Plaintree Systems Inc EBITDA dropped on 174% in 2016 and Revenue dropped on 18.5%
29.07.2016 • About Plaintree Systems Inc (
$NPT) • By InTwits
Plaintree Systems Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Plaintree Systems Inc doesn't have a profitable business model yet: FY2016 ROIC is -44.7%
- The company operates at negative EBITDA Margin: -4.4%
- The company has unprofitable business model: ROIC is at -44.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Plaintree Systems Inc ($NPT) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12.641 | 13.791 | 20.804 | 19.319 | 15.746 | -18.5% |
| Gross Profit | 3.034 | | 2.703 | 3.502 | 1.807 | -48.4% |
| SG&A | | | 1.934 | 2.099 | 2.255 | 7.5% |
| EBITDA | -0.146 | | 0.033 | 0.944 | -0.694 | -173.6% |
| Net Income | -0.632 | 0.373 | -1.711 | -0.401 | -2.259 | |
Balance Sheet
|
|---|
| Cash | 0.680 | | 0.000 | 0.058 | 0.000 | -100.0% |
| Short Term Debt | 3.698 | | 4.067 | 3.565 | 2.754 | -22.7% |
| Long Term Debt | 0.750 | | 0.000 | 0.164 | 0.115 | -29.8% |
Cash flow
|
|---|
| Capex | 0.425 | | 1.619 | 0.658 | 0.348 | -47.0% |
Ratios
|
|---|
| Revenue growth | 14.5% | 9.1% | 50.8% | -7.1% | -18.5% | |
| EBITDA growth | -112.4% | | | 2,781.6% | -173.6% | |
| Gross Margin | 24.0% | | 13.0% | 18.1% | 11.5% | -6.7% |
| EBITDA Margin | -1.2% | 0.0% | 0.2% | 4.9% | -4.4% | -9.3% |
| Net Income Margin | -5.0% | 2.7% | -8.2% | -2.1% | -14.3% | -12.3% |
| SG&A, % of revenue | | | 9.3% | 10.9% | 14.3% | 3.5% |
| CAPEX, % of revenue | 3.4% | | 7.8% | 3.4% | 2.2% | -1.2% |
| ROIC | -11.0% | | | -1.3% | -44.7% | -43.4% |
| ROE | -113.5% | | | -198.9% | | 198.9% |
| Net Debt/EBITDA | | | 124.2x | 3.9x | | -3.9x |
Plaintree Systems Inc ($NPT) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 4 | 4 | 5 | -19.5% | -46.5% | -8.1% | 20.6% |
| EBITDA | 0 | -1 | -0 | 0 | | -158.2% | | |
| Net Income | -0 | -1 | -1 | -0 | | -231.2% | | |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 0 | 0 | | | | -100.0% |
| Short Term Debt | 3 | 3 | 3 | 3 | 118.1% | 193.2% | 138.2% | -22.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | -95.7% | -95.8% | -96.1% | -29.8% |
Ratios
|
|---|
| Gross Margin | 20.6% | -6.7% | 13.8% | 16.4% | 9.7% | -36.0% | -1.4% | 6.0% |
| EBITDA Margin | 5.1% | -24.0% | -2.1% | 1.3% | 8.6% | -46.1% | 2.6% | 6.3% |
| Net Income Margin | -4.2% | -37.7% | -14.7% | -4.2% | 7.1% | -53.0% | -11.7% | 16.1% |
Revenue and profitability
Plaintree Systems Inc's Revenue dropped on 18.5%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 20.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 9.3 pp from 4.9% to -4.4% in FY2016.
Gross Margin decreased on 6.7 pp from 18.1% to 11.5% in FY2016. SG&A as a % of Revenue increased on 3.5 pp from 10.9% to 14.3% in FY2016.
Net Income marign dropped on 12.3 pp from -2.1% to -14.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Plaintree Systems Inc's CAPEX/Revenue was 2.2% in FY2016. CAPEX/Revenue increased2.2 pp from in FY2013 to 2.2% in FY2016. Average CAPEX/Revenue for the last three years was 4.5%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.9x from 3.9x to in FY2016. Debt dropped on 23.0% while cash dropped on 100%.
Appendix 1: Peers in Communications
Below you can find Plaintree Systems Inc benchmarking vs. other companies in Communications 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 |
|---|
| 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 |
|---|
