Q2 ForecastWith a couple of weeks before DCM announces their results, I thought I would provide my forecast of Q2 earnings.
As DCM is in a progressive state of change, my forecast is an illustration of what EPS might look like. It is not meant to be a definitive forecast.
For Q2 I assumed that Perennial would neither increase or reduce profitability, however management would have incurred acquisition costs. So the data is missing revenue, expenses and financing charges related to that purchase.
For Q2 I am forecasting EPS of $.04 and $.13 for the first 6 months as noted below.
| | Q1 2018 | Q2 2018 | Change | Assumptions |
| Revenue | 88,516 | 79,616 | (8,900) | Removal of one time sale |
| Gross Profit | 21,475 | 19,713 | (1,762) | |
| Gross Profit % | 24.26% | 24.76% | | Increase in GM% by 0.50% |
| Sales & Marketing | (10,461) | (9,629) | 832 | $332 One-time costs, $500 lower commissions |
| General & Administration | (6,142) | (6,142) | - | |
| Amortization Expense | (1,069) | (1,069) | - | |
| Finance costs | (1,280) | (1,280) | - | Assumed unchanged |
| Acquisition costs | (43) | (400) | (357) | Perennial acquisition costs |
| Restructuring costs | (64) | - | 64 | No restructuring costs |
| Income taxes | (653) | (322) | 331 | 27% tax rate |
| Net Profit (Loss) | 1,763 | 871 | (892) | |
| Net Margin | 1.99% | 1.09% | | |
| | | | | |
| EPS Forecast Q1 2018 | 0.09 | 0.04 | | |