CIBT Education Group Inc Net Income jumped on 242% in 2016 while EBITDA Margin decreased on 3.4 pp from 3.4% to -0.032%
02.12.2016 • About CIBT Education Group Inc (
$MBA) • By InTwits
CIBT Education Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIBT Education Group Inc doesn't have a profitable business model yet: FY2016 ROIC is -1.9%
- The company operates at negative EBITDA Margin: -0.0%
- EBITDA Margin is quite volatile: -0.0% in FY2016, 3.4% in FY2015, -0.9% in FY2014, 0.0% in FY2013, 2.4% in FY2012
- CIBT Education Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.35 in FY2016, 0.57 in FY2015, 0.38 in FY2014, 1.3 in FY2013, 1.6 in FY2012
- The company has unprofitable business model: ROIC is at -1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIBT Education Group Inc ($MBA) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 33.724 | 30.431 | 30.916 | 26.686 | 27.244 | 2.1% |
| Gross Profit | 18.616 | 16.720 | 18.100 | 16.697 | 14.581 | -12.7% |
| SG&A | | | | 16.035 | 14.959 | -6.7% |
| EBITDA | 0.821 | 0.003 | -0.275 | 0.908 | -0.009 | -101.0% |
| Net Income | -1.172 | -1.885 | 5.125 | 0.863 | 2.947 | 241.6% |
Balance Sheet
|
|---|
| Cash | 8.075 | 3.377 | 2.706 | 1.731 | 3.308 | 91.1% |
| Short Term Debt | 1.745 | 2.920 | 0.608 | 18.077 | 0.502 | -97.2% |
| Long Term Debt | 0.615 | 0.456 | 0.509 | 0.346 | 21.841 | 6,208.5% |
Cash flow
|
|---|
| Capex | 1.604 | 1.340 | 0.377 | 0.567 | 0.346 | -39.0% |
Ratios
|
|---|
| Revenue growth | -42.4% | -9.8% | 1.6% | -13.7% | 2.1% | |
| EBITDA growth | -178.4% | -99.6% | -8,747.4% | -430.5% | -101.0% | |
| Gross Margin | 55.2% | 54.9% | 58.5% | 62.6% | 53.5% | -9.0% |
| EBITDA Margin | 2.4% | 0.0% | -0.9% | 3.4% | -0.0% | -3.4% |
| Net Income Margin | -3.5% | -6.2% | 16.6% | 3.2% | 10.8% | 7.6% |
| SG&A, % of revenue | | | | 60.1% | 54.9% | -5.2% |
| CAPEX, % of revenue | 4.8% | 4.4% | 1.2% | 2.1% | 1.3% | -0.9% |
| ROIC | -8.5% | -15.5% | -10.6% | -0.7% | -1.9% | -1.3% |
| ROE | -7.3% | -13.0% | 32.8% | 5.1% | 17.5% | 12.4% |
| Net Debt/EBITDA | -7.0x | -0.3x | | 18.4x | | -18.4x |
CIBT Education Group Inc ($MBA) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 7 | 6 | 7 | 11.3% | 1.7% | -2.7% | -1.0% |
| Net Income | 0 | 1 | 3 | -1 | | -27.7% | | -200.1% |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 2 | 3 | -75.1% | 62.7% | -7.7% | 91.1% |
| Short Term Debt | 18 | 18 | 19 | 1 | 4,585.4% | 7,558.4% | 1.4% | -97.2% |
| Long Term Debt | 0 | 0 | 0 | 22 | -19.8% | -98.2% | -26.0% | 6,208.5% |
Ratios
|
|---|
| Gross Margin | 61.8% | 65.4% | 58.7% | 26.9% | 3.8% | 0.2% | -1.8% | -38.7% |
| Net Income Margin | 5.5% | 8.8% | 43.8% | -11.7% | 15.4% | -3.6% | 47.4% | -23.2% |
Revenue and profitability
CIBT Education Group Inc's Revenue increased on 2.1%. Revenue growth showed slow down in FY16Q4 - it was -1.0% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.5 pp from -2.7% to -16.2% in FY2016.
Gross Margin decreased on 9.0 pp from 62.6% to 53.5% in FY2016. SG&A as a % of Revenue decreased on 5.2 pp from 60.1% to 54.9% in FY2016.
Net Income marign increased on 7.6 pp from 3.2% to 10.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 CIBT Education Group Inc had CAPEX/Revenue of 1.3%. CAPEX/Revenue decreased on 3.1 pp from 4.4% in FY2013 to 1.3% in FY2016. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at negative ROIC (-1.93%) and low but positive ROE (17.49%). ROIC decreased slightly on 1.3 pp from -0.68% to -1.9% in FY2016. ROE surged on 12.4 pp from 5.1% to 17.5% in FY2016.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 18.4x from 18.4x to in FY2016. Debt jumped on 21.3% while cash jumped on 91.1%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide CIBT Education Group Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| 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 |
|---|
