IBC Advanced Alloys Corp revenue decreased on 7.9% in 2016 and EBITDA Margin decreased on 7.7 pp from -12.9% to -20.6%
27.10.2016 • About IBC Advanced Alloys Corp (
$IB) • By InTwits
IBC Advanced Alloys Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IBC Advanced Alloys Corp is a company in decline: FY2016 revenue growth was -7.9%, 5 years revenue CAGR was -6.2%
- The company operates at negative EBITDA Margin: -20.6%
- IBC Advanced Alloys Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -14.4% for the sames years0
- IBC Advanced Alloys Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0.027 in FY2016, 0.18 in FY2015, 0.14 in FY2014, 0.096 in FY2013, 1.3 in FY2012
- The company has unprofitable business model: ROIC is at -32.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IBC Advanced Alloys Corp ($IB) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 25.493 | 20.896 | 16.928 | 17.784 | 16.374 | -7.9% |
| Gross Profit | 3.491 | 1.459 | 1.377 | 0.884 | 0.030 | -96.6% |
| SG&A | | | | 0.403 | 0.377 | -6.5% |
| EBITDA | -2.376 | -3.671 | -2.289 | -2.298 | -3.378 | |
| Net Income | -5.853 | -7.721 | -2.844 | -2.803 | -3.930 | |
Balance Sheet
|
|---|
| Cash | 1.820 | 1.059 | 1.500 | 0.948 | 3.473 | 266.4% |
| Short Term Debt | 4.916 | 3.288 | 3.505 | 2.933 | 2.831 | -3.5% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 1.129 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 1.343 | 0.096 | 0.137 | 0.180 | 0.027 | -85.0% |
Ratios
|
|---|
| Revenue growth | 13.3% | -18.0% | -19.0% | 5.1% | -7.9% | |
| EBITDA growth | 42.0% | 54.5% | -37.6% | 0.4% | 47.0% | |
| Gross Margin | 13.7% | 7.0% | 8.1% | 5.0% | 0.2% | -4.8% |
| EBITDA Margin | -9.3% | -17.6% | -13.5% | -12.9% | -20.6% | -7.7% |
| Net Income Margin | -23.0% | -36.9% | -16.8% | -15.8% | -24.0% | -8.2% |
| SG&A, % of revenue | | | | 2.3% | 2.3% | 0.0% |
| CAPEX, % of revenue | 5.3% | 0.5% | 0.8% | 1.0% | 0.2% | -0.8% |
| ROIC | -15.9% | -29.0% | -23.5% | -23.0% | -32.0% | -9.0% |
| ROE | -36.2% | -62.5% | -29.3% | -30.7% | -40.9% | -10.2% |
IBC Advanced Alloys Corp ($IB) key quoterly financial indicators
| mln. | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 3 | 5 | 4 | -8.9% | -34.7% | 5.8% | 14.1% |
| EBITDA | -1 | -1 | -0 | -1 | | | | |
| Net Income | -1 | -2 | -0 | -1 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 3 | -59.1% | 2.3% | -15.7% | 266.4% |
| Short Term Debt | 3 | 3 | 3 | 3 | 20.7% | 60.1% | -6.4% | -3.5% |
| Long Term Debt | 1 | 1 | 1 | 0 | -6.5% | -6.2% | -5.9% | -100.0% |
Ratios
|
|---|
| Gross Margin | 7.6% | -23.6% | 14.3% | -4.5% | -0.5% | -30.0% | 5.1% | 1.8% |
| EBITDA Margin | -11.9% | -44.6% | -0.4% | -33.7% | -2.5% | -38.0% | 12.1% | -6.6% |
| Net Income Margin | -17.0% | -53.4% | -6.2% | -27.9% | -5.9% | -39.5% | 6.8% | -0.1% |
Revenue and profitability
The company's Revenue decreased on 7.9%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 14.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 23.8% to 26.4% in FY2016.
Gross Margin decreased on 4.8 pp from 5.0% to 0.18% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 8.2 pp from -15.8% to -24.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.16%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.66%.
Return on investment
The company operates at negative ROIC (-32.01%) and ROE (-40.94%). ROIC decreased on 9.0 pp from -23.0% to -32.0% in FY2016. ROE dropped on 10.2 pp from -30.7% to -40.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -17.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 30.3% while cash surged on 266%.
Appendix 1: Peers in Basic Materials
Below we provide IBC Advanced Alloys Corp benchmarking against other companies in Basic Materials 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 |
|---|
| 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 |
|---|
