Plaintree Systems Inc reports 166% Net Income decline in 2020 and 20.0% Revenue decline
03.09.2020 • About Plaintree Systems Inc (
$NPT) • By InTwits
Plaintree Systems Inc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Plaintree Systems Inc is a company in decline: FY2020 revenue growth was -20.0%, 5 years revenue CAGR was -2.1%
- EBITDA Margin is quite volatile: 7.3% in FY2020, 16.3% in FY2019, 15.7% in FY2018, -3.8% in FY2017, -4.4% in FY2016
- Plaintree Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 22.7%.
- CAPEX is quite volatile: 0 CADm in FY2020, 1 CADm in FY2019, 0 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- The company has potentially unprofitable business model: ROIC is 2.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Plaintree Systems Inc's Revenue dropped on 20.0%. Annual revenue decline showed slowdown in FY20Q4 - revenue decreased on 4.0%. During the last 5 years Revenue growth topped in FY2019 at 52.0%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 9.1 pp from 16.3% to 7.3% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2019 at 16.3%.
Gross Margin decreased on 6.2 pp from 28.4% to 22.2% in FY2020. During the last 5 years Gross Margin topped in FY2019 at 28.4%. SG&A as a % of Revenue increased on 4.2 pp from 9.6% to 13.8% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 9.6%.
Net Income margin dropped on 32.0 pp from 17.5% to -14.4% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.089% in FY2020. CAPEX/Revenue decreased slightly on 1.8 pp from 1.9% in FY2017 to 0.089% in FY2020. It's average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at low but positive ROIC (2.7%) and negative ROE (-169.5%). ROIC dropped on 69.7 pp from 72.4% to 2.7% in FY2020.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from 0.3x to 0.9x in FY2020. Debt jumped on 42.2% while cash surged on 79.4%.
Plaintree Systems Inc has no short term refinancing risk: cash is higher than short term debt (229.6%).
Financial and operational results
FY ended 31.03.2020
Plaintree Systems Inc ($NPT) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 15.746 | 12.844 | 14.276 | 21.704 | 17.356 | -20.0% |
| Gross Profit | 1.807 | 1.489 | 3.941 | 6.155 | 3.852 | -37.4% |
| SG&A | 2.255 | 1.665 | 1.574 | 2.081 | 2.401 | 15.4% |
| EBITDA | -0.694 | -0.490 | 2.239 | 3.547 | 1.261 | -64.4% |
| Net Income | -2.259 | -2.640 | 2.548 | 3.808 | -2.500 | -165.7% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.838 | 1.504 | 79.4% |
| Short Term Debt | 2.754 | 2.124 | 0.748 | 0.444 | 0.655 | 47.6% |
| Long Term Debt | 0.115 | 0.438 | 1.254 | 1.376 | 1.933 | 40.4% |
Cash flow
|
|---|
| Capex | 0.348 | 0.246 | 0.279 | 0.705 | 0.016 | -97.8% |
Ratios
|
|---|
| Revenue growth | -18.5% | -18.4% | 11.1% | 52.0% | -20.0% | |
| EBITDA growth | -173.6% | -29.4% | -556.6% | 58.4% | -64.4% | |
|
|---|
| Gross Margin | 11.5% | 11.6% | 27.6% | 28.4% | 22.2% | -6.2% |
| EBITDA Margin | -4.4% | -3.8% | 15.7% | 16.3% | 7.3% | -9.1% |
| SG&A, % of revenue | 14.3% | 13.0% | 11.0% | 9.6% | 13.8% | 4.2% |
| Net Income Margin | -14.3% | -20.6% | 17.8% | 17.5% | -14.4% | -32.0% |
| CAPEX, % of revenue | 2.2% | 1.9% | 2.0% | 3.2% | 0.1% | -3.2% |
|
|---|
| ROIC | -44.7% | -174.1% | 269.1% | 72.4% | 2.7% | -69.7% |
| ROE | | | | | -169.5% | |
| Net Debt/EBITDA | | | 0.9x | 0.3x | 0.9x | 0.6x |
Plaintree Systems Inc ($NPT) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 6 | 2 | 6 | | 22.1% | -4.5% | -56.7% | -4.0% |
| EBITDA | 0 | 1 | -1 | 1 | | - | -7.1% | -184.8% | -44.5% |
