Andrea Electronics Corp revenue dropped on 78.9% and EBITDA Margin dropped on 39.7 pp from -14.3% to -54.1%
03/29/2019 • About Andrea Electronics Corp (
$ANDR) • By InTwits
Andrea Electronics Corp reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Andrea Electronics Corp is a company in decline: 2018 revenue growth was -78.9%, 5 years revenue CAGR was -14.7%
- The company operates at negative EBITDA Margin: -54.1%
- Andrea Electronics Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -9.0%
- Andrea Electronics Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has unprofitable business model: ROIC is -66.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 78.9%. Annual revenue decline showed slowdown in 18Q4 - revenue jumped on 20.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.8 pp from -48.9% to -39.1% in FY2018.
Gross Margin dropped on 25.8 pp from 96.2% to 70.4% in 2018. SG&A as a % of Revenue jumped on 60.4 pp from 19.3% to 79.7% in 2018.
Net Income margin dropped on 47.9 pp from -16.6% to -64.5% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.7% in 2018. Andrea Electronics Corp showed small growth in CAPEX/Revenue of 1.5 pp from 0.14% in 2015 to 1.7% in 2018.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2018. Debt jumped on 30.4% while cash dropped on 58.2%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 12/31/2018
Andrea Electronics Corp ($ANDR) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1.224 | 13.235 | 3.582 | 6.944 | 1.465 | -78.9% |
| Gross Profit | 1.025 | 13.118 | 3.172 | 6.677 | 1.031 | -84.6% |
| SG&A | 1.163 | 1.446 | 1.267 | 1.338 | 1.167 | -12.8% |
| EBITDA | -2.198 | 2.773 | -1.171 | -0.996 | -0.792 | |
| Net Income | -2.893 | 3.044 | -1.254 | -1.154 | -0.945 | |
Balance Sheet
|
|---|
| Cash | 3.575 | 5.593 | 2.955 | 1.164 | 0.487 | -58.2% |
| Short Term Debt | 0.000 | 1.901 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.910 | 0.000 | 1.410 | 1.190 | 1.551 | 30.4% |
Cash flow
|
|---|
| Capex | 0.005 | 0.018 | 0.000 | 0.022 | 0.024 | 12.7% |
Ratios
|
|---|
| Revenue growth | -62.4% | 981.7% | -72.9% | 93.8% | -78.9% | |
| EBITDA growth | 461.8% | -226.2% | -142.2% | -14.9% | -20.5% | |
|
|---|
| Gross Margin | 83.8% | 99.1% | 88.5% | 96.2% | 70.4% | -25.8% |
| EBITDA Margin | -179.6% | 21.0% | -32.7% | -14.3% | -54.1% | -39.7% |
| SG&A, % of revenue | 95.0% | 10.9% | 35.4% | 19.3% | 79.7% | 60.4% |
| Net Income Margin | -236.4% | 23.0% | -35.0% | -16.6% | -64.5% | -47.9% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.0% | 0.3% | 1.7% | 1.3% |
|
|---|
| ROIC | -182.7% | 111.8% | -34.2% | -49.6% | -66.9% | -17.3% |
| ROE | | | -189.4% | | | |
| Net Debt/EBITDA | | -1.3x | | | |
Andrea Electronics Corp ($ANDR) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 106.7% | 159.8% | -92.8% | 20.5% |
| EBITDA | -0 | -0 | -0 | -0 | | | | -103.1% | |
| Net Income | -0 | -0 | -0 | -0 | | | | -103.8% | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 0 | | -54.6% | -80.9% | -91.7% | -58.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | -100.0% | |
| Long Term Debt | 1 | 1 | 1 | 2 | | -8.0% | -76.5% | 1,597.0% | 30.4% |
Ratios
|
|---|
| Gross Margin | 71.8% | 84.1% | 67.0% | 66.0% | | -0.7% | 12.1% | -31.8% | -3.8% |
| EBITDA Margin | -106.1% | -93.7% | -36.4% | -21.9% | | 1,412.1% | 4,248.3% | -121.5% | 52.3% |
| Net Income Margin | -120.3% | -107.9% | -44.4% | -30.7% | | 1,419.6% | 4,280.6% | -128.6% | 50.4% |
