Video Display Corp revenue dropped on 39.2% and EBITDA Margin dropped on 22.0 pp from -6.5% to -28.5%
05/29/2018 • About Video Display Corp (
$VIDE) • By InTwits
Video Display Corp reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -28.5%
- Video Display Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -21.4% for the sames years
- Video Display Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $0m in FY2016, $0m in FY2015, $0m in FY2014
- The company has unprofitable business model: ROIC is -51.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Video Display Corp's Revenue dropped on 39.2%. Revenue decline showed acceleration in FY18Q4 - it was 72.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.8 pp from -48.9% to -39.1% in FY2018. During the last 5 years EBITDA Margin topped in FY2017 at -6.5%.
Gross Margin decreased on 9.0 pp from 13.9% to 4.9% in FY2018. During the last 5 years Gross Margin topped in FY2017 at 13.9%. SG&A as a % of Revenue jumped on 14.0 pp from 21.7% to 35.6% in FY2018.
Net Income margin dropped on 19.5 pp from -5.1% to -24.6% in FY2018.
Investments (CAPEX, working capital and M&A)
Video Display Corp's CAPEX/Revenue was 3.9% in FY2018. CAPEX/Revenue increased on 3.4 pp from 0.49% in FY2015 to 3.9% in FY2018. Average CAPEX/Revenue for the last three years was 2.1%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2015 at 0.49% and was growing since that time.
Return on investment
The company operates at negative ROIC (-51.6%) and ROE (-48.8%). ROIC dropped on 34.1 pp from -17.5% to -51.6% in FY2018. ROE dropped on 36.1 pp from -12.6% to -48.8% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2018. Debt dropped on 12.3% while cash dropped on 40%.
Video Display Corp has short term refinancing risk: cash is only 14.1% of short term debt.
Management team
Video Display Corp's CEO Ronald D Ordway is a founder and has spent 44 years with the company. The company's CFO Gregory L Osborn has spent 12 years with the company.
Financial and operational results
FY ended 02/28/2018
Video Display Corp ($VIDE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 14.411 | 12.818 | 18.369 | 19.639 | 11.944 | -39.2% |
| Gross Profit | -1.078 | 1.385 | 2.034 | 2.739 | 0.590 | -78.5% |
| SG&A | 1.686 | 4.804 | 5.188 | 4.259 | 4.258 | -0.0% |
| EBITDA | -5.431 | -3.141 | -3.290 | -1.283 | -3.407 | |
| Net Income | -2.681 | -5.993 | -6.146 | -1.006 | -2.938 | |
Balance Sheet
|
|---|
| Cash | 2.299 | 0.062 | 0.491 | 0.135 | 0.081 | -40.0% |
| Short Term Debt | 0.048 | 0.050 | 0.137 | 0.466 | 0.573 | 23.0% |
| Long Term Debt | 0.233 | 0.183 | 0.131 | 0.667 | 0.421 | -36.9% |
Cash flow
|
|---|
| Capex | 0.079 | 0.063 | 0.170 | 0.300 | 0.463 | 54.3% |
Ratios
|
|---|
| Revenue growth | 19.8% | -11.1% | 43.3% | 6.9% | -39.2% | |
| EBITDA growth | 90.4% | -42.2% | 4.7% | -61.0% | 165.5% | |
|
|---|
| Gross Margin | -7.5% | 10.8% | 11.1% | 13.9% | 4.9% | -9.0% |
| EBITDA Margin | -37.7% | -24.5% | -17.9% | -6.5% | -28.5% | -22.0% |
| SG&A, % of revenue | 11.7% | 37.5% | 28.2% | 21.7% | 35.6% | 14.0% |
| Net Income Margin | -18.6% | -46.8% | -33.5% | -5.1% | -24.6% | -19.5% |
| CAPEX, % of revenue | 0.5% | 0.5% | 0.9% | 1.5% | 3.9% | 2.3% |
|
|---|
| ROIC | -16.9% | -17.8% | -30.5% | -17.5% | -51.6% | -34.1% |
| ROE | -10.1% | -30.8% | -53.1% | -12.6% | -48.8% | -36.1% |
Video Display Corp ($VIDE) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 3 | 2 | 3 | | 5.0% | -13.0% | -68.6% | -72.7% |
| EBITDA | -0 | -0 | -1 | -1 | | | | | -1,214.3% |
