Prism Medical Ltd Net Income dropped on 98.5% in 2015 while Revenue jumped on 27.7%
29.03.2016 • About Prism Medical Ltd (
$PM) • By InTwits
Prism Medical Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 2.9%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prism Medical Ltd ($PM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 73.813 | 76.027 | 39.041 | 44.197 | 56.422 | 27.7% |
| Gross Profit | 30.415 | | 16.247 | 18.970 | 21.825 | 15.1% |
| SG&A | 7.391 | | 16.088 | 18.763 | 20.528 | 9.4% |
| EBITDA | 9.668 | | 3.705 | 3.128 | 4.049 | 29.4% |
| Net Income | 3.999 | 2.275 | 4.606 | 22.841 | 0.334 | -98.5% |
Balance Sheet
|
|---|
| Cash | 3.113 | | 2.069 | 6.497 | 0.600 | -90.8% |
| Short Term Debt | 12.946 | | 10.473 | 9.187 | 13.552 | 47.5% |
| Long Term Debt | 2.768 | | 9.265 | 1.989 | 2.009 | 1.0% |
Cash flow
|
|---|
| Capex | 1.109 | | 1.057 | 2.817 | 0.869 | -69.2% |
Ratios
|
|---|
| Revenue growth | 10.7% | 3.0% | -48.6% | 13.2% | 27.7% | |
| EBITDA growth | 17.4% | | | -15.6% | 29.4% | |
| Gross Margin | 41.2% | | 41.6% | 42.9% | 38.7% | -4.2% |
| EBITDA Margin | 13.1% | 0.0% | 9.5% | 7.1% | 7.2% | 0.1% |
| Net Income Margin | 5.4% | 3.0% | 11.8% | 51.7% | 0.6% | -51.1% |
| SG&A, % of revenue | 10.0% | | 41.2% | 42.5% | 36.4% | -6.1% |
| CAPEX, % of revenue | 1.5% | | 2.7% | 6.4% | 1.5% | -4.8% |
| ROIC | 15.1% | | | 0.4% | 2.9% | 2.5% |
| ROE | 14.6% | | | 70.0% | 1.3% | -68.7% |
| Net Debt/EBITDA | 1.3x | | 4.8x | 1.5x | 3.7x | 2.2x |
Revenue and profitability
The company's Revenue jumped on 27.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from -32.7% to -36.3% in 2015.
Gross Margin decreased on 4.2 pp from 42.9% to 38.7% in FY2015. SG&A as a % of Revenue decreased on 6.1 pp from 42.5% to 36.4% in FY2015.
Net Income marign dropped on 51.1 pp from 51.7% to 0.59% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Prism Medical Ltd had CAPEX/Revenue of 1.5%. Prism Medical Ltd showed small growth in CAPEX/Revenue1.5 pp from in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at low ROIC (2.93%) and ROE (1.32%). ROIC increased on 2.5 pp from 0.41% to 2.9% in FY2015. ROE dropped on 68.7 pp from 70.0% to 1.3% in FY2015.
Leverage (Debt)
Debt level is 3.7x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from 1.5x to 3.7x in FY2015. Debt jumped on 39.2% in FY2015 while cash dropped on 90.8% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Prism Medical Ltd 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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| |
|---|
| Median (73 companies) | 20.5% | 9.7% | 6.7% | 12.7% | 12.5% |
|---|
| Prism Medical Ltd ($PM) | | 3.0% | -48.6% | 13.2% | 27.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (61 companies) | 35.4% | 37.4% | 35.9% | 35.1% | 35.7% |
|---|
| Prism Medical Ltd ($PM) | 41.2% | | 41.6% | 42.9% | 38.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| |
|---|
| Median (72 companies) | 7.5% | 7.9% | 8.7% | 11.0% | 10.8% |
|---|
| Prism Medical Ltd ($PM) | 13.1% | | 9.5% | 7.1% | 7.2% |
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% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (72 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.3% |
|---|
| Prism Medical Ltd ($PM) | 1.5% | | 2.7% | 6.4% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Medical Facilities Corp ($DR) | 41.0% | 36.1% | 39.5% | 26.5% | 28.5% |
| |
|---|
| Median (73 companies) | 7.0% | 6.7% | 6.7% | 7.3% | 7.5% |
|---|
| Prism Medical Ltd ($PM) | 15.1% | | | 0.4% | 2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($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 ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| |
|---|
| Median (63 companies) | 1.9x | 2.6x | 2.2x | 2.7x | 1.8x |
|---|
| Prism Medical Ltd ($PM) | 1.3x | | 4.8x | 1.5x | 3.7x |
