Brockman Mining Ltd reports 68.3% revenue decline in FY2016 and 235 pp EBITDA Margin decline from -383% to -618%
23/09/2016 • About Brockman Mining Ltd (
$159) • By InTwits
Brockman Mining Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brockman Mining Ltd is a company in decline: FY2016 revenue growth was -68.3%, 5 years revenue CAGR was -38.5%
- The company operates at negative EBITDA Margin: -618.5%
- Brockman Mining Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -319.4% for the sames years0
- Brockman Mining Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.2%. At the same time it's in pair with industry average of 13.9%.
- CAPEX is quite volatile: 1.4 in FY2016, 2.0 in FY2015, 2.9 in FY2014, 12.3 in FY2013, 28.3 in FY2012
- The company has unprofitable business model: ROIC is at -7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brockman Mining Ltd ($159) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 132.8 | 50.3 | 38.7 | 36.5 | 11.6 | -68.3% |
| Gross Profit | 14.0 | -7.1 | 4.6 | -2.0 | -5.3 | |
| SG&A | | 101.7 | 88.9 | 73.5 | 36.8 | -49.9% |
| EBITDA | -356.1 | -153.1 | -141.5 | -139.9 | -71.7 | |
| Net Income | -2,045.8 | -449.4 | -207.1 | -1,236.6 | -627.2 | |
Balance Sheet
|
|---|
| Cash | 336.4 | 253.0 | 223.7 | 98.3 | 32.8 | -66.7% |
| Short Term Debt | 32.2 | 17.6 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 165.3 | 7.6 | 0.0 | 0.0 | 8.1 | |
Cash flow
|
|---|
| Capex | 28.3 | 12.3 | 2.9 | 2.0 | 1.4 | -27.8% |
Ratios
|
|---|
| Revenue growth | 0.7% | -62.1% | -23.0% | -5.7% | -68.3% | |
| EBITDA growth | 54.5% | -57.0% | -7.6% | -1.1% | -48.8% | |
| Gross Margin | 10.5% | -14.0% | 11.8% | -5.4% | -46.0% | -40.6% |
| EBITDA Margin | -268.1% | -304.3% | -365.3% | -383.0% | -618.5% | -235.4% |
| Net Income Margin | -1,540.4% | -893.4% | -534.6% | -3,385.5% | -5,411.2% | -2,025.7% |
| SG&A, % of revenue | | 202.1% | 229.6% | 201.2% | 317.5% | 116.3% |
| CAPEX, % of revenue | 21.3% | 24.4% | 7.4% | 5.4% | 12.3% | 6.9% |
| ROIC | -6.8% | -5.0% | -4.6% | -6.0% | -7.0% | -0.9% |
| ROE | -63.0% | -15.7% | -7.5% | -62.9% | -76.4% | -13.5% |
Revenue and profitability
Brockman Mining Ltd's Revenue dropped on 68.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 235 pp from -383% to -618% in FY2016.
Gross Margin dropped on 40.6 pp from -5.4% to -46.0% in FY2016. SG&A as a % of Revenue surged on 116 pp from 201% to 317% in FY2016.
Net Income marign dropped on 2,026 pp from -3,385% to -5,411% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Brockman Mining Ltd's CAPEX/Revenue was 12.3% in FY2016. The company's CAPEX/Revenue dropped on 12.0 pp from 24.4% in FY2013 to 12.3% in FY2016. For the last three years the average CAPEX/Revenue was 8.4%.
Return on investment
The company operates at negative ROIC (-6.96%) and ROE (-76.43%). ROIC decreased slightly on 0.93 pp from -6.0% to -7.0% in FY2016. ROE dropped on 13.5 pp from -62.9% to -76.4% in FY2016.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged while cash dropped on 66.7%.
