Mad Catz Interactive Inc EBITDA dropped on 1,802% in 2016 while Revenue surged on 55.5%
02.06.2016 • About Mad Catz Interactive Inc (
$MCZ) • By InTwits
Mad Catz Interactive Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mad Catz Interactive Inc doesn't have a profitable business model yet: FY2016 ROIC is -54.0%
- The company operates at negative EBITDA Margin: -5.2%
- Mad Catz Interactive Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -0.9%0
- Mad Catz Interactive Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 1.7%.
- CAPEX is quite volatile: 204 in 2016, 107 in 2015, 264 in 2014, 143 in 2013, 234 in 2012
- The company has unprofitable business model: ROIC is at -54.0%
- It operates with high leverage: Net Debt/EBITDA is 7.8x while industry average is -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mad Catz Interactive Inc ($MCZ) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 117.6 | 122.7 | 89.6 | 86.2 | 134.1 | 55.5% |
| Gross Profit | 31.5 | 34.5 | 22.9 | 23.8 | 22.4 | -6.0% |
| SG&A | 27.7 | 27.3 | 24.3 | 22.1 | 24.6 | 11.7% |
| EBITDA | 0.4 | 5.1 | -3.8 | 0.4 | -6.9 | -1,802.2% |
| Net Income | -1.6 | -11.2 | -7.4 | 4.7 | -11.6 | -344.8% |
Balance Sheet
|
|---|
| Cash | 2.5 | 2.8 | 1.5 | 5.1 | 2.4 | -52.6% |
| Short Term Debt | 16.7 | 8.9 | 6.9 | 8.9 | 16.1 | 80.7% |
| Long Term Debt | 0.0 | 0.0 | 1.0 | 0.0 | 0.1 | 302.8% |
Cash flow
|
|---|
| Capex | 2.4 | 1.0 | 1.5 | 2.1 | 1.8 | -15.2% |
Ratios
|
|---|
| Revenue growth | -36.1% | 4.3% | -26.9% | -3.8% | 55.5% | |
| EBITDA growth | -98.1% | 1,050.5% | -175.5% | -110.7% | -1,802.2% | |
| Gross Margin | 26.8% | 28.1% | 25.5% | 27.7% | 16.7% | -10.9% |
| EBITDA Margin | 0.4% | 4.1% | -4.3% | 0.5% | -5.2% | -5.6% |
| Net Income Margin | -1.4% | -9.1% | -8.3% | 5.5% | -8.7% | -14.2% |
| SG&A, % of revenue | 23.6% | 22.3% | 27.1% | 25.6% | 18.4% | -7.2% |
| CAPEX, % of revenue | 2.1% | 0.9% | 1.6% | 2.4% | 1.3% | -1.1% |
| ROIC | -5.3% | 4.7% | -24.4% | -9.0% | -54.0% | -45.0% |
| ROE | -6.1% | -48.3% | -51.3% | 34.0% | -117.3% | -151.3% |
| Net Debt/EBITDA | 32.2x | 1.2x | | 9.4x | | -9.4x |
Mad Catz Interactive Inc ($MCZ) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 13 | 39 | 65 | 17 | -22.5% | 73.2% | 113.6% | 3.5% |
| EBITDA | -3 | 1 | 3 | -9 | | 945.2% | 29.6% | |
| Net Income | -4 | -2 | 1 | -7 | | | -10.2% | -230.7% |
Balance Sheet
|
|---|
| Cash | 2 | 7 | 4 | 2 | -13.3% | 318.4% | 2.5% | -52.6% |
| Short Term Debt | 9 | 21 | 28 | 16 | 1.1% | 77.5% | 79.4% | 80.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | -89.4% | -89.2% | -73.2% | 302.8% |
Ratios
|
|---|
| Gross Margin | 22.2% | 23.1% | 17.5% | -5.1% | -8.0% | -6.8% | -9.3% | -28.5% |
| EBITDA Margin | -25.3% | 3.6% | 5.4% | -49.9% | -21.5% | 3.0% | -3.5% | -39.1% |
| Net Income Margin | -30.6% | -4.1% | 1.9% | -42.4% | -23.1% | -0.0% | -2.6% | -75.9% |
Revenue and profitability
The company's Revenue surged on 55.5%. Revenue growth showed slow down in FY16Q4 - it was 3.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from 22.1% to 15.3% in FY2016.
Gross Margin dropped on 10.9 pp from 27.7% to 16.7% in FY2016. SG&A as a % of Revenue decreased on 7.2 pp from 25.6% to 18.4% in FY2016.
