Johnston Press reports 42.0% EBITDA decline and 8.8% Revenue decline
22 Mar 2016 • About Johnston Press (
$JPR) • By InTwits
Johnston Press reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Johnston Press is a company in decline: FY2015 revenue growth was -8.8%, 5 years revenue CAGR was -9.2%
- Johnston Press motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -15.8% for the sames years0
- Johnston Press has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 2.4%.
- CAPEX is quite volatile: 6.1 in FY2015, 7.1 in FY2014, 4.3 in FY2013, 5.2 in FY2012, 1.8 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 15.6x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Johnston Press ($JPR) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 373.8 | 358.7 | 290.0 | 268.8 | 245.1 | -8.8% |
| Gross Profit | 138.7 | 150.8 | 125.8 | 117.1 | 104.5 | -10.8% |
| EBITDA | -83.9 | 53.1 | -238.1 | 16.2 | 9.4 | -42.0% |
| Net Income | -88.9 | 5.6 | -215.6 | -15.1 | 11.4 | -175.7% |
Balance Sheet
|
|---|
| Cash | 13.4 | 32.8 | 29.1 | 30.8 | 40.6 | 31.6% |
| Short Term Debt | 372.1 | 8.5 | 8.6 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 334.2 | 314.9 | 215.4 | 186.6 | -13.4% |
Cash flow
|
|---|
| Capex | 1.8 | 5.2 | 4.3 | 7.1 | 6.1 | -14.9% |
Ratios
|
|---|
| Revenue growth | -6.1% | -4.1% | -19.2% | -7.3% | -8.8% | |
| EBITDA growth | -208.9% | -163.3% | -548.5% | -106.8% | -42.0% | |
| Gross Margin | 37.1% | 42.0% | 43.4% | 43.5% | 42.6% | -0.9% |
| EBITDA Margin | -22.4% | 14.8% | -82.1% | 6.0% | 3.8% | -2.2% |
| Net Income Margin | -23.8% | 1.6% | -74.3% | -5.6% | 4.7% | 10.3% |
| CAPEX, % of revenue | 0.5% | 1.4% | 1.5% | 2.7% | 2.5% | -0.2% |
| ROIC | -11.2% | 5.0% | -37.8% | 2.1% | 0.2% | -1.9% |
| ROE | -25.6% | 2.0% | -115.6% | -10.2% | 4.9% | 15.2% |
| Net Debt/EBITDA | | 5.8x | | 11.4x | 15.6x | 4.1x |
Revenue and profitability
Johnston Press's Revenue decreased on 8.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 6.0% to 3.8% in FY2015.
Gross Margin decreased slightly on 0.92 pp from 43.5% to 42.6% in FY2015.
Net Income marign surged on 10.3 pp from -5.6% to 4.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Johnston Press had CAPEX/Revenue of 2.5%. CAPEX/Revenue increased slightly on 1.0 pp from 1.4% in FY2012 to 2.5% in FY2015. It's average CAPEX/Revenue for the last three years was 2.2%.The company invested a big chunk of EBITDA (64.8%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (0.20%) and ROE (4.94%). ROIC decreased slightly on 1.9 pp from 2.1% to 0.20% in FY2015. ROE jumped on 15.2 pp from -10.2% to 4.9% in FY2015.
Leverage (Debt)
Debt level is 15.6x Net Debt / EBITDA and 19.9x Debt / EBITDA. Net Debt / EBITDA surged on 4.1x from 11.4x to 15.6x in FY2015. Debt dropped on 13.4% in FY2015 while cash surged on 31.6% in FY2015.
