Orbit Garant Drilling Inc reports 534% EBITDA growth and 8.1 pp EBITDA Margin growth from 2.2% to 10.3%
15.09.2016 • About Orbit Garant Drilling Inc (
$OGD) • By InTwits
Orbit Garant Drilling Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orbit Garant Drilling Inc doesn't have a profitable business model yet: FY2016 ROIC is 0.3%
- EBITDA Margin is quite volatile: 10.3% in FY2016, 2.2% in FY2015, 4.8% in FY2014, 14.8% in FY2013, 18.0% in FY2012
- Orbit Garant Drilling Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 6.6 in FY2016, 4.0 in FY2015, 3.1 in FY2014, 9.3 in FY2013, 18.4 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orbit Garant Drilling Inc ($OGD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 154.8 | 104.2 | 71.5 | 79.0 | 107.5 | 36.2% |
| Gross Profit | 33.7 | 15.5 | 3.8 | 3.2 | 10.2 | 217.3% |
| SG&A | | | | 12.0 | 14.3 | 18.6% |
| EBITDA | 27.9 | 15.4 | 3.4 | 1.8 | 11.1 | 533.7% |
| Net Income | 10.4 | -26.5 | -6.3 | -7.4 | -0.2 | |
Balance Sheet
|
|---|
| Cash | 2.0 | 1.5 | 0.3 | 0.4 | 2.3 | 479.0% |
| Short Term Debt | 0.4 | 0.3 | 8.5 | 0.0 | 0.9 | |
| Long Term Debt | 26.0 | 14.4 | 0.0 | 7.4 | 8.4 | 13.4% |
Cash flow
|
|---|
| Capex | 18.4 | 9.3 | 3.1 | 4.0 | 6.6 | 62.8% |
Ratios
|
|---|
| Revenue growth | 21.2% | -32.7% | -31.3% | 10.4% | 36.2% | |
| EBITDA growth | 9.2% | -44.7% | -77.8% | -48.9% | 533.7% | |
| Gross Margin | 21.8% | 14.9% | 5.2% | 4.1% | 9.5% | 5.4% |
| EBITDA Margin | 18.0% | 14.8% | 4.8% | 2.2% | 10.3% | 8.1% |
| Net Income Margin | 6.7% | -25.4% | -8.8% | -9.4% | -0.2% | 9.2% |
| SG&A, % of revenue | | | | 15.2% | 13.3% | -2.0% |
| CAPEX, % of revenue | 11.9% | 8.9% | 4.3% | 5.1% | 6.1% | 1.0% |
| ROIC | 12.3% | 2.1% | -7.3% | -9.3% | 0.3% | 9.7% |
| ROE | 9.5% | -25.7% | -7.2% | -9.1% | -0.3% | 8.8% |
| Net Debt/EBITDA | 0.9x | 0.9x | 2.4x | 4.0x | 0.6x | -3.4x |
Orbit Garant Drilling Inc ($OGD) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 24 | 22 | 28 | 33 | 17.3% | 29.5% | 50.0% | 46.8% |
| EBITDA | 3 | 0 | 0 | 8 | 24.8% | | 67.0% | 2,694.3% |
| Net Income | -0 | -2 | -3 | 4 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 1 | 1 | 2 | -85.5% | 646.5% | 135.6% | 479.0% |
| Short Term Debt | 0 | 1 | 3 | 1 | -100.0% | | | |
| Long Term Debt | 6 | 9 | 10 | 8 | | 81.4% | 87.5% | 13.4% |
Ratios
|
|---|
| Gross Margin | 13.7% | 5.7% | 4.7% | 12.8% | 4.2% | 8.2% | 4.5% | 5.8% |
| EBITDA Margin | 10.8% | 1.3% | 1.1% | 23.6% | 0.7% | 6.2% | 0.1% | 22.3% |
| Net Income Margin | -0.9% | -8.5% | -9.1% | 13.2% | 2.0% | 8.2% | 1.6% | 21.9% |
Revenue and profitability
Orbit Garant Drilling Inc's Revenue surged on 36.2%. Revenue growth showed acceleration in FY16Q4 - it increased 46.8% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 111 pp from -69.8% to 41.6% in 2016.
