Spot Coffee Canada Ltd revenue growth continued to 16.5% in 2015 vs. 16.6% a year earliner
06.05.2016 • About Spot Coffee Canada Ltd (
$SPP) • By InTwits
Spot Coffee Canada Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Spot Coffee Canada Ltd doesn't have a profitable business model yet: 2015 ROIC is -140.0%
- The company operates at negative EBITDA Margin: -1.5%
- Spot Coffee Canada Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.0%0
- Spot Coffee Canada Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.5%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 0.21 in 2015, 0.68 in 2014, 0.66 in 2013, 1.6 in 2012, 1.1 in 2011
- The company has unprofitable business model: ROIC is at -140.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Spot Coffee Canada Ltd ($SPP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.697 | 5.934 | 6.860 | 7.999 | 9.319 | 16.5% |
| Gross Profit | 3.810 | 3.944 | 4.717 | 5.414 | 6.470 | 19.5% |
| SG&A | | | | | 0.536 | |
| EBITDA | -0.532 | -0.773 | -0.503 | -0.555 | -0.138 | -75.2% |
| Net Income | -0.981 | -1.428 | -2.265 | -4.202 | -1.260 | -70.0% |
Balance Sheet
|
|---|
| Cash | 0.750 | 0.053 | 0.266 | 0.216 | 0.029 | -86.5% |
| Short Term Debt | 0.049 | 0.078 | 0.058 | 0.058 | 2.133 | 3,571.2% |
| Long Term Debt | 0.628 | 1.285 | 2.424 | 2.612 | 0.725 | -72.2% |
Cash flow
|
|---|
| Capex | 1.108 | 1.650 | 0.658 | 0.678 | 0.214 | -68.4% |
Ratios
|
|---|
| Revenue growth | 16.2% | 4.1% | 15.6% | 16.6% | 16.5% | |
| EBITDA growth | 87.9% | 45.3% | -35.0% | 10.5% | -75.2% | |
| Gross Margin | 66.9% | 66.5% | 68.8% | 67.7% | 69.4% | 1.8% |
| EBITDA Margin | -9.3% | -13.0% | -7.3% | -6.9% | -1.5% | 5.5% |
| Net Income Margin | -17.2% | -24.1% | -33.0% | -52.5% | -13.5% | 39.0% |
| SG&A, % of revenue | | | | | 5.8% | 5.8% |
| CAPEX, % of revenue | 19.5% | 27.8% | 9.6% | 8.5% | 2.3% | -6.2% |
| ROIC | -35.1% | -30.6% | -28.8% | -54.0% | -140.0% | -85.9% |
| ROE | -49.4% | -56.3% | -127.6% | | | 0.0% |
Revenue and profitability
The company's Revenue surged on 16.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.5 pp from -6.9% to -1.5% in 2015.
Gross Margin increased slightly on 1.8 pp from 67.7% to 69.4% in 2015.
Net Income marign jumped on 39.0 pp from -52.5% to -13.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.3%. The company showed big decline in CAPEX/Revenue of 25.5 pp from 27.8% in 2012 to 2.3% in 2015. Average CAPEX/Revenue for the last three years was 6.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased on 7.0% in 2015 while cash dropped on 86.5% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Spot Coffee Canada Ltd benchmarking vs. other companies in Consumer, 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 |
|---|
| 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 ($NYX) | | 65.2% | 52.8% | 45.8% | 91.8% |
| |
|---|
| Median (71 companies) | | 5.4% | 4.9% | 7.0% | 6.1% |
|---|
| Spot Coffee Canada Ltd ($SPP) | | 4.1% | 15.6% | 16.6% | 16.5% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| |
|---|
| Median (61 companies) | 37.9% | 36.5% | 34.1% | 35.4% | 33.7% |
|---|
| Spot Coffee Canada Ltd ($SPP) | 66.9% | 66.5% | 68.8% | 67.7% | 69.4% |
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 ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (66 companies) | 8.4% | 8.1% | 9.9% | 10.2% | 9.3% |
|---|
| Spot Coffee Canada Ltd ($SPP) | -9.3% | -13.0% | -7.3% | -6.9% | -1.5% |
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 ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (71 companies) | 2.2% | 2.6% | 2.7% | 2.3% | 2.7% |
|---|
| Spot Coffee Canada Ltd ($SPP) | 19.5% | 27.8% | 9.6% | 8.5% | 2.3% |
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 ($PJC.A) | | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (71 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 8.9% |
|---|
| Spot Coffee Canada Ltd ($SPP) | -35.1% | -30.6% | -28.8% | -54.0% | -140.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | | 39.7x |
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | 29.0x |
| 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 |
| |
|---|
| Median (57 companies) | 1.3x | 1.3x | 1.8x | 2.0x | 2.0x |
|---|
