Polaris Materials Corp reports 6.2 pp EBITDA Margin decline from 6.2% to in 2016
14.03.2017 • About Polaris Materials Corp (
$PLS) • By InTwits
Polaris Materials Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: Polaris Materials Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -2.4% for the sames years0.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Polaris Materials Corp ($PLS) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 32.196 | 44.893 | 45.241 | 43.085 | 45.233 | 5.0% |
| Gross Profit | -5.288 | 0.024 | 1.193 | 4.856 | | -100.0% |
| SG&A | | 5.364 | 6.571 | 5.251 | | -100.0% |
| EBITDA | -5.107 | -2.726 | | 2.679 | | -100.0% |
| Net Income | -12.238 | -8.208 | -6.685 | 0.491 | -3.925 | -899.4% |
Balance Sheet
|
|---|
| Cash | 5.537 | 9.385 | 14.231 | 10.501 | | -100.0% |
| Short Term Debt | 0.695 | 0.651 | 0.418 | 0.386 | | -100.0% |
| Long Term Debt | 7.232 | 0.530 | 0.865 | 0.811 | | -100.0% |
Cash flow
|
|---|
| Capex | 1.044 | 1.683 | 5.354 | 3.357 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 37.4% | 39.4% | 0.8% | -4.8% | 5.0% | |
| EBITDA growth | -57.3% | -46.6% | | | | |
| Gross Margin | -16.4% | 0.1% | 2.6% | 11.3% | | -11.3% |
| EBITDA Margin | -15.9% | -6.1% | 0.0% | 6.2% | 0.0% | -6.2% |
| Net Income Margin | -38.0% | -18.3% | -14.8% | 1.1% | -8.7% | -9.8% |
| SG&A, % of revenue | | 11.9% | 14.5% | 12.2% | | -12.2% |
| CAPEX, % of revenue | 3.2% | 3.7% | 11.8% | 7.8% | | -7.8% |
| ROIC | -14.5% | -10.2% | -9.4% | -1.9% | | 1.9% |
| ROE | -17.7% | -11.7% | -8.8% | 0.6% | | -0.6% |
| Net Debt/EBITDA | | | | -3.5x | | 3.5x |
Polaris Materials Corp ($PLS) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 13 | 12 | 12 | -24.4% | 28.9% | 18.1% | -1.2% |
| EBITDA | -1 | 1 | 1 | -0 | -771.8% | 107.9% | -12.4% | -104.9% |
| Net Income | -2 | -0 | -0 | -1 | -2,872.2% | | -117.0% | -385.4% |
Balance Sheet
|
|---|
| Cash | 10 | 6 | 7 | 13 | -13.7% | -43.3% | -26.8% | 22.5% |
| Short Term Debt | 0 | 1 | 1 | 1 | 31.2% | 79.4% | 28.2% | 30.3% |
| Long Term Debt | 1 | 1 | 1 | 1 | -4.0% | 40.8% | -8.7% | -10.0% |
Ratios
|
|---|
| Gross Margin | -3.9% | 7.8% | 9.9% | 8.1% | -10.0% | -2.4% | -5.1% | -5.4% |
| EBITDA Margin | -8.7% | 7.6% | 7.0% | -0.5% | -9.7% | 2.9% | -2.4% | -9.8% |
| Net Income Margin | -31.4% | -3.2% | -1.3% | -7.2% | -32.2% | 5.0% | -10.5% | -9.7% |
Revenue and profitability
The company's Revenue increased on 5.0%. Revenue growth showed slow down in FY16Q4 - it was -1.2% YoY.
Net Income marign decreased on 9.8 pp from 1.1% to -8.7% in FY2016.
Appendix 1: Peers in Industrial
Below you can find Polaris Materials Corp benchmarking vs. other companies in Industrial 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 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (51 companies) | | 4.9% | 10.4% | 8.5% | 2.6% |
|---|
| Polaris Materials Corp ($PLS) | | 39.4% | 0.8% | -4.8% | 5.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (49 companies) | 23.9% | 24.0% | 21.9% | 21.9% | 22.2% |
|---|
| Polaris Materials Corp ($PLS) | -16.4% | 0.1% | 2.6% | 11.3% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (53 companies) | 10.5% | 8.4% | 8.4% | 9.5% | 11.1% |
|---|
| Polaris Materials Corp ($PLS) | -15.9% | -6.1% | | 6.2% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (54 companies) | 3.2% | 3.6% | 4.3% | 3.7% | 4.3% |
|---|
| Polaris Materials Corp ($PLS) | 3.2% | 3.7% | 11.8% | 7.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (55 companies) | 12.2% | 9.7% | 11.5% | 8.9% | 9.0% |
|---|
| Polaris Materials Corp ($PLS) | -14.5% | -10.2% | -9.4% | -1.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (49 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
| Polaris Materials Corp ($PLS) | | | | -3.5x | |
