Imperial Metals Corp Net Debt / EBITDA jumped on 54.6x from 12.9x to 67.5x in 2015 while EBITDA dropped on 74.8%
30.03.2016 • About Imperial Metals Corp (
$III) • By InTwits
Imperial Metals Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imperial Metals Corp doesn't have a profitable business model yet: 2015 ROIC is -1.5%
- EBITDA Margin is quite volatile: 10.4% in 2015, 40.6% in 2014, 40.5% in 2013, 32.1% in 2012, 31.0% in 2011
- Imperial Metals Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 128.3%. At the same time it's a lot of higher than industry average of 29.5%.
- CAPEX is quite volatile: 101 in 2015, 367 in 2014, 349 in 2013, 138 in 2012, 71.5 in 2011
- The company has unprofitable business model: ROIC is at -1.5%
- It operates with high leverage: Net Debt/EBITDA is 67.5x while industry average is 3.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imperial Metals Corp ($III) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 253.2 | 199.4 | 187.8 | 130.9 | 128.7 | -1.7% |
| Gross Profit | 64.3 | 56.9 | 64.3 | 40.2 | -11.5 | -128.5% |
| SG&A | 9.3 | 8.6 | 7.0 | 6.4 | 7.5 | 18.0% |
| EBITDA | 78.5 | 63.9 | 76.1 | 53.2 | 13.4 | -74.8% |
| Net Income | 48.7 | 32.6 | 41.0 | -37.3 | -97.0 | 160.1% |
Balance Sheet
|
|---|
| Cash | 34.5 | 2.8 | 3.1 | 19.9 | 9.2 | -53.9% |
| Short Term Debt | 28.0 | 94.3 | 142.8 | 12.6 | 206.7 | 1,541.9% |
| Long Term Debt | 0.5 | 6.4 | 234.0 | 694.3 | 707.8 | 1.9% |
Cash flow
|
|---|
| Capex | 71.5 | 137.9 | 348.7 | 366.8 | 100.5 | -72.6% |
Ratios
|
|---|
| Revenue growth | 2.8% | -21.3% | -5.8% | -30.3% | -1.7% | |
| EBITDA growth | -2.2% | -18.6% | 19.1% | -30.2% | -74.8% | |
| Gross Margin | 25.4% | 28.5% | 34.2% | 30.7% | -8.9% | -39.7% |
| EBITDA Margin | 31.0% | 32.1% | 40.5% | 40.6% | 10.4% | -30.2% |
| Net Income Margin | 19.2% | 16.4% | 21.8% | -28.5% | -75.3% | -46.9% |
| SG&A, % of revenue | 3.7% | 4.3% | 3.7% | 4.9% | 5.8% | 1.0% |
| CAPEX, % of revenue | 28.2% | 69.2% | 185.7% | 280.2% | 78.1% | -202.1% |
| ROIC | 14.2% | 10.0% | 8.0% | 3.2% | -1.5% | -4.7% |
| ROE | 15.3% | 9.2% | 10.4% | -9.0% | -24.7% | -15.7% |
| Net Debt/EBITDA | -0.1x | 1.5x | 4.9x | 12.9x | 67.5x | 54.6x |
Revenue and profitability
Imperial Metals Corp's Revenue decreased slightly on 1.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 52.3 pp from 58.0% to 110% in 2015.
Gross Margin dropped on 39.7 pp from 30.7% to -8.9% in 2015. SG&A as a % of Revenue increased slightly on 0.97 pp from 4.9% to 5.8% in 2015.
Net Income marign dropped on 46.9 pp from -28.5% to -75.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 78.1%. The company's CAPEX/Revenue increased on 8.9 pp from 69.2% in 2012 to 78.1% in 2015. Average CAPEX/Revenue for the last three years was 181%.Battling declining revenue Imperial Metals Corp made large investments to CAPEX (750% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.48%) and ROE (-24.73%). ROIC decreased on 4.7 pp from 3.2% to -1.5% in 2015. ROE dropped on 15.7 pp from -9.0% to -24.7% in 2015.
Leverage (Debt)
Debt level is 67.5x Net Debt / EBITDA and 68.2x Debt / EBITDA. Net Debt / EBITDA surged on 54.6x from 12.9x to 67.5x in 2015. Debt jumped on 29.4% in 2015 while cash dropped on 53.9% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find Imperial Metals Corp benchmarking vs. other companies in Basic Materials 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 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | | 97.4% | -90.6% | -97.6% | 84,715.6% |
| Golden Minerals Co ($AUM) | | 1,320.8% | -59.1% | -97.8% | 3,334.5% |
| Jemi Fibre Corp ($JFI) | | | | -27.3% | 375.3% |
| Osisko Gold Royalties Ltd ($OR) | | | | | 164.4% |
| VMS Ventures Inc ($VMS) | | | | | 139.7% |
| |
|---|
| Median (127 companies) | -20.4% | 8.5% | -5.0% | -0.8% | -1.8% |
|---|
| Imperial Metals Corp ($III) | | -21.3% | -5.8% | -30.3% | -1.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Trevali Mining Corp ($TV) | | | | 49.0% | 59.3% |
| |
|---|
| Median (121 companies) | 31.2% | 32.0% | 20.7% | 16.8% | 15.5% |
|---|
| Imperial Metals Corp ($III) | 25.4% | 28.5% | 34.2% | 30.7% | -8.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | | 72.8% |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | 65.8% |
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | 60.8% |
| Lucara Diamond Corp ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (127 companies) | 22.0% | 18.4% | 11.3% | 9.7% | 6.6% |
|---|
| Imperial Metals Corp ($III) | 31.0% | 32.1% | 40.5% | 40.6% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sandstorm Gold Ltd ($SSL) | 113.4% | 152.1% | 118.8% | 49.4% | 412.7% |
| Silver Wheaton Corp ($SLW) | 19.4% | 75.5% | 286.8% | 22.5% | 279.2% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| Avino Silver & Gold Mines Ltd ($ASM) | | 211.7% | 5.6% | 89.8% | 163.3% |
| Amerigo Resources Ltd ($ARG) | 12.9% | 13.0% | 9.3% | 9.8% | 99.6% |
| |
|---|
| Median (127 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 15.7% |
|---|
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | 78.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| Supremex Inc ($SXP) | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% |
| Claude Resources Inc ($CRJ) | 7.1% | 4.5% | -5.6% | 3.6% | 19.3% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% |
| |
|---|
| Median (129 companies) | 5.4% | 4.9% | -0.1% | -0.1% | -4.6% |
|---|
| Imperial Metals Corp ($III) | 14.2% | 10.0% | 8.0% | 3.2% | -1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | | | | | 38.8x |
| Copper Mountain Mining Corp ($CUM) | 17.2x | 3.9x | 5.0x | 5.4x | 30.6x |
| Resolute Forest Products Inc ($RFP) | 0.6x | 1.3x | 1.1x | 3.8x | 29.6x |
| Fortress Paper Ltd ($FTP) | 92.5x | | | | 18.8x |
| Jemi Fibre Corp ($JFI) | | | 5.5x | | 17.4x |
| |
|---|
| Median (82 companies) | -0.0x | 0.3x | 0.7x | 0.9x | 1.3x |
|---|
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | 67.5x |
