Uni-Select Inc reports 12.9 pp EBITDA Margin growth from -3.9% to 8.9% in 2016 while 11.7% Revenue decline
08.02.2017 • About Uni-Select Inc (
$UNS) • By InTwits
Uni-Select Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Uni-Select Inc is a company in decline: 2016 revenue growth was -11.7%, 5 years revenue CAGR was -7.6%
- EBITDA Margin is quite volatile: 8.9% in 2016, -3.9% in 2015, 5.9% in 2014, 3.2% in 2013, 3.8% in 2012
- Uni-Select Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 17.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Uni-Select Inc ($UNS) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,798 | 1,788 | 1,784 | 1,355 | 1,197 | -11.7% |
| Gross Profit | | 538 | 533 | 403 | 367 | -8.9% |
| EBITDA | 69 | 57 | 105 | -53 | 107 | |
| Net Income | 29 | 21 | 50 | -40 | 58 | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 91 | 22 | -75.6% |
| Short Term Debt | 19 | 5 | 5 | 3 | 8 | 187.7% |
| Long Term Debt | 340 | 320 | 210 | 88 | 131 | 48.8% |
Cash flow
|
|---|
| Capex | 13 | 12 | 13 | 17 | 9 | -46.0% |
Ratios
|
|---|
| Revenue growth | 1.0% | -0.5% | -0.2% | -24.0% | -11.7% | |
| EBITDA growth | -31.0% | -16.7% | 84.4% | -150.6% | -300.4% | |
| Gross Margin | | 30.1% | 29.9% | 29.7% | 30.6% | 0.9% |
| EBITDA Margin | 3.8% | 3.2% | 5.9% | -3.9% | 8.9% | 12.9% |
| Net Income Margin | 1.6% | 1.2% | 2.8% | -3.0% | 4.9% | 7.8% |
| CAPEX, % of revenue | 0.7% | 0.7% | 0.7% | 1.2% | 0.8% | -0.5% |
| ROIC | 4.8% | 3.4% | 9.6% | -11.1% | 17.0% | 28.1% |
| ROE | 6.2% | 4.4% | 10.0% | -8.5% | 12.8% | 21.3% |
| Net Debt/EBITDA | 5.2x | 5.7x | 2.0x | | 1.1x | 1.1x |
Uni-Select Inc ($UNS) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 264 | 324 | 319 | 291 | -35.9% | -20.7% | 15.3% | 12.3% |
| EBITDA | 22 | 30 | 31 | 25 | | 56.2% | 18.9% | 2.5% |
| Net Income | 11 | 17 | 17 | 13 | | 35.8% | 9.7% | -8.9% |
Balance Sheet
|
|---|
| Cash | 9 | 12 | 21 | 22 | 574.6% | -84.2% | -58.0% | -75.6% |
| Short Term Debt | 3 | 3 | 4 | 8 | -52.7% | -19.5% | 32.9% | 187.7% |
| Long Term Debt | 86 | 176 | 151 | 131 | -70.6% | 2,927.3% | 2,683.9% | 48.8% |
Ratios
|
|---|
| Gross Margin | 30.3% | 29.7% | 30.7% | 31.8% | 0.3% | -0.4% | 2.3% | 1.9% |
| EBITDA Margin | 8.2% | 9.2% | 9.7% | 8.4% | 37.9% | 4.5% | 0.3% | -0.8% |
| Net Income Margin | 4.3% | 5.2% | 5.4% | 4.4% | 24.3% | 2.2% | -0.3% | -1.0% |
Revenue and profitability
The company's Revenue dropped on 11.7%. Annual revenue decline showed slowdown in 16Q4 - revenue jumped on 12.3%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 12.9 pp from -3.9% to 8.9% in 2016.
Gross Margin increased slightly on 0.91 pp from 29.7% to 30.6% in 2016.
Net Income marign increased on 7.8 pp from -3.0% to 4.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.76% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years was 0.92%.
Return on investment
The company operates at good ROIC (16.96%) and ROE (12.81%). ROIC surged on 28.1 pp from -11.1% to 17.0% in 2016. ROE surged on 21.3 pp from -8.5% to 12.8% in 2016.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA jumped1.1x from to 1.1x in 2016. Debt surged on 52.9% while cash dropped on 75.6%.
Management team
Uni-Select Inc's CEO is Henry Buckley. Henry Buckley is a founder and has 3 years tenure at the company. Eric Bussieres is a Uni-Select Inc's CFO. Eric Bussieres has spent 3 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Uni-Select Inc benchmarking vs. other companies in Consumer, Cyclical 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 |
|---|
| 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 ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (35 companies) | | 5.2% | 7.2% | 7.5% | 5.5% |
|---|
| Uni-Select Inc ($UNS) | | -0.5% | -0.2% | -24.0% | -11.7% |
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 ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (36 companies) | 36.1% | 34.2% | 33.5% | 32.6% | 36.2% |
|---|
| Uni-Select Inc ($UNS) | | 30.1% | 29.9% | 29.7% | 30.6% |
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 ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.4% |
|---|
| Uni-Select Inc ($UNS) | 3.8% | 3.2% | 5.9% | -3.9% | 8.9% |
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 ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 3.2% | 3.2% | 3.4% | 3.5% | 5.0% |
|---|
| Uni-Select Inc ($UNS) | 0.7% | 0.7% | 0.7% | 1.2% | 0.8% |
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 ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.6% | 10.9% | 10.9% | 11.0% |
|---|
| Uni-Select Inc ($UNS) | 4.8% | 3.4% | 9.6% | -11.1% | 17.0% |
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) | 1.7x | 2.5x | 2.4x | 2.5x | 2.1x |
|---|
