Future EBITDA dropped on 1,173% in 2016 and Revenue decreased slightly on 1.3%

23 Nov 2016 • About Future ($FUTR) • By InTwits

Future reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

• Future doesn't have a profitable business model yet: FY2016 ROIC is -48.0%
• The company operates at negative EBITDA Margin: -20.0%
• Future spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -8.7%0
• Future has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
• The company has unprofitable business model: ROIC is at -48.0%
• It operates with medium-size leverage: Net Debt/EBITDA is 1.3x 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.

Future ($FUTR) key annual financial indicators

mln. £	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	123.5	82.6	66.0	59.8	59.0	-1.3%
Gross Profit	39.0	24.1	15.4	19.2	21.8	13.5%
SG&A	32.2	27.5	25.7	15.6	13.5	-13.5%
EBITDA	5.8	2.1	-31.3	1.1	-11.8	-1,172.7%
Net Income	0.2	4.3	-33.9	-1.3	-14.2	992.3%
Balance Sheet
Cash	8.5	4.6	7.5	2.5	2.9	16.0%
Short Term Debt	20.9	11.5	0.0	4.3	2.3	-46.5%
Long Term Debt	1.7	0.0	0.0	0.0	0.1
Cash flow
Capex	0.5	0.6	0.4	0.2	0.2	0.0%
Ratios
Revenue growth	-12.8%	-33.1%	-20.1%	-9.4%	-1.3%
EBITDA growth	-141.1%	-63.8%	-1,590.5%	-103.5%	-1,172.7%
Gross Margin	31.6%	29.2%	23.3%	32.1%	36.9%	4.8%
EBITDA Margin	4.7%	2.5%	-47.4%	1.8%	-20.0%	-21.8%
Net Income Margin	0.2%	5.2%	-51.4%	-2.2%	-24.1%	-21.9%
SG&A, % of revenue	26.1%	33.3%	38.9%	26.1%	22.9%	-3.2%
CAPEX, % of revenue	0.4%	0.7%	0.6%	0.3%	0.3%	0.0%
ROIC	3.7%	-1.0%	-60.8%	-4.8%	-48.0%	-43.1%
ROE	0.3%	6.6%	-67.8%	-4.1%	-54.0%	-49.9%
Net Debt/EBITDA	2.4x	3.3x		1.6x		-1.6x

Revenue and profitability

Future's Revenue decreased slightly on 1.3% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.8 pp from 1.8% to -20% in FY2016.

Gross Margin increased on 4.8 pp from 32.1% to 36.9% in FY2016. SG&A as a % of Revenue decreased on 3.2 pp from 26.1% to 22.9% in FY2016.

Net Income marign dropped on 21.9 pp from -2.2% to -24.1% in FY2016.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 0.34% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.43%.

Return on investment

The company operates at negative ROIC (-47.97%) and ROE (-53.99%). ROIC dropped on 43.1 pp from -4.8% to -48.0% in FY2016. ROE dropped on 49.9 pp from -4.1% to -54.0% in FY2016.

Leverage (Debt)

Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 1.6x from 1.6x to in FY2016. Debt dropped on 44.2% in FY2016 while cash surged on 16% in FY2016.

Appendix 1: Peers in Media

Below we provide Future benchmarking against other companies in Media 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
Tla Worldwide ($TLA)	5,338.4%	25.0%	6.3%	130.0%
Porta Communications ($PTCM)	970.2%	10.7%	150.9%	46.5%
Jaywing ($JWNG)		-27.9%	-0.7%	26.6%	6.5%
Marimedia Ltd ($MARI)	24.4%	71.1%	45.7%	20.1%
Nahl Group ($NAH)	12.6%	-3.2%	-10.7%	15.7%
Median (23 companies)	5.3%	-0.6%	1.9%	2.2%	10.1%
Future ($FUTR)		-33.1%	-20.1%	-9.4%	-1.3%

Top companies by Gross margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Jaywing ($JWNG)	79.8%	76.8%	81.0%	89.0%	88.4%
Brainjuicer Group ($BJU)	77.2%	78.0%	78.8%	80.4%
Porta Communications ($PTCM)	55.3%	89.2%	83.4%	79.0%
Tla Worldwide ($TLA)	96.1%	96.6%	99.9%	78.8%
Haynes Publishing Group ($HYNS)	59.9%	59.6%	52.9%	60.2%	53.6%
Median (24 companies)	42.0%	42.3%	43.8%	42.2%	42.4%
Future ($FUTR)	31.6%	29.2%	23.3%	32.1%	36.9%

Top companies by EBITDA margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Dq Entertainment ($DQE)	42.8%	49.2%	62.4%	59.1%
Haynes Publishing Group ($HYNS)	25.7%	23.4%	38.8%	33.5%	15.4%
Nahl Group ($NAH)	36.6%	39.6%	28.8%	29.5%
Tla Worldwide ($TLA)	43.5%	39.1%	40.6%	28.5%
Quarto Group Inc ($QRT)	20.0%	25.9%	27.8%	28.4%
Median (24 companies)	15.1%	15.1%	14.8%	11.8%	7.0%
Future ($FUTR)	4.7%	2.5%	-47.4%	1.8%	-20.0%

Top companies by CAPEX/Revenue, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Avesco Group ($AVS)	22.7%	13.2%	18.6%	14.4%
Mood Media Corp ($MM.)	8.6%	6.4%	6.9%	8.2%
Spaceandpeople ($SAL)	3.2%	4.1%	1.6%	5.0%
Dq Entertainment ($DQE)	6.8%	2.0%	0.0%	4.6%
Naspers ($NPSN)	4.7%	4.9%		4.0%	3.1%
Median (24 companies)	1.3%	1.8%	1.7%	1.1%	0.9%
Future ($FUTR)	0.4%	0.7%	0.6%	0.3%	0.3%

Top companies by ROIC, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Independent News & Media ($INM)	-43.9%	136.2%	29.6%	65.1%
Brainjuicer Group ($BJU)	24.3%	49.0%	60.0%	58.5%
Uls Technology ($ULS)		33.2%	44.1%	39.6%	39.3%
Cellcast Group ($CLTV)	-63.1%			28.4%
Nahl Group ($NAH)	37.1%	42.3%	31.5%	26.0%
Median (24 companies)	5.6%	5.8%	7.8%	6.7%	-0.1%
Future ($FUTR)	3.7%	-1.0%	-60.8%	-4.8%	-48.0%

Top companies by Net Debt / EBITDA

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Johnston Press ($JPR)	5.8x		11.4x	15.6x
Mood Media Corp ($MM.)	5.2x	8.1x	8.2x	9.8x
Naspers ($NPSN)	1.4x	1.9x		6.2x	14.7x
Grupo Clarin Sa ($GCLA)	0.9x	0.8x	0.7x	4.3x
Dq Entertainment ($DQE)	1.1x	1.5x	1.5x	2.8x
Median (22 companies)	0.8x	0.8x	0.9x	0.5x	-0.4x
Future ($FUTR)	2.4x	3.3x		1.6x

Similar news

22 Nov 2016 Croma Security Solutions Group reports 21.0% EBITDA growth and almost no change in EBITDA Margin of 3.1%

21 Nov 2016 Barloworld reports 6.1% revenue growth in FY2016 and almost no change in EBITDA Margin of 10.0%

18 Nov 2016 Parkmead Group(The) reports 94.9% CAPEX decline and 44.0% Revenue decline

18 Nov 2016 Agriterra Ltd reports 453% EBITDA decline while 70.1% Revenue growth

16 Nov 2016 Ab Dynamics reports 133% CAPEX growth and 23.9% Revenue growth