BrightPath Early Learning Inc reports 204% CAPEX growth and 6.6% Revenue growth
30.03.2016 • About BrightPath Early Learning Inc (
$BPE) • By InTwits
BrightPath Early Learning Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.6% in 2015, 11.2% in 2014, 5.8% in 2013, 3.1% in 2012, -1.1% in 2011
- BrightPath Early Learning Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.6%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 10.7 in 2015, 3.5 in 2014, 2.0 in 2013, 13.3 in 2012, 10.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BrightPath Early Learning Inc ($BPE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.177 | 36.426 | 46.818 | 50.808 | 54.170 | 6.6% |
| Gross Profit | 17.119 | 34.292 | | | | |
| SG&A | | | | | 4.850 | |
| EBITDA | -0.196 | 1.113 | 2.737 | 5.693 | 5.746 | 0.9% |
| Net Income | -2.557 | -4.462 | -3.469 | -1.568 | 1.224 | -178.1% |
Balance Sheet
|
|---|
| Cash | 1.911 | 5.800 | 3.940 | 3.455 | 1.537 | -55.5% |
| Short Term Debt | 0.000 | 5.488 | 1.272 | 1.418 | 5.184 | 265.6% |
| Long Term Debt | 2.260 | 4.695 | 4.755 | 4.355 | 19.001 | 336.3% |
Cash flow
|
|---|
| Capex | 10.116 | 13.287 | 2.015 | 3.509 | 10.674 | 204.2% |
Ratios
|
|---|
| Revenue growth | 190.3% | 100.4% | 28.5% | 8.5% | 6.6% | |
| EBITDA growth | -91.3% | -667.9% | 145.9% | 108.0% | 0.9% | |
| Gross Margin | 94.2% | 94.1% | | | | 0.0% |
| EBITDA Margin | -1.1% | 3.1% | 5.8% | 11.2% | 10.6% | -0.6% |
| Net Income Margin | -14.1% | -12.2% | -7.4% | -3.1% | 2.3% | 5.3% |
| SG&A, % of revenue | | | | | 9.0% | 9.0% |
| CAPEX, % of revenue | 55.7% | 36.5% | 4.3% | 6.9% | 19.7% | 12.8% |
| ROIC | -2.7% | -1.7% | -0.4% | 4.4% | 3.6% | -0.9% |
| ROE | -5.4% | -7.7% | -6.2% | -2.9% | 2.3% | 5.2% |
| Net Debt/EBITDA | | 3.9x | 0.8x | 0.4x | 3.9x | 3.5x |
Revenue and profitability
The company's Revenue increased on 6.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 128 pp from 40.7% to -87.1% in 2015.
Net Income marign increased on 5.3 pp from -3.1% to 2.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 19.7%. The company's CAPEX/Revenue dropped on 16.8 pp from 36.5% in 2012 to 19.7% in 2015. It's average CAPEX/Revenue for the last three years was 10.3%.The company investments to CAPEX were large: 186% of EBITDA.
Return on investment
The company operates at low ROIC (3.55%) and ROE (2.27%). ROIC decreased slightly on 0.85 pp from 4.4% to 3.6% in 2015. ROE increased on 5.2 pp from -2.9% to 2.3% in 2015.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA jumped on 3.5x from 0.4x to 3.9x in 2015. Debt surged on 319% in 2015 while cash dropped on 55.5% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide BrightPath Early Learning Inc 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 ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (76 companies) | 46.5% | 8.7% | 5.3% | 13.2% | 14.3% |
|---|
| BrightPath Early Learning Inc ($BPE) | | 100.4% | 28.5% | 8.5% | 6.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
| 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 ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (64 companies) | 35.4% | 36.1% | 36.1% | 35.6% | 36.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($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 (75 companies) | 7.9% | 8.5% | 9.0% | 10.6% | 10.6% |
|---|
| BrightPath Early Learning Inc ($BPE) | -1.1% | 3.1% | 5.8% | 11.2% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($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 (75 companies) | 2.3% | 2.6% | 2.4% | 2.5% | 2.3% |
|---|
| BrightPath Early Learning Inc ($BPE) | 55.7% | 36.5% | 4.3% | 6.9% | 19.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
| 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% |
| |
|---|
| Median (76 companies) | 7.7% | 7.1% | 6.9% | 7.3% | 7.1% |
|---|
| BrightPath Early Learning Inc ($BPE) | -2.7% | -1.7% | -0.4% | 4.4% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Concordia Healthcare Corp ($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 (65 companies) | 1.9x | 2.5x | 2.2x | 2.7x | 1.8x |
|---|
| BrightPath Early Learning Inc ($BPE) | | 3.9x | 0.8x | 0.4x | 3.9x |
