Billing Services Group Net Income jumped on 25.8% in 2016

29 Mar 2017 • About Billing Services Group ($BILL) • By InTwits

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

Billing Services Group is a company in decline: FY2016 revenue growth was -17.1%, 5 years revenue CAGR was -20.8%
EBITDA Margin is declining: in FY2016 vs. 17.3% in FY2015 vs. 22.3% in FY2012

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Billing Services Group ($BILL) key annual financial indicators

mln. $	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	70.260	53.898	42.429	36.358	30.151	-17.1%
Gross Profit	29.326	24.307	20.385	18.534		-100.0%
SG&A			11.555	12.143		-100.0%
EBITDA	15.653	12.313	8.751	6.297		-100.0%
Net Income	-8.859	-6.177	2.084	8.676	10.913	25.8%
Balance Sheet
Cash	19.111	12.715	9.037	7.427		-100.0%
Short Term Debt	15.900	9.600	6.281	0.000
Long Term Debt	15.987	6.379	0.000	0.000
Cash flow
Capex	0.777	1.148	0.898	1.500		-100.0%
Ratios
Revenue growth	-27.4%	-23.3%	-21.3%	-14.3%	-17.1%
EBITDA growth	-35.4%	-21.3%	-28.9%	-28.0%
Gross Margin	41.7%	45.1%	48.0%	51.0%		-51.0%
EBITDA Margin	22.3%	22.8%	20.6%	17.3%	0.0%	-17.3%
Net Income Margin	-12.6%	-11.5%	4.9%	23.9%	36.2%	12.3%
SG&A, % of revenue			27.2%	33.4%		-33.4%
CAPEX, % of revenue	1.1%	2.1%	2.1%	4.1%		-4.1%
ROIC	3.1%	0.9%	19.1%	13.8%		-13.8%
ROE	-30.8%	-31.7%	12.0%	38.4%		-38.4%
Net Debt/EBITDA	0.8x	0.3x	-0.3x	-1.2x		1.2x

Revenue and profitability

The company's Revenue dropped on 17.1% in FY2016.

Net Income marign jumped on 12.3 pp from 23.9% to 36.2% in FY2016.

Appendix 1: Peers in Support Services

Below you can find Billing Services Group benchmarking vs. other companies in Support 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	FY2012	FY2013	FY2014	FY2015	FY2016
Camco Clean Energy ($CCE)		88.0%	-54.7%	99.4%
Optimal Payments ($OPAY)		41.5%	44.0%	68.1%	63.1%
Assetco ($ASTO)		10.8%	-17.1%	48.0%	7.6%
Inspired Energy ($INSE)		44.8%	42.2%	40.2%	41.7%
21St Century Technology ($C21)	0.1%	-22.8%	-16.6%	35.5%
Median (56 companies)	0.1%	8.4%	4.8%	7.0%	5.9%
Billing Services Group ($BILL)		-23.3%	-21.3%	-14.3%	-17.1%

Top companies by Gross margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Inspired Energy ($INSE)	94.6%	86.8%	78.7%	76.2%
Ienergizer Ltd ($IBPO)	56.2%	78.4%	76.8%	72.7%	71.3%
Grafenia ($GRA)	53.4%	54.3%	56.1%	70.8%	66.3%
Vianet Group ($VNET)	53.3%	51.3%	58.8%	69.2%	70.1%
Prime People ($PRP)	63.4%	58.3%	57.7%	61.4%	59.2%
Median (50 companies)	28.8%	27.5%	29.1%	28.3%	27.0%
Billing Services Group ($BILL)	41.7%	45.1%	48.0%	51.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
21St Century Technology ($C21)	13.4%	-0.2%	36.0%	44.8%
Northgate ($67GX)	41.2%	40.4%	40.6%	39.4%	38.3%
Inspired Energy ($INSE)	46.2%	48.5%	1.5%	35.4%
Vianet Group ($VNET)	18.6%	17.3%	19.7%	27.1%	22.1%
Vp ($VP.)	23.9%	24.5%	24.2%	26.2%	28.4%
Median (56 companies)	6.8%	6.4%	6.9%	7.2%	7.3%
Billing Services Group ($BILL)	22.3%	22.8%	20.6%	17.3%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Vp ($VP.)	21.4%	17.7%	21.6%	25.7%	24.1%
Sagentia Group ($SAG)	1.9%	1.4%	1.5%	25.2%	6.6%
Nature Group ($NGR)	14.3%	7.2%	5.6%	22.9%
Augean ($AUG)	9.8%	15.9%	12.3%	12.3%	11.0%
Falkland Islands Hldgs ($FKL)	3.7%	6.8%	12.9%	11.9%	4.8%
Median (56 companies)	1.0%	1.0%	1.0%	1.0%	1.1%
Billing Services Group ($BILL)	1.1%	2.1%	2.1%	4.1%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
21St Century Technology ($C21)	20.3%	-2.9%	45.6%	111.0%
Inspired Energy ($INSE)	63.9%	65.5%	-7.5%	28.0%
Assetco ($ASTO)			21.3%	25.9%
Petards Group ($PEG)	35.5%	-78.0%	24.7%	23.9%	22.7%
Servoca ($SVCA)	1.0%	7.8%	14.9%	22.3%	22.8%
Median (56 companies)	9.9%	7.9%	9.3%	10.3%	8.6%
Billing Services Group ($BILL)	3.1%	0.9%	19.1%	13.8%

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Redhall Group ($RHL)	22.8x	5.8x	6.6x	16.8x	16.2x
Mitsubishi Corp ($MBC)	9.9x	15.9x	14.3x	12.5x	25.0x
Ienergizer Ltd ($IBPO)	6.3x	2.8x	3.0x	4.0x	2.4x
Ceps ($CEPS)		3.0x	6.6x	3.8x
Kellan Group(The ($KLN)			6.5x	3.6x
Median (52 companies)	0.8x	0.6x	0.6x	0.4x	0.7x
Billing Services Group ($BILL)	0.8x	0.3x	-0.3x	-1.2x

Billing Services Group stock price chart

Billing Services Group financials

mln.	FY2010	FY2011	FY2012

Revenue	133.7	96.775	70.260
EBITDA	32.742	24.226	15.653
Net income	6.563	0.189	-8.859
CAPEX	2.200	1.983	0.777
Debt	59.254	36.000	31.887
Cash	12.557	10.922	19.111

About Billing Services Group

Billing Services Group Limited provides clearing and financial settlement products; Wi-Fi roaming solutions; and third-party verification services. It offers local exchange carrier phone clearing, billing, and settlement services to telecommunications and other service providers, which include USBI that offers billing clearinghouse services for providers of residential and commercial long distance calls; and ZPDI, which provides clearinghouse services, including billing, management, and reporting services for the operator services industry. The company also provides Wi-Fi solutions, such as user access solutions, Wi-Fi estate management, and roaming services to mobile carriers, network operators, merchants, and online stores; and VoiceLog, which provides third party voice verification and call recording services to the telecommunications, cable, and utilities industries. In addition, the company provides toll clearing, credit card merchant acquisition, and integrated financial risk management services. Billing Services Group Limited was founded in 2005 and is headquartered in San Antonio, Texas.

Billing Services Group Net Income jumped on 25.8% in 2016

Revenue and profitability

Appendix 1: Peers in Support Services

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Billing Services Group financials

About Billing Services Group