Titan Logix Corp Net Income dropped on 424% in 2016 and EBITDA Margin dropped on 91.6 pp from 15.3% to -76.3%
02.12.2016 • About Titan Logix Corp (
$TLA) • By InTwits
Titan Logix Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Titan Logix Corp is a company in decline: FY2016 revenue growth was -70.1%, 5 years revenue CAGR was -18.6%
- EBITDA Margin is declining: -76.3% in FY2016 vs. 15.3% in FY2015 vs. 26.4% in FY2012
- EBITDA Margin is quite volatile: -76.3% in FY2016, 15.3% in FY2015, 22.0% in FY2014, 26.1% in FY2013, 26.4% in FY2012
- Titan Logix Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -19.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Titan Logix Corp ($TLA) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17.942 | 16.493 | 17.193 | 13.303 | 3.973 | -70.1% |
| Gross Profit | 9.376 | 8.896 | 8.771 | 6.505 | 0.889 | -86.3% |
| SG&A | 4.008 | 4.133 | 4.330 | 3.790 | 3.409 | -10.0% |
| EBITDA | 4.739 | 4.302 | 3.779 | 2.033 | -3.032 | -249.1% |
| Net Income | 3.871 | 3.243 | 2.661 | 1.140 | -3.697 | -424.2% |
Balance Sheet
|
|---|
| Cash | 5.060 | 5.060 | 11.845 | 14.774 | 12.788 | -13.4% |
| Short Term Debt | 0.000 | 0.049 | 0.175 | 0.118 | 0.047 | -60.6% |
| Long Term Debt | 0.000 | 0.221 | 0.125 | 0.052 | 0.091 | 75.0% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.358 | 0.068 | 0.029 | -57.8% |
Ratios
|
|---|
| Revenue growth | 61.6% | -8.1% | 4.2% | -22.6% | -70.1% | |
| EBITDA growth | 259.4% | -9.2% | -12.1% | -46.2% | -249.1% | |
| Gross Margin | 52.3% | 53.9% | 51.0% | 48.9% | 22.4% | -26.5% |
| EBITDA Margin | 26.4% | 26.1% | 22.0% | 15.3% | -76.3% | -91.6% |
| Net Income Margin | 21.6% | 19.7% | 15.5% | 8.6% | -93.1% | -101.6% |
| SG&A, % of revenue | 22.3% | 25.1% | 25.2% | 28.5% | 85.8% | 57.3% |
| CAPEX, % of revenue | 0.0% | 0.0% | 2.1% | 0.5% | 0.7% | 0.2% |
| ROIC | 52.6% | 30.5% | 19.3% | 7.7% | -19.1% | -26.8% |
| ROE | 39.8% | 24.2% | 16.2% | 6.1% | -20.4% | -26.5% |
| Net Debt/EBITDA | -1.1x | -1.1x | -3.1x | -7.2x | | 7.2x |
Titan Logix Corp ($TLA) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 1 | 1 | 1 | -68.7% | -76.1% | -71.1% | -59.3% |
| EBITDA | -0 | -1 | -1 | -1 | -128.3% | -178.8% | -1,332.1% | |
| Net Income | -0 | -1 | -1 | -2 | -131.5% | -165.6% | -12,599.8% | |
Balance Sheet
|
|---|
| Cash | 14 | 14 | 13 | 13 | 12.9% | -1.6% | -11.5% | -13.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | -23.0% | -27.0% | -53.7% | -60.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | -53.7% | -50.4% | 2.3% | 75.0% |
Ratios
|
|---|
| Gross Margin | 38.6% | 17.9% | 13.2% | 1.5% | -13.4% | -38.5% | -36.2% | -20.2% |
| EBITDA Margin | -26.7% | -100.2% | -118.5% | -110.8% | -56.2% | -130.6% | -121.2% | -68.9% |
| Net Income Margin | -22.2% | -69.7% | -107.5% | -267.4% | -44.3% | -95.1% | -107.7% | -210.7% |
Revenue and profitability
The company's Revenue dropped on 70.1%. Annual revenue decline showed slowdown in FY16Q4 - revenue dropped on 59.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 27.2 pp from -91.0% to -63.8% in 2016.
Gross Margin dropped on 26.5 pp from 48.9% to 22.4% in FY2016. SG&A as a % of Revenue surged on 57.3 pp from 28.5% to 85.8% in FY2016.
Net Income marign dropped on 102 pp from 8.6% to -93.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.72%. The company's CAPEX/Revenue increased slightly0.72 pp from 0% in FY2013 to 0.72% in FY2016. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-19.07%) and ROE (-20.39%). ROIC dropped on 26.8 pp from 7.7% to -19.1% in FY2016. ROE dropped on 26.5 pp from 6.1% to -20.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.6x and Debt / EBITDA is . Net Debt / EBITDA jumped on 7.2x from -7.2x to in FY2016. Debt dropped on 19.1% while cash dropped on 13.4%.
Appendix 1: Peers in Industrial
Below you can find Titan Logix Corp benchmarking vs. other companies in Industrial 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 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (52 companies) | | 5.1% | 10.1% | 8.1% | 2.9% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (50 companies) | 23.6% | 23.4% | 21.7% | 21.7% | 22.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (54 companies) | 10.4% | 8.4% | 8.4% | 8.6% | 11.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (55 companies) | 3.2% | 3.7% | 4.3% | 3.9% | 4.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (56 companies) | 12.2% | 9.6% | 11.5% | 8.3% | 9.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (50 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
