Air Partner EBITDA surged on 38.6% in 2016 and Revenue increased on 9.7%
28 Apr 2016 • About Air Partner (
$AIP) • By InTwits
Air Partner reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 1.9% in FY2016 vs. 1.5% in FY2015 vs. 2.1% in FY2012
- Air Partner has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has highly profitable business model: ROIC is at 20.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Air Partner ($AIP) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 227.6 | 220.6 | 224.0 | 192.1 | 210.8 | 9.7% |
| Gross Profit | 21.8 | 23.0 | 23.8 | 22.0 | 27.3 | 23.8% |
| SG&A | 17.8 | 19.1 | 21.0 | 19.4 | 24.0 | 23.9% |
| EBITDA | 4.9 | 4.1 | 3.1 | 2.9 | 4.0 | 38.6% |
| Net Income | 3.0 | 2.5 | 1.9 | 2.8 | 2.3 | -16.5% |
Balance Sheet
|
|---|
| Cash | 15.7 | 20.7 | 18.4 | 18.8 | 19.8 | 5.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.5 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 3.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 0.0 | 0.1 | 0.8 | 0.1 | -85.6% |
Ratios
|
|---|
| Revenue growth | -19.3% | -3.1% | 1.5% | -14.2% | 9.7% | |
| EBITDA growth | -21.8% | -15.6% | -25.5% | -6.4% | 38.6% | |
| Gross Margin | 9.6% | 10.4% | 10.6% | 11.5% | 12.9% | 1.5% |
| EBITDA Margin | 2.1% | 1.9% | 1.4% | 1.5% | 1.9% | 0.4% |
| Net Income Margin | 1.3% | 1.1% | 0.9% | 1.4% | 1.1% | -0.3% |
| SG&A, % of revenue | 7.8% | 8.7% | 9.4% | 10.1% | 11.4% | 1.3% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.4% | 0.1% | -0.4% |
| ROIC | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% | 0.4% |
| ROE | 22.2% | 17.3% | 14.1% | 21.5% | 17.1% | -4.5% |
| Net Debt/EBITDA | -3.2x | -5.0x | -6.0x | -6.6x | -4.1x | 2.4x |
Revenue and profitability
The company's Revenue increased on 9.7% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 92.7 pp from -52.3% to 40.4% in FY2016.
Gross Margin increased slightly on 1.5 pp from 11.5% to 12.9% in FY2016. SG&A as a % of Revenue increased slightly on 1.3 pp from 10.1% to 11.4% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.056% in FY2016. Air Partner's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.17%.
Return on investment
The company operates at high and attractive ROIC (20.38%) while ROE is a bit lower (17.06%). ROIC showed almost no change in FY2016. ROE decreased on 4.5 pp from 21.5% to 17.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.1x and Debt / EBITDA is 0.9x. Net Debt / EBITDA jumped on 2.4x from -6.6x to -4.1x in FY2016. Debt surged while cash increased on 5.3% in FY2016.
Appendix 1: Peers in Travel & Leisure
Below we provide Air Partner benchmarking against other companies in Travel & Leisure 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 |
|---|
| Dalata Hotel Group ($DAL) | 55.4% | 12.0% | 30.4% | 185.4% | |
| Everyman Media Group ($EMAN) | 23.4% | 26.5% | 22.4% | 44.1% | |
| Webis Holdings ($WEB) | 8.7% | 46.3% | -55.0% | 29.7% | |
| Paddy Power ($PAP) | 30.9% | 14.0% | 18.3% | 24.1% | |
| Hanatour Service Inc ($TOUR) | 15.0% | 14.6% | 9.3% | 19.2% | |
| |
|---|
| Median (22 companies) | 13.6% | 8.8% | 7.2% | 7.6% | 6.7% |
|---|
| Air Partner ($AIP) | | -3.1% | 1.5% | -14.2% | 9.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | |
| Paddy Power ($PAP) | 84.7% | 82.8% | 81.0% | 74.7% | |
| Action Hotels ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (11 companies) | 36.0% | 38.9% | 39.7% | 40.4% | 25.3% |
|---|
| Air Partner ($AIP) | 9.6% | 10.4% | 10.6% | 11.5% | 12.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 31.0% | 27.9% | 28.6% | 34.3% | |
| Air China ($AIRC) | 19.7% | 16.0% | 18.4% | 27.3% | |
| Mandarin Oriental International ($MDOB) | 19.5% | 22.4% | 24.0% | 26.2% | |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (22 companies) | 13.8% | 15.4% | 12.7% | 14.0% | 17.4% |
|---|
| Air Partner ($AIP) | 2.1% | 1.9% | 1.4% | 1.5% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 21.0% | 25.6% | 90.0% | 172.4% | |
| Everyman Media Group ($EMAN) | 0.0% | 36.4% | 25.9% | 56.4% | |
| Marston'S ($MARS) | 18.0% | 19.3% | 17.5% | 16.2% | 15.3% |
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (22 companies) | 4.4% | 5.4% | 4.6% | 9.2% | 15.3% |
|---|
| Air Partner ($AIP) | 0.1% | 0.0% | 0.0% | 0.4% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | |
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | |
| Richoux Group ($RIC) | 12.9% | 9.8% | 9.1% | 10.8% | |
| |
|---|
| Median (22 companies) | 6.4% | 6.9% | 4.2% | 5.9% | 8.8% |
|---|
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($MIK) | | 5.1x | 10.7x | 73.1x | |
| Action Hotels ($AHCG) | 11.2x | 7.8x | 9.6x | 12.3x | |
| Marston'S ($MARS) | | 6.5x | 14.0x | 8.2x | 6.2x |
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (20 companies) | 1.4x | 2.3x | 1.3x | 2.4x | 3.2x |
|---|
| Air Partner ($AIP) | -3.2x | -5.0x | -6.0x | -6.6x | -4.1x |
