MCBC Holdings, Inc. reports 139% EBITDA decline in 2020 and 22.2% Revenue decline
09/09/2020 • About MCBC Holdings, Inc. (
$MCFT) • By InTwits
MCBC Holdings, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: -4.4% in FY2020, 8.8% in FY2019, 18.4% in FY2018, 16.1% in FY2017, 11.5% in FY2016
- MCBC Holdings, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 3.2%
- CAPEX is quite volatile: $14m in FY2020, $14m in FY2019, $5m in FY2018, $4m in FY2017, $4m in FY2016
- The company has unprofitable business model: ROIC is -16.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.8x while industry average is
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 22.2%. Revenue decline showed acceleration in FY20Q4 - it was 58.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.2 pp from 8.8% to -4.4% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2018 at 18.4% and was declining since that time.
Gross Margin decreased on 3.5 pp from 24.3% to 20.8% in FY2020. Gross Margin stuck to a declining trend at -1.7 pp per annum in FY2016-FY2020. SG&A as a % of Revenue increased slightly on 1.5 pp from 8.5% to 10.0% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 8.5%.
Net Income margin dropped on 11.2 pp from 4.6% to -6.6% in FY2020. During the last 5 years Net Income margin topped in FY2018 at 11.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.9%. The company showed CAPEX/Revenue growth of 2.1 pp from 1.8% in FY2017 to 3.9% in FY2020. For the last three years the average CAPEX/Revenue was 2.8%. CAPEX as a % of Revenue grew at 0.56 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-16.5%) and ROE (-39.7%). ROIC dropped on 37.9 pp from 21.4% to -16.5% in FY2020. ROE dropped on 73.9 pp from 34.2% to -39.7% in FY2020. During FY2016-FY2020 ROIC topped in FY2017 at 74.8% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.6x from 2.6x to in FY2020. Debt decreased on 4.5% while cash surged on 180%.
MCBC Holdings, Inc. has no short term refinancing risk: cash is higher than short term debt (182.7%).
Management team
Frederick A Brightbill "Fred" is a the company's CEO. Frederick A Brightbill "Fred" has spent 1 year with the company. The company's CFO is Timothy M Oxley "Tim". Timothy M Oxley "Tim" has 9 years tenure at the company.
Financial and operational results
FY ended 06/30/2020
MCBC Holdings, Inc. ($MCFT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 221.6 | 228.6 | 332.7 | 466.4 | 363.1 | -22.2% |
| Gross Profit | 61.1 | 63.5 | 90.4 | 113.1 | 75.4 | -33.4% |
| SG&A | 35.3 | 29.9 | 32.8 | 39.8 | 36.3 | -8.7% |
| EBITDA | 25.5 | 36.7 | 61.1 | 41.0 | -16.0 | -139.1% |
| Net Income | 10.2 | 19.6 | 39.7 | 21.4 | -24.0 | -212.6% |
Balance Sheet
|
|---|
| Cash | 0.1 | 4.0 | 7.9 | 5.8 | 16.3 | 180.1% |
| Short Term Debt | 7.9 | 3.7 | 5.1 | 8.7 | 8.9 | 2.4% |
| Long Term Debt | 44.3 | 30.8 | 70.1 | 105.0 | 99.7 | -5.1% |
Cash flow
|
|---|
| Capex | 3.8 | 4.1 | 5.3 | 14.1 | 14.2 | 1.3% |
Ratios
|
