RE:Smallcap discoveries Cliff notes:
The company's 5 year plan:
- 18-20% ebitda margins
- < 1 debt to ebitda
- 35-40% gross margins
- 5-10% revenue cagr
- 18-20% sg&a
trusted by :
- 70% of Canadas largest corporations
- 3 of 5 largest Federal government agencies
- 65+ years of experience
- 60% Martech growth with 80% gross margins.
- gross profit growing faster than revenue
- debt decreased from $79.8m in 2019 to $27.3m in 2022.
- lowest debt since before IPO in 2004!
- $35m of new logos added in tech enabled business which include clients such as Longos, Exxon Mobile, Imperial oil etc.
- revenue per employee increased from $205.2k in 2017 to ~$300k in 2022.
Dcm. Rrd
revenue $270m $250m
enterprise clients 280 250
locations 11 10
employees 910. 1000
Reduce leverage from 3.25 times Ebitda to 2.65 times.
Rrd business is valued at $93m after sale and leaseback.
- Transcontinental is the largest player
- many companies are in the $10-$25m range so it is very fragmented.
- ebitda: $38.254m for DCM and ~$20m for Rrd
total ebitda: $58.254m ( Dcm + Rrd)