Peers in Electronic Manufacturing Servi
Below you can find Andrea Electronics Corp benchmarking vs. other companies in Electronic Manufacturing Servi 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 |
|---|
| RF Industries, Ltd. ($RFIL) | | 41.9% | -7.8% | -24.0% | 118.4% |
| Alpine 4 Technologies Ltd ($ALPP) | | | 35,893.8% | 5.8% | 71.5% |
| Kemet Corporation ($KEM) | | -1.3% | -10.7% | 3.1% | 58.4% |
| SMTC Corporation ($SMTX) | | -3.5% | -23.9% | -17.1% | 55.2% |
| Deswell Industries, Inc. ($DSWL) | | -7.0% | 17.1% | -0.1% | 36.3% |
| |
|---|
| Median (27 companies) | | 2.6% | 1.7% | 1.9% | 9.8% |
|---|
| Andrea Electronics Corp ($ANDR) | | 981.7% | -72.9% | 93.8% | -78.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Neonode Inc. ($NEON) | 68.2% | 66.0% | 86.9% | 77.1% | 89.2% |
| Data I/O Corporation ($DAIO) | 53.9% | 52.4% | 55.0% | 58.9% | 59.4% |
| IPG Photonics Corporation ($IPGP) | 54.1% | 54.6% | 54.9% | 56.6% | 54.8% |
| CTS Corporation ($CTS) | 32.2% | 33.2% | 35.4% | 33.2% | 35.1% |
| RF Industries, Ltd. ($RFIL) | 45.2% | 34.3% | 28.0% | 30.4% | 34.1% |
| |
|---|
| Median (27 companies) | 14.5% | 14.8% | 16.7% | 13.8% | 12.1% |
|---|
| Andrea Electronics Corp ($ANDR) | 83.8% | 99.1% | 88.5% | 96.2% | 70.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| IPG Photonics Corporation ($IPGP) | 41.5% | 42.4% | 41.8% | 44.7% | 40.9% |
| TE Connectivity Ltd. ($TEL) | 19.7% | 19.3% | 20.9% | 20.4% | 21.4% |
| CTS Corporation ($CTS) | 14.7% | 9.0% | 20.7% | 14.0% | 17.8% |
| Methode Electronics, Inc. ($MEI) | 12.6% | 15.4% | 16.5% | 16.5% | 16.1% |
| RF Industries, Ltd. ($RFIL) | 12.4% | 6.7% | -12.1% | 3.1% | 15.9% |
| |
|---|
| Median (27 companies) | 4.8% | 5.2% | 5.4% | 5.0% | 4.8% |
|---|
| Andrea Electronics Corp ($ANDR) | -179.6% | 21.0% | -32.7% | -14.3% | -54.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Maxwell Technologies, Inc. ($MXWL) | 3.7% | 2.5% | 4.9% | 6.6% | 11.3% |
| IPG Photonics Corporation ($IPGP) | 11.5% | 7.8% | 12.6% | 9.0% | 11.0% |
| eMagin Corporation ($EMAN) | 5.8% | 4.7% | 6.7% | 6.2% | 8.8% |
| TE Connectivity Ltd. ($TEL) | 5.3% | 4.9% | 5.3% | 5.6% | 6.7% |
| CTS Corporation ($CTS) | 3.2% | 2.5% | 5.2% | 4.3% | 6.1% |
| |
|---|
| Median (27 companies) | 2.7% | 2.4% | 2.8% | 3.4% | 2.5% |
|---|
| Andrea Electronics Corp ($ANDR) | 0.4% | 0.1% | 0.0% | 0.3% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| RF Industries, Ltd. ($RFIL) | 8.5% | 4.6% | -18.7% | 0.9% | 29.2% |
| IPG Photonics Corporation ($IPGP) | 27.0% | 27.8% | 25.1% | 29.9% | 22.9% |
| Methode Electronics, Inc. ($MEI) | 19.7% | 26.1% | 22.7% | 20.8% | 19.2% |
| TE Connectivity Ltd. ($TEL) | 17.3% | 15.1% | 15.9% | 16.2% | 18.4% |
| Kemet Corporation ($KEM) | -2.8% | 3.8% | 6.2% | 6.9% | 16.9% |
| |
|---|
| Median (29 companies) | 5.0% | 4.9% | 6.7% | 5.7% | 6.7% |
|---|
| Andrea Electronics Corp ($ANDR) | -182.7% | 111.8% | -34.2% | -49.6% | -66.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpine 4 Technologies Ltd ($ALPP) | | | | 34.1x | 65.7x |
| SigmaTron International, Inc. ($SGMA) | 2.7x | 4.1x | 2.4x | 3.4x | 16.0x |
| SMTC Corporation ($SMTX) | 3.5x | 1.8x | 1.0x | | 11.3x |
| IEC Electronics Corp. ($IEC) | 7.1x | 14.0x | 2.0x | 5.6x | 4.9x |
| Key Tronic Corporation ($KTCC) | 0.2x | 3.4x | 2.6x | 2.5x | 3.9x |
| |
|---|
| Median (23 companies) | -0.2x | -0.2x | 0.2x | 0.2x | 0.2x |
|---|
