Rocky Mountain Liquor Inc EBITDA dropped on 17.0% in 2015 and EBITDA Margin showed almost no change
27.04.2016 • About Rocky Mountain Liquor Inc (
$RUM) • By InTwits
Rocky Mountain Liquor Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.0% in 2015 vs. 4.2% in 2014 vs. 5.1% in 2011
- Rocky Mountain Liquor Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 84.8%.
- CAPEX is quite volatile: 0.42 in 2015, 0.44 in 2014, 1.2 in 2013, 0.54 in 2012, 1.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 6.6x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rocky Mountain Liquor Inc ($RUM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 52.818 | 54.639 | 55.916 | 55.950 | 49.315 | -11.9% |
| Gross Profit | 10.584 | 11.438 | 13.162 | 12.874 | 12.671 | -1.6% |
| SG&A | | | 10.574 | 10.571 | 10.641 | 0.7% |
| EBITDA | 2.674 | 2.658 | 2.533 | 2.360 | 1.958 | -17.0% |
| Net Income | -0.451 | 0.192 | 0.208 | 0.023 | 0.288 | 1,138.9% |
Balance Sheet
|
|---|
| Cash | 1.001 | 1.123 | 1.123 | 0.869 | 0.863 | -0.7% |
| Short Term Debt | 0.401 | 0.405 | 0.362 | 5.232 | 13.833 | 164.4% |
| Long Term Debt | 14.063 | 15.342 | 14.906 | 9.058 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 1.576 | 0.539 | 1.214 | 0.445 | 0.419 | -5.8% |
Ratios
|
|---|
| Revenue growth | 10.9% | 3.4% | 2.3% | 0.1% | -11.9% | |
| EBITDA growth | 15.9% | -0.6% | -4.7% | -6.8% | -17.0% | |
| Gross Margin | 20.0% | 20.9% | 23.5% | 23.0% | 25.7% | 2.7% |
| EBITDA Margin | 5.1% | 4.9% | 4.5% | 4.2% | 4.0% | -0.2% |
| Net Income Margin | -0.9% | 0.4% | 0.4% | 0.0% | 0.6% | 0.5% |
| SG&A, % of revenue | | | 18.9% | 18.9% | 21.6% | 2.7% |
| CAPEX, % of revenue | 3.0% | 1.0% | 2.2% | 0.8% | 0.8% | 0.1% |
| ROIC | 7.4% | 7.5% | 7.5% | 6.5% | 5.8% | -0.7% |
| ROE | -6.4% | 2.8% | 2.9% | 0.3% | 3.7% | 3.4% |
| Net Debt/EBITDA | 5.0x | 5.5x | 5.6x | 5.7x | 6.6x | 0.9x |
Revenue and profitability
The company's Revenue dropped on 11.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 59.8% to 69.2% in 2015.
Gross Margin increased on 2.7 pp from 23.0% to 25.7% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 18.9% to 21.6% in 2015.
Net Income marign increased slightly on 0.54 pp from 0.042% to 0.58% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Rocky Mountain Liquor Inc had CAPEX/Revenue of 0.85%. Rocky Mountain Liquor Inc's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (5.79%) and ROE (3.75%). ROIC decreased slightly on 0.67 pp from 6.5% to 5.8% in 2015. ROE increased on 3.4 pp from 0.31% to 3.7% in 2015.
Leverage (Debt)
Debt level is 6.6x Net Debt / EBITDA and 7.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from 5.7x to 6.6x in 2015. Debt decreased on 3.2% in 2015 while cash decreased slightly on 0.71% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Rocky Mountain Liquor Inc benchmarking against other companies in Consumer, Non-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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (80 companies) | 78.5% | 9.7% | 6.7% | 13.2% | 14.6% |
|---|
| Rocky Mountain Liquor Inc ($RUM) | | 3.4% | 2.3% | 0.1% | -11.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (67 companies) | 36.6% | 38.7% | 36.2% | 35.8% | 36.5% |
|---|
| Rocky Mountain Liquor Inc ($RUM) | 20.0% | 20.9% | 23.5% | 23.0% | 25.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Ceapro Inc ($CZO) | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| |
|---|
| Median (79 companies) | 7.5% | 7.9% | 9.0% | 10.8% | 10.6% |
|---|
| Rocky Mountain Liquor Inc ($RUM) | 5.1% | 4.9% | 4.5% | 4.2% | 4.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (79 companies) | 2.2% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| Rocky Mountain Liquor Inc ($RUM) | 3.0% | 1.0% | 2.2% | 0.8% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| |
|---|
| Median (80 companies) | 8.0% | 6.3% | 6.7% | 7.3% | 6.7% |
|---|
| Rocky Mountain Liquor Inc ($RUM) | 7.4% | 7.5% | 7.5% | 6.5% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | 244.1x |
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| |
|---|
| Median (68 companies) | 1.9x | 2.5x | 2.2x | 2.6x | 1.9x |
|---|
| Rocky Mountain Liquor Inc ($RUM) | 5.0x | 5.5x | 5.6x | 5.7x | 6.6x |
