Quorum Information Technologies Inc revenue growth accelerated from 15.4% in 2014 to 16.6% in 2015
25.04.2016 • About Quorum Information Technologies Inc (
$QIS) • By InTwits
Quorum Information Technologies Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 14.4% in 2015, 14.8% in 2014, 8.1% in 2013, 4.4% in 2012, 16.0% in 2011
- Quorum Information Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 5.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Quorum Information Technologies Inc ($QIS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.728 | 7.567 | 7.987 | 9.216 | 10.744 | 16.6% |
| Gross Profit | 6.670 | 6.616 | 4.487 | 5.018 | 5.571 | 11.0% |
| SG&A | | | 1.222 | 1.220 | 1.068 | -12.5% |
| EBITDA | 1.238 | 0.334 | 0.649 | 1.367 | 1.551 | 13.5% |
| Net Income | 0.331 | -0.065 | 0.295 | 0.193 | 0.452 | 134.6% |
Balance Sheet
|
|---|
| Cash | 0.224 | 0.425 | 0.812 | 1.723 | 5.014 | 190.9% |
| Short Term Debt | 0.056 | 0.071 | 0.109 | 0.087 | 0.057 | -33.8% |
| Long Term Debt | 0.203 | 0.232 | 0.310 | 0.223 | 0.166 | -25.7% |
Cash flow
|
|---|
| Capex | 0.024 | 0.066 | 0.033 | 0.052 | 0.119 | 129.8% |
Ratios
|
|---|
| Revenue growth | 0.4% | -2.1% | 5.6% | 15.4% | 16.6% | |
| EBITDA growth | -0.7% | -73.0% | 94.7% | 110.4% | 13.5% | |
| Gross Margin | 86.3% | 87.4% | 56.2% | 54.5% | 51.9% | -2.6% |
| EBITDA Margin | 16.0% | 4.4% | 8.1% | 14.8% | 14.4% | -0.4% |
| Net Income Margin | 4.3% | -0.9% | 3.7% | 2.1% | 4.2% | 2.1% |
| SG&A, % of revenue | | | 15.3% | 13.2% | 9.9% | -3.3% |
| CAPEX, % of revenue | 0.3% | 0.9% | 0.4% | 0.6% | 1.1% | 0.5% |
| ROIC | 8.5% | 3.1% | 6.3% | 6.2% | 5.7% | -0.5% |
| ROE | 2.7% | -0.5% | 2.3% | 1.5% | 2.9% | 1.5% |
| Net Debt/EBITDA | 0.0x | -0.4x | -0.6x | -1.0x | -3.1x | -2.1x |
Revenue and profitability
Quorum Information Technologies Inc's Revenue jumped on 16.6% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased on 2.6 pp from 54.5% to 51.9% in 2015. SG&A as a % of Revenue decreased on 3.3 pp from 13.2% to 9.9% in 2015.
Net Income marign increased on 2.1 pp from 2.1% to 4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.69%.
Return on investment
The company operates at low ROIC (5.68%) and ROE (2.93%). ROIC decreased slightly on 0.54 pp from 6.2% to 5.7% in 2015. ROE increased slightly on 1.5 pp from 1.5% to 2.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 2.1x from -1.0x to -3.1x in 2015. Debt dropped on 28.0% in 2015 while cash jumped on 191% in 2015.
Appendix 1: Peers in Technology
Below we provide Quorum Information Technologies Inc benchmarking against other companies in Technology 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 |
|---|
| Smart Employee Benefits Inc ($SEB) | | | | 97.2% | 151.5% |
| Sylogist Ltd ($SYZ) | | -5.8% | 25.7% | 50.5% | 56.1% |
| ProntoForms Corp ($PFM) | | 59.9% | 75.4% | 43.9% | 46.4% |
| Bluedrop Performance Learning Inc ($BPL) | | 1,966.4% | 13.9% | 33.5% | 37.5% |
| Kinaxis Inc ($KXS) | | 22.7% | 30.3% | 15.2% | 30.3% |
| |
|---|
| Median (31 companies) | 12.0% | 3.8% | 11.9% | 13.7% | 12.8% |
|---|
| Quorum Information Technologies Inc ($QIS) | | -2.1% | 5.6% | 15.4% | 16.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | 86.2% |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | 79.4% |
| Sandvine Corp ($SVC) | 74.3% | 67.5% | 74.1% | 76.8% | 77.8% |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | 74.3% |
| |
|---|
| Median (28 companies) | 49.7% | 52.4% | 46.8% | 47.4% | 50.6% |
|---|
| Quorum Information Technologies Inc ($QIS) | 86.3% | 87.4% | 56.2% | 54.5% | 51.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | 35.1% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Kinaxis Inc ($KXS) | 31.3% | 18.7% | 23.0% | 19.2% | 28.0% |
| |
|---|
| Median (30 companies) | 7.4% | 8.5% | 5.2% | 4.7% | 9.4% |
|---|
| Quorum Information Technologies Inc ($QIS) | 16.0% | 4.4% | 8.1% | 14.8% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sandvine Corp ($SVC) | 7.3% | 4.9% | 3.2% | 3.2% | 4.8% |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | 4.7% |
| Open Text Corp ($OTC) | 3.5% | 2.1% | 1.7% | 2.6% | 4.2% |
| Absolute Software Corp ($ABT) | 1.8% | 1.7% | 1.2% | 1.9% | 3.1% |
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | 2.9% |
| |
|---|
| Median (31 companies) | 1.3% | 1.6% | 1.5% | 1.3% | 1.4% |
|---|
| Quorum Information Technologies Inc ($QIS) | 0.3% | 0.9% | 0.4% | 0.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bluedrop Performance Learning Inc ($BPL) | -870.7% | 10.0% | -38.2% | -29.9% | 66.5% |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | 44.0% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | 38.5% |
| |
|---|
| Median (31 companies) | 4.7% | 2.6% | -5.4% | -0.0% | 4.6% |
|---|
| Quorum Information Technologies Inc ($QIS) | 8.5% | 3.1% | 6.3% | 6.2% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mad Catz Interactive Inc ($MCZ) | 0.7x | 32.2x | 1.2x | | 9.4x |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | 6.2x |
| BlackBerry Ltd ($BB) | | -0.5x | -2.3x | | 1.7x |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| SMART Technologies Inc ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (20 companies) | -0.4x | -0.3x | -0.2x | -1.3x | -0.8x |
|---|
| Quorum Information Technologies Inc ($QIS) | 0.0x | -0.4x | -0.6x | -1.0x | -3.1x |
