Symbility Solutions Inc EBITDA dropped on 328% in 2015 and EBITDA Margin dropped on 14.5 pp from 4.3% to -10.2%
04.04.2016 • About Symbility Solutions Inc (
$SY) • By InTwits
Symbility Solutions Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Symbility Solutions Inc doesn't have a profitable business model yet: 2015 ROIC is -20.6%
- The company operates at negative EBITDA Margin: -10.2%
- Symbility Solutions Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.0%0
- Symbility Solutions Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 0.24 in 2015, 0.39 in 2014, 0.51 in 2013, 0.20 in 2012, 0.15 in 2011
- The company has unprofitable business model: ROIC is at -20.6%
- It operates with high leverage: Net Debt/EBITDA is 18.4x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Symbility Solutions Inc ($SY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.946 | 16.537 | 21.894 | 27.805 | 26.537 | -4.6% |
| Gross Profit | 6.523 | 13.335 | 17.499 | 22.516 | 18.771 | -16.6% |
| SG&A | | 11.975 | 17.608 | 17.698 | 19.102 | 7.9% |
| EBITDA | -0.032 | -2.287 | -3.186 | 1.188 | -2.703 | -327.5% |
| Net Income | -0.094 | -3.393 | -4.687 | -0.833 | -6.063 | 627.9% |
Balance Sheet
|
|---|
| Cash | 1.301 | 15.008 | 12.173 | 12.612 | 6.553 | -48.0% |
| Short Term Debt | 0.047 | 0.050 | 0.044 | 0.005 | 0.000 | -100.0% |
| Long Term Debt | 0.100 | 0.049 | 0.005 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.147 | 0.197 | 0.511 | 0.386 | 0.236 | -38.9% |
Ratios
|
|---|
| Revenue growth | 35.8% | 108.1% | 32.4% | 27.0% | -4.6% | |
| EBITDA growth | -79.6% | 6,967.6% | 39.3% | -137.3% | -327.5% | |
| Gross Margin | 82.1% | 80.6% | 79.9% | 81.0% | 70.7% | -10.2% |
| EBITDA Margin | -0.4% | -13.8% | -14.6% | 4.3% | -10.2% | -14.5% |
| Net Income Margin | -1.2% | -20.5% | -21.4% | -3.0% | -22.8% | -19.9% |
| SG&A, % of revenue | | 72.4% | 80.4% | 63.7% | 72.0% | 8.3% |
| CAPEX, % of revenue | 1.8% | 1.2% | 2.3% | 1.4% | 0.9% | -0.5% |
| ROIC | -11.9% | -23.2% | -17.5% | -2.8% | -20.6% | -17.7% |
| ROE | -12.9% | -23.6% | -17.2% | -3.1% | -20.6% | -17.5% |
| Net Debt/EBITDA | | | | -10.6x | | 10.6x |
Revenue and profitability
The company's Revenue decreased on 4.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.5 pp from 4.3% to -10.2% in 2015.
Gross Margin dropped on 10.2 pp from 81.0% to 70.7% in 2015. SG&A as a % of Revenue increased on 8.3 pp from 63.7% to 72.0% in 2015.
Net Income marign dropped on 19.9 pp from -3.0% to -22.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Symbility Solutions Inc's CAPEX/Revenue was 0.89% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at negative ROIC (-20.55%) and ROE (-20.55%). ROIC dropped on 17.7 pp from -2.8% to -20.6% in 2015. ROE dropped on 17.5 pp from -3.1% to -20.6% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 48.0% in 2015.
Appendix 1: Peers in Technology
Below you can find Symbility Solutions Inc benchmarking vs. other companies in Technology 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 |
|---|
| Sylogist Ltd ($SYZ) | | -5.8% | 25.7% | 50.5% | 56.1% |
| ProntoForms Corp ($PFM) | | 59.9% | 75.4% | 43.9% | 46.4% |
| Bluedrop Performance Learning Inc ($BPL) | | 1,966.4% | 13.9% | 33.5% | 37.5% |
| Kinaxis Inc ($KXS) | | 22.7% | 30.3% | 15.2% | 30.3% |
| Halogen Software Inc ($HGN) | | | 22.6% | 10.1% | 28.0% |
| |
|---|
| Median (29 companies) | 0.4% | 3.6% | 11.4% | 12.6% | 12.8% |
|---|
| Symbility Solutions Inc ($SY) | | 108.1% | 32.4% | 27.0% | -4.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | 86.2% |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | 79.4% |
| Sandvine Corp ($SVC) | 74.3% | 67.5% | 74.1% | 76.8% | 77.8% |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | 74.3% |
| |
|---|
| Median (26 companies) | 49.7% | 52.4% | 48.8% | 51.1% | 50.6% |
|---|
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | 70.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | 35.1% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Kinaxis Inc ($KXS) | 31.3% | 18.7% | 23.0% | 19.2% | 28.0% |
| |
|---|
| Median (28 companies) | 8.5% | 8.5% | 5.8% | 7.1% | 10.7% |
|---|
| Symbility Solutions Inc ($SY) | -0.4% | -13.8% | -14.6% | 4.3% | -10.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sandvine Corp ($SVC) | 7.3% | 4.9% | 3.2% | 3.2% | 4.8% |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | 4.7% |
| Open Text Corp ($OTC) | 3.5% | 2.1% | 1.7% | 2.6% | 4.2% |
| Absolute Software Corp ($ABT) | 1.8% | 1.7% | 1.2% | 1.9% | 3.1% |
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | 2.9% |
| |
|---|
| Median (29 companies) | 1.2% | 1.6% | 1.3% | 1.2% | 1.4% |
|---|
| Symbility Solutions Inc ($SY) | 1.8% | 1.2% | 2.3% | 1.4% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bluedrop Performance Learning Inc ($BPL) | -870.7% | 10.0% | -38.2% | -29.9% | 66.5% |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | 44.0% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | 38.5% |
| |
|---|
| Median (29 companies) | 5.5% | 4.4% | -4.5% | 0.9% | 7.0% |
|---|
| Symbility Solutions Inc ($SY) | -11.9% | -23.2% | -17.5% | -2.8% | -20.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mad Catz Interactive Inc ($MCZ) | 0.7x | 32.2x | 1.2x | | 9.4x |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | 6.2x |
| BlackBerry Ltd ($BB) | | -0.5x | -2.3x | | 1.7x |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| SMART Technologies Inc ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (20 companies) | -0.2x | -0.4x | -0.4x | -1.3x | -0.8x |
|---|
