Lumenpulse Inc reports 205% EBITDA growth and 44.1% Revenue growth
22.06.2016 • About Lumenpulse Inc (
$LMP) • By InTwits
Lumenpulse Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lumenpulse Inc doesn't have a profitable business model yet: FY2016 ROIC is -1.5%
- EBITDA Margin is expanding: 3.3% in FY2016 vs. 1.5% in FY2015 vs. -16.1% in FY2012
- Lumenpulse Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -2.2% for the sames years0
- Lumenpulse Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 5.7 in FY2016, 3.5 in FY2015, 1.9 in FY2014, 1.6 in FY2013, 1.5 in FY2012
- The company has unprofitable business model: ROIC is at -1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lumenpulse Inc ($LMP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 31.6 | 42.3 | 62.2 | 100.7 | 145.1 | 44.1% |
| Gross Profit | 12.8 | 15.3 | 25.9 | 43.2 | 68.5 | 58.6% |
| SG&A | 17.0 | 22.0 | 26.7 | 40.0 | 62.2 | 55.4% |
| EBITDA | -5.1 | -7.6 | -1.9 | 1.6 | 4.7 | 204.8% |
| Net Income | -7.0 | -18.1 | -49.2 | -0.4 | 3.1 | |
Balance Sheet
|
|---|
| Cash | 1.7 | 1.2 | 87.1 | 43.5 | 21.1 | -51.4% |
| Short Term Debt | 1.1 | 1.6 | 0.1 | 0.1 | 13.4 | 10,051.5% |
| Long Term Debt | 6.6 | 8.8 | 0.1 | 0.1 | 0.0 | -70.1% |
Cash flow
|
|---|
| Capex | 1.5 | 1.6 | 1.9 | 3.5 | 5.7 | 62.2% |
Ratios
|
|---|
| Revenue growth | 56.7% | 33.9% | 47.0% | 61.8% | 44.1% | |
| EBITDA growth | 64.8% | 48.6% | -74.8% | -181.4% | 204.8% | |
| Gross Margin | 40.4% | 36.2% | 41.6% | 42.9% | 47.2% | 4.3% |
| EBITDA Margin | -16.1% | -17.9% | -3.1% | 1.5% | 3.3% | 1.7% |
| Net Income Margin | -22.1% | -42.7% | -79.0% | -0.4% | 2.1% | 2.5% |
| SG&A, % of revenue | 53.7% | 51.9% | 42.9% | 39.8% | 42.9% | 3.1% |
| CAPEX, % of revenue | 4.7% | 3.9% | 3.1% | 3.5% | 4.0% | 0.4% |
| ROIC | -105.2% | | -8.7% | -1.5% | -1.5% | 0.0% |
| ROE | | | | -0.3% | 2.5% | 2.9% |
| Net Debt/EBITDA | | | | -27.8x | -1.6x | 26.2x |
Lumenpulse Inc ($LMP) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 32 | 37 | 36 | 40 | 71.6% | 46.1% | 39.2% | 30.1% |
| EBITDA | 1 | 4 | 2 | -2 | | | 47.1% | -164.9% |
| Net Income | 1 | 3 | 2 | -3 | | 547.1% | 0.3% | |
Balance Sheet
|
|---|
| Cash | 43 | 49 | 41 | 21 | -15.8% | -6.1% | -14.5% | -51.4% |
| Short Term Debt | 0 | 0 | 1 | 13 | | | 655.6% | 10,051.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | 250.7% | -70.1% |
Ratios
|
|---|
| Gross Margin | 46.5% | 49.0% | 48.8% | 44.7% | 5.1% | 5.4% | 5.7% | 1.6% |
| EBITDA Margin | 2.8% | 10.6% | 4.5% | -4.2% | 2.8% | 10.6% | 0.2% | -12.7% |
| Net Income Margin | 4.6% | 6.9% | 4.5% | -6.3% | 17.2% | 5.3% | -1.7% | -6.2% |
Revenue and profitability
The company's Revenue surged on 44.1%. Revenue growth showed slow down in FY16Q4 - it was 30.1% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.7 pp from 53.2% to 57.8% in 2016.
Gross Margin increased on 4.3 pp from 42.9% to 47.2% in FY2016. SG&A as a % of Revenue increased on 3.1 pp from 39.8% to 42.9% in FY2016.
Net Income marign increased on 2.5 pp from -0.36% to 2.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Lumenpulse Inc had CAPEX/Revenue of 4.0%. Lumenpulse Inc's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 3.5%.The company has spent a lot to CAPEX (121% of EBITDA) to secure its growth.
Return on investment
The company operates at negative ROIC (-1.51%) and low but positive ROE (2.53%). ROIC showed almost no change in FY2016. ROE increased on 2.9 pp from -0.34% to 2.5% in FY2016.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA jumped on 26.2x from -27.8x to -1.6x in FY2016. Debt surged on 4,953% while cash dropped on 51.4%.
Appendix 1: Peers in Industrial
Below you can find Lumenpulse Inc benchmarking vs. other companies in Industrial 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 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (52 companies) | | 5.1% | 10.1% | 8.1% | 2.9% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (50 companies) | 23.6% | 23.4% | 21.7% | 21.7% | 22.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (54 companies) | 10.4% | 8.4% | 8.4% | 8.6% | 11.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (55 companies) | 3.2% | 3.7% | 4.3% | 3.9% | 4.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (56 companies) | 12.2% | 9.6% | 11.5% | 8.3% | 9.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (50 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
