TIO Networks Corp Net Income jumped on 10,166% in 2016 and EBITDA Margin increased on 8.4 pp from 3.7% to 12.0%
16.11.2016 • About TIO Networks Corp (
$TNC) • By InTwits
TIO Networks Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TIO Networks Corp is a fast growth stock: FY2016 revenue growth was 19.4%, 5 year revenue CAGR was 15.3% at FY2016 ROIC 15.2%
- EBITDA Margin is expanding: 12.0% in FY2016 vs. 3.7% in FY2015 vs. 3.3% in FY2012
- EBITDA Margin is quite volatile: 12.0% in FY2016, 3.7% in FY2015, 2.0% in FY2014, -1.1% in FY2013, 3.3% in FY2012
- TIO Networks Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 15.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TIO Networks Corp ($TNC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 42.248 | 40.457 | 50.870 | 62.511 | 74.661 | 19.4% |
| Gross Profit | 8.695 | 8.938 | 14.970 | 25.307 | 36.620 | 44.7% |
| SG&A | | 6.926 | 11.156 | 17.674 | 21.473 | 21.5% |
| EBITDA | 1.398 | -0.426 | 1.013 | 2.295 | 8.987 | 291.6% |
| Net Income | 0.284 | -0.722 | -0.600 | 0.041 | 4.193 | 10,165.6% |
Balance Sheet
|
|---|
| Cash | 3.758 | 4.579 | 24.157 | 31.168 | 54.226 | 74.0% |
| Short Term Debt | 0.002 | 0.105 | 2.422 | 2.866 | 4.379 | 52.8% |
| Long Term Debt | 0.003 | 0.321 | 0.534 | 0.364 | 0.138 | -62.1% |
Cash flow
|
|---|
| Capex | 0.177 | 0.233 | 0.328 | 0.937 | 0.460 | -50.9% |
Ratios
|
|---|
| Revenue growth | 15.5% | -4.2% | 25.7% | 22.9% | 19.4% | |
| EBITDA growth | -20.4% | -130.5% | -338.0% | 126.5% | 291.6% | |
| Gross Margin | 20.6% | 22.1% | 29.4% | 40.5% | 49.0% | 8.6% |
| EBITDA Margin | 3.3% | -1.1% | 2.0% | 3.7% | 12.0% | 8.4% |
| Net Income Margin | 0.7% | -1.8% | -1.2% | 0.1% | 5.6% | 5.6% |
| SG&A, % of revenue | | 17.1% | 21.9% | 28.3% | 28.8% | 0.5% |
| CAPEX, % of revenue | 0.4% | 0.6% | 0.6% | 1.5% | 0.6% | -0.9% |
| ROIC | 13.7% | -14.5% | -5.4% | 1.5% | 15.2% | 13.7% |
| ROE | 7.9% | -20.7% | -12.0% | 0.5% | 10.8% | 10.3% |
| Net Debt/EBITDA | -2.7x | | -20.9x | -12.2x | -5.5x | 6.6x |
TIO Networks Corp ($TNC) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 16 | 18 | 25 | -22.4% | 7.1% | 32.4% | 79.3% |
| EBITDA | 2 | 2 | 2 | 2 | 227.3% | 1,055.3% | 333.0% | 141.3% |
| Net Income | 1 | 2 | 2 | -0 | 1,008.4% | | 6,572.0% | -435.2% |
Balance Sheet
|
|---|
| Cash | 28 | 35 | 49 | 54 | 23.1% | 19.2% | 68.3% | 74.0% |
| Short Term Debt | 3 | 3 | 4 | 4 | 1,060.7% | 9.3% | 58.9% | 52.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | -34.6% | -39.0% | -44.7% | -62.1% |
Ratios
|
|---|
| Gross Margin | 51.3% | 48.8% | 49.6% | 47.4% | 21.2% | 8.7% | 3.1% | -5.3% |
| EBITDA Margin | 12.8% | 14.9% | 12.4% | 9.4% | 9.7% | 13.5% | 8.6% | 2.4% |
| Net Income Margin | 9.2% | 10.1% | 8.9% | -1.9% | 8.5% | 11.8% | 8.8% | -2.9% |
Revenue and profitability
TIO Networks Corp's Revenue surged on 19.4%. Revenue growth showed acceleration in FY16Q4 - it increased 79.3% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.8 pp from 5.9% to 7.7% in FY2016.
Gross Margin increased on 8.6 pp from 40.5% to 49.0% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 5.6 pp from 0.065% to 5.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
TIO Networks Corp's CAPEX/Revenue was 0.62% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.92%.
Return on investment
The company operates at good ROIC (15.18%) while ROE is low (10.81%). ROIC jumped on 13.7 pp from 1.5% to 15.2% in FY2016. ROE surged on 10.3 pp from 0.51% to 10.8% in FY2016.
Leverage (Debt)
Debt level is -5.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA surged on 6.6x from -12.2x to -5.5x in FY2016. Debt jumped on 39.8% while cash surged on 74.0%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find TIO Networks Corp benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (41 companies) | | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (44 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
