Intevac, Inc. reports 95.4% EBITDA decline in 2018 and 15.7% Revenue decline
01/30/2019 • About Intevac, Inc. (
$IVAC) • By InTwits
Intevac, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Intevac, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -2.9% for the sames years
- Intevac, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $2m in FY2018, $2m in FY2017, $2m in FY2016, $0m in FY2015, $0m in FY2014
- The company has unprofitable business model: ROIC is -4.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Intevac, Inc.'s Revenue dropped on 15.7%. Annual revenue decline showed slowdown in FY18Q4 - revenue jumped on 27.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.3 pp from 7.7% to 0.42% in FY2018. During FY2014-FY2018 EBITDA Margin topped in FY2017 at 7.7%.
Gross Margin decreased on 6.1 pp from 40.5% to 34.4% in FY2018. During the last 5 years Gross Margin topped in FY2017 at 40.5%. SG&A as a % of Revenue increased slightly on 0.57 pp from 20.7% to 21.2% in FY2018. SG&A as a % of Revenue followed a declining trend at -2.8 pp per annum in FY2014-FY2018.
Net Income margin showed almost no change in FY2018. Net Income margin grew at 10.7 pp per annum in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Intevac, Inc. had CAPEX/Revenue of 3.4%. The company showed small CAPEX/Revenue decline of 0.74 pp from 4.1% in FY2015 to 3.4% in FY2018. Average CAPEX/Revenue for the last three years was 3.8%. Battling declining revenue the company made large investments to CAPEX (817% of EBITDA) but that didn't help at least in this year. CAPEX as a % of Revenue stuck to a declining trend at -0.48 pp per annum in FY2014-FY2018.
Return on investment
The company operates at negative ROIC (-4.7%) and low but positive ROE (4.2%). ROIC dropped on 11.0 pp from 6.3% to -4.7% in FY2018. ROE decreased slightly on 1.1 pp from 5.3% to 4.2% in FY2018. ROE grew at 7.2 pp per annum in FY2014-FY2018.
Leverage (Debt)
The company has no debt. Cash decreased on 6.1%.
Valuation and dividends
Intevac, Inc.'s trades at EV/EBITDA 257.6x and P/E 33.8x.
Management team
Wendell T Blonigan is a Intevac, Inc.'s CEO. Wendell T Blonigan is a founder and has spent 6 years with the company. The company's CFO is James P Moniz "Jim". James P Moniz "Jim" has 4 years tenure at the company.
Financial and operational results
FY ended 12/29/2018
Intevac, Inc. ($IVAC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 65.6 | 75.2 | 80.1 | 112.8 | 95.1 | -15.7% |
| Gross Profit | 17.4 | 26.3 | 30.4 | 45.7 | 32.7 | -28.4% |
| SG&A | 21.2 | 19.6 | 19.9 | 23.3 | 20.2 | -13.4% |
| EBITDA | -14.6 | -4.1 | -2.7 | 8.7 | 0.4 | -95.4% |
| Net Income | -27.4 | -9.2 | -7.4 | 4.1 | 3.6 | -13.0% |
Balance Sheet
|
|---|
| Cash | 21.5 | 13.7 | 27.0 | 19.9 | 18.7 | -6.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.7 | 3.1 | 3.4 | 4.4 | 3.2 | -25.5% |
Ratios
|
|---|
| Revenue growth | -5.9% | 14.7% | 6.6% | 40.8% | -15.7% | |
| EBITDA growth | 10.1% | -71.7% | -34.2% | -419.8% | -95.4% | |
|
|---|
| Gross Margin | 26.6% | 35.0% | 38.0% | 40.5% | 34.4% | -6.1% |
| EBITDA Margin | -22.3% | -5.5% | -3.4% | 7.7% | 0.4% | -7.3% |
| SG&A, % of revenue | 32.3% | 26.1% | 24.9% | 20.7% | 21.2% | 0.6% |
| Net Income Margin | -41.9% | -12.2% | -9.3% | 3.6% | 3.8% | 0.1% |
| CAPEX, % of revenue | 5.7% | 4.1% | 4.2% | 3.9% | 3.4% | -0.4% |
|
|---|
| ROIC | -17.6% | -9.9% | -10.1% | 6.3% | -4.7% | -11.0% |
| ROE | -24.1% | -10.5% | -10.0% | 5.3% | 4.2% | -1.1% |
| Net Debt/EBITDA | | | | -2.3x | -47.1x | -44.9x |
Intevac, Inc. ($IVAC) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 26 | 19 | 32 | | -40.9% | -15.7% | -27.2% | 27.5% |
| EBITDA | -4 | 2 | -0 | 3 | | -231.3% | -31.3% | -102.9% | 158.7% |
| Net Income | -5 | -0 | -1 | 10 | | -380.8% | -115.2% | -189.3% | |
Balance Sheet
|
|---|
| Cash | 16 | 14 | 22 | 19 | | -36.2% | -29.9% | 13.3% | -6.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 27.1% | 37.4% | 38.5% | 33.5% | | -15.8% | 0.4% | -3.8% | -6.3% |
| EBITDA Margin | -22.7% | 6.1% | -0.3% | 9.4% | | -32.9% | -1.4% | -8.5% | 4.8% |
| Net Income Margin | -28.6% | -0.6% | -5.6% | 31.6% | | -34.6% | -4.2% | -10.2% | 31.8% |
Peers in Technology Hardware, Storage &
Below you can find Intevac, Inc. benchmarking vs. other companies in Technology Hardware, Storage & 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 |
|---|
| 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. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.3% | -5.0% | 1.5% | 5.6% |
|---|
| Intevac, Inc. ($IVAC) | | 14.7% | 6.6% | 40.8% | -15.7% |
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 ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 38.6% | 36.3% | 39.3% | 38.9% | 38.8% |
|---|
| Intevac, Inc. ($IVAC) | 26.6% | 35.0% | 38.0% | 40.5% | 34.4% |
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 ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 8.6% | 7.4% | 4.9% | 3.5% | 7.9% |
|---|
| Intevac, Inc. ($IVAC) | -22.3% | -5.5% | -3.4% | 7.7% | 0.4% |
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 ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.6% | 2.9% | 1.7% | 1.8% | 2.2% |
|---|
| Intevac, Inc. ($IVAC) | 5.7% | 4.1% | 4.2% | 3.9% | 3.4% |
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. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 6.0% | 5.7% | 1.8% | 0.2% | 3.6% |
|---|
| Intevac, Inc. ($IVAC) | -17.6% | -9.9% | -10.1% | 6.3% | -4.7% |
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. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (19 companies) | -0.2x | 0.5x | 0.2x | 0.5x | 1.1x |
|---|
| Intevac, Inc. ($IVAC) | | | | -2.3x | -47.1x |
