Temple Hotels Inc reports 8.7% revenue decline in 2016 and almost no change in EBITDA Margin of 25.3%
22.02.2017 • About Temple Hotels Inc (
$TPH) • By InTwits
Temple Hotels Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Temple Hotels Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.1%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 6.5 in 2016, 19.8 in 2015, 69.4 in 2014, 67.3 in 2013, 50.2 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.8%
- It operates with high leverage: Net Debt/EBITDA is 11.2x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Temple Hotels Inc ($TPH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 99.8 | 156.4 | 188.4 | 177.8 | 162.2 | -8.7% |
| EBITDA | 35.2 | 50.1 | 52.6 | 44.3 | 41.0 | -7.4% |
| Net Income | 2.5 | 2.3 | -7.8 | -55.5 | -133.2 | |
Balance Sheet
|
|---|
| Cash | 15.0 | 35.3 | 14.0 | 23.2 | 67.9 | 193.3% |
| Short Term Debt | 117.2 | 131.6 | 109.6 | 277.4 | 387.7 | 39.8% |
| Long Term Debt | 271.3 | 345.2 | 496.3 | 264.5 | 141.3 | -46.6% |
Cash flow
|
|---|
| Capex | 50.2 | 67.3 | 69.4 | 19.8 | 6.5 | -66.9% |
Ratios
|
|---|
| Revenue growth | 40.2% | 56.8% | 20.5% | -5.7% | -8.7% | |
| EBITDA growth | 51.7% | 42.6% | 5.0% | -15.9% | -7.4% | |
| EBITDA Margin | 35.3% | 32.1% | 27.9% | 24.9% | 25.3% | 0.4% |
| Net Income Margin | 2.5% | 1.5% | -4.2% | -31.2% | -82.1% | -50.9% |
| CAPEX, % of revenue | 50.3% | 43.0% | 36.8% | 11.1% | 4.0% | -7.1% |
| ROIC | 6.6% | 5.3% | 3.2% | 1.8% | 2.8% | 1.0% |
| ROE | 3.2% | 1.9% | -5.4% | -45.9% | -195.1% | -149.2% |
| Net Debt/EBITDA | 10.6x | 8.8x | 11.2x | 11.7x | 11.2x | -0.5x |
Temple Hotels Inc ($TPH) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 36 | 42 | 45 | 39 | -17.9% | -12.4% | -2.3% | -1.8% |
| EBITDA | 6 | 12 | 15 | 8 | -40.3% | -13.6% | 17.7% | 7.9% |
| Net Income | -68 | -1 | 1 | -65 | | | | |
Balance Sheet
|
|---|
| Cash | 11 | 11 | 14 | 68 | 43.0% | 14.0% | 17.5% | 193.3% |
| Short Term Debt | 281 | 321 | 372 | 388 | 123.1% | 41.5% | 103.1% | 39.8% |
| Long Term Debt | 256 | 214 | 160 | 141 | -46.7% | -44.0% | -58.4% | -46.6% |
Ratios
|
|---|
| EBITDA Margin | 17.3% | 28.7% | 33.5% | 19.4% | -6.5% | -0.4% | 5.7% | 1.7% |
| Net Income Margin | -191.2% | -2.3% | 3.1% | -166.2% | -180.6% | 2.4% | 74.5% | -127.5% |
Revenue and profitability
The company's Revenue decreased on 8.7%. Annual revenue decline showed slowdown in 16Q4 - revenue decreased slightly on 1.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 32.4% to 35.6% in 2016.
Net Income marign dropped on 50.9 pp from -31.2% to -82.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 4.0%. The company's CAPEX/Revenue dropped on 39.0 pp from 43.0% in 2013 to 4.0% in 2016. For the last three years the average CAPEX/Revenue was 17.3%.
Return on investment
The company operates at low but positive ROIC (2.80%) and negative ROE (-195.10%). ROIC increased slightly on 1.0 pp from 1.8% to 2.8% in 2016. ROE dropped on 149 pp from -45.9% to -195% in 2016.
Leverage (Debt)
Debt level is 11.2x Net Debt / EBITDA and 12.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 11.7x to 11.2x in 2016. Debt decreased on 2.4% while cash jumped on 193%.
Appendix 1: Peers in Financial
Below we provide Temple Hotels Inc benchmarking against other companies in Financial 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 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.0% | 9.0% | 3.6% | 5.8% |
|---|
| Temple Hotels Inc ($TPH) | | 56.8% | 20.5% | -5.7% | -8.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (36 companies) | 43.9% | 35.0% | 41.4% | 36.2% | 45.4% |
|---|
| Temple Hotels Inc ($TPH) | 35.3% | 32.1% | 27.9% | 24.9% | 25.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.5% | 0.5% | 0.6% | 0.7% | 0.6% |
|---|
| Temple Hotels Inc ($TPH) | 50.3% | 43.0% | 36.8% | 11.1% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.4% | 3.3% | 4.3% | 3.5% | 3.2% |
|---|
| Temple Hotels Inc ($TPH) | 6.6% | 5.3% | 3.2% | 1.8% | 2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (27 companies) | 5.2x | 4.4x | 4.5x | 5.6x | 6.0x |
|---|
| Temple Hotels Inc ($TPH) | 10.6x | 8.8x | 11.2x | 11.7x | 11.2x |