|---|
| Revenue growth | 3.4% | 3.2% | 45.5% | 40.2% | -22.2% | |
| EBITDA growth | -6.4% | 44.4% | 66.2% | -32.8% | -139.1% | |
|
|---|
| Gross Margin | 27.6% | 27.8% | 27.2% | 24.3% | 20.8% | -3.5% |
| EBITDA Margin | 11.5% | 16.1% | 18.4% | 8.8% | -4.4% | -13.2% |
| SG&A, % of revenue | 16.0% | 13.1% | 9.9% | 8.5% | 10.0% | 1.5% |
| Net Income Margin | 4.6% | 8.6% | 11.9% | 4.6% | -6.6% | -11.2% |
| CAPEX, % of revenue | 1.7% | 1.8% | 1.6% | 3.0% | 3.9% | 0.9% |
|
|---|
| ROIC | 51.5% | 74.8% | 62.9% | 21.4% | -16.5% | -37.9% |
| ROE | | | 123.4% | 34.2% | -39.7% | -73.9% |
| Net Debt/EBITDA | 2.0x | 0.8x | 1.1x | 2.6x | |
MCBC Holdings, Inc. ($MCFT) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 110 | 100 | 103 | 51 | | 17.2% | -18.0% | -20.1% | -58.4% |
| EBITDA | 15 | 13 | -44 | 0 | | 17.1% | -21.2% | -316.2% | - |
| Net Income | 9 | 7 | -37 | -3 | | 1.9% | -32.5% | -387.7% | - |
Balance Sheet
|
|---|
| Cash | 6 | 5 | 41 | 16 | | 5.2% | -70.5% | 650.6% | 180.1% |
| Short Term Debt | 13 | 9 | 9 | 9 | | 138.9% | -12.4% | -1.7% | 2.4% |
| Long Term Debt | 106 | 97 | 130 | 100 | | 55.3% | -28.3% | 11.6% | -5.1% |
Ratios
|
|---|
| Gross Margin | 23.3% | 21.2% | 20.7% | 14.5% | | -1.5% | -1.1% | -3.7% | -11.1% |
| EBITDA Margin | 13.9% | 13.2% | -43.3% | 0.8% | | -0.0% | -0.5% | -59.3% | 8.3% |
| Net Income Margin | 7.9% | 6.9% | -35.8% | -5.6% | | -1.2% | -1.5% | -45.7% | 2.6% |
Peers in Leisure Products
Below we provide MCBC Holdings, Inc. benchmarking against other companies in Leisure Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | - | 20.4% | 18.5% | 36.9% | -6.6% |
| |
|---|
| Median (1 company) | - | 20.4% | 18.5% | 36.9% | -6.6% |
|---|
| MCBC Holdings, Inc. ($MCFT) | - | 3.2% | 45.5% | 40.2% | -22.2% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | 44.2% | 45.8% | 46.5% | 45.1% | 41.4% |
| |
|---|
| Median (1 company) | 44.2% | 45.8% | 46.5% | 45.1% | 41.4% |
|---|
| MCBC Holdings, Inc. ($MCFT) | 27.6% | 27.8% | 27.2% | 24.3% | 20.8% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | 7.0% | 9.2% | 11.9% | 12.1% | -1.5% |
| |
|---|
| Median (1 company) | 7.0% | 9.2% | 11.9% | 12.1% | -1.5% |
|---|
| MCBC Holdings, Inc. ($MCFT) | 11.5% | 16.1% | 18.4% | 8.8% | -4.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | 1.9% | 2.5% | 3.0% | 3.2% | 2.5% |
| |
|---|
| Median (1 company) | 1.9% | 2.5% | 3.0% | 3.2% | 2.5% |
|---|
| MCBC Holdings, Inc. ($MCFT) | 1.7% | 1.8% | 1.6% | 3.0% | 3.9% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | 9.0% | 13.4% | 18.7% | 12.6% | -6.1% |
| |
|---|
| Median (1 company) | 9.0% | 13.4% | 18.7% | 12.6% | -6.1% |
|---|
| MCBC Holdings, Inc. ($MCFT) | 51.5% | 74.8% | 62.9% | 21.4% | -16.5% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Callaway Golf Company ($ELY) | -1.9x | 0.0x | -0.2x | 3.2x | - |
| |
|---|
| Median (1 company) | -1.9x | 0.0x | -0.2x | 3.2x | - |
|---|
| MCBC Holdings, Inc. ($MCFT) | 2.0x | 0.8x | 1.1x | 2.6x | - |
