CWC Energy Services Corp reports 142% EBITDA decline and 43.4% Revenue decline
22.04.2016 • About CWC Energy Services Corp (
$CWC) • By InTwits
CWC Energy Services Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CWC Energy Services Corp doesn't have a profitable business model yet: 2015 ROIC is -12.1%
- EBITDA Margin is quite volatile: -16.5% in 2015, 22.2% in 2014, 22.3% in 2013, 21.6% in 2012, 25.3% in 2011
- CWC Energy Services Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 9.0 in 2015, 28.8 in 2014, 11.4 in 2013, 16.4 in 2012, 4.4 in 2011
- The company has unprofitable business model: ROIC is at -12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CWC Energy Services Corp ($CWC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 109.5 | 112.3 | 113.3 | 143.7 | 81.3 | -43.4% |
| Gross Profit | 28.0 | 24.9 | 25.4 | 32.4 | 26.1 | -19.3% |
| SG&A | | | 14.7 | 17.9 | 14.1 | -21.0% |
| EBITDA | 27.7 | 24.2 | 25.3 | 31.9 | -13.4 | -142.0% |
| Net Income | 12.7 | 4.8 | 4.9 | -13.5 | -29.1 | 116.4% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.2 | 0.1 | 0.0 | -97.1% |
| Short Term Debt | 10.2 | 5.6 | 0.2 | 0.2 | 0.2 | 2.0% |
| Long Term Debt | 39.6 | 39.4 | 43.8 | 65.5 | 52.0 | -20.5% |
Cash flow
|
|---|
| Capex | 4.4 | 16.4 | 11.4 | 28.8 | 9.0 | -68.9% |
Ratios
|
|---|
| Revenue growth | 59.0% | 2.6% | 0.9% | 26.8% | -43.4% | |
| EBITDA growth | 121.6% | -12.5% | 4.3% | 26.2% | -142.0% | |
| Gross Margin | 25.5% | 22.1% | 22.4% | 22.5% | 32.2% | 9.6% |
| EBITDA Margin | 25.3% | 21.6% | 22.3% | 22.2% | -16.5% | -38.7% |
| Net Income Margin | 11.6% | 4.3% | 4.3% | -9.4% | -35.8% | -26.5% |
| SG&A, % of revenue | | | 13.0% | 12.4% | 17.4% | 4.9% |
| CAPEX, % of revenue | 4.1% | 14.6% | 10.1% | 20.0% | 11.0% | -9.0% |
| ROIC | 10.1% | 6.8% | 7.0% | 6.2% | -12.1% | -18.4% |
| ROE | 13.2% | 4.8% | 5.2% | -10.2% | -18.2% | -8.0% |
| Net Debt/EBITDA | 1.8x | 1.9x | 1.7x | 2.1x | | -2.1x |
Revenue and profitability
CWC Energy Services Corp's Revenue dropped on 43.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 38.7 pp from 22.2% to -16.5% in 2015.
Gross Margin increased on 9.6 pp from 22.5% to 32.2% in 2015. SG&A as a % of Revenue increased on 4.9 pp from 12.4% to 17.4% in 2015.
Net Income marign dropped on 26.5 pp from -9.4% to -35.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
CWC Energy Services Corp's CAPEX/Revenue was 11.0% in 2015. CAPEX/Revenue decreased on 3.5 pp from 14.6% in 2012 to 11.0% in 2015. It's average CAPEX/Revenue for the last three years was 13.7%.
Return on investment
The company operates at negative ROIC (-12.15%) and ROE (-18.18%). ROIC dropped on 18.4 pp from 6.2% to -12.1% in 2015. ROE decreased on 8.0 pp from -10.2% to -18.2% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 2.1x to in 2015. Debt dropped on 20.4% in 2015 while cash dropped on 97.1% in 2015.
Appendix 1: Peers in Energy
Below you can find CWC Energy Services Corp benchmarking vs. other companies in Energy 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Petroshale Inc ($PSH) | | | | 159.9% | 147.8% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| Ikkuma Resources Corp ($IKM) | | 17.0% | -4.5% | 1,231.1% | 100.3% |
| Seven Generations Energy Ltd ($VII) | | | 115.7% | 340.2% | 39.0% |
| |
|---|
| Median (152 companies) | 63.6% | 9.6% | 17.4% | 18.7% | -27.4% |
|---|
| CWC Energy Services Corp ($CWC) | | 2.6% | 0.9% | 26.8% | -43.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Americas Petrogas Inc ($BOE) | | 77.1% | 43.3% | -34.3% | 121.1% |
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Orca Exploration Group Inc ($ORC.B) | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (136 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 33.5% |
|---|
| CWC Energy Services Corp ($CWC) | 25.5% | 22.1% | 22.4% | 22.5% | 32.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% |
| Perpetual Energy Inc ($PMT) | 26.1% | 35.5% | 70.7% | 58.0% | 110.3% |
| Petro Rio SA ($PRJ) | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | 84.6% |
| Innergex Renewable Energy Inc ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (154 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 5.7% |
|---|
| CWC Energy Services Corp ($CWC) | 25.3% | 21.6% | 22.3% | 22.2% | -16.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($PEH) | | | | | 1,091.8% |
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| WesternZagros Resources Ltd ($WZR) | | | | | 385.6% |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (155 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.5% |
|---|
| CWC Energy Services Corp ($CWC) | 4.1% | 14.6% | 10.1% | 20.0% | 11.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | 24.2% |
| Petro Rio SA ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
| Orca Exploration Group Inc ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (155 companies) | 4.4% | 3.0% | 4.6% | 5.0% | -9.3% |
|---|
| CWC Energy Services Corp ($CWC) | 10.1% | 6.8% | 7.0% | 6.2% | -12.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | 9.9x |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.6x |
|---|
| CWC Energy Services Corp ($CWC) | 1.8x | 1.9x | 1.7x | 2.1x | |
