Lifeloc Technologies Inc reports 63.4% EBITDA growth in 2018 and 5.6% Revenue growth
03/15/2019 • About Lifeloc Technologies Inc (
$LCTC) • By InTwits
Lifeloc Technologies Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Lifeloc Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: $0m in 2018, $1m in 2017, $0m in 2016, $0m in 2015, $0m in 2014
- The company has potentially unprofitable business model: ROIC is 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Lifeloc Technologies Inc's Revenue increased on 5.6%. Revenue growth showed slowdown in 18Q4 - it was 4.7% YoY. During the last 5 years Revenue growth bottomed in 2015 at -5.5% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.6 pp from -44.2% to -33.6% in 2018.
Gross Margin decreased slightly on 1.3 pp from 46.5% to 45.1% in 2018. During 2014-2018 Gross Margin topped in 2015 at 49.9% and was declining since that time. SG&A as a % of Revenue decreased on 2.7 pp from 31.3% to 28.6% in 2018.
Net Income margin increased on 2.4 pp from 0.18% to 2.6% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.8% in 2018. CAPEX/Revenue showed almost no change from 2015 to 2018. For the last three years the average CAPEX/Revenue was 4.9%. The company invested a large share of EBITDA (58.5%) to CAPEX.
Return on investment
The company operates at low ROIC (3.6%) and ROE (3.6%). ROIC increased slightly on 1.8 pp from 1.8% to 3.6% in 2018. ROE increased on 3.3 pp from 0.25% to 3.6% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 2.1x. Debt decreased on 2.7% while cash increased on 4.5%.
Lifeloc Technologies Inc has no short term refinancing risk: cash is higher than short term debt (6,453.4%).
Valuation and dividends
The company's trades at EV/EBITDA 14.0x and P/E 50.7x.
Financial and operational results
FY ended 12/31/2018
Lifeloc Technologies Inc ($LCTC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 9.342 | 8.826 | 8.381 | 7.991 | 8.438 | 5.6% |
| Gross Profit | 4.468 | 4.401 | 4.178 | 3.713 | 3.809 | 2.6% |
| SG&A | 2.673 | 2.735 | 2.506 | 2.503 | 2.417 | -3.5% |
| EBITDA | 1.000 | 0.735 | 0.918 | 0.421 | 0.688 | 63.4% |
| Net Income | 0.605 | 0.282 | 0.433 | 0.015 | 0.217 | 1,387.1% |
Balance Sheet
|
|---|
| Cash | 2.749 | 3.227 | 3.772 | 2.669 | 2.788 | 4.5% |
| Short Term Debt | 0.000 | 0.036 | 0.040 | 0.042 | 0.043 | 2.6% |
| Long Term Debt | 0.000 | 1.494 | 1.456 | 1.410 | 1.369 | -2.9% |
Cash flow
|
|---|
| Capex | 0.132 | 0.403 | 0.043 | 0.760 | 0.402 | -47.1% |
Ratios
|
|---|
| Revenue growth | 10.9% | -5.5% | -5.0% | -4.7% | 5.6% | |
| EBITDA growth | 13.5% | -26.5% | 25.0% | -54.2% | 63.4% | |
|
|---|
| Gross Margin | 47.8% | 49.9% | 49.9% | 46.5% | 45.1% | -1.3% |
| EBITDA Margin | 10.7% | 8.3% | 11.0% | 5.3% | 8.1% | 2.9% |
| SG&A, % of revenue | 28.6% | 31.0% | 29.9% | 31.3% | 28.6% | -2.7% |
| Net Income Margin | 6.5% | 3.2% | 5.2% | 0.2% | 2.6% | 2.4% |
| CAPEX, % of revenue | 1.4% | 4.6% | 0.5% | 9.5% | 4.8% | -4.7% |
|
|---|
| ROIC | 16.7% | 7.3% | 8.9% | 1.8% | 3.6% | 1.8% |
| ROE | 12.7% | 5.3% | 7.7% | 0.2% | 3.6% | 3.3% |
| Net Debt/EBITDA | -2.8x | -2.3x | -2.5x | -2.9x | -2.0x | 0.9x |
Lifeloc Technologies Inc ($LCTC) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | | 11.0% | 4.0% | 2.8% | 4.7% |
| EBITDA | 0 | 0 | 0 | 0 | | -26.8% | 24.0% | 117.0% | |
| Net Income | 0 | 0 | 0 | 0 | | -85.6% | 15.1% | 30,512.6% | |
Balance Sheet
|
|---|
| Cash | 3 | 3 | 3 | 3 | | 4.3% | -1.7% | -1.9% | 4.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 4.3% | 2.7% | 2.6% | 2.6% |
| Long Term Debt | 1 | 1 | 1 | 1 | | -3.0% | -2.8% | -3.1% | -2.9% |
Ratios
|
|---|
| Gross Margin | 45.4% | 46.8% | 46.0% | 42.4% | | -3.2% | -2.7% | 1.8% | -1.2% |
| EBITDA Margin | 6.2% | 11.0% | 9.1% | 6.3% | | -3.2% | 1.8% | 4.8% | 8.4% |
| Net Income Margin | 0.5% | 3.7% | 2.8% | 3.4% | | -3.4% | 0.4% | 2.8% | 10.1% |
Peers in Electronic Equipment & Instrum
Below you can find Lifeloc Technologies Inc 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 1.2% | 4.6% | 10.4% |
|---|
| Lifeloc Technologies Inc ($LCTC) | | -5.5% | -5.0% | -4.7% | 5.6% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| Lifeloc Technologies Inc ($LCTC) | 47.8% | 49.9% | 49.9% | 46.5% | 45.1% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 3.9% | 3.0% | 3.0% | 3.3% |
|---|
| Lifeloc Technologies Inc ($LCTC) | 10.7% | 8.3% | 11.0% | 5.3% | 8.1% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 1.9% | 2.1% | 1.6% | 2.2% |
|---|
| Lifeloc Technologies Inc ($LCTC) | 1.4% | 4.6% | 0.5% | 9.5% | 4.8% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 1.8% | 1.8% | 3.3% | 0.9% |
|---|
| Lifeloc Technologies Inc ($LCTC) | 16.7% | 7.3% | 8.9% | 1.8% | 3.6% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.7x | -0.7x | -0.8x | -0.6x | -0.8x |
|---|
| Lifeloc Technologies Inc ($LCTC) | -2.8x | -2.3x | -2.5x | -2.9x | -2.0x |
