Paternoster Resources reports 791% CAPEX growth in 2019 while 31.9% Revenue decline
06 Feb 2020 • About Paternoster Resources (
$PRS) • By InTwits
Paternoster Resources reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Paternoster Resources is a company in decline: FY2019 revenue growth was -31.9%, 5 years revenue CAGR was -16.3%
- The company operates at negative EBITDA Margin: -110.5%
- Paternoster Resources motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 was 0.0% while average EBITDA Margin was -9.2% for the sames years
- Paternoster Resources has high CAPEX intensity: 5 year average CAPEX/Revenue was 58.1%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: £78m in FY2019, £9m in FY2018, £10m in FY2017, £484m in FY2016, £701m in FY2015
- The company has unprofitable business model: ROIC is -22.4%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.4x
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 31.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 24.5% to 27.4% in FY2019.
Net Income margin dropped on 143 pp from -34.6% to -177% in FY2019.
Investments (CAPEX, working capital and M&A)
Paternoster Resources's CAPEX/Revenue was 34.4% in FY2019. CAPEX/Revenue dropped on 67.7 pp from 102% in FY2016 to 34.4% in FY2019. For the last three years the average CAPEX/Revenue was 13.5%. During FY2015-FY2019 CAPEX as a % of Revenue bottomed in FY2018 at 2.6%.
Return on investment
The company operates at negative ROIC (-22.4%) and ROE (-198.7%). ROIC dropped on 25.4 pp from 3.0% to -22.4% in FY2019. ROE dropped on 173 pp from -25.5% to -199% in FY2019.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 6.6x from 6.6x to in FY2019. Debt jumped on 12.5% while cash jumped on 41.2%.
Paternoster Resources has short term refinancing risk: cash is only 15.0% of short term debt.
Management team
Jesper Kragh Andresen is a the company's CEO. Jesper Kragh Andresen is a founder and has spent 2 years with the company. Paternoster Resources's CFO Stig H Christiansen has spent 4 years with the company.
Financial and operational results
FY ended 30 Nov -0001
Paternoster Resources ($PRS) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 474.7 | 474.0 | 283.0 | 330.8 | 225.4 | -31.9% |
| SG&A | 39.1 | 33.6 | 15.5 | 8.5 | | |
| EBITDA | 117.3 | 253.2 | -451.0 | 166.0 | -249.1 | -250.1% |
| EBIT | 30.8 | | | | | |
| Tax | 10.5 | | | | | |
| Net Income | -50.6 | 172.6 | -647.1 | -114.5 | -399.9 | |
Balance Sheet
|
|---|
| Cash | 57.1 | 205.7 | 231.9 | 140.3 | 198.1 | 41.2% |
| Accounts Receivable | 60.0 | | | | | |
| Accounts Payable | 17.8 | | | | | |
| Short Term Debt | 139.5 | 47.9 | 18.6 | 44.5 | 1,321.2 | 2,869.0% |
| Long Term Debt | 1,107.5 | 1,342.9 | 1,329.1 | 1,198.5 | 76.7 | -93.6% |
Cash flow
|
|---|
| Capex | 700.7 | 483.9 | 10.1 | 8.7 | 77.5 | 790.8% |
| Dividends | 34.0 | | | | | |
Ratios
|
|---|
| Revenue growth | -13.5% | -0.1% | -40.3% | 16.9% | -31.9% | |
| EBITDA growth | -62.5% | 115.9% | -278.1% | -136.8% | -250.1% | |
|
|---|
| EBITDA Margin | 24.7% | 53.4% | -159.4% | 50.2% | -110.5% | -160.7% |
| EBIT Margin | 6.5% | | | | |
| SG&A, % of revenue | 8.2% | 7.1% | 5.5% | 2.6% | | |
| Net Income Margin | -10.7% | 36.4% | -228.7% | -34.6% | -177.4% | -142.8% |
| CAPEX, % of revenue | 147.6% | 102.1% | 3.6% | 2.6% | 34.4% | 31.8% |
|
|---|
| ROIC | 1.7% | 2.3% | -26.4% | 3.0% | -22.4% | -25.4% |
| ROE | -6.9% | 18.7% | -79.5% | -25.5% | -198.7% | -173.2% |
| Net Debt/EBITDA | 10.1x | 4.7x | | 6.6x | |
People
|
|---|
| Employees | 851 | | | | | |
| Revenue/Employee, th. £ | 558 | | | | | |
Peers in Personal Goods
Below we provide Paternoster Resources benchmarking against other companies in Personal Goods 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Creightons ($CRL) | 4.2% | 4.1% | 45.6% | 13.8% | |
| Swallowfield ($SWL) | -1.2% | 10.1% | 36.5% | -0.5% | |
| |
|---|
| Median (2 companies) | -4.3% | -6.2% | 10.3% | 6.7% | |
|---|
| Paternoster Resources ($PRS) | | -0.1% | -40.3% | 16.9% | -31.9% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Creightons ($CRL) | 39.2% | 42.2% | 42.5% | 40.6% | |
| Swallowfield ($SWL) | 11.8% | 14.8% | 18.7% | 18.5% | |
| |
|---|
| Median (2 companies) | 22.4% | 20.1% | 22.8% | 29.6% | |
|---|
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Swallowfield ($SWL) | 4.5% | 6.7% | 6.5% | 8.9% | |
| Creightons ($CRL) | 5.0% | 4.7% | 6.1% | 6.4% | |
| |
|---|
| Median (2 companies) | 5.6% | 5.7% | 6.3% | 7.6% | |
|---|
| Paternoster Resources ($PRS) | 24.7% | 53.4% | -159.4% | 50.2% | -110.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Swallowfield ($SWL) | 3.1% | 2.2% | 1.8% | 2.2% | |
| Creightons ($CRL) | 0.8% | 3.7% | 1.8% | 1.8% | |
| |
|---|
| Median (2 companies) | 4.9% | 4.0% | 2.1% | 2.0% | |
|---|
| Paternoster Resources ($PRS) | 147.6% | 102.1% | 3.6% | 2.6% | 34.4% |
Top companies by ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Swallowfield ($SWL) | 8.4% | 18.7% | 18.4% | 17.2% | |
| Creightons ($CRL) | 8.8% | 6.7% | 15.5% | 14.4% | |
| Far Eastern New Century Corp ($FETD) | 3.0% | 3.1% | 3.3% | | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 9.0% | 1.9% | 2.8% | | |
| |
|---|
| Median (4 companies) | 6.8% | 2.5% | 3.3% | 15.8% | |
|---|
| Paternoster Resources ($PRS) | 1.7% | 2.3% | -26.4% | 3.0% | -22.4% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Swallowfield ($SWL) | 0.3x | -0.1x | -0.4x | 0.5x | |
| Creightons ($CRL) | 0.1x | -0.8x | -1.1x | -0.1x | |
| |
|---|
| Median (2 companies) | 1.7x | -0.1x | 1.0x | 0.2x | |
|---|
| Paternoster Resources ($PRS) | 10.1x | 4.7x | | 6.6x | |
