Liquor Stores N.A. Ltd revenue increased on 9.6% in 2016
07.03.2017 • About Liquor Stores N.A. Ltd (
$LIQ) • By InTwits
Liquor Stores N.A. Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. 4.9% in FY2015 vs. 7.2% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 10.2x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Liquor Stores N.A. Ltd ($LIQ) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 630.1 | 661.0 | 694.2 | 746.4 | 817.7 | 9.6% |
| Gross Profit | 159.5 | 165.8 | 176.4 | 191.4 | | -100.0% |
| SG&A | | | | 154.5 | | -100.0% |
| EBITDA | 45.7 | 43.2 | 36.5 | 36.9 | | -100.0% |
| Net Income | 18.8 | 11.3 | 12.7 | -99.6 | 3.0 | |
Balance Sheet
|
|---|
| Cash | 5.7 | 4.5 | 3.0 | 3.8 | | -100.0% |
| Short Term Debt | 3.9 | 0.0 | 0.0 | 0.1 | | -100.0% |
| Long Term Debt | 146.6 | 133.8 | 92.0 | 129.6 | | -100.0% |
Cash flow
|
|---|
| Capex | 11.8 | 11.9 | 10.9 | 25.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.5% | 4.9% | 5.0% | 7.5% | 9.6% | |
| EBITDA growth | -0.5% | -5.3% | -15.5% | 0.9% | | |
| Gross Margin | 25.3% | 25.1% | 25.4% | 25.6% | | -25.6% |
| EBITDA Margin | 7.2% | 6.5% | 5.3% | 4.9% | 0.0% | -4.9% |
| Net Income Margin | 3.0% | 1.7% | 1.8% | -13.3% | 0.4% | 13.7% |
| SG&A, % of revenue | | | | 20.7% | | -20.7% |
| CAPEX, % of revenue | 1.9% | 1.8% | 1.6% | 3.5% | | -3.5% |
| ROIC | 7.9% | 7.0% | 5.6% | 6.1% | | -6.1% |
| ROE | 5.9% | 3.6% | 3.8% | -32.1% | | 32.1% |
| Net Debt/EBITDA | 3.2x | 3.0x | 2.4x | 3.4x | | -3.4x |
Liquor Stores N.A. Ltd ($LIQ) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 172 | 209 | 209 | 228 | 16.7% | 9.8% | 7.5% | 6.3% |
| EBITDA | 2 | 12 | 13 | 13 | 40.9% | -1.7% | 15.7% | 11.7% |
| Net Income | -2 | 4 | 4 | -6 | | -8.2% | 5.5% | |
Balance Sheet
|
|---|
| Cash | 4 | 6 | 4 | 7 | -62.4% | 53.0% | 43.2% | 85.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | 183.3% |
| Long Term Debt | 181 | 179 | 157 | 136 | 48.4% | 43.7% | 23.4% | 4.8% |
Ratios
|
|---|
| Gross Margin | 25.4% | 25.1% | 25.4% | 25.3% | -0.4% | -0.6% | -0.3% | -0.2% |
| EBITDA Margin | 1.2% | 5.9% | 6.0% | 5.8% | 0.2% | -0.7% | 0.4% | 0.3% |
| Net Income Margin | -1.0% | 2.0% | 2.1% | -2.7% | 0.6% | -0.4% | -0.0% | 46.8% |
Revenue and profitability
The company's Revenue increased on 9.6%. Revenue growth showed slow down in FY16Q4 - it was 6.3% YoY.
Net Income marign jumped on 13.7 pp from -13.3% to 0.36% in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Liquor Stores N.A. Ltd benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($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) | | 5.0% | 7.2% | 6.1% | 4.6% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | | 4.9% | 5.0% | 7.5% | 9.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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 (36 companies) | 38.1% | 34.2% | 33.5% | 32.6% | 34.6% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 25.3% | 25.1% | 25.4% | 25.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($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% | 15.1% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 7.2% | 6.5% | 5.3% | 4.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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) | 3.2% | 3.2% | 3.4% | 3.2% | 4.9% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 1.9% | 1.8% | 1.6% | 3.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($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% |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 7.9% | 7.0% | 5.6% | 6.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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 | 2.5x | 2.3x | 2.4x | 2.1x |
|---|
| Liquor Stores N.A. Ltd ($LIQ) | 3.2x | 3.0x | 2.4x | 3.4x | |
