Andrew Peller Ltd reports 26.1% Net Income growth and 5.9% Revenue growth
02.06.2016 • About Andrew Peller Ltd (
$ADW.B) • By InTwits
Andrew Peller Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 12.2% in FY2016 vs. 10.9% in FY2015 vs. 11.8% in FY2012
- Andrew Peller Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.69 in FY2016, 0.12 in FY2015, 0.45 in FY2014, 0.51 in FY2013, 8.2 in FY2012
- The company has highly profitable business model: ROIC is at 12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Andrew Peller Ltd ($ADW.B) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 276.9 | 289.1 | 297.8 | 315.7 | 334.3 | 5.9% |
| Gross Profit | 107.3 | 104.6 | 103.0 | 109.0 | 116.9 | 7.2% |
| SG&A | | 76.3 | 74.3 | 79.7 | 82.0 | 3.0% |
| EBITDA | 32.7 | 33.5 | 33.7 | 34.4 | 40.9 | 18.8% |
| Net Income | 13.0 | 14.5 | 14.0 | 15.2 | 19.2 | 26.1% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 62.9 | 66.5 | 61.8 | 36.7 | 37.8 | 3.0% |
| Long Term Debt | 41.5 | 41.5 | 38.3 | 52.3 | 48.2 | -7.8% |
Cash flow
|
|---|
| Capex | 7.3 | 12.9 | 9.4 | 8.5 | 10.4 | 22.9% |
Ratios
|
|---|
| Revenue growth | 4.3% | 4.4% | 3.0% | 6.0% | 5.9% | |
| EBITDA growth | 3.5% | 2.6% | 0.7% | 2.1% | 18.8% | |
| Gross Margin | 38.7% | 36.2% | 34.6% | 34.5% | 35.0% | 0.4% |
| EBITDA Margin | 11.8% | 11.6% | 11.3% | 10.9% | 12.2% | 1.3% |
| Net Income Margin | 4.7% | 5.0% | 4.7% | 4.8% | 5.7% | 0.9% |
| SG&A, % of revenue | | 26.4% | 24.9% | 25.2% | 24.5% | -0.7% |
| CAPEX, % of revenue | 2.6% | 4.5% | 3.2% | 2.7% | 3.1% | 0.4% |
| ROIC | 10.8% | 10.4% | 10.1% | 10.2% | 12.1% | 1.9% |
| ROE | 11.1% | 11.6% | 10.5% | 10.7% | 12.6% | 1.9% |
| Net Debt/EBITDA | 3.2x | 3.2x | 3.0x | 2.6x | 2.1x | -0.5x |
Andrew Peller Ltd ($ADW.B) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 83 | 85 | 92 | 74 | 4.5% | 2.9% | 8.4% | 7.8% |
| EBITDA | 13 | 12 | 12 | 4 | 26.4% | 23.3% | 11.0% | 8.8% |
| Net Income | 7 | 7 | 7 | -2 | 67.5% | 36.4% | 25.8% | -515.8% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 36 | 26 | 34 | 38 | -22.6% | -28.4% | -11.1% | 3.0% |
| Long Term Debt | 51 | 50 | 49 | 48 | -7.3% | -7.6% | -7.6% | -7.8% |
Ratios
|
|---|
| Gross Margin | 36.4% | 36.7% | 34.6% | 31.8% | 1.5% | 1.9% | -0.5% | -1.2% |
| EBITDA Margin | 15.5% | 14.1% | 13.6% | 4.9% | 2.7% | 2.3% | 0.3% | 0.0% |
| Net Income Margin | 8.0% | 8.2% | 7.8% | -2.2% | 3.0% | 2.0% | 1.1% | -2.8% |
Revenue and profitability
Andrew Peller Ltd's Revenue increased on 5.9%. Revenue growth showed acceleration in FY16Q4 - it increased 7.8% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 10.6% to 9.0% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 0.70 pp from 25.2% to 24.5% in FY2016.
Net Income marign increased slightly on 0.92 pp from 4.8% to 5.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.1%. The company's CAPEX/Revenue decreased slightly on 1.4 pp from 4.5% in FY2013 to 3.1% in FY2016. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at good ROIC (12.10%) and ROE (12.58%). ROIC increased slightly on 1.9 pp from 10.2% to 12.1% in FY2016. ROE increased slightly on 1.9 pp from 10.7% to 12.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 0.5x from 2.6x to 2.1x in FY2016. Debt decreased on 3.3% while cash didn't change in FY2016.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Andrew Peller 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | 41.3% | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 28.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.7x |
|---|
