Blackline Safety Corp reports 10.7% CAPEX growth and 10.1% Revenue growth
27.01.2017 • About Blackline Safety Corp (
$BLN) • By InTwits
Blackline Safety Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Blackline Safety Corp doesn't have a profitable business model yet: FY2016 ROIC is -123.3%
- The company operates at negative EBITDA Margin: -79.0%
- Blackline Safety Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -84.2%0
- Blackline Safety Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 0.66 in FY2016, 0.60 in FY2015, 0.42 in FY2014, 0.20 in FY2013, 0.21 in FY2012
- The company has unprofitable business model: ROIC is at -123.3%
- It operates with high leverage: Net Debt/EBITDA is 7.3x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Blackline Safety Corp ($BLN) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2.635 | 2.883 | 4.182 | 7.268 | 8.001 | 10.1% |
| Gross Profit | 1.140 | 1.248 | 1.803 | 3.405 | 3.848 | 13.0% |
| SG&A | | 3.172 | 4.127 | 4.892 | 5.757 | 17.7% |
| EBITDA | -3.019 | -3.472 | -4.355 | -3.851 | -6.323 | |
| Net Income | -3.110 | -3.586 | -4.544 | -4.152 | -6.692 | |
Balance Sheet
|
|---|
| Cash | 3.227 | 2.247 | 3.319 | 6.729 | 1.955 | -71.0% |
| Short Term Debt | 0.005 | 0.107 | 1.102 | 0.259 | 0.500 | 92.7% |
| Long Term Debt | 0.064 | 0.147 | 0.000 | 0.108 | 0.117 | 7.7% |
Cash flow
|
|---|
| Capex | 0.211 | 0.201 | 0.422 | 0.600 | 0.664 | 10.7% |
Ratios
|
|---|
| Revenue growth | 37.1% | 9.4% | 45.1% | 73.8% | 10.1% | |
| EBITDA growth | -2.6% | 15.0% | 25.4% | -11.6% | 64.2% | |
| Gross Margin | 43.3% | 43.3% | 43.1% | 46.9% | 48.1% | 1.2% |
| EBITDA Margin | -114.6% | -120.4% | -104.1% | -53.0% | -79.0% | -26.0% |
| Net Income Margin | -118.0% | -124.4% | -108.6% | -57.1% | -83.6% | -26.5% |
| SG&A, % of revenue | | 110.0% | 98.7% | 67.3% | 71.9% | 4.6% |
| CAPEX, % of revenue | 8.0% | 7.0% | 10.1% | 8.3% | 8.3% | 0.0% |
| ROIC | -48.5% | -66.4% | -112.1% | -88.9% | -123.3% | -34.4% |
| ROE | -47.8% | -67.1% | -134.3% | -105.5% | -136.1% | -30.6% |
Blackline Safety Corp ($BLN) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | 21.3% | 22.3% | 10.7% | -7.4% |
| EBITDA | -1 | -2 | -1 | -2 | | | | |
| Net Income | -1 | -2 | -2 | -2 | | | | |
Balance Sheet
|
|---|
| Cash | 5 | 3 | 4 | 2 | 60.4% | -58.3% | -40.9% | -71.0% |
| Short Term Debt | 0 | 0 | 0 | 1 | -80.8% | -46.6% | 56.2% | 92.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | -100.0% | 7.7% |
Ratios
|
|---|
| Gross Margin | 48.5% | 51.3% | 53.7% | 39.6% | 0.2% | 5.2% | 10.8% | -9.7% |
| EBITDA Margin | -60.9% | -81.5% | -75.6% | -97.7% | -17.1% | -42.3% | 5.1% | -49.2% |
| Net Income Margin | -64.9% | -86.8% | -80.6% | -102.0% | -16.6% | -42.8% | 4.0% | -49.9% |
Revenue and profitability
Blackline Safety Corp's Revenue jumped on 10.1%. Revenue growth showed slow down in FY16Q4 - it was -7.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.4 pp from -15.0% to -4.6% in 2016.
Gross Margin increased slightly on 1.2 pp from 46.9% to 48.1% in FY2016. SG&A as a % of Revenue increased on 4.6 pp from 67.3% to 71.9% in FY2016.
Net Income marign dropped on 26.5 pp from -57.1% to -83.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 8.3%. The company's CAPEX/Revenue increased slightly on 1.3 pp from 7.0% in FY2013 to 8.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 8.9%.
Return on investment
The company operates at negative ROIC (-123.30%) and ROE (-136.07%). ROIC dropped on 34.4 pp from -88.9% to -123% in FY2016. ROE dropped on 30.6 pp from -106% to -136% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 67.7% while cash dropped on 71.0%.
Appendix 1: Peers in Communications
Below you can find Blackline Safety Corp benchmarking vs. other companies in Communications 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 |
|---|
| AcuityAds Holding Inc ($AT) | | | | 51.6% | 91.4% |
| Shopify Inc ($SH) | | 111.9% | 109.0% | 95.4% | 89.7% |
| Gaming Nation Inc ($FAN) | | | | | 46.6% |
| Tucows Inc ($TC) | | 13.3% | 13.6% | 17.1% | 9.8% |
| Points International Ltd ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (26 companies) | 13.1% | 3.5% | 2.1% | 4.2% | 2.3% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | 81.6% |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | 77.2% |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (23 companies) | 44.2% | 42.8% | 45.3% | 46.4% | 41.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | 39.8% |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | 35.5% |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | 33.0% |
| ZoomerMedia Ltd ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
| |
|---|
| Median (30 companies) | 17.0% | 10.7% | 9.9% | 9.9% | 7.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | 21.5% |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | 17.6% |
| BCE Inc ($BCE) | 17.6% | 17.5% | 17.7% | 16.9% | 17.4% |
| TeraGo Inc ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 2.3% | 2.3% | 3.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | 58.4% |
| BCE Inc ($BCE) | 14.1% | 12.6% | 12.6% | 12.3% | 12.6% |
| Quebecor Inc ($QBR.B) | 7.9% | 9.6% | 8.4% | 8.4% | 10.1% |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | 10.1% |
| TELUS Corp ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (29 companies) | 8.9% | 7.9% | 7.3% | 2.6% | 0.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | 9.6x |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | 4.3x |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (21 companies) | 1.4x | 1.3x | 1.5x | 1.6x | 1.7x |
|---|
