REX Global Entertainment Holdings Ltd revenue surged on 30.4% while EBITDA Margin dropped on 26.3 pp from -43.1% to -69.4%
24/06/2016 • About REX Global Entertainment Holdings Ltd (
$164) • By InTwits
REX Global Entertainment Holdings Ltd reported FY2016 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: FY2016 ROIC is -25.3%
- The company operates at negative EBITDA Margin: -69.4%
- REX Global Entertainment Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -63.8% for the sames years0
- REX Global Entertainment Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.4%. At the same time it's a lot of higher than industry average of 31.6%.
- CAPEX is quite volatile: 2.6 in FY2016, 1.4 in FY2015, 0.051 in FY2014, 10.7 in FY2013, 5.5 in FY2012
- The company has unprofitable business model: ROIC is at -25.3%
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. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.7 | 48.5 | 41.0 | 80.6 | 105.0 | 30.4% |
| Gross Profit | -4.2 | -3.8 | -0.3 | 71.4 | 91.7 | 28.5% |
| SG&A | | | | 101.7 | 152.8 | 50.2% |
| EBITDA | -47.2 | -25.6 | -11.9 | -34.8 | -72.9 | |
| Net Income | -56.2 | -143.5 | -51.5 | -67.9 | -77.1 | |
Balance Sheet
|
|---|
| Cash | | 56.4 | 33.5 | 106.5 | 23.7 | -77.8% |
| Short Term Debt | | 0.0 | 111.3 | 51.3 | 61.5 | 19.8% |
| Long Term Debt | | 161.5 | 52.0 | 38.3 | 28.5 | -25.6% |
Cash flow
|
|---|
| Capex | 5.5 | 10.7 | 0.1 | 1.4 | 2.6 | 79.8% |
Ratios
|
|---|
| Revenue growth | -12.3% | 81.6% | -15.5% | 96.4% | 30.4% | |
| EBITDA growth | -27.0% | -45.7% | -53.4% | 191.1% | 109.7% | |
| Gross Margin | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% | -1.3% |
| EBITDA Margin | -176.8% | -52.8% | -29.1% | -43.1% | -69.4% | -26.3% |
| Net Income Margin | -210.3% | -295.7% | -125.5% | -84.3% | -73.4% | 10.9% |
| SG&A, % of revenue | | | | 126.3% | 145.5% | 19.2% |
| CAPEX, % of revenue | 20.4% | 22.0% | 0.1% | 1.8% | 2.5% | 0.7% |
| ROIC | | | -4.9% | -11.6% | -25.3% | -13.7% |
| ROE | | | -344.3% | -55.4% | -38.2% | 17.2% |
Revenue and profitability
REX Global Entertainment Holdings Ltd's Revenue surged on 30.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 26.3 pp from -43.1% to -69.4% in FY2016.
Gross Margin decreased slightly on 1.3 pp from 88.6% to 87.3% in FY2016. SG&A as a % of Revenue jumped on 19.2 pp from 126% to 146% in FY2016.
Net Income marign jumped on 10.9 pp from -84.3% to -73.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
REX Global Entertainment Holdings Ltd's CAPEX/Revenue was 2.5% in FY2016. REX Global Entertainment Holdings Ltd's CAPEX/Revenue dropped on 19.6 pp from 22.0% in FY2013 to 2.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at negative ROIC (-25.30%) and ROE (-38.24%). ROIC dropped on 13.7 pp from -11.6% to -25.3% in FY2016. ROE surged on 17.2 pp from -55.4% to -38.2% in FY2016.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt showed almost no change in FY2016 while cash dropped on 77.8%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | |
| Zijin Mining Group Co Ltd ($2899) | 21.6% | 2.5% | 18.1% | 26.9% | |
| China Gold International Resources Corp Ltd ($2099) | | -9.0% | -8.2% | 22.4% | |
| |
|---|
| Median (47 companies) | 5.9% | -1.7% | -5.1% | -20.8% | -17.7% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Timeless Software Ltd ($8028) | 17.7% | 48.5% | 29.4% | 42.1% | 39.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 63.9% | 54.9% | 51.2% | 41.8% | |
| |
|---|
| Median (48 companies) | 15.8% | 14.4% | 15.5% | 12.7% | 39.9% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| Sino Prosper Group Holdings Ltd ($766) | -138.6% | -138.2% | -378.4% | 42.9% | |
| |
|---|
| Median (48 companies) | 5.3% | 8.5% | 6.3% | 5.1% | -37.0% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | -176.8% | -52.8% | -29.1% | -43.1% | -69.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | |
| |
|---|
| Median (48 companies) | 17.2% | 16.8% | 16.5% | 12.5% | 4.1% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | 20.4% | 22.0% | 0.1% | 1.8% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (49 companies) | 1.5% | 2.4% | 1.5% | -1.0% | -10.0% |
|---|
| REX Global Entertainment Holdings Ltd ($164) | | | -4.9% | -11.6% | -25.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (29 companies) | 2.0x | 1.9x | 4.5x | 3.4x | -1.4x |
|---|
