Progressive Waste Solutions Ltd reports 357% Net Income growth and 17.3 pp EBITDA Margin growth from 9.8% to 27.1%
21.02.2017 • About Progressive Waste Solutions Ltd (
$BIN) • By InTwits
Progressive Waste Solutions Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 27.1% in 2016, 9.8% in 2015, 34.0% in 2014, 33.1% in 2013, 30.7% in 2012
- Progressive Waste Solutions Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.6%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 52.2 in 2016, 31.7 in 2015, 58.0 in 2014, 41.5 in 2013, 13.2 in 2012
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Progressive Waste Solutions Ltd ($BIN) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,662 | 1,929 | 2,079 | 2,117 | 3,376 | 59.4% |
| Gross Profit | 705 | 864 | 941 | 940 | 1,418 | 50.9% |
| SG&A | 197 | 213 | 229 | 237 | 474 | 99.7% |
| EBITDA | 510 | 639 | 707 | 208 | 916 | 340.7% |
| Net Income | 159 | 196 | 233 | -96 | 247 | |
Balance Sheet
|
|---|
| Cash | 23 | 14 | 14 | 11 | 154 | 1,306.8% |
| Short Term Debt | 96 | 49 | 38 | 37 | 34 | -7.2% |
| Long Term Debt | 2,235 | 2,092 | 2,020 | 2,174 | 3,647 | 67.7% |
Cash flow
|
|---|
| Capex | 154 | 210 | 241 | 239 | 345 | 44.3% |
Ratios
|
|---|
| Revenue growth | 10.4% | 16.1% | 7.8% | 1.8% | 59.4% | |
| EBITDA growth | 5.3% | 25.3% | 10.7% | -70.6% | 340.7% | |
| Gross Margin | 42.4% | 44.8% | 45.2% | 44.4% | 42.0% | -2.4% |
| EBITDA Margin | 30.7% | 33.1% | 34.0% | 9.8% | 27.1% | 17.3% |
| Net Income Margin | 9.6% | 10.1% | 11.2% | -4.5% | 7.3% | 11.8% |
| SG&A, % of revenue | 11.9% | 11.0% | 11.0% | 11.2% | 14.0% | 2.8% |
| CAPEX, % of revenue | 9.2% | 10.9% | 11.6% | 11.3% | 10.2% | -1.1% |
| ROIC | 8.3% | 8.5% | 10.6% | -1.5% | 6.1% | 7.6% |
| ROE | 9.7% | 10.0% | 10.9% | -4.5% | 6.5% | 11.0% |
| Net Debt/EBITDA | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x | -6.7x |
Progressive Waste Solutions Ltd ($BIN) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 515 | 728 | 1,085 | 1,049 | 1.7% | 37.0% | 98.0% | 97.1% |
| EBITDA | 160 | 162 | 311 | 283 | -4.0% | -8.5% | | 65.3% |
| Net Income | 45 | 27 | 89 | 86 | -13.5% | -52.1% | | 64.4% |
Balance Sheet
|
|---|
| Cash | 9 | 56 | 119 | 154 | -41.1% | 256.0% | 406.7% | 1,306.8% |
| Short Term Debt | 34 | 38 | 44 | 34 | -15.2% | -6.2% | 5.2% | -7.2% |
| Long Term Debt | 2,093 | 3,796 | 3,689 | 3,647 | 3.0% | 91.8% | 86.9% | 67.7% |
Ratios
|
|---|
| Gross Margin | 44.2% | 42.8% | 41.3% | 41.1% | -0.3% | -1.2% | -3.7% | -2.9% |
| EBITDA Margin | 31.0% | 22.3% | 28.7% | 27.0% | -1.8% | -11.0% | 84.7% | -5.2% |
| Net Income Margin | 8.7% | 3.8% | 8.2% | 8.2% | -1.5% | -7.0% | 55.1% | -1.6% |
Revenue and profitability
The company's Revenue surged on 59.4%. Revenue growth showed acceleration in 16Q4 - it increased 97.1% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 17.3 pp from 9.8% to 27.1% in 2016.
Gross Margin decreased on 2.4 pp from 44.4% to 42.0% in 2016. SG&A as a % of Revenue increased on 2.8 pp from 11.2% to 14.0% in 2016.
Net Income marign jumped on 11.8 pp from -4.5% to 7.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 10.2%. Progressive Waste Solutions Ltd's CAPEX/Revenue decreased slightly on 0.67 pp from 10.9% in 2013 to 10.2% in 2016. It's average CAPEX/Revenue for the last three years was 11.0%.
Return on investment
The company operates at low ROIC (6.14%) and ROE (6.46%). ROIC increased on 7.6 pp from -1.5% to 6.1% in 2016. ROE jumped on 11.0 pp from -4.5% to 6.5% in 2016.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 6.7x from 10.6x to 3.8x in 2016. Debt jumped on 66.5% while cash jumped on 1,307%.
Management team
Ronald J Mittelstaedt is a Progressive Waste Solutions Ltd's CEO. Ronald J Mittelstaedt is a founder and has spent 2 years at the company. Worthing F Jackman is a The company's CFO. Worthing F Jackman has spent 2 years at the company.
Appendix 1: Peers in Industrial
Below you can find Progressive Waste Solutions Ltd benchmarking vs. other companies in Industrial 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 |
|---|
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| Ag Growth International Inc ($AFN) | | 13.5% | 12.2% | 12.3% | 21.6% |
| |
|---|
| Median (51 companies) | | 4.9% | 10.4% | 8.5% | 2.6% |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (49 companies) | 23.4% | 23.4% | 20.9% | 21.5% | 22.1% |
|---|
| Progressive Waste Solutions Ltd ($BIN) | 42.4% | 44.8% | 45.2% | 44.4% | 42.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (53 companies) | 10.2% | 8.3% | 8.0% | 7.8% | 11.0% |
|---|
| Progressive Waste Solutions Ltd ($BIN) | 30.7% | 33.1% | 34.0% | 9.8% | 27.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (54 companies) | 3.2% | 3.6% | 4.3% | 3.7% | 3.9% |
|---|
| Progressive Waste Solutions Ltd ($BIN) | 9.2% | 10.9% | 11.6% | 11.3% | 10.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (55 companies) | 12.2% | 9.7% | 11.5% | 8.9% | 9.7% |
|---|
| Progressive Waste Solutions Ltd ($BIN) | 8.3% | 8.5% | 10.6% | -1.5% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| ENTREC Corp ($ENT) | 3.4x | 2.6x | 4.1x | 8.4x | |
| |
|---|
| Median (49 companies) | 1.5x | 1.5x | 1.2x | 1.0x | 1.8x |
|---|
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
