Kelso Technologies Inc reports 162% Net Income decline and 28.5 pp EBITDA Margin decline from 26.8% to -1.7%
29.03.2016 • About Kelso Technologies Inc (
$KLS) • By InTwits
Kelso Technologies Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kelso Technologies Inc doesn't have a profitable business model yet: 2015 ROIC is -3.4%
- The company operates at negative EBITDA Margin: -1.7%
- Kelso Technologies Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 0.24 in 2015, 3.2 in 2014, 0.097 in 2013, 0.0079 in 2012, 0.26 in 2011
- The company has unprofitable business model: ROIC is at -3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kelso Technologies Inc ($KLS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 0.330 | 2.234 | 13.131 | 23.817 | 18.910 | -20.6% |
| Gross Profit | 0.324 | 0.560 | 5.305 | 10.924 | 5.100 | -53.3% |
| SG&A | | | 1.181 | 2.913 | 3.005 | 3.2% |
| EBITDA | -1.515 | -0.129 | 1.830 | 6.387 | -0.318 | -105.0% |
| Net Income | -1.480 | -0.143 | 2.457 | 4.026 | -2.511 | -162.4% |
Balance Sheet
|
|---|
| Cash | 1.492 | | 4.463 | 9.895 | 3.175 | -67.9% |
| Short Term Debt | 0.000 | | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.261 | 0.008 | 0.097 | 3.204 | 0.242 | -92.4% |
Ratios
|
|---|
| Revenue growth | 80.5% | 577.5% | 487.8% | 81.4% | -20.6% | |
| EBITDA growth | 109.1% | -91.5% | -1,514.3% | 249.0% | -105.0% | |
| Gross Margin | 98.1% | 25.1% | 40.4% | 45.9% | 27.0% | -18.9% |
| EBITDA Margin | -459.4% | -5.8% | 13.9% | 26.8% | -1.7% | -28.5% |
| Net Income Margin | -449.0% | -6.4% | 18.7% | 16.9% | -13.3% | -30.2% |
| SG&A, % of revenue | | | 9.0% | 12.2% | 15.9% | 3.7% |
| CAPEX, % of revenue | 79.2% | 0.4% | 0.7% | 13.5% | 1.3% | -12.2% |
| ROIC | -121.3% | | | 48.8% | -3.4% | -52.1% |
| ROE | -121.0% | -6.0% | 43.6% | 31.7% | -16.6% | -48.3% |
| Net Debt/EBITDA | | | -2.4x | -1.5x | | 1.5x |
Revenue and profitability
The company's Revenue dropped on 20.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 28.5 pp from 26.8% to -1.7% in 2015.
Gross Margin dropped on 18.9 pp from 45.9% to 27.0% in 2015. SG&A as a % of Revenue increased on 3.7 pp from 12.2% to 15.9% in 2015.
Net Income marign dropped on 30.2 pp from 16.9% to -13.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.3% in 2015. CAPEX/Revenue increased slightly on 0.93 pp from 0.35% in 2012 to 1.3% in 2015. Average CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at negative ROIC (-3.35%) and ROE (-16.62%). ROIC dropped on 52.1 pp from 48.8% to -3.4% in 2015. ROE dropped on 48.3 pp from 31.7% to -16.6% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 67.9% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Kelso Technologies Inc 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 ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (65 companies) | 6.4% | 5.2% | 4.7% | 6.8% | 5.4% |
|---|
| Kelso Technologies Inc ($KLS) | | 577.5% | 487.8% | 81.4% | -20.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | 82.7% |
| 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 ($CAO) | | | 79.2% | 78.9% | 78.4% |
| |
|---|
| Median (57 companies) | 37.0% | 37.0% | 32.1% | 34.6% | 33.7% |
|---|
| Kelso Technologies Inc ($KLS) | 98.1% | 25.1% | 40.4% | 45.9% | 27.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($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 ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (60 companies) | 8.9% | 8.1% | 9.7% | 10.0% | 9.7% |
|---|
| Kelso Technologies Inc ($KLS) | -459.4% | -5.8% | 13.9% | 26.8% | -1.7% |
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% |
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (65 companies) | 2.8% | 2.7% | 2.9% | 2.4% | 2.8% |
|---|
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | 51.1% |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| 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 ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (65 companies) | 10.8% | 9.7% | 10.1% | 9.7% | 10.9% |
|---|
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | -3.4% |
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 (54 companies) | 1.3x | 1.4x | 1.9x | 2.1x | 1.9x |
|---|
