Tuckamore Capital Management Inc reports 35.0% revenue decline in 2016 and 6.3 pp EBITDA Margin growth from -7.1% to -0.78%
07.03.2017 • About Tuckamore Capital Management Inc (
$TX) • By InTwits
Tuckamore Capital Management Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tuckamore Capital Management Inc is a company in decline: 2016 revenue growth was -35.0%, 5 years revenue CAGR was -15.8%
- The company operates at negative EBITDA Margin: -0.8%
- EBITDA Margin is quite volatile: -0.8% in 2016, -7.1% in 2015, 9.5% in 2014, 6.0% in 2013, 5.1% in 2012
- Tuckamore Capital Management Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -8.7%
- It operates with high leverage: Net Debt/EBITDA is 24.3x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tuckamore Capital Management Inc ($TX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 757.4 | 647.8 | 557.8 | 416.1 | 270.7 | -35.0% |
| Gross Profit | 146.2 | 136.3 | 114.3 | 53.7 | 24.9 | -53.6% |
| SG&A | 107.8 | 97.7 | 61.2 | 22.4 | 17.4 | -22.3% |
| EBITDA | 38.4 | 38.6 | 53.0 | -29.5 | -2.1 | |
| Net Income | -25.6 | -17.4 | -17.2 | -124.9 | -45.7 | |
Balance Sheet
|
|---|
| Cash | 16.6 | 31.8 | 25.7 | 28.8 | 11.5 | -60.0% |
| Short Term Debt | 4.9 | 11.5 | 73.7 | 237.5 | 3.9 | -98.4% |
| Long Term Debt | 273.2 | 255.6 | 178.6 | 6.3 | 199.0 | 3,034.6% |
Cash flow
|
|---|
| Capex | 4.4 | 8.1 | 7.5 | 3.4 | 1.4 | -57.9% |
Ratios
|
|---|
| Revenue growth | 18.6% | -14.5% | -13.9% | -25.4% | -35.0% | |
| EBITDA growth | | 0.6% | 37.2% | -155.6% | -92.8% | |
| Gross Margin | 19.3% | 21.0% | 20.5% | 12.9% | 9.2% | -3.7% |
| EBITDA Margin | 5.1% | 6.0% | 9.5% | -7.1% | -0.8% | 6.3% |
| Net Income Margin | -3.4% | -2.7% | -3.1% | -30.0% | -16.9% | 13.1% |
| SG&A, % of revenue | 14.2% | 15.1% | 11.0% | 5.4% | 6.4% | 1.0% |
| CAPEX, % of revenue | 0.6% | 1.3% | 1.3% | 0.8% | 0.5% | -0.3% |
| ROIC | | 4.9% | 12.0% | -17.6% | -8.7% | 8.9% |
| ROE | | -38.9% | -36.0% | | | 0.0% |
| Net Debt/EBITDA | 6.8x | 6.1x | 4.3x | | | 0.0x |
Tuckamore Capital Management Inc ($TX) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 69 | 61 | 68 | 73 | -25.4% | -48.3% | -41.9% | -18.0% |
| EBITDA | -7 | 2 | 3 | 1 | -216.3% | -84.0% | -74.2% | |
| Net Income | -21 | -7 | -5 | -13 | | | | |
Balance Sheet
|
|---|
| Cash | 10 | 9 | 8 | 12 | -71.4% | -40.3% | -22.6% | -60.0% |
| Short Term Debt | 5 | 5 | 4 | 4 | -98.1% | -98.1% | -98.1% | -98.4% |
| Long Term Debt | 201 | 201 | 200 | 199 | 1,813.7% | 2,028.5% | 2,069.4% | 3,034.6% |
Ratios
|
|---|
| Gross Margin | 7.7% | 8.9% | 10.1% | 10.0% | -5.0% | -3.7% | -5.7% | 0.3% |
| EBITDA Margin | -10.4% | 2.8% | 4.6% | 1.6% | -17.1% | -6.4% | -5.8% | 64.6% |
| Net Income Margin | -30.3% | -10.9% | -7.9% | -17.6% | -25.5% | -5.7% | -2.4% | 103.6% |
Revenue and profitability
The company's Revenue dropped on 35.0%. Annual revenue decline showed slowdown in 16Q4 - revenue dropped on 18.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.3 pp from -7.1% to -0.78% in 2016.
Gross Margin decreased on 3.7 pp from 12.9% to 9.2% in 2016. SG&A as a % of Revenue increased slightly on 1.0 pp from 5.4% to 6.4% in 2016.
Net Income marign surged on 13.1 pp from -30.0% to -16.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.52% in 2016. Tuckamore Capital Management Inc's CAPEX/Revenue decreased slightly on 0.73 pp from 1.3% in 2013 to 0.52% in 2016. It's average CAPEX/Revenue for the last three years was 0.89%.
Leverage (Debt)
Company's Net Debt / EBITDA is 24.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2016. Debt dropped on 16.8% while cash dropped on 60.0%.
Appendix 1: Peers in Financial
Below you can find Tuckamore Capital Management Inc benchmarking vs. other companies in Financial 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 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.5% | 9.1% | 3.6% | 5.8% |
|---|
| Tuckamore Capital Management Inc ($TX) | | -14.5% | -13.9% | -25.4% | -35.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (8 companies) | 38.3% | 41.5% | 28.6% | 47.9% | 36.0% |
|---|
| Tuckamore Capital Management Inc ($TX) | 19.3% | 21.0% | 20.5% | 12.9% | 9.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (36 companies) | 43.9% | 35.0% | 41.4% | 36.2% | 45.4% |
|---|
| Tuckamore Capital Management Inc ($TX) | 5.1% | 6.0% | 9.5% | -7.1% | -0.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.5% | 0.5% | 0.6% | 0.7% | 0.9% |
|---|
| Tuckamore Capital Management Inc ($TX) | 0.6% | 1.3% | 1.3% | 0.8% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.6% | 3.3% | 3.9% | 3.5% | 3.2% |
|---|
| Tuckamore Capital Management Inc ($TX) | | 4.9% | 12.0% | -17.6% | -8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.2x | 4.4x | 4.7x | 6.0x | 7.8x |
|---|
