Lakeview Hotel Investment Corp reports 327% Net Income decline and 11.1 pp EBITDA Margin decline from 27.8% to 16.8%
29.04.2016 • About Lakeview Hotel Investment Corp (
$LHR) • By InTwits
Lakeview Hotel Investment Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lakeview Hotel Investment Corp is a company in decline: 2015 revenue growth was -23.4%, 5 years revenue CAGR was -2.7%
- Lakeview Hotel Investment Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 1.4 in 2015, 1.8 in 2014, 0.081 in 2013, 0.78 in 2012, 9.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 17.2x while industry average is 9.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lakeview Hotel Investment Corp ($LHR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 39.851 | 39.732 | 41.059 | 39.544 | 30.296 | -23.4% |
| EBITDA | 11.644 | 10.383 | 12.042 | 11.004 | 5.076 | -53.9% |
| Net Income | -2.738 | -2.911 | 4.593 | 2.192 | -4.980 | -327.2% |
Balance Sheet
|
|---|
| Cash | 5.263 | 3.459 | 0.813 | 0.480 | 0.155 | -67.6% |
| Short Term Debt | 12.862 | 31.126 | 31.189 | 31.091 | 75.054 | 141.4% |
| Long Term Debt | 108.537 | 88.949 | 65.942 | 58.517 | 12.417 | -78.8% |
Cash flow
|
|---|
| Capex | 0.520 | 1.065 | 0.730 | 0.682 | 0.950 | 39.3% |
Ratios
|
|---|
| Revenue growth | 14.7% | -0.3% | 3.3% | -3.7% | -23.4% | |
| EBITDA growth | 29.8% | -10.8% | 16.0% | -8.6% | -53.9% | |
| EBITDA Margin | 29.2% | 26.1% | 29.3% | 27.8% | 16.8% | -11.1% |
| Net Income Margin | -6.9% | -7.3% | 11.2% | 5.5% | -16.4% | -22.0% |
| CAPEX, % of revenue | 1.3% | 2.7% | 1.8% | 1.7% | 3.1% | 1.4% |
| ROIC | 5.7% | 5.7% | 9.1% | 9.7% | 2.7% | -7.0% |
| Net Debt/EBITDA | 10.0x | 11.2x | 8.0x | 8.1x | 17.2x | 9.1x |
Revenue and profitability
Lakeview Hotel Investment Corp's Revenue dropped on 23.4% 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 dropped on 22.0 pp from 5.5% to -16.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.1%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.2%.
Leverage (Debt)
Debt level is 17.2x Net Debt / EBITDA and 17.2x Debt / EBITDA. Net Debt / EBITDA surged on 9.1x from 8.1x to 17.2x in 2015. Debt decreased on 2.4% in 2015 while cash dropped on 67.6% in 2015.
Appendix 1: Peers in Financial
Below you can find Lakeview Hotel Investment Corp benchmarking vs. other companies in Financial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | | 317.2% |
| Starrex International Ltd ($STX) | | | | | 204.1% |
| StorageVault Canada Inc ($SVI) | | 3.2% | 22.2% | 7.5% | 111.8% |
| IOU Financial Inc ($IOU) | | 562.1% | 331.7% | 52.2% | 94.3% |
| Mogo Finance Technology Inc ($GO) | | | 13.7% | 34.6% | 86.0% |
| |
|---|
| Median (78 companies) | | 9.6% | 7.9% | 9.1% | 2.4% |
|---|
| Lakeview Hotel Investment Corp ($LHR) | | -0.3% | 3.3% | -3.7% | -23.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| Mogo Finance Technology Inc ($GO) | | 70.4% | 64.5% | 63.4% | 62.3% |
| StorageVault Canada Inc ($SVI) | 19.8% | 18.2% | 22.6% | 18.3% | 52.4% |
| Clarke Inc ($CKI) | 9.9% | 28.1% | 20.0% | 18.9% | 43.4% |
| |
|---|
| Median (13 companies) | 24.0% | 23.6% | 25.7% | 20.5% | 31.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | 86.6% |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Atrium Mortgage Investment Corp ($AI) | 84.5% | 79.8% | | | 81.9% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | | 76.2% |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (53 companies) | 36.1% | 32.3% | 32.0% | 30.5% | 27.0% |
|---|
| Lakeview Hotel Investment Corp ($LHR) | 29.2% | 26.1% | 29.3% | 27.8% | 16.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Equities Inc ($IEI) | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| Gazit-Globe Ltd ($GZT) | 111.1% | 80.2% | 43.3% | 52.1% | 69.3% |
| Wall Financial Corp ($WFC) | | 13.5% | 9.8% | 6.1% | 65.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (80 companies) | 1.0% | 1.1% | 0.8% | 1.0% | 1.1% |
|---|
| Lakeview Hotel Investment Corp ($LHR) | 1.3% | 2.7% | 1.8% | 1.7% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | 19.7% |
| Grenville Strategic Royalty Corp ($GRC) | -1.9% | -10.8% | -10.1% | -11.6% | 18.1% |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| |
|---|
| Median (80 companies) | 4.9% | 4.8% | 4.6% | 4.8% | 4.2% |
|---|
| Lakeview Hotel Investment Corp ($LHR) | 5.7% | 5.7% | 9.1% | 9.7% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | 35.7x |
| IOU Financial Inc ($IOU) | | | 7.3x | | 31.7x |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | 22.1x |
| |
|---|
| Median (41 companies) | 2.7x | 5.1x | 4.6x | 4.2x | 5.6x |
|---|
| Lakeview Hotel Investment Corp ($LHR) | 10.0x | 11.2x | 8.0x | 8.1x | 17.2x |
