Striker Exploration Corp reports 315% revenue growth in 2015 and 62.1 pp EBITDA Margin growth from -79.4% to -17.3%
26.04.2016 • About Striker Exploration Corp (
$SKX) • By InTwits
Striker Exploration Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Striker Exploration Corp doesn't have a profitable business model yet: 2015 ROIC is -23.7%
- The company operates at negative EBITDA Margin: -17.3%
- Striker Exploration Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -19.0% for the sames years0
- Striker Exploration Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 81.8%. At the same time it's a lot of higher than industry average of 59.1%.
- CAPEX is quite volatile: 25.9 in 2015, 7.4 in 2014, 0.36 in 2013, 1.9 in 2012, 4.5 in 2011
- The company has unprofitable business model: ROIC is at -23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Striker Exploration Corp ($SKX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.274 | 2.515 | 2.325 | 7.599 | 31.515 | 314.7% |
| Gross Profit | 2.238 | 1.665 | | | | |
| SG&A | | | | | 3.564 | |
| EBITDA | 1.375 | 0.695 | 0.466 | -6.034 | -5.453 | -9.6% |
| Net Income | 0.452 | 0.018 | 0.257 | -16.394 | -28.471 | 73.7% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.006 | 16.761 | 0.000 | -100.0% |
| Short Term Debt | 3.182 | 3.617 | 3.675 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 10.000 | 3.621 | -63.8% |
Cash flow
|
|---|
| Capex | 4.500 | 1.916 | 0.358 | 7.432 | 25.946 | 249.1% |
Ratios
|
|---|
| Revenue growth | 157.8% | -23.2% | -7.6% | 226.9% | 314.7% | |
| EBITDA growth | 117.3% | -49.4% | -33.0% | -1,395.6% | -9.6% | |
| Gross Margin | 68.4% | 66.2% | | | | 0.0% |
| EBITDA Margin | 42.0% | 27.7% | 20.0% | -79.4% | -17.3% | 62.1% |
| Net Income Margin | 13.8% | 0.7% | 11.1% | -215.7% | -90.3% | 125.4% |
| SG&A, % of revenue | | | | | 11.3% | 11.3% |
| CAPEX, % of revenue | 137.4% | 76.2% | 15.4% | 97.8% | 82.3% | -15.5% |
| ROIC | 5.4% | -2.0% | -2.9% | -14.5% | -23.7% | -9.2% |
| ROE | 10.8% | 0.4% | 5.6% | -28.4% | -28.0% | 0.4% |
| Net Debt/EBITDA | 2.3x | 5.2x | 7.9x | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 315% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 9.3% to 11.2% in FY2015.
Net Income marign jumped on 125 pp from -216% to -90.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Striker Exploration Corp had CAPEX/Revenue of 82.3%. Striker Exploration Corp showed CAPEX/Revenue growth of 6.1 pp from 76.2% in 2012 to 82.3% in 2015. For the last three years the average CAPEX/Revenue was 65.2%.
Return on investment
The company operates at negative ROIC (-23.73%) and ROE (-28.01%). ROIC decreased on 9.2 pp from -14.5% to -23.7% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 63.8% in 2015 while cash dropped on 100% in 2015.
Appendix 1: Peers in Energy
Below we provide Striker Exploration Corp benchmarking against other companies in Energy 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 |
|---|
| 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 ($VII) | | | 115.7% | 340.2% | 39.0% |
| |
|---|
| Median (153 companies) | 45.4% | 9.6% | 17.4% | 18.7% | -27.5% |
|---|
| Striker Exploration Corp ($SKX) | | -23.2% | -7.6% | 226.9% | 314.7% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (137 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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 (155 companies) | 25.3% | 24.2% | 31.5% | 29.7% | 5.5% |
|---|
| Striker Exploration Corp ($SKX) | 42.0% | 27.7% | 20.0% | -79.4% | -17.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($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 (156 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 29.3% |
|---|
| Striker Exploration Corp ($SKX) | 137.4% | 76.2% | 15.4% | 97.8% | 82.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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 (156 companies) | 4.4% | 3.1% | 4.7% | 5.3% | -9.8% |
|---|
| Striker Exploration Corp ($SKX) | 5.4% | -2.0% | -2.9% | -14.5% | -23.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 (139 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.6x |
|---|
