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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

Comment by vicarioon Nov 14, 2017 12:54pm
164 Views
Post# 26960656

RE:RE:RE:RE:Q3 results...have we finally hit bottom?

RE:RE:RE:RE:Q3 results...have we finally hit bottom?I will provide more detailed comments in the next few days.  I however will note that management said they were hesitant to provide guidance on the new client win but will in short order.  I do not think they cannot estimate revenues but rather wish to wait until the relationship is more certain and clear.  They also noted that this client will be a top 10 client in terms of revenues so I'm not sure the lottery ticket analogy is appropriate.  My first glance takeaway is that the legacy business lines are doing worse than anticipated but that the new business lines are ramping up and there appears to be more economies of scale to be had given plant consolidation and such.  If they can do $15m in EBITDA in 2017 and maintain this level in 2018, then I think EBITDA for 2018 of $20m is reasonable with greater risk to upside than downside.  I derive this by adding the announced $5m in cost savings to $15m. This assumption assumes ZERO growth in EBITDA in 2018 (v 2017), they actually do $15m EBITDA in 2017 (below current guidance but given guidance history this is prudent) AND no more cost savings in 2018.  I feel these are conservative assumptions.  The biggest variable here is whether they are able to stabilize revenues/margins/EBITDA.  I tend to think with current size of costs and SG&A they will.  I happy to continue to hold as there is far greater upside here than downside IMO.
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