Second Cup Ltd/The EBITDA jumped on 46.6% in 2016 while Revenue dropped on 18.7%
27.02.2017 • About Second Cup Ltd/The (
$SCU) • By InTwits
Second Cup Ltd/The reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 1.9% in FY2016, 1.0% in FY2015, 16.2% in FY2014, 27.8% in FY2013, 29.1% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Second Cup Ltd/The ($SCU) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.346 | 27.188 | 28.172 | 37.341 | 30.351 | -18.7% |
| Gross Profit | 22.823 | 23.134 | 20.493 | 30.273 | | -100.0% |
| SG&A | | | | 5.787 | | -100.0% |
| EBITDA | 7.671 | 7.565 | 4.571 | 0.384 | 0.563 | 46.6% |
| Net Income | -9.404 | -7.369 | -27.032 | -1.153 | -0.975 | |
Balance Sheet
|
|---|
| Cash | 3.880 | 6.501 | 10.918 | 3.080 | | -100.0% |
| Short Term Debt | 0.554 | 0.000 | 11.119 | 0.000 | | |
| Long Term Debt | 10.941 | 11.089 | 0.000 | 5.977 | | -100.0% |
Cash flow
|
|---|
| Capex | 1.938 | 2.904 | 1.575 | 1.942 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 5.4% | 3.2% | 3.6% | 32.5% | -18.7% | |
| EBITDA growth | -22.7% | -1.4% | -39.6% | -91.6% | 46.6% | |
| Gross Margin | 86.6% | 85.1% | 72.7% | 81.1% | | -81.1% |
| EBITDA Margin | 29.1% | 27.8% | 16.2% | 1.0% | 1.9% | 0.8% |
| Net Income Margin | -35.7% | -27.1% | -96.0% | -3.1% | -3.2% | -0.1% |
| SG&A, % of revenue | | | | 15.5% | | -15.5% |
| CAPEX, % of revenue | 7.4% | 10.7% | 5.6% | 5.2% | | -5.2% |
| ROIC | 8.2% | 9.0% | 6.2% | -2.9% | | 2.9% |
| ROE | -14.7% | -14.4% | -76.2% | -4.7% | | 4.7% |
| Net Debt/EBITDA | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x | -7.5x |
Second Cup Ltd/The ($SCU) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 8 | 8 | 8 | -17.5% | -17.6% | -17.4% | -22.2% |
| EBITDA | -0 | -0 | 0 | 1 | -178.0% | -136.6% | | 9.0% |
| Net Income | -1 | -0 | -0 | 0 | | | | 56.4% |
Balance Sheet
|
|---|
Ratios
|
|---|
| EBITDA Margin | -4.4% | -1.6% | 4.7% | 8.9% | -9.0% | -5.1% | 14.7% | 2.5% |
| Net Income Margin | -8.2% | -5.7% | -1.0% | 2.0% | -7.3% | -4.9% | 10.9% | 1.0% |
Revenue and profitability
Second Cup Ltd/The's Revenue dropped on 18.7%. Revenue decline showed acceleration in FY16Q4 - it was 22.2% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.83 pp from 1.0% to 1.9% in FY2016.
Net Income marign showed almost no change in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Second Cup Ltd/The benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($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% | 6.1% | 5.5% |
|---|
| Second Cup Ltd/The ($SCU) | | 3.2% | 3.6% | 32.5% | -18.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| 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 ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| Air Canada ($AC) | 62.4% | 63.5% | 64.0% | 71.9% | 78.6% |
| |
|---|
| Median (36 companies) | 34.1% | 30.8% | 31.9% | 30.6% | 34.6% |
|---|
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($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) | 8.0% | 9.8% | 12.2% | 11.0% | 15.4% |
|---|
| Second Cup Ltd/The ($SCU) | 29.1% | 27.8% | 16.2% | 1.0% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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) | 2.7% | 2.9% | 3.3% | 3.2% | 4.9% |
|---|
| Second Cup Ltd/The ($SCU) | 7.4% | 10.7% | 5.6% | 5.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($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% | 11.2% |
|---|
| Second Cup Ltd/The ($SCU) | 8.2% | 9.0% | 6.2% | -2.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| Canlan Ice Sports Corp ($ICE) | 2.7x | 3.2x | 3.6x | 6.3x | |
| |
|---|
| Median (34 companies) | 2.1x | 2.8x | 2.4x | 2.4x | 2.1x |
|---|
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
