GLG Life Tech Corp revenue surged on 52.0% in 2015 and EBITDA Margin increased on 7.4 pp from -28.6% to -21.1%
30.03.2016 • About GLG Life Tech Corp (
$GLG) • By InTwits
GLG Life Tech Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GLG Life Tech Corp doesn't have a profitable business model yet: 2015 ROIC is -91.3%
- The company operates at negative EBITDA Margin: -21.1%
- GLG Life Tech Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -63.9% for the sames years0
- GLG Life Tech Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.8%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 1.4 in 2015, 1.8 in 2014, 0.081 in 2013, 0.78 in 2012, 9.0 in 2011
- The company has unprofitable business model: ROIC is at -91.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.2x while industry average is 5.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GLG Life Tech Corp ($GLG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.840 | 21.139 | 16.022 | 19.982 | 30.365 | 52.0% |
| Gross Profit | -1.582 | -4.972 | -1.702 | -2.046 | 1.559 | -176.2% |
| SG&A | 45.451 | 9.690 | 12.780 | 9.283 | 11.691 | 25.9% |
| EBITDA | -36.603 | -12.942 | -10.127 | -5.712 | -6.422 | 12.4% |
| Net Income | -176.912 | -34.820 | -26.430 | -35.011 | -25.709 | -26.6% |
Balance Sheet
|
|---|
| Cash | 4.487 | 3.582 | 5.133 | 0.955 | 2.327 | 143.7% |
| Short Term Debt | 70.574 | 59.883 | 40.663 | 61.494 | 70.009 | 13.8% |
| Long Term Debt | 0.000 | | 23.010 | 2.011 | 2.407 | 19.7% |
Cash flow
|
|---|
| Capex | 9.006 | 0.776 | 0.081 | 1.811 | 1.439 | -20.5% |
Ratios
|
|---|
| Revenue growth | -57.8% | -14.9% | -24.2% | 24.7% | 52.0% | |
| EBITDA growth | -384.7% | -64.6% | -21.8% | -43.6% | 12.4% | |
| Gross Margin | -6.4% | -23.5% | -10.6% | -10.2% | 5.1% | 15.4% |
| EBITDA Margin | -147.4% | -61.2% | -63.2% | -28.6% | -21.1% | 7.4% |
| Net Income Margin | -712.2% | -164.7% | -165.0% | -175.2% | -84.7% | 90.5% |
| SG&A, % of revenue | 183.0% | 45.8% | 79.8% | 46.5% | 38.5% | -8.0% |
| CAPEX, % of revenue | 36.3% | 3.7% | 0.5% | 9.1% | 4.7% | -4.3% |
| ROIC | -25.2% | | | -31.7% | -91.3% | -59.6% |
| ROE | -182.7% | -145.8% | | | | 0.0% |
Revenue and profitability
The company's Revenue surged on 52.0% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.4 pp from -28.6% to -21.1% in 2015.
Gross Margin surged on 15.4 pp from -10.2% to 5.1% in 2015. SG&A as a % of Revenue decreased on 8.0 pp from 46.5% to 38.5% in 2015.
Net Income marign surged on 90.5 pp from -175% to -84.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
GLG Life Tech Corp's CAPEX/Revenue was 4.7% in 2015. CAPEX/Revenue increased slightly on 1.1 pp from 3.7% in 2012 to 4.7% in 2015. It's average CAPEX/Revenue for the last three years was 4.8%.
Leverage (Debt)
Debt level is 5.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 14.0% in 2015 while cash surged on 144% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide GLG Life Tech Corp 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 ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (76 companies) | 46.5% | 9.7% | 6.7% | 12.7% | 13.3% |
|---|
| GLG Life Tech Corp ($GLG) | | -14.9% | -24.2% | 24.7% | 52.0% |
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 ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (63 companies) | 35.6% | 38.6% | 36.2% | 35.7% | 36.5% |
|---|
| GLG Life Tech Corp ($GLG) | -6.4% | -23.5% | -10.6% | -10.2% | 5.1% |
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 ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| |
|---|
| Median (75 companies) | 7.9% | 8.5% | 9.0% | 11.0% | 10.6% |
|---|
| GLG Life Tech Corp ($GLG) | -147.4% | -61.2% | -63.2% | -28.6% | -21.1% |
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 ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (75 companies) | 2.3% | 2.6% | 2.4% | 2.5% | 2.3% |
|---|
| GLG Life Tech Corp ($GLG) | 36.3% | 3.7% | 0.5% | 9.1% | 4.7% |
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 ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| |
|---|
| Median (76 companies) | 7.7% | 6.7% | 6.7% | 7.3% | 7.1% |
|---|
| GLG Life Tech Corp ($GLG) | -25.2% | | | -31.7% | -91.3% |
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 (66 companies) | 1.9x | 2.6x | 2.2x | 2.7x | 1.9x |
|---|
