Iplayco Corp Ltd EBITDA dropped on 145% in 2016 and Revenue decreased slightly on 1.0%
07.12.2016 • About Iplayco Corp Ltd (
$IPC) • By InTwits
Iplayco Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Iplayco Corp Ltd doesn't have a profitable business model yet: FY2016 ROIC is -6.7%
- EBITDA Margin is declining: -3.6% in FY2016 vs. 8.0% in FY2015 vs. 8.2% in FY2012
- EBITDA Margin is quite volatile: -3.6% in FY2016, 8.0% in FY2015, 11.2% in FY2014, 14.0% in FY2013, 8.2% in FY2012
- Iplayco Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0.58 in FY2016, 0.45 in FY2015, 0.28 in FY2014, 0.32 in FY2013, 0.087 in FY2012
- The company has unprofitable business model: ROIC is at -6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Iplayco Corp Ltd ($IPC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10.389 | 15.212 | 16.538 | 17.203 | 17.024 | -1.0% |
| Gross Profit | 3.914 | 5.693 | 6.359 | 6.327 | 4.897 | -22.6% |
| SG&A | 3.367 | 3.861 | 4.799 | 5.881 | 5.886 | 0.1% |
| EBITDA | 0.849 | 2.124 | 1.856 | 1.372 | -0.618 | -145.0% |
| Net Income | 0.313 | 1.229 | 1.007 | 0.517 | -0.955 | -284.7% |
Balance Sheet
|
|---|
| Cash | 0.841 | 1.694 | 2.090 | 4.947 | 5.109 | 3.3% |
| Short Term Debt | 0.769 | 0.312 | 0.785 | 0.000 | 3.489 | |
| Long Term Debt | 0.002 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.087 | 0.323 | 0.281 | 0.454 | 0.581 | 27.9% |
Ratios
|
|---|
| Revenue growth | 22.7% | 46.4% | 8.7% | 4.0% | -1.0% | |
| EBITDA growth | -265.7% | 150.2% | -12.6% | -26.1% | -145.0% | |
| Gross Margin | 37.7% | 37.4% | 38.5% | 36.8% | 28.8% | -8.0% |
| EBITDA Margin | 8.2% | 14.0% | 11.2% | 8.0% | -3.6% | -11.6% |
| Net Income Margin | 3.0% | 8.1% | 6.1% | 3.0% | -5.6% | -8.6% |
| SG&A, % of revenue | 32.4% | 25.4% | 29.0% | 34.2% | 34.6% | 0.4% |
| CAPEX, % of revenue | 0.8% | 2.1% | 1.7% | 2.6% | 3.4% | 0.8% |
| ROIC | 23.0% | 58.5% | 33.6% | 10.9% | -6.7% | -17.6% |
| ROE | 16.3% | 45.6% | 26.4% | 5.8% | -7.4% | -13.2% |
| Net Debt/EBITDA | -0.1x | -0.7x | -0.7x | -3.6x | | 3.6x |
Iplayco Corp Ltd ($IPC) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 3 | 5 | 5 | -16.8% | 3.3% | 4.6% | 4.7% |
| EBITDA | 0 | -1 | 0 | -0 | -81.6% | -258.9% | 29.7% | -194.2% |
| Net Income | 0 | -1 | 0 | -0 | -19.8% | -778.1% | | -259.8% |
Balance Sheet
|
|---|
| Cash | 3 | 2 | 4 | 5 | -71.6% | -74.9% | -30.5% | 3.3% |
| Short Term Debt | 0 | 1 | 4 | 3 | -100.0% | -86.0% | 47.2% | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 39.3% | 28.8% | 31.7% | 19.3% | -2.3% | -11.4% | -0.9% | -14.9% |
| EBITDA Margin | 3.1% | -15.8% | 2.5% | -5.9% | -10.9% | -26.0% | 0.5% | -12.5% |
| Net Income Margin | 4.9% | -26.8% | 2.1% | -6.3% | -0.2% | -30.9% | 3.3% | -10.4% |
Revenue and profitability
The company's Revenue decreased slightly on 1.0%. Annual revenue decline showed slowdown in FY16Q4 - revenue increased on 4.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.6 pp from 8.0% to -3.6% in FY2016.
Gross Margin decreased on 8.0 pp from 36.8% to 28.8% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 8.6 pp from 3.0% to -5.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.4%. Iplayco Corp Ltd showed small growth in CAPEX/Revenue of 1.3 pp from 2.1% in FY2013 to 3.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at negative ROIC (-6.74%) and ROE (-7.40%). ROIC dropped on 17.6 pp from 10.9% to -6.7% in FY2016. ROE dropped on 13.2 pp from 5.8% to -7.4% in FY2016.
Leverage (Debt)
Debt level is -17.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 3.6x from -3.6x to in FY2016. Debt surged while cash increased on 3.3%.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Iplayco Corp Ltd benchmarking against other companies in Consumer, 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 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
