Selectcore Ltd revenue dropped on 58.4% in 2015 and EBITDA Margin dropped on 16.3 pp from -3.2% to -19.5%
02.05.2016 • About Selectcore Ltd (
$SCG) • By InTwits
Selectcore Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Selectcore Ltd is a company in decline: 2015 revenue growth was -58.4%, 5 years revenue CAGR was -39.1%
- The company operates at negative EBITDA Margin: -19.5%
- Selectcore Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -4.2%0
- Selectcore Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Selectcore Ltd ($SCG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 82.984 | 60.821 | 32.135 | 20.752 | 8.637 | -58.4% |
| Gross Profit | 5.371 | 2.575 | 3.347 | 2.959 | 2.065 | -30.2% |
| SG&A | | | | | 1.710 | |
| EBITDA | -1.280 | -3.041 | -1.994 | -0.658 | -1.684 | 156.1% |
| Net Income | -3.199 | -7.188 | -3.229 | -1.582 | -2.586 | 63.5% |
Balance Sheet
|
|---|
| Cash | 0.219 | 1.299 | 0.927 | 2.009 | 1.275 | -36.5% |
| Short Term Debt | 0.000 | 3.289 | 0.000 | 2.559 | 3.133 | 22.5% |
| Long Term Debt | 3.885 | 0.000 | 2.439 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.235 | 0.707 | 0.315 | 0.011 | 0.004 | -64.4% |
Ratios
|
|---|
| Revenue growth | -19.6% | -26.7% | -47.2% | -35.4% | -58.4% | |
| EBITDA growth | -261.5% | 137.5% | -34.4% | -67.0% | 156.1% | |
| Gross Margin | 6.5% | 4.2% | 10.4% | 14.3% | 23.9% | 9.7% |
| EBITDA Margin | -1.5% | -5.0% | -6.2% | -3.2% | -19.5% | -16.3% |
| Net Income Margin | -3.9% | -11.8% | -10.0% | -7.6% | -29.9% | -22.3% |
| SG&A, % of revenue | | | | | 19.8% | 19.8% |
| CAPEX, % of revenue | 0.3% | 1.2% | 1.0% | 0.1% | 0.0% | -0.0% |
| ROIC | -161.2% | | | | | 0.0% |
Revenue and profitability
The company's Revenue dropped on 58.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 6.8% to 7.4% in FY2015.
Gross Margin increased on 9.7 pp from 14.3% to 23.9% in 2015.
Net Income marign dropped on 22.3 pp from -7.6% to -29.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Selectcore Ltd had CAPEX/Revenue of 0.045%. The company showed small CAPEX/Revenue decline of 1.1 pp from 1.2% in 2012 to 0.045% in 2015. It's average CAPEX/Revenue for the last three years was 0.36%.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 22.5% in 2015 while cash dropped on 36.5% in 2015.
Appendix 1: Peers in Communications
Below you can find Selectcore Ltd benchmarking vs. other companies in Communications 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 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 842.9% |
| Snipp Interactive Inc ($SPN) | | | 70.1% | 309.2% | 327.0% |
| UrtheCast Corp ($UR) | | | | | 205.7% |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | 96.3% |
| DragonWave Inc ($DWI) | | -61.3% | 171.3% | -27.3% | 75.3% |
| |
|---|
| Median (55 companies) | | 5.3% | 2.7% | 2.5% | 3.7% |
|---|
| Selectcore Ltd ($SCG) | | -26.7% | -47.2% | -35.4% | -58.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | 81.1% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| TeraGo Inc ($TGO) | 65.0% | 62.9% | 61.8% | 59.8% | 77.2% |
| |
|---|
| Median (41 companies) | 43.3% | 43.3% | 42.7% | 43.1% | 45.4% |
|---|
| Selectcore Ltd ($SCG) | 6.5% | 4.2% | 10.4% | 14.3% | 23.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Mediagrif Interactive Technologies Inc ($MDF) | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% |
| |
|---|
| Median (52 companies) | 16.4% | 13.5% | 14.1% | 11.7% | 9.9% |
|---|
| Selectcore Ltd ($SCG) | -1.5% | -5.0% | -6.2% | -3.2% | -19.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| Shaw Communications Inc ($SJR.B) | 17.4% | 18.2% | 18.2% | 19.7% | 22.2% |
| Cogeco Cable Inc ($CCA) | 24.6% | 28.1% | 23.0% | 20.6% | 20.7% |
| TELUS Corp ($T) | 18.0% | 17.9% | 17.8% | 19.8% | 20.2% |
| |
|---|
| Median (53 companies) | 4.3% | 2.3% | 3.0% | 2.1% | 2.0% |
|---|
| Selectcore Ltd ($SCG) | 0.3% | 1.2% | 1.0% | 0.1% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | 21.4% |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| RDM Corp ($RC) | -2.3% | 3.5% | 7.8% | 11.0% | 14.7% |
| Vecima Networks Inc ($VCM) | -0.6% | 11.7% | 6.4% | 11.4% | 14.5% |
| |
|---|
| Median (56 companies) | 7.5% | 8.0% | 8.3% | 7.7% | 3.6% |
|---|
| Selectcore Ltd ($SCG) | -161.2% | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 9.4x |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | 4.8x |
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Rogers Communications Inc ($RCI.A) | 2.2x | 2.3x | 2.4x | 3.2x | 3.6x |
| |
|---|
| Median (37 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 0.9x |
|---|
