Premium Brands Holdings Corp EBITDA surged on 48.5% in 2016 and Revenue surged on 25.4%
16.03.2017 • About Premium Brands Holdings Corp (
$PBH) • By InTwits
Premium Brands Holdings Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Premium Brands Holdings Corp is a fast growth stock: 2016 revenue growth was 25.4%, 5 year revenue CAGR was 18.7% at 2016 ROIC 15.3%
- Premium Brands Holdings Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 42.8 in 2016, 29.4 in 2015, 47.1 in 2014, 15.6 in 2013, 29.7 in 2012
- The company has highly profitable business model: ROIC is at 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Premium Brands Holdings Corp ($PBH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 960 | 1,073 | 1,222 | 1,485 | 1,862 | 25.4% |
| Gross Profit | 201 | 213 | 228 | 285 | 351 | 23.2% |
| SG&A | 134 | 142 | 151 | 173 | 196 | 13.2% |
| EBITDA | 62 | 67 | 58 | 104 | 155 | 48.5% |
| Net Income | 15 | 13 | 11 | 12 | 69 | 489.2% |
Balance Sheet
|
|---|
| Cash | 4 | 1 | 9 | 11 | 19 | 72.1% |
| Short Term Debt | 140 | 148 | 9 | 14 | 15 | 3.0% |
| Long Term Debt | 147 | 189 | 386 | 325 | 407 | 25.4% |
Cash flow
|
|---|
| Capex | 30 | 16 | 47 | 29 | 43 | 45.7% |
Ratios
|
|---|
| Revenue growth | 21.7% | 11.7% | 13.9% | 21.5% | 25.4% | |
| EBITDA growth | 12.8% | 7.4% | -13.0% | 80.1% | 48.5% | |
| Gross Margin | 20.9% | 19.9% | 18.7% | 19.2% | 18.8% | -0.3% |
| EBITDA Margin | 6.5% | 6.2% | 4.7% | 7.0% | 8.3% | 1.3% |
| Net Income Margin | 1.6% | 1.2% | 0.9% | 0.8% | 3.7% | 2.9% |
| SG&A, % of revenue | 13.9% | 13.3% | 12.3% | 11.7% | 10.5% | -1.1% |
| CAPEX, % of revenue | 3.1% | 1.5% | 3.9% | 2.0% | 2.3% | 0.3% |
| ROIC | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% | 2.7% |
| ROE | 7.4% | 6.1% | 5.5% | 4.5% | 18.5% | 14.0% |
| Net Debt/EBITDA | 4.6x | 5.1x | 6.7x | 3.1x | 2.6x | -0.5x |
Premium Brands Holdings Corp ($PBH) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 381 | 463 | 481 | 533 | 16.1% | 25.8% | 22.5% | 33.0% |
| EBITDA | 24 | 40 | 44 | 47 | 59.3% | 45.1% | 34.6% | 54.4% |
| Net Income | 9 | 18 | 21 | 20 | 155.6% | | 115.2% | 133.7% |
Balance Sheet
|
|---|
| Cash | 4 | 4 | 5 | 19 | -61.2% | -41.3% | -44.4% | 72.1% |
| Short Term Debt | 11 | 18 | 10 | 15 | 65.7% | 290.3% | -17.0% | 3.0% |
| Long Term Debt | 283 | 362 | 330 | 407 | -23.3% | 7.6% | -11.4% | 25.4% |
Ratios
|
|---|
| Gross Margin | 17.5% | 19.1% | 19.0% | 19.6% | -0.4% | -0.4% | -1.0% | 0.5% |
| EBITDA Margin | 6.3% | 8.7% | 9.1% | 8.8% | 1.7% | 1.2% | 0.8% | 1.2% |
| Net Income Margin | 2.4% | 4.0% | 4.4% | 3.8% | 1.3% | 6.8% | 1.9% | 1.6% |
Revenue and profitability
Premium Brands Holdings Corp's Revenue jumped on 25.4%. Revenue growth showed acceleration in 16Q4 - it increased 33.0% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.95 pp from -7.3% to -8.3% in FY2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 11.7% to 10.5% in 2016.
Net Income marign increased on 2.9 pp from 0.79% to 3.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
Premium Brands Holdings Corp's CAPEX/Revenue was 2.3% in 2016. The company showed small growth in CAPEX/Revenue of 0.84 pp from 1.5% in 2013 to 2.3% in 2016. Average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at good ROIC (15.26%) and ROE (18.48%). ROIC increased on 2.7 pp from 12.6% to 15.3% in 2016. ROE surged on 14.0 pp from 4.5% to 18.5% in 2016.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 3.1x to 2.6x in 2016. Debt jumped on 24.4% while cash surged on 72.1%.
Management team
The company's CEO is George Paleologou. George Paleologou is a founder and has 10 years tenure at the company. Premium Brands Holdings Corp's CFO William D Kalutycz "Will" has spent 13 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Premium Brands Holdings Corp benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | | 8.5% | 13.7% | 14.9% | 12.6% |
|---|
| Premium Brands Holdings Corp ($PBH) | | 11.7% | 13.9% | 21.5% | 25.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (34 companies) | 35.4% | 39.2% | 35.8% | 36.1% | 33.2% |
|---|
| Premium Brands Holdings Corp ($PBH) | 20.9% | 19.9% | 18.7% | 19.2% | 18.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.9% | 12.8% | 14.1% | 12.7% | 10.7% |
|---|
| Premium Brands Holdings Corp ($PBH) | 6.5% | 6.2% | 4.7% | 7.0% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.8% | 2.3% | 2.4% | 2.0% |
|---|
| Premium Brands Holdings Corp ($PBH) | 3.1% | 1.5% | 3.9% | 2.0% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| easyhome Ltd ($EH) | | 14.6% | 14.4% | 14.7% | 14.9% |
| |
|---|
| Median (43 companies) | 8.6% | 7.5% | 8.5% | 6.3% | 8.0% |
|---|
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (37 companies) | 2.8x | 2.2x | 3.3x | 2.3x | 2.9x |
|---|
| Premium Brands Holdings Corp ($PBH) | 4.6x | 5.1x | 6.7x | 3.1x | 2.6x |