Net Income marign dropped on 14.2 pp from 5.5% to -8.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mad Catz Interactive Inc's CAPEX/Revenue was 1.3% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-54.02%) and ROE (-117.33%). ROIC dropped on 45.0 pp from -9.0% to -54.0% in FY2016. ROE dropped on 151 pp from 34.0% to -117% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.8x and Debt / EBITDA is . Net Debt / EBITDA dropped on 9.4x from 9.4x to in FY2016. Debt jumped on 81.6% while cash dropped on 52.6%.
Management team
Karen K Mcginnis is a the company's CEO. Karen K Mcginnis is a founder and has spent 2 years at the company. Mad Catz Interactive Inc's CFO David Mckeon has spent 2 years at the company.
Appendix 1: Peers in Technology
Below you can find Mad Catz Interactive Inc benchmarking vs. other companies in Technology 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 |
|---|
| Intrinsyc Technologies Corp ($ITC) | | -21.7% | 70.8% | 24.5% | 39.2% |
| ProntoForms Corp ($PFM) | | 75.4% | 43.9% | 46.4% | 28.2% |
| Kinaxis Inc ($KXS) | | 30.3% | 15.2% | 30.3% | 27.0% |
| NexJ Systems Inc ($NXJ) | | 4.3% | -12.6% | 19.7% | 17.3% |
| Constellation Software Inc/Canada ($CSU) | | 35.9% | 37.9% | 10.1% | 15.6% |
| |
|---|
| Median (12 companies) | | 0.3% | 13.3% | 11.5% | 12.7% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 86.2% | 85.5% | 86.1% | 86.2% | 87.1% |
| ProntoForms Corp ($PFM) | 96.1% | 98.1% | 98.0% | 79.4% | |
| Espial Group Inc ($ESP) | 77.5% | 81.7% | 78.5% | 74.3% | 74.7% |
| Halogen Software Inc ($HGN) | 72.0% | 74.8% | 71.8% | 73.8% | 76.2% |
| Kinaxis Inc ($KXS) | 71.8% | 70.4% | 70.4% | 71.8% | 69.1% |
| |
|---|
| Median (12 companies) | 71.8% | 55.6% | 61.9% | 61.9% | 71.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wi-LAN Inc ($WIN) | 40.9% | 12.2% | 56.2% | 53.2% | 57.8% |
| Kinaxis Inc ($KXS) | 18.7% | 23.0% | 19.2% | 28.0% | 17.6% |
| Constellation Software Inc/Canada ($CSU) | 20.9% | 20.1% | 21.8% | 25.2% | 26.0% |
| Intrinsyc Technologies Corp ($ITC) | -10.5% | -38.8% | 2.2% | 10.8% | |
| Mitel Networks Corp ($MNW) | 10.2% | 10.0% | 7.0% | 7.7% | |
| |
|---|
| Median (14 companies) | 0.9% | 3.9% | 4.4% | 0.1% | 7.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kinaxis Inc ($KXS) | 2.9% | 2.3% | 5.0% | 4.7% | 5.0% |
| Halogen Software Inc ($HGN) | 4.9% | 9.0% | 8.4% | 2.9% | 2.6% |
| Espial Group Inc ($ESP) | 1.6% | 0.2% | 1.9% | 2.1% | 1.5% |
| ProntoForms Corp ($PFM) | 1.1% | 0.8% | 3.6% | 1.9% | |
| Critical Control Energy Services Corp ($CCZ) | | 0.5% | 1.0% | 1.6% | |
| |
|---|
| Median (14 companies) | 1.1% | 1.1% | 1.2% | 1.2% | 1.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 45.9% | 22.4% | 24.7% | 38.5% | 40.5% |
| Kinaxis Inc ($KXS) | | 61.8% | 63.6% | 44.0% | 22.6% |
| Halogen Software Inc ($HGN) | | -28.4% | -45.9% | -40.5% | 12.6% |
| Wi-LAN Inc ($WIN) | 2.6% | -7.6% | 8.9% | 7.4% | 8.4% |
| NexJ Systems Inc ($NXJ) | | -44.6% | -19.8% | -13.9% | 4.5% |
| |
|---|
| Median (14 companies) | -7.5% | -17.5% | 0.5% | -1.2% | 8.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mitel Networks Corp ($MNW) | 3.7x | 3.8x | 2.6x | 6.2x | |
| Pivot Technology Solutions Inc ($PTG) | | -0.4x | 1.1x | 4.8x | |
| Constellation Software Inc/Canada ($CSU) | 0.0x | 1.6x | 0.6x | 0.4x | -0.0x |
| Wi-LAN Inc ($WIN) | -4.9x | -12.1x | -2.3x | -1.7x | -2.0x |
| Kinaxis Inc ($KXS) | 1.9x | 4.7x | -4.2x | -3.9x | -6.3x |
| |
|---|
| Median (7 companies) | 0.9x | 1.5x | -0.8x | -1.7x | -6.3x |
|---|
