Aimia Inc reports 49.9% EBITDA decline and 7.0% Revenue decline
16.02.2017 • About Aimia Inc (
$AIM) • By InTwits
Aimia Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aimia Inc doesn't have a profitable business model yet: 2016 ROIC is -9.2%
- EBITDA Margin is quite volatile: 4.2% in 2016, 7.9% in 2015, 7.1% in 2014, -32.1% in 2013, 17.0% in 2012
- Aimia Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 7.8%.
- CAPEX is quite volatile: 567 in 2016, 706 in 2015, 787 in 2014, 340 in 2013, 166 in 2012
- The company has unprofitable business model: ROIC is at -9.2%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aimia Inc ($AIM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,249 | 1,674 | 2,469 | 2,461 | 2,288 | -7.0% |
| Gross Profit | 822 | 244 | 679 | 664 | 639 | -3.8% |
| SG&A | 566 | 890 | 688 | 652 | 659 | 1.1% |
| EBITDA | 382 | -537 | 175 | 193 | 97 | -49.9% |
| Net Income | 166 | -498 | -40 | 0 | -66 | -66,400.0% |
Balance Sheet
|
|---|
| Cash | 498 | 449 | 568 | 482 | 293 | -39.2% |
| Short Term Debt | 0 | 150 | 0 | 0 | 0 | |
| Long Term Debt | 793 | 645 | 646 | 647 | 448 | -30.7% |
Cash flow
|
|---|
| Capex | 58 | 54 | 82 | 94 | 68 | -27.1% |
Ratios
|
|---|
| Revenue growth | 6.3% | -25.6% | 47.5% | -0.3% | -7.0% | |
| EBITDA growth | 123.8% | -240.8% | -132.6% | 10.5% | -49.9% | |
| Gross Margin | 36.6% | 14.6% | 27.5% | 27.0% | 27.9% | 0.9% |
| EBITDA Margin | 17.0% | -32.1% | 7.1% | 7.9% | 4.2% | -3.6% |
| Net Income Margin | 7.4% | -29.8% | -1.6% | 0.0% | -2.9% | -2.9% |
| SG&A, % of revenue | 25.2% | 53.2% | 27.9% | 26.5% | 28.8% | 2.3% |
| CAPEX, % of revenue | 2.6% | 3.2% | 3.3% | 3.8% | 3.0% | -0.8% |
| ROIC | 11.6% | -33.0% | -0.6% | -0.1% | -9.2% | -9.1% |
| ROE | 11.7% | -48.4% | -7.9% | -2.8% | -27.3% | -24.5% |
| Net Debt/EBITDA | 0.8x | | 0.5x | 0.9x | 1.6x | 0.8x |
Aimia Inc ($AIM) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 570 | 525 | 504 | 689 | -13.6% | -2.1% | -4.9% | -6.2% |
| EBITDA | 37 | 31 | 32 | -3 | -48.7% | -56.0% | 95.7% | -107.9% |
| Net Income | -15 | 7 | -2 | -57 | -168.8% | -77.1% | | |
Balance Sheet
|
|---|
| Cash | 382 | 352 | 410 | 293 | -25.7% | -22.7% | -12.4% | -39.2% |
| Short Term Debt | 200 | 200 | 200 | 0 | | | | |
| Long Term Debt | 448 | 448 | 448 | 448 | -30.8% | -30.8% | -30.8% | -30.7% |
Ratios
|
|---|
| Gross Margin | 27.2% | 27.9% | 28.9% | 27.9% | -0.7% | 1.0% | 2.7% | 1.0% |
| EBITDA Margin | 6.5% | 5.8% | 6.4% | -0.4% | -4.4% | -7.1% | 3.3% | -5.2% |
| Net Income Margin | -2.6% | 1.4% | -0.3% | -8.3% | -5.9% | -4.5% | 4.8% | -4.8% |
Revenue and profitability
Aimia Inc's Revenue decreased on 7.0%. Annual revenue decline showed slowdown in 16Q4 - revenue decreased on 6.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.6 pp from -1.6% to 6.0% in 2016.
Gross Margin increased slightly on 0.93 pp from 27.0% to 27.9% in 2016. SG&A as a % of Revenue increased on 2.3 pp from 26.5% to 28.8% in 2016.
Net Income marign decreased on 2.9 pp from 0.0041% to -2.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
Aimia Inc's CAPEX/Revenue was 3.0% in 2016. Aimia Inc's CAPEX/Revenue showed almost no change from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 3.4%.The company invested a big chunk of EBITDA (70.5%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-9.15%) and ROE (-27.27%). ROIC decreased on 9.1 pp from -0.088% to -9.2% in 2016. ROE dropped on 24.5 pp from -2.8% to -27.3% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 4.6x. Net Debt / EBITDA jumped on 0.8x from 0.9x to 1.6x in 2016. Debt dropped on 30.7% while cash dropped on 39.2%.
Management team
Aimia Inc's CEO Rupert Duchesne is a founder and has spent 1 year at the company. Aimia Inc's CFO Tor Magne Lonnum has spent 2 years at the company.
Appendix 1: Peers in Communications
Below you can find Aimia Inc 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 (25 companies) | 13.1% | 4.4% | 1.1% | 4.3% | 2.4% |
|---|
| Aimia Inc ($AIM) | | -25.6% | 47.5% | -0.3% | -7.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($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 (22 companies) | 46.4% | 43.3% | 49.1% | 48.2% | 44.6% |
|---|
| Aimia Inc ($AIM) | 36.6% | 14.6% | 27.5% | 27.0% | 27.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($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 (29 companies) | 16.6% | 13.7% | 11.0% | 10.4% | 8.2% |
|---|
| Aimia Inc ($AIM) | 17.0% | -32.1% | 7.1% | 7.9% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($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 (28 companies) | 2.8% | 2.8% | 2.2% | 2.2% | 3.5% |
|---|
| Aimia Inc ($AIM) | 2.6% | 3.2% | 3.3% | 3.8% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($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 (28 companies) | 8.0% | 8.2% | 7.5% | 3.1% | 2.2% |
|---|
| Aimia Inc ($AIM) | 11.6% | -33.0% | -0.6% | -0.1% | -9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($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 (20 companies) | 1.4x | 1.3x | 1.5x | 1.8x | 1.9x |
|---|
| Aimia Inc ($AIM) | 0.8x | | 0.5x | 0.9x | 1.6x |
