Heritage Global Inc reports 80.8% revenue growth in FY2016
07.03.2017 • About Heritage Global Inc (
$HGP) • By InTwits
Heritage Global Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: in FY2016 vs. -56.1% in FY2015 vs. in FY2012
- Heritage Global Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -12.8%0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Heritage Global Inc ($HGP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14.121 | 8.892 | 15.669 | 17.431 | 31.512 | 80.8% |
| Gross Profit | | | 14.997 | 10.894 | | -100.0% |
| SG&A | | | 12.138 | 12.774 | | -100.0% |
| EBITDA | | | -1.473 | -9.779 | | |
| Net Income | -1.812 | -6.396 | -29.286 | -10.421 | 0.019 | |
Balance Sheet
|
|---|
| Cash | | | 4.220 | 2.777 | | -100.0% |
| Short Term Debt | | | 0.000 | 0.000 | | |
| Long Term Debt | | | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | | | 0.012 | | | |
Ratios
|
|---|
| Revenue growth | -17.2% | -37.0% | 76.2% | 11.2% | 80.8% | |
| EBITDA growth | | | | 563.7% | | |
| Gross Margin | | | 95.7% | 62.5% | | -62.5% |
| EBITDA Margin | 0.0% | 0.0% | -9.4% | -56.1% | 0.0% | 56.1% |
| Net Income Margin | -12.8% | -71.9% | -186.9% | -59.8% | 0.1% | 59.8% |
| SG&A, % of revenue | | | 77.5% | 73.3% | | -73.3% |
| CAPEX, % of revenue | | | 0.1% | | | 0.0% |
| ROIC | | | | -97.9% | | 97.9% |
| ROE | | | | -109.5% | | 109.5% |
Heritage Global Inc ($HGP) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 5 | 11 | 8 | 28.2% | 16.2% | 181.5% | 43.4% |
| EBITDA | 0 | -0 | -0 | 1 | | | | |
| Net Income | 0 | 1 | -0 | -0 | | | | |
Balance Sheet
|
|---|
| Cash | 2 | 3 | 4 | 3 | -64.5% | -21.6% | 23.1% | 22.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 62.0% | 73.2% | 28.6% | 64.4% | 4.8% | 3.9% | | 6.1% |
| EBITDA Margin | 5.1% | -3.9% | -3.8% | 12.1% | 10.9% | 10.4% | 104.9% | 116.4% |
| Net Income Margin | 1.1% | 15.9% | -4.3% | -5.1% | 13.7% | 35.5% | 115.3% | 95.6% |
Revenue and profitability
The company's Revenue surged on 80.8%. Revenue growth showed slow down in FY16Q4 - it was 43.4% YoY.
Net Income marign jumped on 59.8 pp from -59.8% to 0.059% in FY2016.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Heritage Global Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| Savaria Corp ($SIS) | | 13.5% | 9.5% | 14.9% | 25.7% |
| |
|---|
| Median (40 companies) | | 9.1% | 13.7% | 15.6% | 12.6% |
|---|
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (34 companies) | 32.5% | 37.1% | 35.6% | 33.4% | 31.1% |
|---|
| Heritage Global Inc ($HGP) | | | 95.7% | 62.5% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.2% | 12.4% | 14.1% | 12.7% | 10.1% |
|---|
| Heritage Global Inc ($HGP) | | | -9.4% | -56.1% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.4% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 8.4% | 8.4% | 7.5% | 8.0% |
|---|
| Heritage Global Inc ($HGP) | | | | -97.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
