Eclectic Bar Grp Debt jumped on 238% in 2016 and Net Debt / EBITDA jumped on 5.2x from 1.5x to 6.8x
30 Sep 2016 • About Eclectic Bar Grp (
$BAR) • By InTwits
Eclectic Bar Grp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eclectic Bar Grp doesn't have a profitable business model yet: FY2016 ROIC is 1.2%
- EBITDA Margin is declining: 6.1% in FY2016 vs. 7.9% in FY2015 vs. 14.6% in FY2012
- EBITDA Margin is quite volatile: 6.1% in FY2016, 7.9% in FY2015, 8.1% in FY2014, 11.4% in FY2013, 14.6% in FY2012
- Eclectic Bar Grp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.1%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 1.2 in FY2016, 1.9 in FY2015, 3.2 in FY2014, 0.75 in FY2013, 1.7 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.2%
- It operates with high leverage: Net Debt/EBITDA is 6.8x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eclectic Bar Grp ($BAR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19.793 | 20.551 | 22.707 | 22.282 | 22.592 | 1.4% |
| Gross Profit | 15.661 | 16.217 | 17.947 | 17.693 | 18.227 | 3.0% |
| EBITDA | 2.883 | 2.351 | 1.841 | 1.753 | 1.381 | -21.2% |
| Net Income | 0.762 | 0.562 | -0.270 | -5.773 | -0.096 | -98.3% |
Balance Sheet
|
|---|
| Cash | 0.286 | 0.558 | 0.461 | 0.976 | 3.064 | 213.9% |
| Short Term Debt | 0.688 | 0.676 | 0.671 | 0.176 | 1.200 | 581.8% |
| Long Term Debt | 8.622 | 8.107 | 1.801 | 3.489 | 11.194 | 220.8% |
Cash flow
|
|---|
| Capex | 1.677 | 0.747 | 3.210 | 1.935 | 1.237 | -36.1% |
Ratios
|
|---|
| Revenue growth | 27.6% | 3.8% | 10.5% | -1.9% | 1.4% | |
| EBITDA growth | 30.1% | -18.5% | -21.7% | -4.8% | -21.2% | |
| Gross Margin | 79.1% | 78.9% | 79.0% | 79.4% | 80.7% | 1.3% |
| EBITDA Margin | 14.6% | 11.4% | 8.1% | 7.9% | 6.1% | -1.8% |
| Net Income Margin | 3.8% | 2.7% | -1.2% | -25.9% | -0.4% | 25.5% |
| CAPEX, % of revenue | 8.5% | 3.6% | 14.1% | 8.7% | 5.5% | -3.2% |
| ROIC | 19.8% | 12.6% | 3.5% | -1.1% | 1.2% | 2.3% |
| ROE | | | -5.2% | -83.1% | -1.1% | 82.0% |
| Net Debt/EBITDA | 3.1x | 3.5x | 1.1x | 1.5x | 6.8x | 5.2x |
Revenue and profitability
The company's Revenue increased slightly on 1.4% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
Gross Margin increased slightly on 1.3 pp from 79.4% to 80.7% in FY2016.
Net Income marign jumped on 25.5 pp from -25.9% to -0.42% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.5% in FY2016. CAPEX/Revenue increased slightly on 1.8 pp from 3.6% in FY2013 to 5.5% in FY2016. For the last three years the average CAPEX/Revenue was 9.4%.Eclectic Bar Grp maintained rich investment policy and has spent a big chunk of EBITDA (89.6%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (1.21%) and negative ROE (-1.09%). ROIC increased on 2.3 pp from -1.1% to 1.2% in FY2016. ROE surged on 82.0 pp from -83.1% to -1.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.8x and Debt / EBITDA is 9.0x. Net Debt / EBITDA jumped on 5.2x from 1.5x to 6.8x in FY2016. Debt surged on 238% in FY2016 while cash jumped on 214% in FY2016.
Appendix 1: Peers in Travel & Leisure
Below you can find Eclectic Bar Grp 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 | 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 ($TOUR) | 15.0% | 14.6% | 9.3% | 19.2% | |
| |
|---|
| Median (22 companies) | 12.3% | 8.8% | 6.1% | 7.6% | 8.3% |
|---|
| Eclectic Bar Grp ($BAR) | | 3.8% | 10.5% | -1.9% | 1.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Mandarin Oriental International ($MDOB) | 36.0% | 38.9% | 39.7% | 40.4% | |
| |
|---|
| Median (11 companies) | 23.0% | 22.6% | 20.7% | 22.1% | 19.1% |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | 80.7% |
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% | 28.9% |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (23 companies) | 12.8% | 15.4% | 12.7% | 13.1% | 16.7% |
|---|
| Eclectic Bar Grp ($BAR) | 14.6% | 11.4% | 8.1% | 7.9% | 6.1% |
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% | 16.9% |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (23 companies) | 3.7% | 5.4% | 4.5% | 8.2% | 14.7% |
|---|
| Eclectic Bar Grp ($BAR) | 8.5% | 3.6% | 14.1% | 8.7% | 5.5% |
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% | |
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | 17.2% |
| |
|---|
| Median (23 companies) | 6.4% | 6.9% | 4.3% | 6.1% | 8.0% |
|---|
| Eclectic Bar Grp ($BAR) | 19.8% | 12.6% | 3.5% | -1.1% | 1.2% |
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 | 3.9x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (20 companies) | 1.0x | 2.2x | 1.3x | 2.4x | 2.3x |
|---|
| Eclectic Bar Grp ($BAR) | 3.1x | 3.5x | 1.1x | 1.5x | 6.8x |
