I posted about DCM in the SupremeX board and thought I'd repost it here.
There is a fair amount of debt coming due over the next couple years. Nonetheless, the cash they generate will allow them to pay it down to meet their obligations.
In the Q3 financials section 8, I get the following:
$939k due on Oct 15,2022 at 6.1% interest
$6,049k due on March 10,2023 at 6.95% interest
$1,475k due on May 15 2023 at 6.95% interest
$6,859k floating rate debt due on May 8,2024
$8,869k floating rate debt due on Nov 8, 2024
$9,822k due on Dec 15 2026 at 5.95% interest
In total they have $33,655 in credit facilities which includes both the long and short amounts. For the 9 months ended 2022, the company has repaid $ 8,921k in debt and $10,277 for the year ending 2021. They will have no issues paying off its debt for the 2023 and 2024 year. The cash they generate is substantially higher than the amounts given above for the debt repayments.
They are in a position of financial strength. This is a great turnaround story. A great new ceo who has been doing amazing things in such a short time.
They are generating operating free cash flow annualized at just under $20m annually or about $18.8m to be precise.
This works out to about $4-5m per quarter of free cash flow that can be used to pay down debt/ buyback shares or pay a dividend. The first priority will be debt pay down and when this happens, I will expect the share price to re-rate substantially higher.
I calculated a operating free cash flow yield of over 30% which is phenomenal.