Colabor Group Inc Debt dropped on 36.6% in 2016
24.02.2017 • About Colabor Group Inc (
$GCL) • By InTwits
Colabor Group Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.8% in 2016, -0.8% in 2015, 1.6% in 2014, 2.4% in 2013, 2.7% in 2012
- Colabor Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Colabor Group Inc ($GCL) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,467 | 1,439 | 1,432 | 1,391 | 1,399 | 0.6% |
| EBITDA | 39 | 34 | 22 | -12 | 25 | |
| Net Income | 3 | -7 | -67 | -34 | 0 | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | 0 | |
| Short Term Debt | 6 | 7 | 15 | 6 | 8 | 43.1% |
| Long Term Debt | 61 | 62 | 91 | 181 | 110 | -39.0% |
Cash flow
|
|---|
| Capex | 3 | 5 | 2 | 2 | 1 | -39.9% |
Ratios
|
|---|
| Revenue growth | 11.7% | -1.9% | -0.5% | -2.9% | 0.6% | |
| EBITDA growth | 13.1% | -13.0% | -34.1% | -151.7% | -315.9% | |
| EBITDA Margin | 2.7% | 2.4% | 1.6% | -0.8% | 1.8% | 2.6% |
| Net Income Margin | 0.2% | -0.5% | -4.7% | -2.4% | 0.0% | 2.5% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.1% | 0.1% | 0.1% | -0.0% |
| ROIC | 8.3% | 6.2% | 1.4% | -11.5% | 5.5% | 17.0% |
| ROE | 1.7% | -4.1% | -49.0% | -40.2% | 0.4% | 40.5% |
| Net Debt/EBITDA | 1.7x | 2.0x | 4.7x | | 4.7x | 4.7x |
Colabor Group Inc ($GCL) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 307 | 365 | 361 | 367 | 0.8% | -0.5% | -1.7% | 4.1% |
| EBITDA | -1 | 10 | 9 | 7 | | 25.8% | 19.6% | |
| Net Income | -5 | 3 | 3 | -0 | | 206.7% | 213.8% | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 115 | 125 | 154 | 8 | 785.6% | 1,655.5% | 1,743.1% | 43.1% |
| Long Term Debt | 72 | 23 | 23 | 110 | -20.7% | -87.4% | -87.4% | -39.0% |
Ratios
|
|---|
| EBITDA Margin | -0.5% | 2.8% | 2.5% | 2.0% | 0.2% | 0.6% | 0.5% | 9.6% |
| Net Income Margin | -1.7% | 0.8% | 0.8% | -0.0% | 0.3% | 0.6% | 0.5% | 8.3% |
Revenue and profitability
Colabor Group Inc's Revenue increased slightly on 0.64%. Revenue growth showed acceleration in 16Q4 - it increased 4.1% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.8 pp from 16.6% to 20.3% in 2016.
Net Income marign increased on 2.5 pp from -2.4% to 0.023% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Colabor Group Inc had CAPEX/Revenue of 0.069%. CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.097%.
Return on investment
The company operates at low ROIC (5.52%) and ROE (0.35%). ROIC jumped on 17.0 pp from -11.5% to 5.5% in 2016. ROE jumped on 40.5 pp from -40.2% to 0.35% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 4.7x. Net Debt / EBITDA surged4.7x from to 4.7x in 2016. Debt dropped on 36.6% while cash didn't change in 2016.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Colabor Group Inc benchmarking against other companies in Consumer, Cyclical 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 |
|---|
| 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% |
|---|
| Colabor Group Inc ($GCL) | | -1.9% | -0.5% | -2.9% | 0.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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 (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
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 ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.4% |
|---|
| Colabor Group Inc ($GCL) | 2.7% | 2.4% | 1.6% | -0.8% | 1.8% |
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 ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 3.2% | 3.2% | 3.4% | 3.5% | 5.0% |
|---|
| Colabor Group Inc ($GCL) | 0.2% | 0.3% | 0.1% | 0.1% | 0.1% |
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 ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.6% | 10.9% | 10.9% | 11.4% |
|---|
| Colabor Group Inc ($GCL) | 8.3% | 6.2% | 1.4% | -11.5% | 5.5% |
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) | 2.1x | 2.8x | 2.3x | 2.5x | 1.9x |
|---|
