Gamehost Inc reports 18.2% Net Income decline and almost no change in EBITDA Margin of 42.6%
14.03.2017 • About Gamehost Inc (
$GH) • By InTwits
Gamehost Inc reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gamehost Inc ($GH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 76.600 | 77.600 | 83.700 | 77.400 | 67.300 | -13.0% |
| Gross Profit | 35.700 | 36.100 | 39.500 | 34.100 | 28.000 | -17.9% |
| SG&A | | | | 3.200 | 4.500 | 40.6% |
| EBITDA | 35.300 | 35.500 | 38.400 | 33.100 | 28.700 | -13.3% |
| Net Income | 20.100 | 20.100 | 22.400 | 19.800 | 16.200 | -18.2% |
Balance Sheet
|
|---|
| Cash | 19.700 | 15.000 | 16.300 | 15.800 | | -100.0% |
| Short Term Debt | 20.600 | 20.000 | 23.700 | 9.200 | | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 13.000 | 20.000 | | -100.0% |
Cash flow
|
|---|
| Capex | 0.500 | 2.100 | 0.400 | 0.800 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.4% | 1.3% | 7.9% | -7.5% | -13.0% | |
| EBITDA growth | 10.9% | 0.6% | 8.2% | -13.8% | -13.3% | |
| Gross Margin | 46.6% | 46.5% | 47.2% | 44.1% | 41.6% | -2.5% |
| EBITDA Margin | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% | -0.1% |
| Net Income Margin | 26.2% | 25.9% | 26.8% | 25.6% | 24.1% | -1.5% |
| SG&A, % of revenue | | | | 4.1% | 6.7% | 2.6% |
| CAPEX, % of revenue | 0.7% | 2.7% | 0.5% | 1.0% | | -1.0% |
| ROIC | 22.5% | 21.1% | 21.5% | 17.7% | | -17.7% |
| ROE | 21.5% | 19.1% | 20.5% | 17.4% | | -17.4% |
| Net Debt/EBITDA | 0.0x | 0.1x | 0.5x | 0.4x | 0.0x | -0.4x |
Gamehost Inc ($GH) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 15 | 17 | 17 | -8.6% | -23.3% | -9.6% | -10.3% |
| EBITDA | 7 | 7 | 8 | 7 | -11.9% | -15.9% | -8.3% | -13.6% |
| Net Income | 4 | 3 | 4 | 4 | -15.7% | -15.4% | -28.8% | -10.2% |
Balance Sheet
|
|---|
Ratios
|
|---|
| Gross Margin | 42.0% | 40.5% | 42.4% | 41.4% | -2.5% | -3.0% | -2.9% | -1.4% |
| EBITDA Margin | 40.9% | 46.6% | 45.3% | 40.2% | -1.5% | 4.1% | 0.6% | -1.5% |
| Net Income Margin | 23.8% | 22.3% | 24.7% | 25.3% | -2.0% | 2.1% | -6.7% | 0.0% |
Revenue and profitability
The company's Revenue dropped on 13.0%. Annual revenue decline showed slowdown in FY16Q4 - revenue dropped on 10.3%. EBITDA Margin showed almost no change in FY2016.
Gross Margin decreased on 2.5 pp from 44.1% to 41.6% in FY2016. SG&A as a % of Revenue increased on 2.6 pp from 4.1% to 6.7% in FY2016.
Net Income marign decreased slightly on 1.5 pp from 25.6% to 24.1% in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Gamehost Inc benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($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) | | 5.2% | 6.6% | 7.5% | 5.5% |
|---|
| Gamehost Inc ($GH) | | 1.3% | 7.9% | -7.5% | -13.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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) | 34.1% | 30.8% | 31.9% | 30.6% | 33.5% |
|---|
| Gamehost Inc ($GH) | 46.6% | 46.5% | 47.2% | 44.1% | 41.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| 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 ($CAO) | | 9.6% | 22.6% | 32.6% | |
| Amaya Inc ($AYA) | 7.2% | 38.2% | 39.3% | 31.0% | 37.1% |
| |
|---|
| Median (38 companies) | 8.0% | 9.8% | 12.2% | 10.0% | 15.0% |
|---|
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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% | 3.5% | 4.9% |
|---|
| Gamehost Inc ($GH) | 0.7% | 2.7% | 0.5% | 1.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($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) | 10.2% | 12.4% | 10.8% | 10.2% | 11.2% |
|---|
| Gamehost Inc ($GH) | 22.5% | 21.1% | 21.5% | 17.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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) | 2.1x | 2.8x | 2.4x | 2.6x | 2.1x |
|---|
| Gamehost Inc ($GH) | 0.0x | 0.1x | 0.5x | 0.4x | 0.0x |
