HALS-Development JSC reports 192% EBITDA decline and 132 pp EBITDA Margin decline from 23.5% to -108%
15 Apr 2016 • About HALS-Development JSC (
$HALS) • By InTwits
HALS-Development JSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- HALS-Development JSC doesn't have a profitable business model yet: 2015 ROIC is -10.9%
- EBITDA Margin is quite volatile: -108.4% in 2015, 23.5% in 2014, 17.5% in 2013, 42.8% in 2012, 153.8% in 2011
- HALS-Development JSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 275.4%. At the same time it's a lot of higher than industry average of 24.4%.
- CAPEX is quite volatile: 4,107 in 2015, 10,899 in 2014, 12,267 in 2013, 7,327 in 2012, 3,901 in 2011
- The company has unprofitable business model: ROIC is at -10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
HALS-Development JSC ($HALS) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 446 | 8,810 | 3,535 | 43,672 | 8,674 | -80.1% |
| Gross Profit | 174 | 3,679 | 2,352 | 13,923 | 5,096 | -63.4% |
| SG&A | | | | 2,835 | 3,102 | 9.4% |
| EBITDA | 686 | 3,767 | 618 | 10,243 | -9,401 | -191.8% |
| Net Income | -3,411 | -1,438 | -4,867 | -1,084 | -10,311 | 851.2% |
Balance Sheet
|
|---|
| Cash | 2,038 | 2,453 | 7,406 | 18,104 | 19,761 | 9.2% |
| Short Term Debt | 34,694 | 22,995 | 39,358 | 31,807 | 26,639 | -16.2% |
| Long Term Debt | 49,912 | 83,482 | 88,019 | 85,160 | 92,510 | 8.6% |
Cash flow
|
|---|
| Capex | 3,901 | 7,327 | 12,267 | 10,899 | 4,107 | -62.3% |
Ratios
|
|---|
| Revenue growth | -44.4% | 1,875.3% | -59.9% | 1,135.4% | -80.1% | |
| EBITDA growth | -121.4% | 449.1% | -83.6% | 1,557.4% | -191.8% | |
| Gross Margin | 39.0% | 41.8% | 66.5% | 31.9% | 58.8% | 26.9% |
| EBITDA Margin | 153.8% | 42.8% | 17.5% | 23.5% | -108.4% | -131.8% |
| Net Income Margin | -764.8% | -16.3% | -137.7% | -2.5% | -118.9% | -116.4% |
| SG&A, % of revenue | | | | 6.5% | 35.8% | 29.3% |
| CAPEX, % of revenue | 874.7% | 83.2% | 347.0% | 25.0% | 47.3% | 22.4% |
| ROIC | 1.2% | 4.7% | 0.5% | 10.1% | -10.9% | -21.0% |
| Net Debt/EBITDA | 120.4x | 27.6x | 194.1x | 9.7x | | -9.7x |
Revenue and profitability
HALS-Development JSC's Revenue dropped on 80.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 132 pp from 23.5% to -108% in 2015.
Gross Margin surged on 26.9 pp from 31.9% to 58.8% in 2015. SG&A as a % of Revenue jumped on 29.3 pp from 6.5% to 35.8% in 2015.
Net Income marign dropped on 116 pp from -2.5% to -119% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 HALS-Development JSC had CAPEX/Revenue of 47.3%. The company showed big decline in CAPEX/Revenue of 35.8 pp from 83.2% in 2012 to 47.3% in 2015. It's average CAPEX/Revenue for the last three years was 140%.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 9.7x from 9.7x to in 2015. Debt increased slightly on 1.9% in 2015 while cash increased on 9.2% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below you can find HALS-Development JSC benchmarking vs. other companies in Real Estate Investment & Services 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 |
|---|
| Plaza Centers Nv ($PLAZ) | | 28.0% | -10.0% | 131.0% | -13.4% |
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Etalon Group Ltd ($ETLN) | | 18.3% | 48.4% | 29.0% | -17.6% |
| Safeland ($SAF) | | 38.2% | -40.1% | 21.2% | -1.5% |
| Hml Hldgs ($HMLH) | | 12.9% | 20.8% | 15.3% | 16.7% |
| |
|---|
| Median (17 companies) | 2.5% | 3.8% | 20.8% | 0.1% | 7.6% |
|---|
| HALS-Development JSC ($HALS) | | 1,875.3% | -59.9% | 1,135.4% | -80.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | | | 96.1% | 96.5% | |
| Taliesin Property Fund Ltd ($TPFZ) | | 75.2% | 76.6% | 74.9% | 76.3% |
| Songbird Estates ($SBD) | 69.2% | 71.5% | 68.3% | 70.7% | |
| Panther Securities ($PNS) | 65.3% | 69.2% | 77.2% | 68.0% | |
| Damac Real Estate Development Ltd ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
| |
|---|
| Median (13 companies) | 40.9% | 40.7% | 43.2% | 38.5% | 30.7% |
|---|
| HALS-Development JSC ($HALS) | 39.0% | 41.8% | 66.5% | 31.9% | 58.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Summit Germany Ltd ($SMTG) | 77.8% | 78.3% | 78.7% | 89.3% | |
| Panther Securities ($PNS) | 39.9% | 44.8% | 56.9% | 50.3% | |
| Damac Real Estate Development Ltd ($DMC) | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% |
| Quintain Estates & Development ($QED) | -101.5% | -81.5% | -70.4% | 43.6% | 76.3% |
| Hagl JSC ($HAG) | 37.0% | 23.1% | 40.5% | 39.6% | 28.2% |
| |
|---|
| Median (16 companies) | 31.2% | 28.1% | 21.1% | 13.3% | 24.8% |
|---|
| HALS-Development JSC ($HALS) | 153.8% | 42.8% | 17.5% | 23.5% | -108.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% |
| Taliesin Property Fund Ltd ($TPFZ) | | 14.1% | 21.3% | 45.2% | 43.7% |
| Raven Russia Ltd ($RUS) | | 19.8% | 27.5% | 41.0% | 9.1% |
| Panther Securities ($PNS) | 176.0% | 87.9% | 42.6% | 26.0% | |
| |
|---|
| Median (17 companies) | 1.9% | 2.6% | 1.2% | 1.6% | 2.0% |
|---|
| HALS-Development JSC ($HALS) | 874.7% | 83.2% | 347.0% | 25.0% | 47.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 163.1% | 127.1% | 31.3% | 41.5% |
| Etalon Group Ltd ($ETLN) | 20.1% | 12.1% | 14.4% | 14.3% | 10.2% |
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | 25.3% |
| Hml Hldgs ($HMLH) | 5.6% | 8.2% | 9.9% | 12.5% | 12.5% |
| Farglory Land Development Co Ltd ($FLDS) | 16.0% | 9.7% | 13.0% | 7.7% | 9.5% |
| |
|---|
| Median (17 companies) | 4.6% | 4.1% | 3.1% | 2.8% | 7.3% |
|---|
| HALS-Development JSC ($HALS) | 1.2% | 4.7% | 0.5% | 10.1% | -10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Raven Russia Ltd ($RUS) | | 6.4x | 4.1x | 75.5x | |
| Plaza Centers Nv ($PLAZ) | | 17.9x | | 41.9x | 25.4x |
| Quintain Estates & Development ($QED) | | | | 15.3x | 4.5x |
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | |
| |
|---|
| Median (13 companies) | 7.5x | 7.3x | 4.1x | 10.1x | 1.2x |
|---|
| HALS-Development JSC ($HALS) | 120.4x | 27.6x | 194.1x | 9.7x | |
