Mediagrif Interactive Technologies Inc EBITDA increased on 4.2% in 2016 and Revenue increased on 3.9%
07.06.2016 • About Mediagrif Interactive Technologies Inc (
$MDF) • By InTwits
Mediagrif Interactive Technologies Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mediagrif Interactive Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 1.2 in FY2016, 0.77 in FY2015, 1.1 in FY2014, 0.39 in FY2013, 0.49 in FY2012
- The company has highly profitable business model: ROIC is at 14.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mediagrif Interactive Technologies Inc ($MDF) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 53.824 | 60.711 | 65.376 | 70.247 | 73.020 | 3.9% |
| Gross Profit | 42.972 | 48.450 | 51.520 | 56.275 | 58.652 | 4.2% |
| SG&A | | 18.273 | 22.681 | 23.112 | 24.712 | 6.9% |
| EBITDA | 17.479 | 25.071 | 24.293 | 27.417 | 28.561 | 4.2% |
| Net Income | 9.505 | 13.973 | 12.711 | 15.633 | 15.832 | 1.3% |
Balance Sheet
|
|---|
| Cash | 5.409 | 14.252 | 6.937 | 7.546 | 10.901 | 44.5% |
| Short Term Debt | 4.225 | 0.180 | 0.124 | 0.150 | 0.143 | -4.7% |
| Long Term Debt | 34.377 | 0.000 | 36.920 | 26.100 | 26.311 | 0.8% |
Cash flow
|
|---|
| Capex | 0.494 | 0.394 | 1.061 | 0.766 | 1.228 | 60.3% |
Ratios
|
|---|
| Revenue growth | 14.3% | 12.8% | 7.7% | 7.5% | 3.9% | |
| EBITDA growth | 15.9% | 43.4% | -3.1% | 12.9% | 4.2% | |
| Gross Margin | 79.8% | 79.8% | 78.8% | 80.1% | 80.3% | 0.2% |
| EBITDA Margin | 32.5% | 41.3% | 37.2% | 39.0% | 39.1% | 0.1% |
| Net Income Margin | 17.7% | 23.0% | 19.4% | 22.3% | 21.7% | -0.6% |
| SG&A, % of revenue | | 30.1% | 34.7% | 32.9% | 33.8% | 0.9% |
| CAPEX, % of revenue | 0.9% | 0.6% | 1.6% | 1.1% | 1.7% | 0.6% |
| ROIC | 16.0% | 18.4% | 12.4% | 12.9% | 14.4% | 1.5% |
| ROE | 14.3% | 15.4% | 11.0% | 13.0% | 12.9% | -0.1% |
| Net Debt/EBITDA | 1.9x | -0.6x | 1.2x | 0.7x | 0.5x | -0.1x |
Mediagrif Interactive Technologies Inc ($MDF) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 18 | 19 | 19 | -0.1% | 2.5% | 5.7% | 7.7% |
| EBITDA | 6 | 8 | 8 | 7 | -2.0% | 5.8% | 14.7% | -2.4% |
| Net Income | 3 | 5 | 5 | 2 | 9.2% | 31.8% | 19.6% | -46.1% |
Balance Sheet
|
|---|
| Cash | 7 | 8 | 10 | 11 | 33.8% | 100.8% | 86.6% | 44.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 22.4% | 14.4% | 6.1% | -4.7% |
| Long Term Debt | 31 | 31 | 29 | 26 | -7.2% | 7.3% | -5.9% | 0.8% |
Ratios
|
|---|
| Gross Margin | 80.0% | 80.5% | 81.7% | 79.1% | -0.4% | 1.1% | 1.7% | -1.5% |
| EBITDA Margin | 36.6% | 41.8% | 43.2% | 34.9% | -0.7% | 1.3% | 3.4% | -3.6% |
| Net Income Margin | 19.3% | 28.3% | 26.2% | 13.1% | 1.6% | 6.3% | 3.0% | -13.1% |
Revenue and profitability
Mediagrif Interactive Technologies Inc's Revenue increased on 3.9%. Revenue growth showed acceleration in FY16Q4 - it increased 7.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.3 pp from 6.3% to 22.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.94 pp from 32.9% to 33.8% in FY2016.
Net Income marign decreased slightly on 0.57 pp from 22.3% to 21.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mediagrif Interactive Technologies Inc's CAPEX/Revenue was 1.7% in FY2016. Mediagrif Interactive Technologies Inc showed small growth in CAPEX/Revenue of 1.0 pp from 0.65% in FY2013 to 1.7% in FY2016. Average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at good ROIC (14.38%) and ROE (12.88%). ROIC increased slightly on 1.5 pp from 12.9% to 14.4% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.7x to 0.5x in FY2016. Debt increased slightly on 0.78% while cash jumped on 44.5%.
Appendix 1: Peers in Communications
Below we provide Mediagrif Interactive Technologies Inc benchmarking against other companies in Communications 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcuityAds Holding Inc ($AT) | | | | 51.6% | 91.4% |
| Shopify Inc ($SH) | | 111.9% | 109.0% | 95.4% | 89.7% |
| Gaming Nation Inc ($FAN) | | | | | 46.6% |
| Tucows Inc ($TC) | | 13.3% | 13.6% | 17.1% | 9.8% |
| Points International Ltd ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (26 companies) | 13.1% | 3.5% | 2.1% | 4.2% | 2.3% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | 81.6% |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | 77.2% |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (23 companies) | 44.2% | 42.8% | 45.3% | 46.4% | 41.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | 39.8% |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | 35.5% |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | 33.0% |
| ZoomerMedia Ltd ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
| |
|---|
| Median (30 companies) | 17.0% | 10.7% | 9.9% | 9.9% | 7.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | 21.5% |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | 17.6% |
| BCE Inc ($BCE) | 17.6% | 17.5% | 17.7% | 16.9% | 17.4% |
| TeraGo Inc ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 2.3% | 2.3% | 3.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | 58.4% |
| BCE Inc ($BCE) | 14.1% | 12.6% | 12.6% | 12.3% | 12.6% |
| Quebecor Inc ($QBR.B) | 7.9% | 9.6% | 8.4% | 8.4% | 10.1% |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | 10.1% |
| TELUS Corp ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (29 companies) | 8.9% | 7.9% | 7.3% | 2.6% | 0.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | 9.6x |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | 4.3x |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (21 companies) | 1.4x | 1.3x | 1.5x | 1.6x | 1.7x |
|---|
