Data Communications Management Corp T.DCM

Alternate Symbol(s): DCMDF

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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.

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Data Communications Management Corp

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Post by nozzpackon Mar 20, 2021 8:37am

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Post# 32844480

Bank Dent Changes By Quarter 2020


2020 Quarter	Debt In $m	Debt Out $m	CEWS $m	Debt Change $m

Q1	77.1	79.4	1.6	2.3
Q2	79.4	70.1	4.6	-9.3
Q3	70.1	59.9	2.8	-10.2
Q4	59.9	46.1	1.8	-13.8

2020 Debt Change			10.8 $m	-31.0 $m

Notes

Debt to pay down in 2021 = $46.1 million

Debt at Exit 2021

1..assume same debt paydown as 2020 = $46.1 - $31.0 = $15.1 m

2..Assume Q4/ 20 Paydown annualized =$46.1 -$55.2 = $0

3..Assume 2021 $7 m per quarter =$46.1 - $28.0 = $18.1

Considerations

1...Total operating savings of $8.5 m forecast for 2021

2..Increased conversion rate of Receivables + $5 million cash flow forecast 2021

Summary

Any reasonable assumption for 2021 shows that bank debt will be very modest at exit 2021.

This debt risk overhang has been considerably reduced by exit 2020.

It will progresseivly vanish as each quarter of 2021 reports

Significant gains in net margins and cash flows will accrue in 2021 from reduced debt and reduced interest charges

Valuation multiples will increase as each 2021 quarter reports, and should reach peer norms by Q4 2021 , under any of the above debt paydown scenarios

Fair value at peer multiples by exit 2021 will be above $5 per share, under any of the above debt paydown scenarios

Revenue growth in 2021 will accelerate aand increase peer valuation multiples