Critical Control Energy Services Corp reports 20.4% revenue decline in FY2016
27.03.2017 • About Critical Control Energy Services Corp (
$CCZ) • By InTwits
Critical Control Energy Services Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Critical Control Energy Services Corp is a company in decline: FY2016 revenue growth was -20.4%, 5 years revenue CAGR was -8.4%
- EBITDA Margin is declining: in FY2016 vs. -9.4% in FY2015 vs. in FY2012
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Critical Control Energy Services Corp ($CCZ) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 46.823 | 45.749 | 35.386 | 39.919 | 31.766 | -20.4% |
| Gross Profit | | 16.792 | | | | |
| SG&A | | 14.825 | | 12.566 | | -100.0% |
| EBITDA | | 3.243 | 1.584 | -3.761 | | |
| Net Income | 0.310 | 0.165 | -1.223 | -3.523 | -1.997 | |
Balance Sheet
|
|---|
| Cash | | 0.434 | 1.805 | 0.815 | | -100.0% |
| Short Term Debt | | 3.980 | 3.774 | 12.121 | | -100.0% |
| Long Term Debt | | 1.090 | 2.312 | 0.056 | | -100.0% |
Cash flow
|
|---|
| Capex | | 0.243 | 0.344 | 0.654 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -5.2% | -2.3% | -22.7% | 12.8% | -20.4% | |
| EBITDA growth | | | -51.2% | -337.4% | | |
| Gross Margin | | 36.7% | | | | 0.0% |
| EBITDA Margin | 0.0% | 7.1% | 4.5% | -9.4% | 0.0% | 9.4% |
| Net Income Margin | 0.7% | 0.4% | -3.5% | -8.8% | -6.3% | 2.5% |
| SG&A, % of revenue | | 32.4% | | 31.5% | | -31.5% |
| CAPEX, % of revenue | | 0.5% | 1.0% | 1.6% | | -1.6% |
| ROIC | | | -2.1% | -17.1% | | 17.1% |
| ROE | | | -4.5% | -13.0% | | 13.0% |
| Net Debt/EBITDA | | 1.4x | 2.7x | | | 0.0x |
Critical Control Energy Services Corp ($CCZ) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 9 | 8 | 8 | 7 | -3.8% | -26.9% | -26.4% | -21.9% |
| Net Income | -1 | -1 | 0 | -0 | -334.5% | | | |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | -15.1% | -6.7% | 4.4% | -4.0% | -21.4% | 1.6% | 28.1% | 4.2% |
Revenue and profitability
Critical Control Energy Services Corp's Revenue dropped on 20.4%. Revenue decline showed acceleration in FY16Q4 - it was 21.9% YoY.
Net Income marign increased on 2.5 pp from -8.8% to -6.3% in FY2016.
Appendix 1: Peers in Technology
Below we provide Critical Control Energy Services Corp benchmarking against other companies in Technology industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intrinsyc Technologies Corp ($ITC) | | -21.7% | 70.8% | 24.5% | 39.2% |
| ProntoForms Corp ($PFM) | | 75.4% | 43.9% | 46.4% | 28.2% |
| Kinaxis Inc ($KXS) | | 30.3% | 15.2% | 30.3% | 27.0% |
| NexJ Systems Inc ($NXJ) | | 4.3% | -12.6% | 19.7% | 17.3% |
| Constellation Software Inc/Canada ($CSU) | | 35.9% | 37.9% | 10.1% | 15.6% |
| |
|---|
| Median (11 companies) | | 2.3% | 15.2% | 10.1% | 15.3% |
|---|
| Critical Control Energy Services Corp ($CCZ) | | -2.3% | -22.7% | 12.8% | -20.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 86.2% | 85.5% | 86.1% | 86.2% | 87.1% |
| ProntoForms Corp ($PFM) | 96.1% | 98.1% | 98.0% | 79.4% | |
| Espial Group Inc ($ESP) | 77.5% | 81.7% | 78.5% | 74.3% | 74.7% |
| Halogen Software Inc ($HGN) | 72.0% | 74.8% | 71.8% | 73.8% | 76.2% |
| Kinaxis Inc ($KXS) | 71.8% | 70.4% | 70.4% | 71.8% | 69.1% |
| |
|---|
| Median (12 companies) | 71.8% | 63.0% | 61.9% | 61.9% | 71.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wi-LAN Inc ($WIN) | 40.9% | 12.2% | 56.2% | 53.2% | 57.8% |
| Kinaxis Inc ($KXS) | 18.7% | 23.0% | 19.2% | 28.0% | 17.6% |
| Constellation Software Inc/Canada ($CSU) | 20.9% | 20.1% | 21.8% | 25.2% | 26.0% |
| Intrinsyc Technologies Corp ($ITC) | -10.5% | -38.8% | 2.2% | 10.8% | |
| Mitel Networks Corp ($MNW) | 10.2% | 10.0% | 7.0% | 7.7% | |
| |
|---|
| Median (13 companies) | 0.9% | 2.2% | 4.3% | 2.1% | 7.1% |
|---|
| Critical Control Energy Services Corp ($CCZ) | | 7.1% | 4.5% | -9.4% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kinaxis Inc ($KXS) | 2.9% | 2.3% | 5.0% | 4.7% | 5.0% |
| Halogen Software Inc ($HGN) | 4.9% | 9.0% | 8.4% | 2.9% | 2.6% |
| Espial Group Inc ($ESP) | 1.6% | 0.2% | 1.9% | 2.1% | 1.5% |
| ProntoForms Corp ($PFM) | 1.1% | 0.8% | 3.6% | 1.9% | |
| Data Group Ltd ($DGI) | 0.6% | 0.7% | 1.0% | 1.4% | 1.0% |
| |
|---|
| Median (13 companies) | 1.1% | 1.2% | 1.2% | 1.1% | 1.0% |
|---|
| Critical Control Energy Services Corp ($CCZ) | | 0.5% | 1.0% | 1.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 45.9% | 22.4% | 24.7% | 38.5% | 40.5% |
| Kinaxis Inc ($KXS) | | 61.8% | 63.6% | 44.0% | 22.6% |
| Halogen Software Inc ($HGN) | | -28.4% | -45.9% | -40.5% | 12.6% |
| Wi-LAN Inc ($WIN) | 2.6% | -7.6% | 8.9% | 7.4% | 8.4% |
| NexJ Systems Inc ($NXJ) | | -44.6% | -19.8% | -13.9% | 4.5% |
| |
|---|
| Median (13 companies) | -7.5% | -17.5% | 0.9% | 0.1% | 8.4% |
|---|
| Critical Control Energy Services Corp ($CCZ) | | | -2.1% | -17.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mitel Networks Corp ($MNW) | 3.7x | 3.8x | 2.6x | 6.2x | |
| Pivot Technology Solutions Inc ($PTG) | | -0.4x | 1.1x | 4.8x | |
| Constellation Software Inc/Canada ($CSU) | 0.0x | 1.6x | 0.6x | 0.4x | -0.0x |
| Wi-LAN Inc ($WIN) | -4.9x | -12.1x | -2.3x | -1.7x | -2.0x |
| Kinaxis Inc ($KXS) | 1.9x | 4.7x | -4.2x | -3.9x | -6.3x |
| |
|---|
| Median (7 companies) | 0.9x | 1.6x | -2.3x | -1.7x | -6.3x |
|---|
