REX Global Entertainment Holdings Ltd reports 96.4% revenue growth in FY2015 and 14.0 pp EBITDA Margin decline from -29.1% to -43.1%
21/06/2015 • About REX Global Entertainment Holdings Ltd (
$164) • By InTwits
REX Global Entertainment Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- REX Global Entertainment Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -11.6%
- The company operates at negative EBITDA Margin: -43.1%
- REX Global Entertainment Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -81.1%0
- REX Global Entertainment Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 64.8%.
- CAPEX is quite volatile: 1.4 in FY2015, 0.051 in FY2014, 10.7 in FY2013, 5.5 in FY2012, 14.1 in FY2011
- The company has unprofitable business model: ROIC is at -11.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
REX Global Entertainment Holdings Ltd ($164) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30.473 | 26.726 | 48.523 | 41.018 | 80.564 | 96.4% |
| Gross Profit | 4.696 | -4.231 | -3.806 | -0.340 | 71.366 | -21,090.0% |
| SG&A | | | | | 101.728 | |
| EBITDA | -64.709 | -47.246 | -25.644 | -11.939 | -34.757 | 191.1% |
| Net Income | -29.203 | -56.198 | -143.475 | -51.471 | -67.899 | 31.9% |
Balance Sheet
|
|---|
| Cash | 19.757 | | 56.437 | 33.453 | 106.505 | 218.4% |
| Short Term Debt | 0.000 | | 0.000 | 111.335 | 51.333 | -53.9% |
| Long Term Debt | 9.501 | | 161.490 | 52.044 | 38.304 | -26.4% |
Cash flow
|
|---|
| Capex | 14.051 | 5.452 | 10.696 | 0.051 | 1.442 | 2,727.5% |
Ratios
|
|---|
| Revenue growth | 710.0% | -12.3% | 81.6% | -15.5% | 96.4% | |
| EBITDA growth | 106.7% | -27.0% | -45.7% | -53.4% | 191.1% | |
| Gross Margin | 15.4% | -15.8% | -7.8% | -0.8% | 88.6% | 89.4% |
| EBITDA Margin | -212.3% | -176.8% | -52.8% | -29.1% | -43.1% | -14.0% |
| Net Income Margin | -95.8% | -210.3% | -295.7% | -125.5% | -84.3% | 41.2% |
| SG&A, % of revenue | | | | | 126.3% | 126.3% |
| CAPEX, % of revenue | 46.1% | 20.4% | 22.0% | 0.1% | 1.8% | 1.7% |
| ROIC | -54.3% | | | -4.9% | -11.6% | -6.7% |
| ROE | -28.8% | | | -344.3% | -55.4% | 288.8% |
Revenue and profitability
REX Global Entertainment Holdings Ltd's Revenue jumped on 96.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 372 pp from -242% to -615% in 2015.
Gross Margin surged on 89.4 pp from -0.83% to 88.6% in FY2015.
Net Income marign jumped on 41.2 pp from -125% to -84.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 REX Global Entertainment Holdings Ltd had CAPEX/Revenue of 1.8%. REX Global Entertainment Holdings Ltd's CAPEX/Revenue dropped on 18.6 pp from 20.4% in FY2012 to 1.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.0%.
Return on investment
The company operates at negative ROIC (-11.63%) and ROE (-55.43%). ROIC decreased on 6.7 pp from -4.9% to -11.6% in FY2015. ROE surged on 289 pp from -344% to -55.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 45.1% in FY2015 while cash surged on 218% in FY2015.
Appendix 1: Peers in Mining
Below we provide REX Global Entertainment Holdings Ltd benchmarking against other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (45 companies) | 31.0% | 6.4% | 2.4% | -5.3% | 22.4% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | | -12.3% | 81.6% | -15.5% | 96.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| China Kingstone Mining Holdings Ltd ($1380) | 60.1% | 67.1% | 50.7% | 49.8% | |
| |
|---|
| Median (45 companies) | 19.2% | 14.4% | 14.7% | 15.6% | 18.5% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | 15.4% | -15.8% | -7.8% | -0.8% | 88.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (45 companies) | 6.4% | 4.9% | 8.7% | 5.5% | 33.7% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | -212.3% | -176.8% | -52.8% | -29.1% | -43.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (45 companies) | 15.6% | 17.0% | 15.3% | 15.8% | 81.4% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | 46.1% | 20.4% | 22.0% | 0.1% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (46 companies) | 3.8% | 2.0% | 3.2% | 2.1% | 1.5% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | -54.3% | | | -4.9% | -11.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (27 companies) | 0.9x | 1.5x | 1.9x | 4.4x | 7.3x |
|---|
