Rainmaker Entertainment Inc revenue jumped on 56.4% in 2015 and EBITDA Margin surged on 13.7 pp from -6.1% to 7.6%
29.04.2016 • About Rainmaker Entertainment Inc (
$RNK) • By InTwits
Rainmaker Entertainment Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rainmaker Entertainment Inc doesn't have a profitable business model yet: 2015 ROIC is 1.9%
- Rainmaker Entertainment Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -2.8% for the sames years0
- Rainmaker Entertainment Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 73.4%.
- CAPEX is quite volatile: 0.062 in 2015, 0.61 in 2014, 0.30 in 2013, 0.39 in 2012, 0.32 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 18.6x while industry average is 8.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rainmaker Entertainment Inc ($RNK) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.827 | 14.205 | 7.818 | 10.169 | 15.902 | 56.4% |
| Gross Profit | 3.064 | 0.537 | -0.033 | 1.236 | 3.917 | 217.0% |
| SG&A | | | | | 3.403 | |
| EBITDA | 0.135 | -1.153 | -1.460 | -0.623 | 1.204 | -293.4% |
| Net Income | 3.348 | -3.574 | -2.937 | -1.956 | -2.200 | 12.5% |
Balance Sheet
|
|---|
| Cash | 6.686 | 3.576 | 1.594 | 3.517 | 2.559 | -27.2% |
| Short Term Debt | 8.310 | 5.618 | 6.962 | 11.060 | 24.870 | 124.9% |
| Long Term Debt | 1.737 | 0.270 | 5.420 | 13.097 | 0.121 | -99.1% |
Cash flow
|
|---|
| Capex | 0.325 | 0.387 | 0.305 | 0.610 | 0.062 | -89.8% |
Ratios
|
|---|
| Revenue growth | -3.3% | -24.6% | -45.0% | 30.1% | 56.4% | |
| EBITDA growth | -94.4% | -953.0% | 26.6% | -57.4% | -293.4% | |
| Gross Margin | 16.3% | 3.8% | -0.4% | 12.2% | 24.6% | 12.5% |
| EBITDA Margin | 0.7% | -8.1% | -18.7% | -6.1% | 7.6% | 13.7% |
| Net Income Margin | 17.8% | -25.2% | -37.6% | -19.2% | -13.8% | 5.4% |
| SG&A, % of revenue | | | | | 21.4% | 21.4% |
| CAPEX, % of revenue | 1.7% | 2.7% | 3.9% | 6.0% | 0.4% | -5.6% |
| ROIC | -8.8% | -15.1% | -16.6% | -6.7% | 1.9% | 8.6% |
| ROE | 39.8% | -42.5% | -53.7% | -55.1% | -109.2% | -54.1% |
| Net Debt/EBITDA | 24.9x | | | | 18.6x | 18.6x |
Revenue and profitability
Rainmaker Entertainment Inc's Revenue jumped on 56.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 673 pp from -181% to -854% in 2015.
Gross Margin surged on 12.5 pp from 12.2% to 24.6% in 2015.
Net Income marign increased on 5.4 pp from -19.2% to -13.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Rainmaker Entertainment Inc's CAPEX/Revenue was 0.39% in 2015. The company's CAPEX/Revenue decreased on 2.3 pp from 2.7% in 2012 to 0.39% in 2015. It's average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at low but positive ROIC (1.93%) and negative ROE (-109.22%). ROIC increased on 8.6 pp from -6.7% to 1.9% in 2015. ROE dropped on 54.1 pp from -55.1% to -109% in 2015.
Leverage (Debt)
Debt level is 18.6x Net Debt / EBITDA and 20.8x Debt / EBITDA. Net Debt / EBITDA surged18.6x from to 18.6x in 2015. Debt increased on 3.5% in 2015 while cash dropped on 27.2% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Rainmaker Entertainment Inc benchmarking against other companies in Consumer, 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 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | | 539.9% |
| Restaurant Brands International Inc ($QSR) | | | | 4.6% | 238.0% |
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| NYX Gaming Group Ltd ($NYX) | | 65.2% | 52.8% | 45.8% | 91.8% |
| |
|---|
| Median (69 companies) | 34.2% | 5.4% | 5.3% | 7.0% | 5.4% |
|---|
| Rainmaker Entertainment Inc ($RNK) | | -24.6% | -45.0% | 30.1% | 56.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NYX Gaming Group Ltd ($NYX) | 86.0% | 91.3% | 86.7% | 88.3% | 85.6% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | 82.7% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| |
|---|
| Median (60 companies) | 38.2% | 37.5% | 36.5% | 36.6% | 33.7% |
|---|
| Rainmaker Entertainment Inc ($RNK) | 16.3% | 3.8% | -0.4% | 12.2% | 24.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (64 companies) | 8.4% | 8.1% | 9.9% | 10.2% | 9.3% |
|---|
| Rainmaker Entertainment Inc ($RNK) | 0.7% | -8.1% | -18.7% | -6.1% | 7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (69 companies) | 2.4% | 2.6% | 2.7% | 2.3% | 2.7% |
|---|
| Rainmaker Entertainment Inc ($RNK) | 1.7% | 2.7% | 3.9% | 6.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | 51.1% |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | 35.3% |
| Cara Operations Ltd ($CAO) | | | | 24.7% | 35.1% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (69 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 10.2% |
|---|
| Rainmaker Entertainment Inc ($RNK) | -8.8% | -15.1% | -16.6% | -6.7% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | | 39.7x |
| Holloway Lodging Corp ($HLC) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | | 2.8x | 3.8x | 7.5x | 11.4x |
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| |
|---|
| Median (55 companies) | 1.3x | 1.3x | 1.8x | 2.0x | 1.9x |
|---|
| Rainmaker Entertainment Inc ($RNK) | 24.9x | | | | 18.6x |
