LRAD Corporation revenue growth accelerated to 29.5% in FY2018 vs. 24.2% a year earliner
12/13/2018 • About LRAD Corporation (
$LRAD) • By InTwits
LRAD Corporation 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: -3.8%
- EBITDA Margin is quite volatile: -3.8% in FY2018, -3.2% in FY2017, -8.7% in FY2016, 8.7% in FY2015, 14.4% in FY2014
- LRAD Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $1m in FY2018, $0m in FY2017, $0m in FY2016, $0m in FY2015, $0m in FY2014
- The company has unprofitable business model: ROIC is -4.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 29.5%. Revenue growth showed slowdown in FY18Q4 - it was -56.1% YoY. During FY2014-FY2018 Revenue growth bottomed in FY2015 at -31.7% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.3 pp from 7.7% to 0.42% in FY2018.
Gross Margin decreased on 2.2 pp from 50.6% to 48.4% in FY2018. SG&A as a % of Revenue decreased slightly on 1.6 pp from 42.3% to 40.6% in FY2018.
Net Income margin decreased on 9.9 pp from -4.3% to -14.2% in FY2018.
Investments (CAPEX, working capital and M&A)
LRAD Corporation's CAPEX/Revenue was 2.4% in FY2018. The company's CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at negative ROIC (-4.3%) and ROE (-10.9%). ROIC decreased slightly on 2.0 pp from -2.3% to -4.3% in FY2018. ROE decreased on 8.4 pp from -2.5% to -10.9% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -47.1x and Debt / EBITDA is . Debt surged while cash dropped on 13.6%.
LRAD Corporation has no short term refinancing risk: cash is higher than short term debt (3,730.0%).
Management team
Richard S Danforth is a the company's CEO. Richard S Danforth is a founder and has spent 3 years with the company. The company's CFO Dennis D Klahn has spent 1 year with the company.
Financial and operational results
FY ended 09/30/2018
LRAD Corporation ($LRAD) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 24.591 | 16.784 | 16.361 | 20.314 | 26.307 | 29.5% |
| Gross Profit | 13.763 | 8.529 | 7.672 | 10.279 | 12.740 | 23.9% |
| SG&A | 7.959 | 5.281 | 6.877 | 8.586 | 10.693 | 24.5% |
| EBITDA | 3.533 | 1.458 | -1.426 | -0.654 | -0.993 | |
| Net Income | 3.327 | 9.688 | -1.282 | -0.877 | -3.745 | |
Balance Sheet
|
|---|
| Cash | 23.895 | 18.316 | 13.467 | 12.804 | 11.063 | -13.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.297 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.052 | |
Cash flow
|
|---|
| Capex | 0.327 | 0.344 | 0.162 | 0.182 | 0.626 | 243.3% |
Ratios
|
|---|
| Revenue growth | 43.9% | -31.7% | -2.5% | 24.2% | 29.5% | |
| EBITDA growth | 217.7% | -58.7% | -197.8% | -54.1% | 51.8% | |
|
|---|
| Gross Margin | 56.0% | 50.8% | 46.9% | 50.6% | 48.4% | -2.2% |
| EBITDA Margin | 14.4% | 8.7% | -8.7% | -3.2% | -3.8% | -0.6% |
| SG&A, % of revenue | 32.4% | 31.5% | 42.0% | 42.3% | 40.6% | -1.6% |
| Net Income Margin | 13.5% | 57.7% | -7.8% | -4.3% | -14.2% | -9.9% |
| CAPEX, % of revenue | 1.3% | 2.1% | 1.0% | 0.9% | 2.4% | 1.5% |
|
|---|
| ROIC | 22.0% | 3.7% | -4.4% | -2.3% | -4.3% | -2.0% |
| ROE | 12.4% | 29.1% | -3.5% | -2.5% | -10.9% | -8.4% |
| Net Debt/EBITDA | -6.8x | -12.6x | | | |
