Trans-Lux Corp revenue started to decline in 2018: dropped 41.1% vs. 15.3% growth a year earliner
04/15/2019 • About Trans-Lux Corp (
$TNLX) • By InTwits
Trans-Lux Corp reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trans-Lux Corp is a company in decline: 2018 revenue growth was -41.1%, 5 years revenue CAGR was -7.2%
- The company operates at negative EBITDA Margin: -21.5%
- Trans-Lux Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -4.5% for the sames years
- Trans-Lux Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $2m in 2016, $0m in 2015, $0m in 2014
- The company has unprofitable business model: ROIC is -851.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 41.1%. Revenue decline showed acceleration in 18Q4 - it was 52.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.2 pp from -6.3% to -21.5% in 2018. During 2014-2018 EBITDA Margin topped in 2016 at 4.5% and was declining since that time.
Gross Margin increased on 6.1 pp from 15.3% to 21.3% in 2018. SG&A as a % of Revenue surged on 22.5 pp from 26.9% to 49.4% in 2018.
Net Income margin dropped on 20.9 pp from -11.7% to -32.6% in 2018. During 2014-2018 Net Income margin topped in 2016 at -2.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 0.97%. Trans-Lux Corp showed almost no change in CAPEX/Revenue from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 3.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt decreased on 9.6% while cash decreased on 3.2%.
Trans-Lux Corp has short term refinancing risk: cash is only 20.2% of short term debt.
Financial and operational results
FY ended 12/31/2018
Trans-Lux Corp ($TNLX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 24.359 | 23.567 | 21.191 | 24.443 | 14.399 | -41.1% |
| Gross Profit | 4.912 | 5.437 | 5.804 | 3.732 | 3.071 | -17.7% |
| SG&A | | 7.589 | 6.624 | 6.578 | 7.117 | 8.2% |
| EBITDA | -1.485 | 0.292 | 0.954 | -1.545 | -3.094 | |
| Net Income | -4.628 | -1.749 | -0.611 | -2.849 | -4.694 | |
Balance Sheet
|
|---|
| Cash | 0.650 | 0.547 | 0.606 | 0.747 | 0.723 | -3.2% |
| Short Term Debt | 1.811 | 1.031 | 2.984 | 4.029 | 3.584 | -11.0% |
| Long Term Debt | 0.000 | 0.262 | 0.557 | 1.534 | 1.446 | -5.7% |
Cash flow
|
|---|
| Capex | 0.127 | 0.236 | 2.081 | 0.222 | 0.140 | -36.9% |
Ratios
|
|---|
| Revenue growth | 16.5% | -3.3% | -10.1% | 15.3% | -41.1% | |
| EBITDA growth | -1,731.9% | -119.7% | 226.7% | -261.9% | 100.3% | |
|
|---|
| Gross Margin | 20.2% | 23.1% | 27.4% | 15.3% | 21.3% | 6.1% |
| EBITDA Margin | -6.1% | 1.2% | 4.5% | -6.3% | -21.5% | -15.2% |
| SG&A, % of revenue | | 32.2% | 31.3% | 26.9% | 49.4% | 22.5% |
| Net Income Margin | -19.0% | -7.4% | -2.9% | -11.7% | -32.6% | -20.9% |
| CAPEX, % of revenue | 0.5% | 1.0% | 9.8% | 0.9% | 1.0% | 0.1% |
|
|---|
| ROIC | -196.4% | -238.2% | -41.0% | -135.8% | -851.8% | -716.0% |
| Net Debt/EBITDA | | 2.6x | 3.1x | | |
Trans-Lux Corp ($TNLX) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 5 | 3 | 3 | 3 | | 47.4% | -23.0% | -66.6% | -52.5% |
| EBITDA | 0 | -1 | -3 | -0 | | | | -645.5% | |
| Net Income | 0 | -1 | -3 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 0 | 1 | | 23.2% | -66.7% | -41.2% | -3.2% |
| Short Term Debt | 3 | 3 | 3 | 4 | | 68.0% | 25.6% | -0.1% | -11.0% |
| Long Term Debt | 2 | 2 | 1 | 1 | | 51.2% | 6.0% | -12.2% | -5.7% |
Ratios
|
|---|
| Gross Margin | 32.9% | 17.9% | 7.7% | 22.8% | | 21.6% | 9.9% | -8.4% | 3.0% |
| EBITDA Margin | 8.5% | -21.1% | -74.8% | -7.6% | | 32.9% | -2.2% | -79.4% | -0.2% |
| Net Income Margin | 1.3% | -33.6% | -89.3% | -19.3% | | 42.1% | -2.0% | -88.1% | -16.2% |
Peers in Electronic Equipment & Instrum
Below you can find Trans-Lux Corp 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 1.2% | 3.6% | 10.4% |
|---|
| Trans-Lux Corp ($TNLX) | | -3.3% | -10.1% | 15.3% | -41.1% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Trans-Lux Corp ($TNLX) | 20.2% | 23.1% | 27.4% | 15.3% | 21.3% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.0% | 5.1% | 4.2% |
|---|
| Trans-Lux Corp ($TNLX) | -6.1% | 1.2% | 4.5% | -6.3% | -21.5% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| Trans-Lux Corp ($TNLX) | 0.5% | 1.0% | 9.8% | 0.9% | 1.0% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Trans-Lux Corp ($TNLX) | -196.4% | -238.2% | -41.0% | -135.8% | -851.8% |
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) | -0.8x | -0.9x | -0.9x | -0.7x | -0.9x |
|---|
