Great Canadian Gaming Corp CAPEX surged on 159% in 2016 and Revenue surged on 22.4%
07.03.2017 • About Great Canadian Gaming Corp (
$GC) • By InTwits
Great Canadian Gaming Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great Canadian Gaming Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 38.8 in 2016, 15 in 2015, 14.8 in 2014, 24.8 in 2013, 25.4 in 2012
- The company has highly profitable business model: ROIC is at 15.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great Canadian Gaming Corp ($GC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 408.7 | 407.3 | 446.5 | 462.9 | 566.4 | 22.4% |
| SG&A | 97.3 | 96.2 | 101.6 | 119.8 | 157.7 | 31.6% |
| EBITDA | 68.7 | 167.4 | 179.2 | 169.4 | 194.9 | 15.1% |
| Net Income | -27.6 | 63.1 | 78.4 | 74.6 | 75.7 | 1.5% |
Balance Sheet
|
|---|
| Cash | 121.1 | 192.6 | 330.6 | 207.5 | 228.7 | 10.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 439.9 | 441.0 | 442.0 | 443.0 | 478.3 | 8.0% |
Cash flow
|
|---|
| Capex | 25.4 | 24.8 | 14.8 | 15.0 | 38.8 | 158.7% |
Ratios
|
|---|
| Revenue growth | 5.3% | -0.3% | 9.6% | 3.7% | 22.4% | |
| EBITDA growth | -48.1% | 143.7% | 7.0% | -5.5% | 15.1% | |
| EBITDA Margin | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% | -2.2% |
| Net Income Margin | -6.8% | 15.5% | 17.6% | 16.1% | 13.4% | -2.8% |
| SG&A, % of revenue | 23.8% | 23.6% | 22.8% | 25.9% | 27.8% | 2.0% |
| CAPEX, % of revenue | 6.2% | 6.1% | 3.3% | 3.2% | 6.9% | 3.6% |
| ROIC | 2.2% | 15.1% | 15.5% | 14.3% | 15.2% | 0.9% |
| ROE | -7.9% | 21.5% | 22.2% | 19.1% | 19.8% | 0.7% |
| Net Debt/EBITDA | 4.6x | 1.5x | 0.6x | 1.4x | 1.3x | -0.1x |
Great Canadian Gaming Corp ($GC) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 131 | 140 | 151 | 143 | 20.1% | 25.1% | 30.0% | 14.7% |
| EBITDA | 38 | 54 | 60 | 43 | 1.9% | 22.2% | 30.7% | 2.4% |
| Net Income | 10 | 23 | 27 | 16 | -35.4% | 19.4% | 23.4% | -11.4% |
Balance Sheet
|
|---|
| Cash | 215 | 159 | 196 | 229 | -36.7% | -45.4% | -32.7% | 10.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 477 | 478 | 478 | 478 | 7.9% | 7.9% | 7.9% | 8.0% |
Ratios
|
|---|
| EBITDA Margin | 29.0% | 38.4% | 39.4% | 30.3% | -5.2% | -0.9% | 0.2% | -3.7% |
| Net Income Margin | 7.9% | 16.3% | 17.8% | 10.9% | -6.8% | -0.8% | -1.0% | -3.2% |
Revenue and profitability
Great Canadian Gaming Corp's Revenue surged on 22.4%. Revenue growth showed slow down in 16Q4 - it was 14.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.5 pp from 13.0% to 16.5% in FY2016.
SG&A as a % of Revenue increased slightly on 2.0 pp from 25.9% to 27.8% in 2016.
Net Income marign decreased on 2.8 pp from 16.1% to 13.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
Great Canadian Gaming Corp's CAPEX/Revenue was 6.9% in 2016. The company's CAPEX/Revenue increased slightly on 0.76 pp from 6.1% in 2013 to 6.9% in 2016. Average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at good ROIC (15.24%) and ROE (19.80%). ROIC increased slightly on 0.95 pp from 14.3% to 15.2% in 2016. ROE increased slightly on 0.66 pp from 19.1% to 19.8% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.5x. Net Debt / EBITDA dropped on 0.1x from 1.4x to 1.3x in 2016. Debt increased on 8.0% while cash jumped on 10.2%.
Management team
Great Canadian Gaming Corp's CEO is Rod N Baker. Rod N Baker is a founder and has 7 years tenure at the company. Andreas Michael Thompson is a The company's CFO. Andreas Michael Thompson has spent 2 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Great Canadian Gaming Corp 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% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| Linamar Corp ($LNR) | | 11.6% | 16.0% | 23.8% | 16.3% |
| |
|---|
| Median (35 companies) | | 5.2% | 6.6% | 7.5% | 4.6% |
|---|
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| Amaya Inc ($AYA) | 7.2% | 38.2% | 39.3% | 31.0% | 37.1% |
| |
|---|
| Median (38 companies) | 8.0% | 9.8% | 12.2% | 10.0% | 15.0% |
|---|
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
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 ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 2.7% | 2.9% | 3.4% | 3.5% | 4.9% |
|---|
| Great Canadian Gaming Corp ($GC) | 6.2% | 6.1% | 3.3% | 3.2% | 6.9% |
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 ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.4% | 10.8% | 10.2% | 11.0% |
|---|
| Great Canadian Gaming Corp ($GC) | 2.2% | 15.1% | 15.5% | 14.3% | 15.2% |
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 ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (34 companies) | 1.7x | 2.8x | 2.4x | 2.6x | 2.1x |
|---|
| Great Canadian Gaming Corp ($GC) | 4.6x | 1.5x | 0.6x | 1.4x | 1.3x |