LRAD Corporation ($LRAD) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 8 | 8 | 3 | | 159.4% | 37.0% | 82.0% | -56.1% |
| EBITDA | 1 | 1 | -0 | -3 | | | 58.4% | | -340.6% |
| Net Income | -2 | 0 | -0 | -2 | | | 54.5% | | -1,573.7% |
Balance Sheet
|
|---|
| Cash | 15 | 13 | 12 | 11 | | 1.0% | -12.6% | -16.3% | -13.6% |
| Short Term Debt | 0 | 1 | 1 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 51.9% | 51.3% | 49.2% | 31.8% | | 10.2% | 0.2% | 7.8% | -27.0% |
| EBITDA Margin | 13.8% | 9.4% | -0.5% | -83.4% | | 57.9% | 1.3% | 22.9% | -98.6% |
| Net Income Margin | -22.1% | 5.9% | -1.1% | -74.1% | | 5.6% | 0.7% | 11.7% | -76.3% |
Peers in Electronic Equipment & Instrum
Below you can find LRAD Corporation benchmarking vs. other companies in Electronic Equipment & Instrum 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 |
|---|
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 1.2% | 3.6% | 9.1% |
|---|
| LRAD Corporation ($LRAD) | | -31.7% | -2.5% | 24.2% | 29.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
| National Instruments Corporation ($NATI) | 74.4% | 74.1% | 74.5% | 74.5% | 75.4% |
| Cognex Corporation ($CGNX) | 77.9% | 77.2% | 75.2% | 75.6% | 74.4% |
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| LRAD Corporation ($LRAD) | 56.0% | 50.8% | 46.9% | 50.6% | 48.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cognex Corporation ($CGNX) | 32.9% | 30.1% | 31.9% | 36.0% | 30.1% |
| Coherent, Inc. ($COHR) | 14.2% | 16.7% | 18.9% | 24.9% | 26.6% |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 21.3% | 26.9% | 23.5% | 16.1% | 23.9% |
| Electro Scientific Industries, Inc. ($ESIO) | -10.1% | -19.1% | -2.0% | -17.8% | 23.1% |
| FLIR Systems, Inc. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 3.9% | 3.4% | 5.1% | 4.2% |
|---|
| LRAD Corporation ($LRAD) | 14.4% | 8.7% | -8.7% | -3.2% | -3.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wrap Technologies Inc ($WRTC) | | | | | 61.4% |
| ClearSign Combustion Corporation ($CLIR) | | 80.3% | 22.1% | 17.4% | 17.7% |
| LightPath Technologies, Inc. ($LPTH) | 16.8% | 5.0% | 6.5% | 7.8% | 7.7% |
| Giga-tronics Inc ($GIGA) | 1.7% | 0.1% | 1.3% | 0.3% | 7.0% |
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 1.9% | 2.1% | 1.7% | 2.2% |
|---|
| LRAD Corporation ($LRAD) | 1.3% | 2.1% | 1.0% | 0.9% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
| Electro Scientific Industries, Inc. ($ESIO) | -11.7% | -19.7% | -7.1% | -22.9% | 31.5% |
| Coherent, Inc. ($COHR) | 9.9% | 13.1% | 15.6% | 24.0% | 21.5% |
| Zebra Technologies Corporation ($ZBRA) | 3.3% | 0.9% | 2.2% | 10.2% | 20.8% |
| Cognex Corporation ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 1.8% | 2.2% | 3.3% | 1.3% |
|---|
| LRAD Corporation ($LRAD) | 22.0% | 3.7% | -4.4% | -2.3% | -4.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Itron, Inc. ($ITRI) | 2.1x | 1.9x | 1.0x | 2.0x | 12.3x |
| Track Group Inc ($TRCK) | | | | | 12.2x |
| Mesa Laboratories, Inc. ($MLAB) | 0.7x | 1.1x | 1.7x | 2.0x | 3.5x |
| Trimble Inc. ($TRMB) | 1.3x | 1.7x | 1.1x | 1.3x | 3.4x |
| MTS Systems Corporation ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (36 companies) | -0.7x | -0.7x | -0.8x | -0.7x | -0.9x |
|---|
