QHR Corp reports 82.6% EBITDA decline while 12.7% Revenue growth
28.04.2016 • About QHR Corp (
$QHR) • By InTwits
QHR Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- QHR Corp doesn't have a profitable business model yet: 2015 ROIC is -7.0%
- EBITDA Margin is quite volatile: 2.7% in 2015, 17.4% in 2014, 5.2% in 2013, 7.0% in 2012, 13.1% in 2011
- QHR Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 0 in FY2015, 0.83 in FY2014, 0 in FY2013, 0.069 in FY2012, 0.23 in FY2011
- The company has unprofitable business model: ROIC is at -7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
QHR Corp ($QHR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 23.857 | 17.466 | 23.653 | 24.988 | 28.149 | 12.7% |
| Gross Profit | 11.894 | 8.887 | 12.043 | 17.329 | 18.322 | 5.7% |
| SG&A | 8.619 | 5.215 | 7.356 | 10.497 | 11.868 | 13.1% |
| EBITDA | 3.130 | 1.215 | 1.225 | 4.344 | 0.758 | -82.6% |
| Net Income | 1.470 | 0.167 | 6.521 | -0.914 | -7.085 | 675.1% |
Balance Sheet
|
|---|
| Cash | 2.044 | 1.593 | 12.634 | 12.169 | 9.375 | -23.0% |
| Short Term Debt | 2.287 | 3.211 | 0.607 | 0.588 | 0.486 | -17.4% |
| Long Term Debt | 0.523 | 1.587 | 0.519 | 0.239 | 0.353 | 47.7% |
Cash flow
|
|---|
| Capex | 0.160 | 0.359 | 0.362 | 0.384 | 0.329 | -14.3% |
Ratios
|
|---|
| Revenue growth | 25.1% | -26.8% | 35.4% | 5.6% | 12.7% | |
| EBITDA growth | 38.6% | -61.2% | 0.8% | 254.6% | -82.6% | |
| Gross Margin | 49.9% | 50.9% | 50.9% | 69.3% | 65.1% | -4.3% |
| EBITDA Margin | 13.1% | 7.0% | 5.2% | 17.4% | 2.7% | -14.7% |
| Net Income Margin | 6.2% | 1.0% | 27.6% | -3.7% | -25.2% | -21.5% |
| SG&A, % of revenue | 36.1% | 29.9% | 31.1% | 42.0% | 42.2% | 0.2% |
| CAPEX, % of revenue | 0.7% | 2.1% | 1.5% | 1.5% | 1.2% | -0.4% |
| ROIC | 6.3% | -2.7% | -4.3% | 7.9% | -7.0% | -14.9% |
| ROE | 8.8% | 0.9% | 28.0% | -3.3% | -27.9% | -24.6% |
| Net Debt/EBITDA | 0.2x | 2.6x | -9.4x | -2.6x | -11.3x | -8.7x |
Revenue and profitability
The company's Revenue surged on 12.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.7 pp from 33.1% to 11.4% in FY2015.
Gross Margin decreased on 4.3 pp from 69.3% to 65.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 21.5 pp from -3.7% to -25.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. QHR Corp showed small CAPEX/Revenue decline of 0.89 pp from 2.1% in 2012 to 1.2% in 2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at negative ROIC (-7.01%) and ROE (-27.92%). ROIC dropped on 14.9 pp from 7.9% to -7.0% in 2015. ROE dropped on 24.6 pp from -3.3% to -27.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -11.3x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 8.7x from -2.6x to -11.3x in 2015. Debt increased slightly on 1.5% in 2015 while cash dropped on 23.0% in 2015.
Appendix 1: Peers in Technology
Below we provide QHR Corp 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% |
| iLOOKABOUT Corp ($ILA) | | 19.6% | 8.9% | 58.8% | 32.3% |
| |
|---|
| Median (34 companies) | 25.1% | 3.8% | 11.4% | 15.2% | 12.9% |
|---|
| QHR Corp ($QHR) | | -26.8% | 35.4% | 5.6% | 12.7% |
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 ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | 74.3% |
| |
|---|
| Median (31 companies) | 50.8% | 59.2% | 46.8% | 47.4% | 51.9% |
|---|
| QHR Corp ($QHR) | 49.9% | 50.9% | 50.9% | 69.3% | 65.1% |
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 ($KXS) | 31.3% | 18.7% | 23.0% | 19.2% | 28.0% |
| |
|---|
| Median (33 companies) | 7.4% | 8.5% | 5.5% | 4.7% | 8.1% |
|---|
| QHR Corp ($QHR) | 13.1% | 7.0% | 5.2% | 17.4% | 2.7% |
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 ($HGN) | | 4.9% | 9.0% | 8.4% | 2.9% |
| |
|---|
| Median (34 companies) | 1.3% | 1.4% | 1.4% | 1.2% | 1.4% |
|---|
| QHR Corp ($QHR) | 0.7% | 2.1% | 1.5% | 1.5% | 1.2% |
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 ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | 38.5% |
| |
|---|
| Median (34 companies) | 4.7% | 3.1% | -5.4% | -0.0% | 2.4% |
|---|
| QHR Corp ($QHR) | 6.3% | -2.7% | -4.3% | 7.9% | -7.0% |
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 ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (21 companies) | -0.4x | -0.4x | -0.2x | -1.3x | -1.4x |
|---|
| QHR Corp ($QHR) | 0.2x | 2.6x | -9.4x | -2.6x | -11.3x |