| Net Income | -0 | -0 | -1 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | -65.4% | -54.9% | 173.8% | -40.0% |
| Short Term Debt | 1 | 1 | 1 | 1 | | 171.8% | 145.0% | 262.7% | 23.0% |
| Long Term Debt | 1 | 0 | 0 | 0 | | -27.6% | -93.6% | -33.3% | -36.9% |
Ratios
|
|---|
| Gross Margin | 15.3% | 15.1% | -8.6% | -10.6% | | 4.1% | -1.1% | -25.6% | -25.4% |
| EBITDA Margin | -12.0% | -15.3% | -72.4% | -38.8% | | 3.8% | -3.1% | -71.4% | -39.7% |
| Net Income Margin | -6.8% | -7.0% | -72.2% | -38.8% | | 3.7% | 3.4% | -71.4% | -37.1% |
Peers in Technology Hardware, Storage &
Below we provide Video Display Corp benchmarking against other companies in Technology Hardware, Storage & 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crossroads Systems Inc ($CRSS) | | -90.6% | -35.5% | -89.5% | 39,959.5% |
| Immersion Corporation ($IMMR) | | 19.8% | -9.9% | -38.7% | 217.0% |
| Veritec Inc ($VRTC) | | -42.2% | -28.0% | -52.2% | 53.1% |
| Boxlight Corporation ($BOXL) | | -88.5% | 503.2% | 26.4% | 47.0% |
| Pure Storage, Inc. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.2% | -5.0% | 1.5% | 5.6% |
|---|
| Video Display Corp ($VIDE) | | -11.1% | 43.3% | 6.9% | -39.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 99.1% | 99.3% | 99.7% | 99.4% | 99.8% |
| Pure Storage, Inc. ($PSTG) | 43.5% | 55.5% | 61.9% | 65.9% | 65.5% |
| NetApp, Inc. ($NTAP) | 62.0% | 62.6% | 60.8% | 61.3% | 62.7% |
| Avid Technology, Inc. ($AVID) | 61.4% | 60.9% | 65.0% | 57.8% | 57.9% |
| Datasea Inc ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 38.6% | 36.3% | 39.3% | 39.6% | 38.8% |
|---|
| Video Display Corp ($VIDE) | -7.5% | 10.8% | 11.1% | 13.9% | 4.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 12.3% | 9.0% | -25.1% | -127.0% | 48.6% |
| Apple Inc. ($AAPL) | 33.1% | 35.3% | 32.7% | 31.2% | 30.8% |
| Western Digital Corporation ($WDC) | 20.1% | 18.7% | 12.5% | 21.4% | 27.5% |
| NetApp, Inc. ($NTAP) | 16.9% | 16.7% | 11.3% | 15.4% | 22.9% |
| Seagate Technology PLC ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 8.6% | 7.4% | 4.9% | 4.5% | 7.9% |
|---|
| Video Display Corp ($VIDE) | -37.7% | -24.5% | -17.9% | -6.5% | -28.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.6% | 6.4% | 10.8% | 10.9% | 9.6% |
| Pure Storage, Inc. ($PSTG) | 28.7% | 24.2% | 8.9% | 10.4% | 6.3% |
| 3D Systems Corporation ($DDD) | 3.5% | 3.4% | 2.6% | 4.8% | 5.9% |
| Apple Inc. ($AAPL) | 5.2% | 4.8% | 5.9% | 5.4% | 5.0% |
| Western Digital Corporation ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 2.0% | 1.9% | 2.2% |
|---|
| Video Display Corp ($VIDE) | 0.5% | 0.5% | 0.9% | 1.5% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avid Technology, Inc. ($AVID) | | | | | 252.4% |
| Ionix Technology Inc ($IINX) | | | | 23.9% | 204.5% |
| Immersion Corporation ($IMMR) | 7.6% | 5.8% | -21.5% | -138.9% | 96.8% |
| HP Inc. ($HPQ) | 8.0% | 8.7% | 15.8% | 60.8% | 72.9% |
| NetApp, Inc. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 6.0% | 5.7% | 1.8% | 1.6% | 3.6% |
|---|
| Video Display Corp ($VIDE) | -16.9% | -17.8% | -30.5% | -17.5% | -51.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.4x | 3.5x | 5.8x | | 12.4x |
| NCR Corporation ($NCR) | 4.9x | 6.6x | 2.7x | 2.3x | 5.2x |
| Avid Technology, Inc. ($AVID) | -0.7x | 3.1x | 1.7x | 5.6x | 4.8x |
| Xerox Corporation ($XRX) | 3.5x | 3.5x | 3.1x | 3.0x | 3.0x |
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (20 companies) | -0.2x | 0.5x | 0.2x | 0.3x | 0.6x |
|---|
