Allied Hotel Properties Inc reports 105% EBITDA decline and 5.5 pp EBITDA Margin decline from 5.2% to -0.26%
22.04.2016 • About Allied Hotel Properties Inc (
$AHP) • By InTwits
Allied Hotel Properties Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allied Hotel Properties Inc doesn't have a profitable business model yet: 2015 ROIC is -3.0%
- The company operates at negative EBITDA Margin: -0.3%
- Allied Hotel Properties Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -12.1% for the sames years0
- Allied Hotel Properties Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 5.0%.
- CAPEX is quite volatile: 0.68 in 2015, 0.49 in 2014, 0.52 in 2013, 0.84 in 2012, 0.087 in 2011
- The company has unprofitable business model: ROIC is at -3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Allied Hotel Properties Inc ($AHP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11.656 | 7.795 | 9.011 | 9.838 | 9.982 | 1.5% |
| Gross Profit | 4.457 | 3.798 | 4.399 | 4.856 | 4.874 | 0.4% |
| SG&A | | 5.320 | 3.500 | 3.565 | 4.033 | 13.1% |
| EBITDA | -0.587 | -5.340 | -0.387 | 0.513 | -0.026 | -105.1% |
| Net Income | -5.717 | -6.793 | -2.154 | -0.456 | -1.156 | 153.5% |
Balance Sheet
|
|---|
| Cash | 2.643 | 0.737 | 0.573 | 0.828 | 0.179 | -78.4% |
| Short Term Debt | 0.062 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 6.332 | 9.723 | 10.899 | 11.754 | 11.883 | 1.1% |
Cash flow
|
|---|
| Capex | 0.087 | 0.840 | 0.521 | 0.492 | 0.683 | 38.8% |
Ratios
|
|---|
| Revenue growth | -67.3% | -33.1% | 15.6% | 9.2% | 1.5% | |
| EBITDA growth | -147.5% | 809.7% | -92.8% | -232.6% | -105.1% | |
| Gross Margin | 38.2% | 48.7% | 48.8% | 49.4% | 48.8% | -0.5% |
| EBITDA Margin | -5.0% | -68.5% | -4.3% | 5.2% | -0.3% | -5.5% |
| Net Income Margin | -49.0% | -87.1% | -23.9% | -4.6% | -11.6% | -6.9% |
| SG&A, % of revenue | | 68.2% | 38.8% | 36.2% | 40.4% | 4.2% |
| CAPEX, % of revenue | 0.7% | 10.8% | 5.8% | 5.0% | 6.8% | 1.8% |
| ROIC | -4.1% | -36.0% | -5.9% | 0.8% | -3.0% | -3.8% |
| ROE | -41.1% | -88.7% | -67.7% | -24.3% | -108.0% | -83.7% |
| Net Debt/EBITDA | | | | 21.3x | | -21.3x |
Revenue and profitability
The company's Revenue increased slightly on 1.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 20.8% to 17.7% in FY2015.
Gross Margin decreased slightly on 0.53 pp from 49.4% to 48.8% in 2015. SG&A as a % of Revenue increased on 4.2 pp from 36.2% to 40.4% in 2015.
Net Income marign decreased on 6.9 pp from -4.6% to -11.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Allied Hotel Properties Inc's CAPEX/Revenue was 6.8% in 2015. The company showed decline in CAPEX/Revenue of 3.9 pp from 10.8% in 2012 to 6.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 5.9%.
Return on investment
The company operates at negative ROIC (-3.04%) and ROE (-108.04%). ROIC decreased on 3.8 pp from 0.77% to -3.0% in 2015. ROE dropped on 83.7 pp from -24.3% to -108% in 2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 21.3x from 21.3x to in 2015. Debt increased slightly on 1.1% in 2015 while cash dropped on 78.4% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Allied Hotel Properties 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 4.6% | 238.0% |
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| Hudson's Bay Co ($HBC) | | | 5.9% | 28.1% | 56.4% |
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (66 companies) | 16.2% | 5.4% | 4.7% | 6.8% | 5.2% |
|---|
| Allied Hotel Properties Inc ($AHP) | | -33.1% | 15.6% | 9.2% | 1.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | 82.7% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| |
|---|
| Median (58 companies) | 30.2% | 35.3% | 32.1% | 34.6% | 33.1% |
|---|
| Allied Hotel Properties Inc ($AHP) | 38.2% | 48.7% | 48.8% | 49.4% | 48.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (61 companies) | 8.8% | 8.1% | 9.8% | 10.2% | 9.4% |
|---|
| Allied Hotel Properties Inc ($AHP) | -5.0% | -68.5% | -4.3% | 5.2% | -0.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| WestJet Airlines Ltd ($WJA) | 3.9% | 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) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (66 companies) | 2.5% | 2.7% | 2.7% | 2.4% | 2.7% |
|---|
| Allied Hotel Properties Inc ($AHP) | 0.7% | 10.8% | 5.8% | 5.0% | 6.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | 51.1% |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | 35.3% |
| Cara Operations Ltd ($CAO) | | | | 24.7% | 35.1% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (66 companies) | 10.4% | 9.8% | 10.5% | 9.8% | 10.9% |
|---|
| Allied Hotel Properties Inc ($AHP) | -4.1% | -36.0% | -5.9% | 0.8% | -3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | 3.2x | 2.8x | 3.8x | 7.5x | 11.4x |
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (54 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.9x |
|---|
