Imvescor Restaurant Group Inc reports 19.2% revenue growth in FY2016 and 4.2 pp EBITDA Margin decline from 35.9% to 31.7%
20.12.2016 • About Imvescor Restaurant Group Inc (
$IRG) • By InTwits
Imvescor Restaurant Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imvescor Restaurant Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 0.55 in FY2016, 0.29 in FY2015, 0.12 in FY2014, 1.4 in FY2013, 1.2 in FY2012
- The company has highly profitable business model: ROIC is at 15.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imvescor Restaurant Group Inc ($IRG) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 47.305 | 45.136 | 46.619 | 44.478 | 53.020 | 19.2% |
| Gross Profit | 44.570 | 40.491 | 39.575 | 37.515 | 42.366 | 12.9% |
| SG&A | 31.969 | | | | | |
| EBITDA | 13.194 | 12.306 | 11.906 | 15.973 | 16.824 | 5.3% |
| Net Income | 1.848 | 2.570 | 5.876 | 10.139 | 11.562 | 14.0% |
Balance Sheet
|
|---|
| Cash | 7.310 | 5.364 | 10.398 | 3.624 | 2.896 | -20.1% |
| Short Term Debt | 2.902 | 3.059 | 30.540 | 0.000 | 0.000 | |
| Long Term Debt | 35.887 | 30.120 | 0.000 | 11.798 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 1.156 | 1.431 | 0.121 | 0.294 | 0.553 | 88.1% |
Ratios
|
|---|
| Revenue growth | 6.6% | -4.6% | 3.3% | -4.6% | 19.2% | |
| EBITDA growth | 12.1% | -6.7% | -3.3% | 34.2% | 5.3% | |
| Gross Margin | 94.2% | 89.7% | 84.9% | 84.3% | 79.9% | -4.4% |
| EBITDA Margin | 27.9% | 27.3% | 25.5% | 35.9% | 31.7% | -4.2% |
| Net Income Margin | 3.9% | 5.7% | 12.6% | 22.8% | 21.8% | -1.0% |
| SG&A, % of revenue | 67.6% | | | | | 0.0% |
| CAPEX, % of revenue | 2.4% | 3.2% | 0.3% | 0.7% | 1.0% | 0.4% |
| ROIC | 12.3% | 11.2% | 10.2% | 14.1% | 15.8% | 1.7% |
| ROE | 3.9% | 4.2% | 8.8% | 13.3% | 13.4% | 0.0% |
| Net Debt/EBITDA | 2.4x | 2.3x | 1.7x | 0.5x | -0.2x | -0.7x |
Imvescor Restaurant Group Inc ($IRG) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 12 | 14 | 13 | 11 | 9.5% | 24.0% | 18.7% | 4.9% |
| Net Income | 3 | 3 | 3 | 3 | 68.1% | 5.1% | 24.5% | -10.9% |
Balance Sheet
|
|---|
| Cash | 3 | 1 | 0 | 3 | -77.3% | -96.1% | -96.4% | -20.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | |
| Long Term Debt | 7 | 4 | 2 | 0 | | | | -100.0% |
Ratios
|
|---|
| Gross Margin | 83.1% | 77.2% | 82.2% | 85.5% | -0.5% | -6.3% | -3.5% | 1.2% |
| Net Income Margin | 21.9% | 19.1% | 23.4% | 27.6% | 7.6% | -3.4% | 1.1% | -4.9% |
Revenue and profitability
Imvescor Restaurant Group Inc's Revenue surged on 19.2%. Revenue growth showed slow down in FY16Q4 - it was 4.9% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 35.9% to 31.7% in FY2016.
Gross Margin decreased on 4.4 pp from 84.3% to 79.9% in FY2016.
Net Income marign decreased slightly on 0.99 pp from 22.8% to 21.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Imvescor Restaurant Group Inc had CAPEX/Revenue of 1.0%. CAPEX/Revenue decreased on 2.1 pp from 3.2% in FY2013 to 1.0% in FY2016. For the last three years the average CAPEX/Revenue was 0.65%.
Return on investment
The company operates at good ROIC (15.84%) and ROE (13.36%). ROIC increased slightly on 1.7 pp from 14.1% to 15.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 20.1%.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Imvescor Restaurant Group Inc benchmarking against other companies in Consumer, Cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($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 |
|---|
