Loyalist Group Ltd revenue dropped on 33.2% in 2015 and EBITDA Margin dropped on 72.1 pp from -4.5% to -76.6%
02.05.2016 • About Loyalist Group Ltd (
$LOY) • By InTwits
Loyalist Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Loyalist Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -201.4%
- The company operates at negative EBITDA Margin: -76.6%
- Loyalist Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -20.0%0
- Loyalist Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 0.50 in 2015, 2.6 in 2014, 2.0 in 2013, 0.046 in 2012, 0.013 in 2011
- The company has unprofitable business model: ROIC is at -201.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Loyalist Group Ltd ($LOY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4.622 | 13.658 | 30.682 | 63.832 | 42.617 | -33.2% |
| Gross Profit | 1.362 | 5.804 | 11.029 | 16.791 | 4.174 | -75.1% |
| SG&A | | | | | 20.176 | |
| EBITDA | -0.634 | 2.925 | 2.166 | -2.842 | -32.642 | 1,048.5% |
| Net Income | -1.278 | 2.245 | 1.846 | -19.525 | -46.246 | 136.9% |
Balance Sheet
|
|---|
| Cash | 0.000 | 2.905 | 2.473 | 1.039 | 0.470 | -54.8% |
| Short Term Debt | 0.419 | 0.008 | 5.885 | 8.660 | 9.651 | 11.4% |
| Long Term Debt | 0.025 | 0.017 | 3.928 | 6.902 | 4.292 | -37.8% |
Cash flow
|
|---|
| Capex | 0.013 | 0.046 | 1.964 | 2.588 | 0.504 | -80.5% |
Ratios
|
|---|
| Revenue growth | 428.4% | 195.5% | 124.6% | 108.0% | -33.2% | |
| EBITDA growth | -2,871.6% | -561.4% | -25.9% | -231.2% | 1,048.5% | |
| Gross Margin | 29.5% | 42.5% | 35.9% | 26.3% | 9.8% | -16.5% |
| EBITDA Margin | -13.7% | 21.4% | 7.1% | -4.5% | -76.6% | -72.1% |
| Net Income Margin | -27.6% | 16.4% | 6.0% | -30.6% | -108.5% | -77.9% |
| SG&A, % of revenue | | | | | 47.3% | 47.3% |
| CAPEX, % of revenue | 0.3% | 0.3% | 6.4% | 4.1% | 1.2% | -2.9% |
| ROIC | -155.6% | 50.3% | 6.7% | -11.8% | -201.4% | -189.6% |
| ROE | -492.5% | 42.1% | 9.9% | -82.6% | | 82.6% |
| Net Debt/EBITDA | | -1.0x | 3.4x | | | 0.0x |
Revenue and profitability
Loyalist Group Ltd's Revenue dropped on 33.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 72.1 pp from -4.5% to -76.6% in 2015.
Gross Margin dropped on 16.5 pp from 26.3% to 9.8% in 2015.
Net Income marign dropped on 77.9 pp from -30.6% to -109% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Loyalist Group Ltd had CAPEX/Revenue of 1.2%. The company showed small growth in CAPEX/Revenue of 0.85 pp from 0.34% in 2012 to 1.2% in 2015. It's average CAPEX/Revenue for the last three years was 3.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 10.4% in 2015 while cash dropped on 54.8% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Loyalist Group Ltd benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| 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 ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (87 companies) | -20.6% | 8.7% | 5.3% | 12.2% | 14.2% |
|---|
| Loyalist Group Ltd ($LOY) | | 195.5% | 124.6% | 108.0% | -33.2% |
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 ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (74 companies) | 36.6% | 37.4% | 36.2% | 35.8% | 35.1% |
|---|
| Loyalist Group Ltd ($LOY) | 29.5% | 42.5% | 35.9% | 26.3% | 9.8% |
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 ($CXR) | | | 43.7% | 37.0% | 39.8% |
| |
|---|
| Median (85 companies) | 7.5% | 7.3% | 9.0% | 10.6% | 10.1% |
|---|
| Loyalist Group Ltd ($LOY) | -13.7% | 21.4% | 7.1% | -4.5% | -76.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | 81.0% |
| 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 ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
| |
|---|
| Median (86 companies) | 2.3% | 2.6% | 2.4% | 2.5% | 2.3% |
|---|
| Loyalist Group Ltd ($LOY) | 0.3% | 0.3% | 6.4% | 4.1% | 1.2% |
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 ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| |
|---|
| Median (87 companies) | 8.0% | 5.9% | 6.7% | 7.3% | 6.3% |
|---|
| Loyalist Group Ltd ($LOY) | -155.6% | 50.3% | 6.7% | -11.8% | -201.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | 244.1x |
| Family Memorials Inc ($FAM) | | | | 15.2x | 84.3x |
| 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 |
| |
|---|
| Median (71 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.9x |
|---|
