International Datacasting Corp revenue decline decelerated from 36.7% in FY2015 to 17.6% in FY2016
22.04.2016 • About International Datacasting Corp (
$IDC) • By InTwits
International Datacasting Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- International Datacasting Corp is a company in decline: FY2016 revenue growth was -17.6%, 5 years revenue CAGR was -24.4%
- The company operates at negative EBITDA Margin: -24.9%
- International Datacasting Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -13.4%0
- International Datacasting Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 1.7%.
- CAPEX is quite volatile: 0.0078 in FY2016, 0.23 in FY2015, 0.24 in FY2014, 0.15 in FY2013, 0.50 in FY2012
- The company has unprofitable business model: ROIC is at -86.0%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Datacasting Corp ($IDC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29.406 | 29.236 | 16.302 | 10.314 | 8.494 | -17.6% |
| Gross Profit | 11.314 | 11.090 | 6.833 | 4.789 | 4.365 | -8.8% |
| SG&A | 8.244 | 7.956 | 7.487 | 4.716 | 4.256 | -9.8% |
| EBITDA | -1.522 | -0.111 | -4.680 | -4.114 | -2.111 | |
| Net Income | -2.314 | -1.015 | -8.174 | -4.331 | -2.989 | |
Balance Sheet
|
|---|
| Cash | 4.840 | 4.943 | 2.735 | 0.615 | 1.547 | 151.4% |
| Short Term Debt | 0.037 | 0.003 | 0.000 | 0.144 | 0.000 | -100.0% |
| Long Term Debt | 0.003 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.503 | 0.155 | 0.239 | 0.225 | 0.008 | -96.5% |
Ratios
|
|---|
| Revenue growth | -14.5% | -0.6% | -44.2% | -36.7% | -17.6% | |
| EBITDA growth | -207.6% | -92.7% | 4,102.0% | -12.1% | -48.7% | |
| Gross Margin | 38.5% | 37.9% | 41.9% | 46.4% | 51.4% | 5.0% |
| EBITDA Margin | -5.2% | -0.4% | -28.7% | -39.9% | -24.9% | 15.0% |
| Net Income Margin | -7.9% | -3.5% | -50.1% | -42.0% | -35.2% | 6.8% |
| SG&A, % of revenue | 28.0% | 27.2% | 45.9% | 45.7% | 50.1% | 4.4% |
| CAPEX, % of revenue | 1.7% | 0.5% | 1.5% | 2.2% | 0.1% | -2.1% |
| ROIC | -16.7% | -7.6% | -53.0% | -74.5% | -86.0% | -11.5% |
| ROE | -13.2% | -6.4% | -72.5% | -75.9% | -109.0% | -33.0% |
International Datacasting Corp ($IDC) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 2 | 3 | 1 | 6.6% | -35.6% | -6.9% | -46.9% |
| EBITDA | -0 | -2 | 1 | -1 | | | | |
| Net Income | -0 | -2 | -0 | -1 | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 2 | -49.0% | -45.9% | 320.9% | 151.4% |
| Short Term Debt | 1 | 1 | 1 | 0 | | | 670.1% | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 63.6% | 15.0% | 63.7% | 40.5% | 27.5% | -34.3% | 24.0% | -18.6% |
| EBITDA Margin | -9.2% | -106.0% | 19.1% | -60.8% | 44.7% | -57.3% | 53.7% | -45.9% |
| Net Income Margin | -11.6% | -110.1% | -3.9% | -69.4% | 43.7% | -59.3% | 32.2% | -50.6% |
Revenue and profitability
International Datacasting Corp's Revenue dropped on 17.6%. Revenue decline showed acceleration in FY16Q4 - it was 46.9% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.0 pp from -39.9% to -24.9% in FY2016.
Gross Margin increased on 5.0 pp from 46.4% to 51.4% in FY2016. SG&A as a % of Revenue increased on 4.4 pp from 45.7% to 50.1% in FY2016.
Net Income marign increased on 6.8 pp from -42.0% to -35.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.092%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at negative ROIC (-86.03%) and ROE (-108.97%). ROIC dropped on 11.5 pp from -74.5% to -86.0% in FY2016. ROE dropped on 33.0 pp from -75.9% to -109% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 151%.
Appendix 1: Peers in Communications
Below we provide International Datacasting Corp benchmarking against other companies in Communications 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 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 842.9% | |
| Snipp Interactive Inc ($SPN) | | 70.1% | 309.2% | 327.0% | |
| UrtheCast Corp ($UR) | | | | 205.7% | |
| Wi2Wi Corp ($YTY) | | 11.5% | 100.3% | 96.3% | |
| NeuLion Inc ($NLN) | -1.7% | 20.8% | 17.9% | 69.4% | |
| |
|---|
| Median (39 companies) | 3.8% | 1.1% | 0.4% | 4.2% | -3.1% |
|---|
| International Datacasting Corp ($IDC) | | -0.6% | -44.2% | -36.7% | -17.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (28 companies) | 41.1% | 39.2% | 39.5% | 37.4% | 36.7% |
|---|
| International Datacasting Corp ($IDC) | 38.5% | 37.9% | 41.9% | 46.4% | 51.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 34.3% | 33.7% | 47.4% | 42.3% | |
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | |
| |
|---|
| Median (37 companies) | 13.5% | 12.2% | 11.6% | 9.4% | 29.8% |
|---|
| International Datacasting Corp ($IDC) | -5.2% | -0.4% | -28.7% | -39.9% | -24.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Axia NetMedia Corp ($AXX) | 30.8% | 27.2% | 27.0% | 36.2% | |
| Manitoba Telecom Services Inc ($MBT) | 19.8% | 18.1% | 22.4% | 22.9% | |
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | |
| |
|---|
| Median (37 companies) | 2.4% | 3.0% | 1.8% | 1.6% | 8.9% |
|---|
| International Datacasting Corp ($IDC) | 1.7% | 0.5% | 1.5% | 2.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | |
| Asian Television Network International Ltd ($SAT) | 34.6% | 23.6% | 23.4% | 21.4% | |
| Points International Ltd ($PTS) | 14.9% | 15.0% | 21.2% | 18.8% | |
| Norsat International Inc ($NII) | 10.9% | 1.4% | 13.7% | 13.8% | |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | |
| |
|---|
| Median (40 companies) | 8.0% | 8.2% | 7.6% | 3.7% | 6.4% |
|---|
| International Datacasting Corp ($IDC) | -16.7% | -7.6% | -53.0% | -74.5% | -86.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (26 companies) | 1.4x | 1.2x | 1.4x | 1.1x | 1.8x |
|---|
