Uniserve Communications Corp revenue growth decelerated to 0.87% in FY2020 vs. 39.0% a year earliner
24.09.2020 • About Uniserve Communications Corp (
$USS) • By InTwits
Uniserve Communications Corp reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -6.3%
- Uniserve Communications Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -11.7% for the sames years
- Uniserve Communications Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 22.7%.
- CAPEX is quite volatile: 0 CADm in FY2020, 0 CADm in FY2019, 1 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- The company has unprofitable business model: ROIC is -155.8%
- 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
Uniserve Communications Corp's Revenue increased slightly on 0.87%. Revenue growth showed acceleration in FY20Q4 - it increased 122.3% YoY. During the last 5 years Revenue growth topped in FY2019 at 39.0%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.7 pp from -14.9% to -6.3% in FY2020.
Gross Margin decreased on 2.7 pp from 36.9% to 34.2% in FY2020. Gross Margin stuck to a declining trend at -4.4 pp per annum in FY2016-FY2020.
Net Income margin decreased on 3.7 pp from -24.6% to -28.3% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Uniserve Communications Corp had CAPEX/Revenue of 1.5%. CAPEX/Revenue decreased slightly on 0.86 pp from 2.4% in FY2017 to 1.5% in FY2020. It's average level of CAPEX/Revenue for the last three years was 4.0%.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt dropped on 32.3% while cash surged on 170%.
Uniserve Communications Corp has short term refinancing risk: cash is only 38.1% of short term debt.
Financial and operational results
FY ended 31.05.2020
Uniserve Communications Corp ($USS) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6.314 | 7.105 | 8.816 | 12.251 | 12.359 | 0.9% |
| Gross Profit | 3.168 | 3.473 | 3.911 | 4.525 | 4.226 | -6.6% |
| SG&A | 0.532 | | | | | |
| EBITDA | -0.549 | 0.208 | -2.551 | -1.829 | -0.773 | |
| Net Income | -0.958 | 0.071 | -3.965 | -3.009 | -3.496 | |
Balance Sheet
|
|---|
| Cash | 0.049 | 0.868 | 0.291 | 0.250 | 0.674 | 169.8% |
| Short Term Debt | 0.685 | 1.512 | 3.457 | 2.982 | 1.770 | -40.7% |
| Long Term Debt | 2.659 | 0.719 | 0.158 | 0.582 | 0.642 | 10.3% |
Cash flow
|
|---|
| Capex | 0.236 | 0.168 | 0.867 | 0.072 | 0.185 | 157.6% |
Ratios
|
|---|
| Revenue growth | 1.4% | 12.5% | 24.1% | 39.0% | 0.9% | |
| EBITDA growth | -311.1% | -137.9% | -1,326.0% | -28.3% | -57.7% | |
|
|---|
| Gross Margin | 50.2% | 48.9% | 44.4% | 36.9% | 34.2% | -2.7% |
| EBITDA Margin | -8.7% | 2.9% | -28.9% | -14.9% | -6.3% | 8.7% |
| SG&A, % of revenue | 8.4% | | | | | |
| Net Income Margin | -15.2% | 1.0% | -45.0% | -24.6% | -28.3% | -3.7% |
| CAPEX, % of revenue | 3.7% | 2.4% | 9.8% | 0.6% | 1.5% | 0.9% |
|
|---|
| ROIC | | | -652.3% | -243.8% | -155.8% | 88.0% |
| Net Debt/EBITDA | | 6.6x | | | |
Uniserve Communications Corp ($USS) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 2 | 3 | 4 | | -11.3% | -23.2% | -28.9% | 122.3% |
| Net Income | -0 | -1 | -1 | -1 | | - | - | - | - |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | -15.3% | -39.5% | -35.6% | -24.9% | | 27.2% | -12.8% | -30.1% | 9.1% |
Peers in Communications
Below you can find Uniserve Communications Corp benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($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% |
| EXFO Inc ($EXF) | - | 4.6% | 10.8% | 6.4% | -7.4% |
| Tucows Inc ($TC) | - | 73.5% | 5.0% | -2.6% | -7.7% |
| |
|---|
| Median (6 companies) | 2.3% | 5.9% | 9.3% | 7.7% | 1.3% |
|---|
| Uniserve Communications Corp ($USS) | - | 12.5% | 24.1% | 39.0% | 0.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| EXFO Inc ($EXF) | 62.6% | 61.2% | 61.0% | 58.6% | 56.9% |
| Vecima Networks Inc ($VCM) | 57.0% | 51.8% | 53.6% | 52.8% | 54.2% |
| Tucows Inc ($TC) | 33.2% | 25.7% | 28.0% | 29.9% | 27.5% |
| Plaintree Systems Inc ($NPT) | 11.5% | 11.6% | 27.6% | 28.4% | 22.2% |
| iSIGN Media Solutions Inc ($ISD) | 12.7% | 25.7% | -84.0% | 19.9% | 20.1% |
| |
|---|
| Median (5 companies) | 40.1% | 30.8% | 37.0% | 29.9% | 27.5% |
|---|
| Uniserve Communications Corp ($USS) | 50.2% | 48.9% | 44.4% | 36.9% | 34.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vecima Networks Inc ($VCM) | 30.3% | 21.6% | 15.6% | 5.9% | 17.0% |
| Tucows Inc ($TC) | 14.7% | 11.9% | 12.8% | 15.3% | 10.7% |
| Plaintree Systems Inc ($NPT) | -4.4% | -3.8% | 15.7% | 16.3% | 7.3% |
| 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% |
| |
|---|
| Median (6 companies) | 7.7% | 6.5% | 12.8% | 6.3% | 6.8% |
|---|
| Uniserve Communications Corp ($USS) | -8.7% | 2.9% | -28.9% | -14.9% | -6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | 4.2% | 3.9% | 8.1% | 13.1% | 14.3% |
| EXFO Inc ($EXF) | 1.9% | 2.9% | 3.9% | 2.6% | 2.9% |
| Vecima Networks Inc ($VCM) | 4.8% | 2.2% | 2.3% | 22.3% | 1.2% |
| Armada Data Corp ($ARD) | 0.2% | 0.3% | 0.2% | 0.4% | 0.3% |
| Plaintree Systems Inc ($NPT) | 2.2% | 1.9% | 2.0% | 3.2% | 0.1% |
| |
|---|
| Median (6 companies) | 2.6% | 1.9% | 2.0% | 4.6% | 0.7% |
|---|
| Uniserve Communications Corp ($USS) | 3.7% | 2.4% | 9.8% | 0.6% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($ARD) | 68.1% | 48.3% | 52.5% | -1.0% | 12.5% |
| Tucows Inc ($TC) | 58.3% | 25.6% | 18.0% | 15.5% | 3.0% |
| Plaintree Systems Inc ($NPT) | -44.7% | -174.1% | 269.1% | 72.4% | 2.7% |
| 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% |
| |
|---|
| Median (6 companies) | 2.2% | 4.9% | 18.0% | 2.4% | 2.7% |
|---|
| Uniserve Communications Corp ($USS) | - | - | -652.3% | -243.8% | -155.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | -0.2x | 1.5x | 1.2x | 2.0x | 3.7x |
| EXFO Inc ($EXF) | -2.1x | -2.4x | 0.6x | -0.3x | 1.1x |
| Plaintree Systems Inc ($NPT) | - | - | 0.9x | 0.3x | 0.9x |
| 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 (5 companies) | 0.9x | -0.5x | 0.6x | -0.0x | 0.9x |
|---|