| Net Income | -0 | 1 | -1 | -3 | | -295.7% | 15.0% | -331.1% | -237.3% |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 0 | 2 | | - | - | - | 79.4% |
| Short Term Debt | 1 | 1 | 1 | 1 | | -66.9% | 9.7% | 85.4% | 47.6% |
| Long Term Debt | 2 | 2 | 1 | 2 | | 36.6% | 10.9% | -2.2% | 40.4% |
Ratios
|
|---|
| Gross Margin | 22.3% | 29.5% | -6.4% | 29.4% | | 12.6% | 1.3% | -34.0% | -6.8% |
| EBITDA Margin | 8.5% | 20.3% | -31.3% | 10.9% | | 12.5% | -0.6% | -47.3% | -8.0% |
| Net Income Margin | -5.7% | 23.3% | -35.3% | -52.7% | | -9.2% | 4.0% | -42.0% | -89.6% |
Peers in Communications
Below you can find Plaintree Systems Inc benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($ARD) | - | 5.9% | 23.4% | -2.3% | 13.7% |
| Vecima Networks Inc ($VCM) | - | -34.1% | 9.3% | 8.9% | 13.4% |
| iSIGN Media Solutions Inc ($ISD) | - | 70.9% | -90.9% | 38.5% | 10.1% |
| Uniserve Communications Corp ($USS) | - | 12.5% | 24.1% | 39.0% | 0.9% |
| EXFO Inc ($EXF) | - | 4.6% | 10.8% | 6.4% | -7.4% |
| |
|---|
| Median (6 companies) | 2.3% | 12.5% | 9.3% | 7.7% | 5.5% |
|---|
| Plaintree Systems Inc ($NPT) | - | -18.4% | 11.1% | 52.0% | -20.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| EXFO Inc ($EXF) | 62.6% | 61.2% | 61.0% | 58.6% | 56.9% |
| Vecima Networks Inc ($VCM) | 57.0% | 51.8% | 53.6% | 52.8% | 54.2% |
| Uniserve Communications Corp ($USS) | 50.2% | 48.9% | 44.4% | 36.9% | 34.2% |
| Tucows Inc ($TC) | 33.2% | 25.7% | 28.0% | 29.9% | 27.5% |
| iSIGN Media Solutions Inc ($ISD) | 12.7% | 25.7% | -84.0% | 19.9% | 20.1% |
| |
|---|
| Median (5 companies) | 44.6% | 42.4% | 45.2% | 36.9% | 34.2% |
|---|
| Plaintree Systems Inc ($NPT) | 11.5% | 11.6% | 27.6% | 28.4% | 22.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vecima Networks Inc ($VCM) | 30.3% | 21.6% | 15.6% | 5.9% | 17.0% |
| Tucows Inc ($TC) | 14.7% | 11.9% | 12.8% | 15.3% | 10.7% |
| Armada Data Corp ($ARD) | 19.2% | 14.7% | 14.2% | -0.1% | 6.3% |
| EXFO Inc ($EXF) | 8.9% | 6.5% | 4.2% | 6.6% | 5.0% |
| Uniserve Communications Corp ($USS) | -8.7% | 2.9% | -28.9% | -14.9% | -6.3% |
| |
|---|
| Median (6 companies) | 7.7% | 6.5% | 4.2% | 2.9% | 5.6% |
|---|
| Plaintree Systems Inc ($NPT) | -4.4% | -3.8% | 15.7% | 16.3% | 7.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | 4.2% | 3.9% | 8.1% | 13.1% | 14.3% |
| EXFO Inc ($EXF) | 1.9% | 2.9% | 3.9% | 2.6% | 2.9% |
| Uniserve Communications Corp ($USS) | 3.7% | 2.4% | 9.8% | 0.6% | 1.5% |
| Vecima Networks Inc ($VCM) | 4.8% | 2.2% | 2.3% | 22.3% | 1.2% |
| Armada Data Corp ($ARD) | 0.2% | 0.3% | 0.2% | 0.4% | 0.3% |
| |
|---|
| Median (6 companies) | 2.8% | 2.2% | 2.3% | 4.3% | 1.3% |
|---|
| Plaintree Systems Inc ($NPT) | 2.2% | 1.9% | 2.0% | 3.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($ARD) | 68.1% | 48.3% | 52.5% | -1.0% | 12.5% |
| Tucows Inc ($TC) | 58.3% | 25.6% | 18.0% | 15.5% | 3.0% |
| Vecima Networks Inc ($VCM) | 19.3% | 5.1% | 1.8% | -3.6% | 0.1% |
| EXFO Inc ($EXF) | 9.1% | 4.6% | -2.2% | 2.4% | -1.1% |
| Uniserve Communications Corp ($USS) | - | - | -652.3% | -243.8% | -155.8% |
| |
|---|
| Median (6 companies) | 4.4% | 5.1% | 1.8% | -1.0% | 0.1% |
|---|
| Plaintree Systems Inc ($NPT) | -44.7% | -174.1% | 269.1% | 72.4% | 2.7% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | -0.2x | 1.5x | 1.2x | 2.0x | 3.7x |
| EXFO Inc ($EXF) | -2.1x | -2.4x | 0.6x | -0.3x | 1.1x |
| Vecima Networks Inc ($VCM) | -0.6x | -0.1x | -0.7x | -3.6x | -0.7x |
| Armada Data Corp ($ARD) | 0.1x | -0.8x | -0.9x | - | -0.7x |
| |
|---|
| Median (4 companies) | 0.9x | -0.1x | -0.1x | -0.3x | 0.2x |
|---|
| Plaintree Systems Inc ($NPT) | - | - | 0.9x | 0.3x | 0.9x |