Gross Margin increased on 5.4 pp from 4.1% to 9.5% in FY2016. SG&A as a % of Revenue decreased slightly on 2.0 pp from 15.2% to 13.3% in FY2016.
Net Income marign increased on 9.2 pp from -9.4% to -0.20% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.1% in FY2016. CAPEX/Revenue decreased on 2.8 pp from 8.9% in FY2013 to 6.1% in FY2016. For the last three years the average CAPEX/Revenue was 5.2%.To fuel this fast growth Orbit Garant Drilling Inc invested a large share of EBITDA (59.1%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (0.35%) and negative ROE (-0.27%). ROIC increased on 9.7 pp from -9.3% to 0.35% in FY2016. ROE increased on 8.8 pp from -9.1% to -0.27% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 0.8x. Net Debt / EBITDA dropped on 3.4x from 4.0x to 0.6x in FY2016. Debt jumped on 25.3% while cash jumped on 479%.
Appendix 1: Peers in Basic Materials
Below you can find Orbit Garant Drilling Inc benchmarking vs. other companies in Basic Materials 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 |
|---|
| Avino Silver & Gold Mines Ltd ($ASM) | | 613.6% | 19.9% | -1.1% | 109.1% |
| Trevali Mining Corp ($TV) | | | | 12.9% | 86.4% |
| Geodrill Ltd ($GEO) | | -43.3% | -4.3% | 34.6% | 53.1% |
| Tahoe Resources Inc ($THO) | | | | 48.4% | 50.9% |
| Osisko Gold Royalties Ltd ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (83 companies) | 100.8% | -2.9% | 1.9% | -1.8% | 6.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($NSU) | 89.9% | 94.8% | 95.5% | 82.3% | 79.7% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.3% | 80.3% |
| Lucara Diamond Corp ($LUC) | 42.5% | 57.4% | 66.7% | 60.9% | 65.6% |
| Trevali Mining Corp ($TV) | | | 49.0% | 59.3% | |
| Perseus Mining Ltd ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (95 companies) | 32.1% | 22.4% | 18.6% | 16.5% | 24.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | 72.8% | 73.5% |
| Silver Wheaton Corp ($SLW) | 82.6% | 75.3% | 69.6% | 65.8% | 59.7% |
| Franco-Nevada Corp ($FNV) | 62.1% | 44.6% | 72.3% | 60.8% | 70.3% |
| Lucara Diamond Corp ($LUC) | 7.6% | 57.3% | 57.5% | 60.0% | 62.4% |
| Sandstorm Gold Ltd ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (101 companies) | 18.6% | 11.3% | 10.6% | 7.0% | 23.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($LGO) | | | | 567.6% | |
| Sandstorm Gold Ltd ($SSL) | 152.1% | 118.8% | 49.4% | 412.7% | 17.3% |
| Silver Wheaton Corp ($SLW) | 75.5% | 286.8% | 22.5% | 279.2% | 90.3% |
| Franco-Nevada Corp ($FNV) | 3.7% | 35.5% | 201.6% | 230.0% | 122.4% |
| Avino Silver & Gold Mines Ltd ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (101 companies) | 27.8% | 26.9% | 17.5% | 16.7% | 17.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($LUC) | -2.9% | 41.3% | 54.7% | 39.6% | 58.5% |
| Western Forest Products Inc ($WEF) | 9.0% | 25.1% | 15.7% | 16.4% | 25.1% |
| Geodrill Ltd ($GEO) | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% |
| Supremex Inc ($SXP) | 14.1% | 18.5% | 16.5% | 23.4% | 19.3% |
| Canfor Pulp Products Inc ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (100 companies) | 4.9% | 0.7% | 1.6% | -3.6% | 4.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($CAM) | 4.2x | 2.6x | 3.2x | 1.8x | 13.9x |
| Taseko Mines Ltd ($TKO) | 7.4x | 5.9x | 10.2x | 5.9x | 11.0x |
| Methanex Corp ($MX) | 5.2x | 0.7x | 0.9x | 3.0x | 5.2x |
| Copper Mountain Mining Corp ($CUM) | 3.9x | 5.0x | 5.4x | 30.6x | 5.1x |
| Cameco Corp ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (58 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.6x |
|---|
