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Data Communications Management Corp T.DCM

Alternate Symbol(s):  DCMDF

DATA Communications Management Corp. is a Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. The Company is engaged in delivering individualized services to its clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage and digital asset management. The Company’s solutions include DCM Digital, Print & Communications Management, Marketing and Technology & Innovation. Its DCM Digital solutions include customer communications management, digital asset management, personalized video, location-specific marketing, multichannel marketing workflow management, and digital signage. It serves brands in various vertical markets, including financial services, retail, emerging markets, healthcare and wellness, not-for-profit, energy, hospitality, lottery, government, and others.


TSX:DCM - Post by User

Post by knicksmanon Aug 04, 2017 3:04pm
182 Views
Post# 26549068

A "Decent" Quarter Could Launch this Stock

A "Decent" Quarter Could Launch this StockThe company is scheduled to report on Tuesday after the close. Here are my estimates ("guess") for what to expect on the quarter (and shortly thereafter).

For Q2, I'm forecasting revenue of $71.5 million, adjusted EBITDA of $4.5 million and EPS of $0.10. Those aren't spectacular numbers by any means. The estimates imply 10% organic declines and organic EBITDA margins of 4.0% (below Q1). I'm estimating acquistion EBITDA contribution of $2.0 million (that's where most of the improvement comes from).

Now, for 2017, I'm estimating $19 million adjusted EBITDA. That's below guidance. But at this point who cares. If the company can do $19 million of EBITDA that means two things. 

(1) Net debt to EBITDA declines to below 2.0x in Q4, which positions the company to close another deal early in the quarter.

(2) If valuation normalizes, the stock should re-rate to above $2/share.

A few sellers are dragging this one down ahead of the quarter. And buyers look timid.

Results from Supremax and RRD haven't made any longs feel good enough to step in ahead of the quarter. But we're lapping low numbers and valuation is depressed here...let's see.
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