Appendix 1: Peers in Transportation
Below you can find Brockman Mining Ltd benchmarking vs. other companies in Transportation 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | 2,388.3% | 326.5% |
| China Best Group Holding Ltd ($370) | 202.4% | -53.6% | 459.4% | 25.9% | |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 10.9% | 27.9% | 15.0% | 13.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | | 7.9% | 5.5% | 7.9% | 1.1% |
| Guangshen Railway Co Ltd ($525) | 2.7% | 4.7% | -6.9% | 6.9% | |
| |
|---|
| Median (31 companies) | 7.4% | 4.6% | 5.6% | -6.7% | 2.6% |
|---|
| Brockman Mining Ltd ($159) | | -62.1% | -23.0% | -5.7% | -68.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.3% | 44.8% | 46.6% | 48.7% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.1% | 42.4% | 43.3% | 40.5% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 18.9% | 20.4% | 22.7% | 26.8% | 27.5% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 23.1% | 25.1% | 24.1% | 23.1% | |
| Tianjin Port Development Holdings Ltd ($3382) | 22.5% | 18.4% | 13.6% | 22.7% | |
| |
|---|
| Median (27 companies) | 13.2% | 11.3% | 10.3% | 12.6% | 10.4% |
|---|
| Brockman Mining Ltd ($159) | 10.5% | -14.0% | 11.8% | -5.4% | -46.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MTR Corp Ltd ($66) | 42.7% | 37.6% | 45.2% | 41.6% | |
| Qinhuangdao Port Co Ltd ($3369) | 46.0% | 44.6% | 46.5% | 41.1% | |
| CIG Yangtze Ports PLC ($8233) | 30.2% | 27.6% | 38.5% | 39.5% | |
| China Shipping Development Co Ltd ($1138) | 12.5% | 3.0% | 24.7% | 26.7% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 13.3% | 16.1% | 20.7% | 26.1% | 25.7% |
| |
|---|
| Median (31 companies) | 9.9% | 7.4% | 7.8% | 9.5% | 6.2% |
|---|
| Brockman Mining Ltd ($159) | -268.1% | -304.3% | -365.3% | -383.0% | -618.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 4.0% | 6.1% | 40.7% | 164.7% | 8.7% |
| Frontier Services Group Ltd ($500) | 6.3% | 3.6% | 63.3% | 75.9% | |
| MTR Corp Ltd ($66) | 31.1% | 34.5% | 30.8% | 52.0% | |
| CIG Yangtze Ports PLC ($8233) | 17.8% | 24.8% | 2.1% | 50.7% | |
| Transport International Holdings Ltd ($62) | 7.9% | 16.2% | 16.0% | 26.2% | |
| |
|---|
| Median (31 companies) | 7.7% | 8.5% | 6.8% | 9.2% | 7.4% |
|---|
| Brockman Mining Ltd ($159) | 21.3% | 24.4% | 7.4% | 5.4% | 12.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 21.1% | 20.9% | 19.1% | 19.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 3.6% | 5.7% | 9.2% | 14.6% | 12.4% |
| SITC International Holdings Co Ltd ($1308) | 8.2% | 9.1% | 9.1% | 11.2% | |
| CIG Yangtze Ports PLC ($8233) | 4.9% | 5.7% | 11.0% | 11.1% | |
| On Time Logistics Holdings Ltd ($6123) | 15.6% | 15.5% | 16.7% | 11.1% | |
| |
|---|
| Median (31 companies) | 3.5% | 3.7% | 3.7% | 3.9% | 5.0% |
|---|
| Brockman Mining Ltd ($159) | -6.8% | -5.0% | -4.6% | -6.0% | -7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jinhui Holdings Co Ltd ($137) | 5.0x | 4.2x | 17.5x | 19.6x | |
| China Shipping Development Co Ltd ($1138) | 20.2x | 92.8x | 12.8x | 11.4x | |
| China COSCO Holdings Co Ltd ($1919) | | 18.8x | 9.0x | 8.1x | |
| Pacific Basin Shipping Ltd ($2343) | 2.1x | 4.6x | | 4.7x | |
| AMS Public Transport Holdings Ltd ($77) | 1.2x | 11.6x | 7.7x | 4.5x | 1.6x |
| |
|---|
| Median (21 companies) | 1.1x | 1.5x | 0.8x | 1.1x | 1.3x |
|---|
