Air Partner revenue dropped on 77.5% while EBITDA Margin surged on 10.4 pp from 2.2% to 12.6%
11 Jun 2018 • About Air Partner (
$AIP) • By InTwits
Air Partner reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Air Partner is a company in decline: FY2018 revenue growth was -77.5%, 5 years revenue CAGR was -26.1%
- EBITDA Margin is expanding: 12.6% in FY2018 vs. 2.2% in FY2017 vs. 1.4% in FY2014
- EBITDA Margin is quite volatile: 12.6% in FY2018, 2.2% in FY2017, 1.9% in FY2016, 1.5% in FY2015, 1.4% in FY2014
- Air Partner has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is 34.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 77.5%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.4 pp from 2.2% to 12.6% in FY2018. EBITDA Margin pursued a growing trend in the last 5 years.
Gross Margin jumped on 59.7 pp from 14.7% to 74.4% in FY2018. Gross Margin followed a growing trend in FY2014-FY2018. SG&A as a % of Revenue jumped on 50.9 pp from 12.6% to 63.5% in FY2018. SG&A as a % of Revenue followed a growing trend in the last 5 years.
Net Income margin increased on 6.2 pp from 1.2% to 7.4% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.5% in FY2018. The company's CAPEX/Revenue increased slightly on 1.0 pp from 0.43% in FY2015 to 1.5% in FY2018. It's average level of CAPEX/Revenue for the last three years was 0.52%.
Return on investment
The company operates at high and attractive ROIC (34.6%) and ROE (31.9%). ROIC jumped on 10.0 pp from 24.6% to 34.6% in FY2018. ROE surged on 11.5 pp from 20.3% to 31.9% in FY2018. During the last 5 years ROIC bottomed in FY2015 at 20.0% and was growing since that time.
Leverage (Debt)
Debt level is -2.5x Net Debt / EBITDA and 0.4x Debt / EBITDA. Debt dropped on 15.5% while cash increased slightly on 0.90%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 31 Jan 2018
Air Partner ($AIP) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 224.0 | 192.1 | 210.8 | 215.8 | 48.5 | -77.5% |
| Gross Profit | 23.8 | 22.0 | 27.3 | 31.7 | 36.1 | 13.8% |
| SG&A | 21.0 | 19.4 | 24.0 | 27.3 | 30.8 | 12.8% |
| EBITDA | 3.1 | 2.9 | 4.0 | 4.8 | 6.1 | 27.6% |
| Net Income | 1.9 | 2.8 | 2.3 | 2.5 | 3.6 | 41.7% |
Balance Sheet
|
|---|
| Cash | 18.4 | 18.8 | 19.8 | 17.8 | 18.0 | 0.9% |
| Short Term Debt | 0.0 | 0.0 | 0.5 | 0.5 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 3.0 | 2.4 | 2.5 | 2.3% |
Cash flow
|
|---|
| Capex | 0.1 | 0.8 | 0.1 | 0.1 | 0.7 | 637.5% |
Ratios
|
|---|
| Revenue growth | 1.5% | -14.2% | 9.7% | 2.4% | -77.5% | |
| EBITDA growth | -25.5% | -6.4% | 38.6% | 20.8% | 27.6% | |
|
|---|
| Gross Margin | 10.6% | 11.5% | 12.9% | 14.7% | 74.4% | 59.7% |
| EBITDA Margin | 1.4% | 1.5% | 1.9% | 2.2% | 12.6% | 10.4% |
| SG&A, % of revenue | 9.4% | 10.1% | 11.4% | 12.6% | 63.5% | 50.9% |
| Net Income Margin | 0.9% | 1.4% | 1.1% | 1.2% | 7.4% | 6.2% |
| CAPEX, % of revenue | 0.0% | 0.4% | 0.1% | 0.0% | 1.5% | 1.4% |
|
|---|
| ROIC | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% | 10.0% |
| ROE | 14.1% | 21.5% | 17.1% | 20.3% | 31.9% | 11.5% |
| Net Debt/EBITDA | -6.0x | -6.6x | -4.1x | -3.1x | -2.5x | 0.6x |
Peers in Travel & Leisure
Below you can find Air Partner 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nektan ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Celtic ($CCP) | -14.6% | -21.1% | 1.8% | 74.3% | |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Eclectic Bar Grp ($BAR) | 10.5% | -1.9% | 1.4% | 38.6% | |
| |
|---|
| Median (25 companies) | 2.8% | 7.6% | 8.3% | 7.9% | 7.6% |
|---|
| Air Partner ($AIP) | | -14.2% | 9.7% | 2.4% | -77.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| Dalata Hotel Group ($DAL) | 62.8% | 61.5% | 62.2% | 63.2% | |
| |
|---|
| Median (16 companies) | 56.6% | 41.5% | 50.7% | 38.1% | 12.4% |
|---|
| Air Partner ($AIP) | 10.6% | 11.5% | 12.9% | 14.7% | 74.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (25 companies) | 12.7% | 12.9% | 17.0% | 17.2% | 16.4% |
|---|
| Air Partner ($AIP) | 1.4% | 1.5% | 1.9% | 2.2% | 12.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Richoux Group ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| Ryanair Hldgs ($RYA) | 10.0% | 13.9% | 18.6% | 21.8% | 20.6% |
| |
|---|
| Median (25 companies) | 5.4% | 7.2% | 14.1% | 6.0% | 13.5% |
|---|
| Air Partner ($AIP) | 0.0% | 0.4% | 0.1% | 0.0% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| Tui Ag ($TUI) | 16.1% | 15.0% | 15.5% | 14.4% | |
| |
|---|
| Median (26 companies) | 4.8% | 5.9% | 5.3% | 6.8% | 7.1% |
|---|
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| Mandarin Oriental International ($MDOB) | 2.5x | 0.8x | 2.3x | 2.6x | |
| |
|---|
| Median (22 companies) | 1.3x | 1.5x | 2.3x | 1.9x | 2.3x |
|---|
| Air Partner ($AIP) | -6.0x | -6.6x | -4.1x | -3.1x | -2.5x |
