ProMetic Life Sciences Inc Net Income dropped on 958% in 2015 while Revenue increased on 6.6%
30.03.2016 • About ProMetic Life Sciences Inc (
$PLI) • By InTwits
ProMetic Life Sciences Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ProMetic Life Sciences Inc doesn't have a profitable business model yet: 2015 ROIC is -27.7%
- The company operates at negative EBITDA Margin: -195.9%
- ProMetic Life Sciences Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -67.5%0
- ProMetic Life Sciences Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.1%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 5.7 in 2015, 8.0 in 2014, 6.9 in 2013, 0.49 in 2012, 0.37 in 2011
- The company has unprofitable business model: ROIC is at -27.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ProMetic Life Sciences Inc ($PLI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 17.589 | 23.321 | 20.644 | 23.010 | 24.534 | 6.6% |
| Gross Profit | 15.735 | 17.970 | 13.973 | 15.995 | 16.315 | 2.0% |
| SG&A | 5.789 | 5.830 | 8.332 | 12.905 | 16.575 | 28.4% |
| EBITDA | -0.594 | 2.449 | -12.268 | -15.139 | -48.073 | 217.5% |
| Net Income | -2.554 | 0.234 | -16.489 | 5.939 | -50.961 | -958.1% |
Balance Sheet
|
|---|
| Cash | 0.275 | 1.205 | 17.396 | 27.102 | 29.285 | 8.1% |
| Short Term Debt | 1.502 | 2.236 | 3.040 | 0.000 | 0.000 | |
| Long Term Debt | 3.607 | 3.647 | 6.441 | 23.804 | 22.501 | -5.5% |
Cash flow
|
|---|
| Capex | 0.371 | 0.487 | 6.930 | 7.964 | 5.725 | -28.1% |
Ratios
|
|---|
| Revenue growth | 53.8% | 32.6% | -11.5% | 11.5% | 6.6% | |
| EBITDA growth | -93.1% | -512.3% | -600.9% | 23.4% | 217.5% | |
| Gross Margin | 89.5% | 77.1% | 67.7% | 69.5% | 66.5% | -3.0% |
| EBITDA Margin | -3.4% | 10.5% | -59.4% | -65.8% | -195.9% | -130.2% |
| Net Income Margin | -14.5% | 1.0% | -79.9% | 25.8% | -207.7% | -233.5% |
| SG&A, % of revenue | 32.9% | 25.0% | 40.4% | 56.1% | 67.6% | 11.5% |
| CAPEX, % of revenue | 2.1% | 2.1% | 33.6% | 34.6% | 23.3% | -11.3% |
| ROIC | | 40.5% | -65.8% | -17.4% | -27.7% | -10.3% |
| ROE | | | -122.4% | 13.2% | -55.6% | -68.8% |
| Net Debt/EBITDA | | 1.9x | | | | 0.0x |
Revenue and profitability
ProMetic Life Sciences Inc's Revenue increased on 6.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 30.5 pp from 43.7% to 13.2% in 2015.
Gross Margin decreased on 3.0 pp from 69.5% to 66.5% in 2015. SG&A as a % of Revenue jumped on 11.5 pp from 56.1% to 67.6% in 2015.
Net Income marign dropped on 234 pp from 25.8% to -208% in 2015.
Capital expenditures (CAPEX) and working capital investments
ProMetic Life Sciences Inc's CAPEX/Revenue was 23.3% in 2015. The company's CAPEX/Revenue surged on 21.2 pp from 2.1% in 2012 to 23.3% in 2015. For the last three years the average CAPEX/Revenue was 30.5%.
Return on investment
The company operates at negative ROIC (-27.72%) and ROE (-55.60%). ROIC dropped on 10.3 pp from -17.4% to -27.7% in 2015. ROE dropped on 68.8 pp from 13.2% to -55.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -32.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased on 5.5% in 2015 while cash increased on 8.1% in 2015.
Management team
The company's CEO Pierre Laurin is a founder and has spent 24 years at the company. The company's CFO is Gregory L Weaver "Greg". Gregory L Weaver "Greg" has 3 years tenure at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find ProMetic Life Sciences Inc benchmarking vs. other companies in Consumer, Non-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 |
|---|
| 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 ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (76 companies) | 46.5% | 9.3% | 6.7% | 13.2% | 14.3% |
|---|
| ProMetic Life Sciences Inc ($PLI) | | | -11.5% | 11.5% | 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 ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (63 companies) | 35.5% | 36.1% | 35.9% | 35.1% | 35.7% |
|---|
| ProMetic Life Sciences Inc ($PLI) | | 77.1% | 67.7% | 69.5% | 66.5% |
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 ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| |
|---|
| Median (75 companies) | 7.7% | 7.4% | 9.0% | 11.0% | 10.6% |
|---|
| ProMetic Life Sciences Inc ($PLI) | | 10.5% | -59.4% | -65.8% | -195.9% |
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% |
| EnerCare Inc ($ECI) | 30.6% | 25.7% | 26.5% | 23.6% | 20.7% |
| |
|---|
| Median (75 companies) | 2.4% | 2.8% | 2.4% | 2.5% | 2.3% |
|---|
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
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 ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| |
|---|
| Median (76 companies) | 7.4% | 6.3% | 6.9% | 7.3% | 7.1% |
|---|
| ProMetic Life Sciences Inc ($PLI) | | 40.5% | -65.8% | -17.4% | -27.7% |
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 | 2.8x | 2.2x | 2.7x | 1.9x |
|---|
