Le Chateau Inc revenue decreased on 5.3% in 2016 while EBITDA Margin increased slightly on 1.4 pp from -7.9% to -6.5%
15.04.2016 • About Le Chateau Inc (
$CTU.A) • By InTwits
Le Chateau Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Le Chateau Inc is a company in decline: FY2016 revenue growth was -5.3%, 5 years revenue CAGR was -5.8%
- The company operates at negative EBITDA Margin: -6.5%
- Le Chateau Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -0.5% for the sames years0
- Le Chateau Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 9.1 in FY2016, 8.5 in FY2015, 6.3 in FY2014, 9.2 in FY2013, 23.8 in FY2012
- The company has unprofitable business model: ROIC is at -22.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Le Chateau Inc ($CTU.A) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 302.7 | 274.8 | 274.8 | 250.2 | 236.9 | -5.3% |
| Gross Profit | 206.6 | 182.3 | 173.1 | 151.5 | 152.0 | 0.3% |
| SG&A | 168.0 | 155.6 | 155.9 | 189.1 | 183.8 | -2.8% |
| EBITDA | 18.1 | 10.4 | -0.3 | -19.8 | -15.3 | |
| Net Income | -2.4 | -8.7 | -16.0 | -38.7 | -35.7 | |
Balance Sheet
|
|---|
| Cash | 7.2 | 1.8 | 1.4 | 1.2 | | -100.0% |
| Short Term Debt | 16.3 | 22.9 | 38.8 | 16.7 | 14.3 | -14.4% |
| Long Term Debt | 29.1 | 14.3 | 7.8 | 39.5 | 61.1 | 54.7% |
Cash flow
|
|---|
| Capex | 23.8 | 9.2 | 6.3 | 8.5 | 9.1 | 6.9% |
Ratios
|
|---|
| Revenue growth | -5.1% | -9.2% | 0.0% | -9.0% | -5.3% | |
| EBITDA growth | -60.6% | -42.5% | -102.7% | 6,872.9% | -22.7% | |
| Gross Margin | 68.2% | 66.3% | 63.0% | 60.6% | 64.2% | 3.6% |
| EBITDA Margin | 6.0% | 3.8% | -0.1% | -7.9% | -6.5% | 1.4% |
| Net Income Margin | -0.8% | -3.2% | -5.8% | -15.5% | -15.1% | 0.4% |
| SG&A, % of revenue | 55.5% | 56.6% | 56.7% | 75.6% | 77.6% | 2.0% |
| CAPEX, % of revenue | 7.8% | 3.4% | 2.3% | 3.4% | 3.8% | 0.4% |
| ROIC | -0.6% | -4.9% | -10.8% | -23.3% | -22.4% | 0.9% |
| ROE | -1.6% | -6.2% | -12.1% | -35.6% | -46.9% | -11.3% |
| Net Debt/EBITDA | 2.1x | 3.4x | | | | 0.0x |
Le Chateau Inc ($CTU.A) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 51 | 63 | 58 | 65 | -4.8% | -7.3% | -0.8% | -7.5% |
| EBITDA | -7 | 1 | -8 | -2 | | -41.7% | | |
| Net Income | -12 | -4 | -12 | -7 | | | | |
Balance Sheet
|
|---|
| Short Term Debt | 32 | 19 | 25 | 14 | -44.2% | -29.3% | 20.0% | -14.4% |
| Long Term Debt | 47 | 50 | 61 | 61 | 292.4% | 85.2% | 38.9% | 54.7% |
Ratios
|
|---|
| Gross Margin | 64.3% | 66.6% | 63.9% | 61.9% | 3.6% | 2.4% | 2.4% | 5.8% |
| EBITDA Margin | -14.1% | 2.2% | -13.2% | -3.0% | 3.7% | -1.3% | -2.8% | 6.5% |
| Net Income Margin | -24.4% | -6.4% | -21.6% | -10.6% | 0.1% | -2.0% | -2.6% | 5.9% |
Revenue and profitability
The company's Revenue decreased on 5.3%. Revenue decline showed acceleration in FY16Q4 - it was 7.5% YoY. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from -7.9% to -6.5% in FY2016.
Gross Margin increased on 3.6 pp from 60.6% to 64.2% in FY2016. SG&A as a % of Revenue increased on 2.0 pp from 75.6% to 77.6% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.8% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-22.41%) and ROE (-46.93%). ROIC increased slightly on 0.90 pp from -23.3% to -22.4% in FY2016. ROE dropped on 11.3 pp from -35.6% to -46.9% in FY2016.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt jumped on 34.2% while cash dropped on 100%.
Management team
Jane Silverstone Segal is a Le Chateau Inc's CEO. Jane Silverstone Segal is a founder and has spent 18 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Le Chateau Inc benchmarking against other companies in Consumer, 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 539.9% | |
| Restaurant Brands International Inc ($QSR) | | | 4.6% | 238.0% | |
| Amaya Inc ($AYA) | 311.5% | 85.2% | 254.0% | 113.8% | |
| NYX Gaming Group Ltd ($NYX) | 65.2% | 52.8% | 45.8% | 91.8% | |
| Rainmaker Entertainment Inc ($RNK) | -24.6% | -45.0% | 30.1% | 56.4% | |
| |
|---|
| Median (49 companies) | 5.3% | 4.9% | 7.8% | 8.6% | |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NYX Gaming Group Ltd ($NYX) | 91.3% | 86.7% | 88.3% | 85.6% | |
| DEQ Systems Corp ($DEQ) | 77.5% | 78.4% | 84.7% | 82.7% | |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| |
|---|
| Median (42 companies) | 34.1% | 31.8% | 31.9% | 30.6% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (46 companies) | 7.5% | 9.7% | 10.2% | 9.0% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | |
| Chorus Aviation Inc ($CHR.A) | 9.9% | 9.6% | 3.9% | 15.0% | |
| |
|---|
| Median (49 companies) | 2.7% | 3.1% | 3.4% | 2.8% | |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Partner Jet Corp ($PJT) | -51.6% | -50.8% | 85.1% | 51.1% | |
| Westshore Terminals Investment Corp ($WTE) | 24.0% | 37.8% | 35.0% | 38.3% | |
| Cara Operations Ltd ($CAO) | | | 24.7% | 35.1% | |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | |
| BMTC Group Inc ($GBT) | 33.0% | 32.5% | 25.2% | 25.2% | |
| |
|---|
| Median (49 companies) | 9.2% | 9.7% | 9.9% | 7.7% | |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 39.7x | |
| Mountain China Resorts Holding Ltd ($MCG) | | | 317.1x | 29.0x | |
| Rainmaker Entertainment Inc ($RNK) | | | | 18.6x | |
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | |
| |
|---|
| Median (38 companies) | 1.6x | 2.0x | 2.4x | 2.7x | |
|---|
