Air Partner revenue dropped on 14.2% in 2015 and EBITDA Margin showed almost no change
23 Apr 2015 • About Air Partner (
$AIP) • By InTwits
Air Partner reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Air Partner is a company in decline: FY2015 revenue growth was -14.2%, 5 years revenue CAGR was -3.5%
- EBITDA Margin is relatively stable: 1.5% in FY2015 vs. 1.4% in FY2014 vs. 2.2% in FY2011
- Air Partner has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 20.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Air Partner ($AIP) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 281.9 | 227.6 | 220.6 | 224.0 | 192.1 | -14.2% |
| Gross Profit | 25.9 | 21.8 | 23.0 | 23.8 | 22.0 | -7.5% |
| SG&A | 20.6 | 17.8 | 19.1 | 21.0 | 19.4 | -7.6% |
| EBITDA | 6.2 | 4.9 | 4.1 | 3.1 | 2.9 | -6.4% |
| Net Income | 4.1 | 3.0 | 2.5 | 1.9 | 2.8 | 42.7% |
Balance Sheet
|
|---|
| Cash | 7.2 | 15.7 | 20.7 | 18.4 | 18.8 | 2.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.7 | 0.2 | 0.0 | 0.1 | 0.8 | 1,038.9% |
Ratios
|
|---|
| Revenue growth | 22.6% | -19.3% | -3.1% | 1.5% | -14.2% | |
| EBITDA growth | 115.6% | -21.8% | -15.6% | -25.5% | -6.4% | |
| Gross Margin | 9.2% | 9.6% | 10.4% | 10.6% | 11.5% | 0.8% |
| EBITDA Margin | 2.2% | 2.1% | 1.9% | 1.4% | 1.5% | 0.1% |
| Net Income Margin | 1.4% | 1.3% | 1.1% | 0.9% | 1.4% | 0.6% |
| SG&A, % of revenue | 7.3% | 7.8% | 8.7% | 9.4% | 10.1% | 0.7% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.0% | 0.0% | 0.4% | 0.4% |
| ROIC | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% | -1.2% |
| ROE | 34.2% | 22.2% | 17.3% | 14.1% | 21.5% | 7.5% |
| Net Debt/EBITDA | -1.1x | -3.2x | -5.0x | -6.0x | -6.6x | -0.5x |
Revenue and profitability
Air Partner's Revenue dropped on 14.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.6 pp from 22.0% to 10.4% in FY2015.
Gross Margin increased slightly on 0.83 pp from 10.6% to 11.5% in FY2015. SG&A as a % of Revenue increased slightly on 0.73 pp from 9.4% to 10.1% in FY2015.
Net Income marign increased slightly on 0.58 pp from 0.87% to 1.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Air Partner had CAPEX/Revenue of 0.43%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.16%.
Return on investment
The company operates at high and attractive ROIC (20.03%) and ROE (21.53%). ROIC decreased slightly on 1.2 pp from 21.2% to 20.0% in FY2015. ROE increased on 7.5 pp from 14.1% to 21.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 2.0% in FY2015.
Appendix 1: Peers in Travel & Leisure
Below you can find Air Partner benchmarking vs. other companies in Travel & Leisure 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Everyman Media Group ($EMAN) | 23.0% | 23.4% | 26.5% | 22.4% | |
| Paddy Power ($PAP) | 17.0% | 30.9% | 14.0% | 18.3% | |
| Irish Continental Group ($ICGC) | -4.0% | 1.7% | 3.4% | 9.6% | |
| Hanatour Service Inc ($TOUR) | 19.1% | 15.0% | 14.6% | 9.3% | |
| Aer Lingus Group ($AERL) | 6.0% | 8.1% | 2.3% | 9.1% | |
| |
|---|
| Median (18 companies) | 14.4% | 8.7% | 8.5% | 5.1% | 7.8% |
|---|
| Air Partner ($AIP) | | -19.3% | -3.1% | 1.5% | -14.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | |
| Mandarin Oriental International ($MDOB) | 38.6% | 36.0% | 38.9% | 39.7% | |
| Ana Hldgs Inc ($ANA) | 21.1% | 23.0% | 22.6% | 20.7% | |
| Rotala ($ROL) | 15.6% | 16.5% | 17.1% | 17.7% | |
| |
|---|
| Median (7 companies) | 20.4% | 23.0% | 22.6% | 20.7% | 19.4% |
|---|
| Air Partner ($AIP) | 9.2% | 9.6% | 10.4% | 10.6% | 11.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | |
| Paddy Power ($PAP) | 33.8% | 25.7% | 23.7% | 24.0% | |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | |
| Young & Co'S Brewery ($YNGN) | 22.3% | 21.2% | 21.8% | 21.7% | |
| Ryanair Hldgs ($RYA) | 21.1% | 22.6% | 21.5% | 20.1% | |
| |
|---|
| Median (18 companies) | 13.7% | 14.9% | 16.8% | 12.8% | 17.3% |
|---|
| Air Partner ($AIP) | 2.2% | 2.1% | 1.9% | 1.4% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | |
| Air China ($AIRC) | 23.9% | 16.8% | 19.1% | 18.7% | |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| Young & Co'S Brewery ($YNGN) | 13.1% | 14.3% | 8.7% | 10.8% | |
| Ana Hldgs Inc ($ANA) | 13.9% | 12.8% | 10.1% | 10.5% | |
| |
|---|
| Median (18 companies) | 3.4% | 3.9% | 5.1% | 4.4% | 9.7% |
|---|
| Air Partner ($AIP) | 0.2% | 0.1% | 0.0% | 0.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | |
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | |
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | |
| Netplay Tv ($NPT) | | | 26.3% | 10.2% | |
| Ryanair Hldgs ($RYA) | 7.6% | 9.7% | 10.0% | 9.5% | |
| |
|---|
| Median (19 companies) | 7.5% | 6.0% | 6.9% | 4.2% | 5.0% |
|---|
| Air Partner ($AIP) | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Peel Hotels ($PHO) | 5.8x | 8.2x | 7.3x | 5.9x | 4.4x |
| Air China ($AIRC) | 4.7x | 4.7x | 6.4x | 5.6x | |
| Ana Hldgs Inc ($ANA) | 4.8x | 4.3x | 3.6x | 4.0x | |
| Rotala ($ROL) | 1.9x | 2.6x | 3.1x | 2.8x | |
| |
|---|
| Median (16 companies) | 1.3x | 1.4x | 2.2x | 1.9x | 4.4x |
|---|
| Air Partner ($AIP) | -1.1x | -3.2x | -5.0x | -6.0x | -6.6x |
