Norsat International Inc reports 62.1% Net Income decline
08.03.2017 • About Norsat International Inc (
$NII) • By InTwits
Norsat International Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 0.9x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Norsat International Inc ($NII) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 42.429 | 36.418 | 36.179 | 36.100 | 38.041 | 5.4% |
| Gross Profit | 18.160 | 13.823 | 14.379 | 14.646 | | -100.0% |
| SG&A | 7.213 | 6.277 | 5.413 | 8.967 | | -100.0% |
| EBITDA | | | | 5.411 | | -100.0% |
| Net Income | 5.135 | 3.707 | 4.195 | 8.650 | 3.280 | -62.1% |
Balance Sheet
|
|---|
| Cash | 5.053 | 3.273 | 5.514 | 4.586 | | -100.0% |
| Short Term Debt | 0.693 | 0.000 | 0.000 | 0.000 | | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.548 | 0.585 | 0.623 | 0.193 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.3% | -14.2% | -0.7% | -0.2% | 5.4% | |
| Gross Margin | 42.8% | 38.0% | 39.7% | 40.6% | | -40.6% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 15.0% | 0.0% | -15.0% |
| Net Income Margin | 12.1% | 10.2% | 11.6% | 24.0% | 8.6% | -15.3% |
| SG&A, % of revenue | 17.0% | 17.2% | 15.0% | 24.8% | | -24.8% |
| CAPEX, % of revenue | 1.3% | 1.6% | 1.7% | 0.5% | | -0.5% |
| ROIC | 10.9% | 1.4% | 13.7% | 13.8% | | -13.8% |
| ROE | 23.9% | 14.6% | 15.1% | 26.6% | | -26.6% |
| Net Debt/EBITDA | | | | -0.8x | | 0.8x |
Norsat International Inc ($NII) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 10 | 9 | 9 | 11 | 13.6% | 0.1% | -4.6% | 12.8% |
| EBITDA | 2 | 2 | 2 | 0 | 71.8% | 48.5% | 13.0% | -79.4% |
| Net Income | 1 | 1 | 1 | -0 | 107.6% | 38.7% | -6.0% | -103.4% |
Balance Sheet
|
|---|
| Cash | 7 | 9 | 12 | 15 | 33.9% | 259.1% | 144.5% | 228.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 43.7% | 45.9% | 47.0% | 43.9% | 3.8% | 7.0% | 4.8% | 2.9% |
| EBITDA Margin | 17.9% | 19.7% | 22.0% | 2.6% | 6.1% | 6.4% | 3.4% | -11.5% |
| Net Income Margin | 12.2% | 10.4% | 15.6% | -1.9% | 5.5% | 2.9% | -0.2% | -64.7% |
Revenue and profitability
The company's Revenue increased on 5.4%. Revenue growth showed acceleration in FY16Q4 - it increased 12.8% YoY.
Net Income marign dropped on 15.3 pp from 24.0% to 8.6% in FY2016.
Appendix 1: Peers in Communications
Below you can find Norsat International Inc benchmarking vs. other companies in Communications 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 |
|---|
| AcuityAds Holding Inc ($AT) | | | | 51.6% | 91.4% |
| Shopify Inc ($SH) | | 111.9% | 109.0% | 95.4% | 89.7% |
| Gaming Nation Inc ($FAN) | | | | | 46.6% |
| Tucows Inc ($TC) | | 13.3% | 13.6% | 17.1% | 9.8% |
| Points International Ltd ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (25 companies) | 13.1% | 4.4% | 3.1% | 4.3% | 2.1% |
|---|
| Norsat International Inc ($NII) | | -14.2% | -0.7% | -0.2% | 5.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | 81.6% |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | 77.2% |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (22 companies) | 46.4% | 43.3% | 49.1% | 48.2% | 41.1% |
|---|
| Norsat International Inc ($NII) | 42.8% | 38.0% | 39.7% | 40.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | 39.8% |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | 35.5% |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | 33.0% |
| ZoomerMedia Ltd ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
| |
|---|
| Median (29 companies) | 17.0% | 10.7% | 9.9% | 9.4% | 7.7% |
|---|
| Norsat International Inc ($NII) | | | | 15.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | 21.5% |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | 17.6% |
| BCE Inc ($BCE) | 17.6% | 17.5% | 17.7% | 16.9% | 17.4% |
| TeraGo Inc ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (28 companies) | 2.8% | 3.2% | 2.4% | 3.1% | 3.0% |
|---|
| Norsat International Inc ($NII) | 1.3% | 1.6% | 1.7% | 0.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | 58.4% |
| BCE Inc ($BCE) | 14.1% | 12.6% | 12.6% | 12.3% | 12.6% |
| Quebecor Inc ($QBR.B) | 7.9% | 9.6% | 8.4% | 8.4% | 10.1% |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | 10.1% |
| TELUS Corp ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (28 companies) | 8.0% | 8.2% | 7.1% | 2.0% | 0.1% |
|---|
| Norsat International Inc ($NII) | 10.9% | 1.4% | 13.7% | 13.8% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | 9.6x |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | 4.3x |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (20 companies) | 1.4x | 1.3x | 1.5x | 1.8x | 1.7x |
|---|
| Norsat International Inc ($NII) | | | | -0.8x | |
