Hollywood Bowl Group Plc CAPEX dropped on 21.1% while Revenue increased on 5.8%
10 Dec 2018 • About Hollywood Bowl Group Plc (
$BOWL) • By InTwits
Hollywood Bowl Group Plc reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hollywood Bowl Group Plc is a growth stock: FY2018 revenue growth was 5.8%, 5 year revenue CAGR was 11.4% at FY2018 ROIC 20.5%
- Hollywood Bowl Group Plc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's in pair with industry average of 8.9%
- CAPEX is quite volatile: £15m in FY2018, £16m in FY2017, £11m in FY2016, £6m in FY2015, £7m in FY2014
- The company has highly profitable business model: ROIC is 20.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.1x while industry average is 0.1x
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 increased on 5.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.9 pp from -3.7% to 8.2% in FY2018. EBITDA Margin followed a growing trend at 2.5 pp per annum in FY2014-FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin followed a growing trend at 1.2 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 1.7 pp from 67.1% to 65.5% in FY2018.
Net Income margin showed almost no change in FY2018. Net Income margin stuck to a growing trend at 5.0 pp per annum in the last 5 years. The efficient tax rate was 21.5% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Hollywood Bowl Group Plc had CAPEX/Revenue of 8.9%. The company's CAPEX/Revenue increased slightly on 0.65 pp from 8.2% in FY2015 to 8.9% in FY2018. Average CAPEX/Revenue for the last three years was 10.1%.
Return on investment
The company operates at high and attractive ROIC (20.5%) and ROE (20.3%). ROIC increased slightly on 0.83 pp from 19.7% to 20.5% in FY2018. ROE decreased slightly on 1.9 pp from 22.3% to 20.3% in FY2018. ROIC followed a growing trend at 2.9 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.2x to 0.1x in FY2018. Debt decreased on 4.7% while cash jumped on 18.9%. Net Debt/EBITDA followed a declining trend at -1.5x per annum in the last 5 years.
Hollywood Bowl Group Plc has good short term financial stability: Interest coverage ratio (ICR) is 27.4x. Hollywood Bowl Group Plc has no short term refinancing risk: cash is higher than short term debt (1,887.1%).
Average interest expence charged on company's debt was 3.2% in FY2018.
Valuation and dividends
Hollywood Bowl Group Plc's trades at EV/EBITDA 9.2x and P/E 17.5x.
The company paid 74.5% of Net Income as dividends in FY2018.
Management team
5.7% of the company is owned by insiders.
The company has 2,044 employees. Average revenue per employee in FY2018 was £58,977.
Financial and operational results
FY ended 30 Nov -0001
Hollywood Bowl Group Plc ($BOWL) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 78.7 | 86.0 | 106.6 | 114.0 | 120.5 | 5.8% |
| Gross Profit | 64.5 | 71.1 | 89.4 | 98.6 | 103.8 | 5.3% |
| SG&A | 61.3 | 58.0 | 76.4 | 76.5 | 78.9 | 3.2% |
| EBITDA | 14.9 | 21.6 | 24.2 | 32.7 | 35.9 | 9.7% |
| EBIT | | | | | 24.9 | |
| Interest expence | | | | | 0.9 | |
| Tax | | | | | 5.2 | |
| Net Income | -2.6 | 3.6 | 1.2 | 18.3 | 18.8 | 2.9% |
| Stock Based Compensation | | | | | 0.4 | |
Balance Sheet
|
|---|
| Cash | 4.0 | 14.7 | 9.2 | 21.9 | 26.0 | 18.9% |
| Inventory | | | | | 1.3 | |
| Short Term Debt | 0.4 | 1.0 | 0.0 | 1.4 | 1.4 | 0.0% |
| Long Term Debt | 87.9 | 92.3 | 29.4 | 28.1 | 26.8 | -4.9% |
Cash flow
|
|---|
| Capex | 9.4 | 7.1 | 10.2 | 13.6 | 10.7 | -21.1% |
| Dividends | | | | | 14.0 | |
Ratios
|
|---|
| Revenue growth | 12.2% | 9.3% | 23.9% | 6.9% | 5.8% | |
| EBITDA growth | 33.9% | 44.6% | 12.0% | 35.3% | 9.7% | |
|
|---|
| Gross Margin | 82.0% | 82.6% | 83.9% | 86.5% | 86.1% | -0.4% |
| EBITDA Margin | 19.0% | 25.1% | 22.7% | 28.7% | 29.8% | 1.1% |
| EBIT Margin | | | | | 20.6% |
| SG&A, % of revenue | 77.9% | 67.5% | 71.7% | 67.1% | 65.5% | -1.7% |
| SBC, % of revenue | | | | | 0.3% |
| Net Income Margin | -3.3% | 4.2% | 1.1% | 16.0% | 15.6% | -0.4% |
| CAPEX, % of revenue | 12.0% | 8.2% | 9.5% | 11.9% | 8.9% | -3.0% |
|
|---|
| ROIC | 8.8% | 14.7% | 14.3% | 19.7% | 20.5% | 0.8% |
| ROE | | | | 22.3% | 20.3% | -1.9% |
| Net Debt/EBITDA | 5.6x | 3.6x | 0.8x | 0.2x | 0.1x | -0.2x |
| Interest expence / Average debt | | | | | 3.2% | |
People
|
|---|
| Insider ownership | | | | | 5.7% | |
| Employees | | | | | 2,044 | |
| Revenue/Employee, th. £ | | | | | 59 | |
Peers in Leisure Facilities
Below we provide Hollywood Bowl Group Plc benchmarking against other companies in Leisure Facilities 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.
