELUS Corp ($T) | 18.0% | 17.9% | 17.8% | 19.8% | 20.2% |
| |
|---|
| Median (43 companies) | 4.3% | 2.3% | 3.2% | 2.2% | 2.3% |
|---|
| AgJunction Inc ($AJX) | 1.1% | 1.2% | 0.9% | 0.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| RDM Corp ($RC) | -2.3% | 3.5% | 7.8% | 11.0% | 14.7% |
| Vecima Networks Inc ($VCM) | -0.6% | 11.7% | 6.4% | 11.4% | 14.5% |
| Norsat International Inc ($NII) | 3.1% | 10.9% | 1.4% | 13.7% | 13.8% |
| |
|---|
| Median (44 companies) | 7.2% | 8.6% | 8.7% | 8.3% | 3.8% |
|---|
| AgJunction Inc ($AJX) | 3.8% | -1.9% | 5.3% | -1.5% | -12.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 9.4x |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | 4.8x |
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Rogers Communications Inc ($RCI.A) | 2.2x | 2.3x | 2.4x | 3.2x | 3.6x |
| |
|---|
| Median (34 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.5x |
|---|
