Hardwoods Distribution Inc revenue growth accelerated to 38.1% in FY2016 vs. 25.4% a year earliner
17.03.2017 • About Hardwoods Distribution Inc (
$HWD) • By InTwits
Hardwoods Distribution Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 13.7x while industry average is 2.8x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hardwoods Distribution Inc ($HWD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 306.1 | 371.2 | 455.7 | 571.6 | 789.3 | 38.1% |
| Gross Profit | 53.8 | 67.6 | 78.8 | 99.6 | | -100.0% |
| SG&A | 34.0 | 38.8 | 43.4 | 67.4 | | -100.0% |
| EBITDA | 12.3 | 21.4 | 25.5 | 34.8 | | -100.0% |
| Net Income | 6.2 | 13.1 | 14.0 | 20.1 | 23.9 | 18.4% |
Balance Sheet
|
|---|
| Cash | 0.1 | 0.1 | 0.0 | 0.0 | | |
| Short Term Debt | 25.4 | 28.8 | 36.4 | 30.0 | | -100.0% |
| Long Term Debt | 0.6 | 0.8 | 0.7 | 0.7 | | -100.0% |
Cash flow
|
|---|
| Capex | 0.8 | 0.9 | 1.5 | 1.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 33.1% | 21.3% | 22.8% | 25.4% | 38.1% | |
| EBITDA growth | 106.9% | 73.1% | 19.2% | 36.6% | | |
| Gross Margin | 17.6% | 18.2% | 17.3% | 17.4% | | -17.4% |
| EBITDA Margin | 4.0% | 5.8% | 5.6% | 6.1% | 0.0% | -6.1% |
| Net Income Margin | 2.0% | 3.5% | 3.1% | 3.5% | 3.0% | -0.5% |
| SG&A, % of revenue | 11.1% | 10.4% | 9.5% | 11.8% | | -11.8% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.3% | 0.3% | | -0.3% |
| ROIC | 13.1% | 19.9% | 18.8% | 20.9% | | -20.9% |
| ROE | 8.4% | 15.7% | 14.1% | 16.0% | | -16.0% |
| Net Debt/EBITDA | 2.1x | 1.4x | 1.5x | 0.9x | | -0.9x |
Hardwoods Distribution Inc ($HWD) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 157 | 157 | 235 | 239 | 16.5% | 9.5% | 54.8% | 69.8% |
| EBITDA | 9 | 10 | 13 | 11 | 23.4% | 10.2% | 28.9% | 42.0% |
| Net Income | 5 | 5 | 7 | 7 | -1.9% | 7.1% | 22.4% | 47.4% |
Balance Sheet
|
|---|
| Cash | 0 | 1 | 1 | 1 | | | | |
| Short Term Debt | 36 | 32 | 100 | 99 | -26.3% | -31.4% | 119.4% | 229.7% |
| Long Term Debt | 1 | 1 | 2 | 1 | -11.2% | -6.2% | 81.3% | 30.0% |
Ratios
|
|---|
| Gross Margin | 17.8% | 18.1% | 18.6% | 18.2% | 0.7% | 0.7% | 1.0% | 0.5% |
| EBITDA Margin | 6.0% | 6.5% | 5.6% | 4.5% | 0.3% | 0.0% | -1.1% | -0.9% |
| Net Income Margin | 2.9% | 3.4% | 3.1% | 2.7% | -0.6% | -0.1% | -0.8% | -0.4% |
Revenue and profitability
Hardwoods Distribution Inc's Revenue jumped on 38.1%. Revenue growth showed acceleration in FY16Q4 - it increased 69.8% YoY.
Net Income marign decreased slightly on 0.50 pp from 3.5% to 3.0% in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Hardwoods Distribution Inc benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| 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 ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| Linamar Corp ($LNR) | | 11.6% | 16.0% | 23.8% | 16.3% |
| |
|---|
| Median (35 companies) | | 4.7% | 6.6% | 6.1% | 4.6% |
|---|
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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) | 38.1% | 34.2% | 33.5% | 32.6% | 34.6% |
|---|
| Hardwoods Distribution Inc ($HWD) | 17.6% | 18.2% | 17.3% | 17.4% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($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% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.1% |
|---|
| Hardwoods Distribution Inc ($HWD) | 4.0% | 5.8% | 5.6% | 6.1% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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% |
|---|
| Hardwoods Distribution Inc ($HWD) | 0.3% | 0.3% | 0.3% | 0.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($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% |
|---|
| Hardwoods Distribution Inc ($HWD) | 13.1% | 19.9% | 18.8% | 20.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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) | 1.7x | 2.8x | 2.4x | 2.6x | 2.1x |
|---|
| Hardwoods Distribution Inc ($HWD) | 2.1x | 1.4x | 1.5x | 0.9x | |
