D-BOX Technologies Inc EBITDA surged on 354% in 2016 and Revenue surged on 41.1%
22.06.2016 • About D-BOX Technologies Inc (
$DBO) • By InTwits
D-BOX Technologies Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- D-BOX Technologies Inc doesn't have a profitable business model yet: FY2016 ROIC is 0.9%
- EBITDA Margin is expanding: 10.7% in FY2016 vs. 3.3% in FY2015 vs. -57.5% in FY2012
- D-BOX Technologies Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.8%0
- D-BOX Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0.97 in FY2016, 0.53 in FY2015, 0.38 in FY2014, 0.50 in FY2013, 0.66 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
D-BOX Technologies Inc ($DBO) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8.832 | 14.253 | 17.593 | 20.588 | 29.042 | 41.1% |
| Gross Profit | 4.868 | 8.044 | 7.868 | 9.288 | 14.842 | 59.8% |
| SG&A | 9.065 | 7.794 | 8.797 | 9.137 | 11.753 | 28.6% |
| EBITDA | -5.076 | -0.393 | 0.082 | 0.681 | 3.093 | 354.2% |
| Net Income | -6.556 | -2.575 | -1.589 | -0.478 | -0.187 | |
Balance Sheet
|
|---|
| Cash | 9.320 | 5.708 | 6.717 | 6.710 | 16.454 | 145.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 4.420 | |
Cash flow
|
|---|
| Capex | 0.658 | 0.496 | 0.378 | 0.525 | 0.968 | 84.4% |
Ratios
|
|---|
| Revenue growth | 32.1% | 61.4% | 23.4% | 17.0% | 41.1% | |
| EBITDA growth | -3.8% | -92.3% | -120.9% | 730.5% | 354.2% | |
| Gross Margin | 55.1% | 56.4% | 44.7% | 45.1% | 51.1% | 6.0% |
| EBITDA Margin | -57.5% | -2.8% | 0.5% | 3.3% | 10.7% | 7.3% |
| Net Income Margin | -74.2% | -18.1% | -9.0% | -2.3% | -0.6% | 1.7% |
| SG&A, % of revenue | 102.6% | 54.7% | 50.0% | 44.4% | 40.5% | -3.9% |
| CAPEX, % of revenue | 7.5% | 3.5% | 2.1% | 2.6% | 3.3% | 0.8% |
| ROIC | -26.1% | -11.6% | -10.4% | -7.5% | 0.9% | 8.4% |
| ROE | -25.0% | -11.3% | -7.4% | -2.3% | -0.8% | 1.5% |
| Net Debt/EBITDA | | | -81.9x | -9.9x | -3.9x | 6.0x |
D-BOX Technologies Inc ($DBO) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 5 | 8 | 9 | 57.6% | 15.3% | 64.6% | 28.9% |
| EBITDA | 1 | 0 | 1 | 1 | | -97.0% | 1,941.9% | 69.0% |
| Net Income | 0 | -0 | 0 | -0 | | -208.3% | | -147.8% |
Balance Sheet
|
|---|
| Cash | 6 | 12 | 16 | 16 | 53.8% | 129.0% | 253.7% | 145.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 4 | 4 | 4 | | | | |
Ratios
|
|---|
| Gross Margin | 53.5% | 47.4% | 52.2% | 50.2% | 7.2% | 2.5% | 9.3% | 4.1% |
| EBITDA Margin | 13.1% | 0.1% | 15.4% | 10.2% | 16.1% | -5.2% | 14.2% | 2.4% |
| Net Income Margin | 0.4% | -4.1% | 4.8% | -4.7% | 26.8% | -8.6% | 11.1% | -17.4% |
Revenue and profitability
D-BOX Technologies Inc's Revenue jumped on 41.1%. Revenue growth showed slow down in FY16Q4 - it was 28.9% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from -0.14% to -1.6% in FY2016.
Gross Margin increased on 6.0 pp from 45.1% to 51.1% in FY2016. SG&A as a % of Revenue decreased on 3.9 pp from 44.4% to 40.5% in FY2016.
Net Income marign increased slightly on 1.7 pp from -2.3% to -0.64% in FY2016.
Capital expenditures (CAPEX) and working capital investments
D-BOX Technologies Inc's CAPEX/Revenue was 3.3% in FY2016. D-BOX Technologies Inc showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at low but positive ROIC (0.87%) and negative ROE (-0.80%). ROIC increased on 8.4 pp from -7.5% to 0.87% in FY2016. ROE increased slightly on 1.5 pp from -2.3% to -0.80% in FY2016.
Leverage (Debt)
Debt level is -3.9x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA surged on 6.0x from -9.9x to -3.9x in FY2016. Debt surged while cash surged on 145%.
Appendix 1: Peers in Consumer, Cyclical
Below we provide D-BOX Technologies Inc benchmarking against other companies in Consumer, Cyclical 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 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
