Appulse Corp reports 9.5% revenue growth in 2015 and almost no change in EBITDA Margin of 6.5%
14.04.2016 • About Appulse Corp (
$APL) • By InTwits
Appulse Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.5% in 2015, 6.8% in 2014, -0.5% in 2013, 7.1% in 2012, 6.2% in 2011
- Appulse Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 0.33 in 2015, 0.053 in 2014, 0.31 in 2013, 0.36 in 2012, 0.075 in 2011
- The company has business model with low profitability: ROIC is at 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Appulse Corp ($APL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.108 | 7.207 | 6.665 | 7.640 | 8.368 | 9.5% |
| Gross Profit | 1.435 | 2.027 | 1.566 | 1.964 | 1.974 | 0.5% |
| SG&A | | | | | 1.433 | |
| EBITDA | 0.377 | 0.512 | -0.031 | 0.521 | 0.541 | 3.8% |
| Net Income | 0.055 | 0.166 | -0.296 | 0.158 | 0.161 | 1.8% |
Balance Sheet
|
|---|
| Cash | 0.021 | 0.098 | 0.045 | 0.073 | 0.081 | 10.6% |
| Short Term Debt | 0.654 | 1.047 | 1.192 | 1.087 | 0.818 | -24.8% |
| Long Term Debt | 0.328 | 0.273 | 0.212 | 0.130 | 0.055 | -58.0% |
Cash flow
|
|---|
| Capex | 0.075 | 0.357 | 0.306 | 0.053 | 0.327 | 518.9% |
Ratios
|
|---|
| Revenue growth | 0.7% | 18.0% | -7.5% | 14.6% | 9.5% | |
| EBITDA growth | 74.7% | 35.9% | -106.0% | -1,789.3% | 3.8% | |
| Gross Margin | 23.5% | 28.1% | 23.5% | 25.7% | 23.6% | -2.1% |
| EBITDA Margin | 6.2% | 7.1% | -0.5% | 6.8% | 6.5% | -0.4% |
| Net Income Margin | 0.9% | 2.3% | -4.4% | 2.1% | 1.9% | -0.1% |
| SG&A, % of revenue | | | | | 17.1% | 17.1% |
| CAPEX, % of revenue | 1.2% | 5.0% | 4.6% | 0.7% | 3.9% | 3.2% |
| ROIC | 6.0% | 9.1% | -6.1% | 8.2% | 8.5% | 0.3% |
| ROE | 2.1% | 6.0% | -10.8% | 5.8% | 5.6% | -0.3% |
| Net Debt/EBITDA | 2.6x | 2.4x | | 2.2x | 1.5x | -0.7x |
Revenue and profitability
Appulse Corp's Revenue increased on 9.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 6.8% to 7.4% in FY2015.
Gross Margin decreased on 2.1 pp from 25.7% to 23.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Appulse Corp had CAPEX/Revenue of 3.9%. Appulse Corp showed small CAPEX/Revenue decline of 1.1 pp from 5.0% in 2012 to 3.9% in 2015. Average CAPEX/Revenue for the last three years was 3.1%.The company invested a large share of EBITDA (60.4%) to CAPEX.
Return on investment
The company operates at low ROIC (8.47%) and ROE (5.55%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.7x from 2.2x to 1.5x in 2015. Debt dropped on 28.4% in 2015 while cash surged on 10.6% in 2015.
Appendix 1: Peers in Industrial
Below you can find Appulse Corp benchmarking vs. other companies in Industrial 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 |
|---|
| Diversified Royalty Corp ($DIV) | | | | | 503.3% |
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (82 companies) | -0.2% | 10.4% | 5.3% | 9.1% | 11.1% |
|---|
| Appulse Corp ($APL) | | 18.0% | -7.5% | 14.6% | 9.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | 69.3% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (76 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.2% |
|---|
| Appulse Corp ($APL) | 23.5% | 28.1% | 23.5% | 25.7% | 23.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Photon Control Inc ($PHO) | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (77 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 9.5% |
|---|
| Appulse Corp ($APL) | 6.2% | 7.1% | -0.5% | 6.8% | 6.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Algoma Central Corp ($ALC) | 6.6% | 15.9% | 7.3% | 5.0% | 27.4% |
| Canadian Pacific Railway Ltd ($CP) | 21.3% | 20.2% | 20.2% | 21.9% | 22.7% |
| Canadian National Railway Co ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (81 companies) | 3.0% | 3.0% | 3.5% | 3.2% | 3.5% |
|---|
| Appulse Corp ($APL) | 1.2% | 5.0% | 4.6% | 0.7% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biorem Inc ($BRM) | -141.4% | -15.1% | 32.3% | -29.7% | 54.4% |
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% |
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
| CEMATRIX Corp ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (82 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 10.0% |
|---|
| Appulse Corp ($APL) | 6.0% | 9.1% | -6.1% | 8.2% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (68 companies) | 1.1x | 1.5x | 1.5x | 1.2x | 1.0x |
|---|
| Appulse Corp ($APL) | 2.6x | 2.4x | | 2.2x | 1.5x |
