Mountain China Resorts Holding Ltd Net Debt / EBITDA dropped on 288.1x from 317.1x to 29.0x in 2015 while EBITDA jumped on 2,068%
02.05.2016 • About Mountain China Resorts Holding Ltd (
$MCG) • By InTwits
Mountain China Resorts Holding Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mountain China Resorts Holding Ltd doesn't have a profitable business model yet: 2015 ROIC is -7.7%
- Mountain China Resorts Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 4.6%.
- CAPEX is quite volatile: 1.5 in 2015, 0.14 in 2014, 0.058 in 2013, 0.16 in 2012, 0.28 in 2011
- The company has unprofitable business model: ROIC is at -7.7%
- It operates with high leverage: Net Debt/EBITDA is 29.0x while industry average is 3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mountain China Resorts Holding Ltd ($MCG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.658 | 9.453 | 8.852 | 10.867 | 13.608 | 25.2% |
| Gross Profit | -5.725 | | | | | |
| SG&A | | | | | 2.365 | |
| EBITDA | -1.229 | -0.139 | -1.334 | 0.188 | 4.076 | 2,068.1% |
| Net Income | -42.655 | -17.852 | -44.073 | -14.034 | -23.355 | 66.4% |
Balance Sheet
|
|---|
| Cash | 0.772 | 9.080 | 8.293 | 6.309 | 0.677 | -89.3% |
| Short Term Debt | 61.408 | 42.320 | 42.871 | 45.791 | 98.684 | 115.5% |
| Long Term Debt | 7.478 | 16.420 | 21.346 | 20.133 | 20.028 | -0.5% |
Cash flow
|
|---|
| Capex | 0.276 | 0.164 | 0.058 | 0.135 | 1.479 | 995.6% |
Ratios
|
|---|
| Revenue growth | 52.3% | 42.0% | -6.4% | 22.8% | 25.2% | |
| EBITDA growth | -81.0% | -88.7% | 859.7% | -114.1% | 2,068.1% | |
| Gross Margin | -86.0% | | | | | 0.0% |
| EBITDA Margin | -18.5% | -1.5% | -15.1% | 1.7% | 30.0% | 28.2% |
| Net Income Margin | -640.7% | -188.9% | -497.9% | -129.1% | -171.6% | -42.5% |
| SG&A, % of revenue | | | | | 17.4% | 17.4% |
| CAPEX, % of revenue | 4.1% | 1.7% | 0.7% | 1.2% | 10.9% | 9.6% |
| ROIC | -9.5% | -10.7% | -17.3% | -14.9% | -7.7% | 7.2% |
| ROE | -69.3% | -43.9% | | | | 0.0% |
| Net Debt/EBITDA | | | | 317.1x | 29.0x | -288.1x |
Revenue and profitability
The company's Revenue surged on 25.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 28.2 pp from 1.7% to 30.0% in 2015.
Net Income marign dropped on 42.5 pp from -129% to -172% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Mountain China Resorts Holding Ltd had CAPEX/Revenue of 10.9%. The company showed CAPEX/Revenue growth of 9.1 pp from 1.7% in 2012 to 10.9% in 2015. For the last three years the average CAPEX/Revenue was 4.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 29.0x and Debt / EBITDA is 29.1x. Net Debt / EBITDA dropped on 288.1x from 317.1x to 29.0x in 2015. Debt surged on 80.1% in 2015 while cash dropped on 89.3% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Mountain China Resorts Holding Ltd 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 ($NYX) | | 65.2% | 52.8% | 45.8% | 91.8% |
| |
|---|
| Median (70 companies) | 16.2% | 5.3% | 5.3% | 7.0% | 5.7% |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | 42.0% | -6.4% | 22.8% | 25.2% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| |
|---|
| Median (61 companies) | 38.2% | 37.0% | 36.1% | 36.2% | 33.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($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 (65 companies) | 8.4% | 8.1% | 9.9% | 10.2% | 9.2% |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | -18.5% | -1.5% | -15.1% | 1.7% | 30.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($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 (70 companies) | 2.2% | 2.7% | 2.8% | 2.5% | 2.7% |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | 4.1% | 1.7% | 0.7% | 1.2% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($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 (70 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 9.6% |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | -9.5% | -10.7% | -17.3% | -14.9% | -7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | | 39.7x |
| Rainmaker Entertainment Inc ($RNK) | 24.9x | | | | 18.6x |
| Holloway Lodging Corp ($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 |
| |
|---|
| Median (56 companies) | 1.3x | 1.3x | 1.8x | 2.0x | 2.0x |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | 29.0x |