Appendix 1: Peers in Media
Below you can find Johnston Press benchmarking vs. other companies in Media 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 |
|---|
| Jaywing ($JWNG) | | -16.6% | -27.9% | -0.7% | 26.6% |
| Marimedia Ltd ($MARI) | | 24.4% | 71.1% | 45.7% | 20.1% |
| Nahl Group ($NAH) | | 12.6% | -3.2% | -10.7% | 15.7% |
| Mbl Group ($MUBL) | | -24.6% | -24.9% | 4.0% | 10.4% |
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
| |
|---|
| Median (17 companies) | -13.8% | -2.8% | -3.2% | 1.0% | 2.2% |
|---|
| Johnston Press ($JPR) | | -4.1% | -19.2% | -7.3% | -8.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaywing ($JWNG) | 80.5% | 79.8% | 76.8% | 81.0% | 89.0% |
| Brainjuicer Group ($BJU) | 77.6% | 77.2% | 78.0% | 78.8% | 80.4% |
| Haynes Publishing Group ($HYNS) | 63.5% | 59.9% | 59.6% | 52.9% | 60.2% |
| Tangent Communications ($TNG) | 49.0% | 54.5% | 57.6% | 60.3% | 58.8% |
| Mood Media Corp ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | 51.6% |
| |
|---|
| Median (18 companies) | 44.2% | 40.6% | 41.6% | 43.7% | 41.2% |
|---|
| Johnston Press ($JPR) | 37.1% | 42.0% | 43.4% | 43.5% | 42.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dq Entertainment ($DQE) | 36.5% | 42.8% | 49.2% | 62.4% | 59.1% |
| Haynes Publishing Group ($HYNS) | 30.2% | 25.7% | 23.4% | 38.8% | 33.5% |
| Nahl Group ($NAH) | 36.5% | 36.6% | 39.6% | 28.8% | 29.5% |
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | 28.4% |
| Avesco Group ($AVS) | 14.6% | 16.9% | 8.1% | 14.9% | 20.2% |
| |
|---|
| Median (18 companies) | 15.8% | 11.7% | 13.9% | 14.8% | 10.5% |
|---|
| Johnston Press ($JPR) | -22.4% | 14.8% | -82.1% | 6.0% | 3.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
| Mood Media Corp ($MM.) | 7.0% | 8.6% | 6.4% | 6.9% | 8.2% |
| Dq Entertainment ($DQE) | 18.8% | 6.8% | 2.0% | 0.0% | 4.6% |
| Naspers ($NPSN) | 5.0% | 4.7% | 4.9% | | 4.0% |
| Tangent Communications ($TNG) | 4.0% | 4.5% | 3.3% | 1.9% | 3.2% |
| |
|---|
| Median (18 companies) | 1.3% | 1.1% | 2.0% | 1.5% | 1.2% |
|---|
| Johnston Press ($JPR) | 0.5% | 1.4% | 1.5% | 2.7% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% |
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | 58.5% |
| Nahl Group ($NAH) | | 37.1% | 42.3% | 31.5% | 26.0% |
| Avesco Group ($AVS) | 0.8% | 7.7% | -10.6% | 1.1% | 13.1% |
| Quarto Group Inc ($QRT) | 9.2% | 9.7% | 8.9% | 10.2% | 11.3% |
| |
|---|
| Median (18 companies) | 4.6% | 5.5% | 5.6% | 5.0% | 6.4% |
|---|
| Johnston Press ($JPR) | -11.2% | 5.0% | -37.8% | 2.1% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | 9.8x |
| Naspers ($NPSN) | 1.1x | 1.4x | 1.9x | | 6.2x |
| Grupo Clarin Sa ($GCLA) | 1.0x | 0.9x | 0.8x | 0.7x | 4.3x |
| Dq Entertainment ($DQE) | 0.2x | 1.1x | 1.5x | 1.5x | 2.8x |
| Jaywing ($JWNG) | 0.2x | 0.7x | 0.7x | 3.3x | 1.9x |
| |
|---|
| Median (16 companies) | 0.2x | 0.9x | 0.8x | 1.1x | 0.9x |
|---|
| Johnston Press ($JPR) | | 5.8x | | 11.4x | 15.6x |
