Mood Media Corp reports 29.4% CAPEX decline and 2.1% Revenue decline
09.03.2017 • About Mood Media Corp (
$MM) • By InTwits
Mood Media Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mood Media Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 108 in 2016, 125 in 2015, 296 in 2014, 219 in 2013, 268 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.9x while industry average is 7.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mood Media Corp ($MM) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 443.8 | 513.3 | 494.1 | 475.1 | 465.3 | -2.1% |
| Gross Profit | 260.1 | 279.4 | 266.2 | 245.2 | 242.9 | -0.9% |
| EBITDA | 104.1 | 71.4 | 73.0 | 61.8 | 76.7 | 24.1% |
| Net Income | -79.5 | -129.5 | -82.4 | -80.0 | -57.8 | -27.8% |
Balance Sheet
|
|---|
| Cash | 46.4 | 22.4 | 25.6 | 17.3 | 17.0 | -2.0% |
| Short Term Debt | 2.1 | 2.1 | 51.0 | 8.4 | 8.4 | 0.0% |
| Long Term Debt | 586.2 | 597.1 | 573.3 | 612.3 | 611.0 | -0.2% |
Cash flow
|
|---|
| Capex | 38.0 | 32.7 | 34.0 | 39.1 | 27.6 | -29.4% |
Ratios
|
|---|
| Revenue growth | 34.3% | 15.6% | -3.7% | -3.8% | -2.1% | |
| EBITDA growth | 54.2% | -31.5% | 2.3% | -15.3% | 24.1% | |
| Gross Margin | 58.6% | 54.4% | 53.9% | 51.6% | 52.2% | 0.6% |
| EBITDA Margin | 23.5% | 13.9% | 14.8% | 13.0% | 16.5% | 3.5% |
| Net Income Margin | -17.9% | -25.2% | -16.7% | -16.8% | -12.4% | 4.4% |
| CAPEX, % of revenue | 8.6% | 6.4% | 6.9% | 8.2% | 5.9% | -2.3% |
| ROIC | 1.5% | -10.2% | 0.1% | -0.9% | 2.6% | 3.5% |
| ROE | -69.7% | -145.3% | | | | 0.0% |
| Net Debt/EBITDA | 5.2x | 8.1x | 8.2x | 9.8x | 7.9x | -1.9x |
Revenue and profitability
The company's Revenue decreased on 2.1% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.5 pp from 13.0% to 16.5% in 2016.
Gross Margin increased slightly on 0.60 pp from 51.6% to 52.2% in 2016.
Net Income marign increased on 4.4 pp from -16.8% to -12.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 5.9%. CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 7.0%.
Leverage (Debt)
Debt level is 7.9x Net Debt / EBITDA and 8.1x Debt / EBITDA. Net Debt / EBITDA dropped on 1.9x from 9.8x to 7.9x in 2016. Debt showed almost no change in 2016 while cash decreased on 2.0% in 2016.
Appendix 1: Peers in Media
Below you can find Mood Media Corp benchmarking vs. other companies in Media 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.
