Data Communications Management Corp T.DCM

Alternate Symbol(s): DCMDF

Industrials

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 21, 2021 8:04am

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Post# 32846463

Updated Statistical Summary of 2020 Metrics

Notes

All Values in $C

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.

This suggests that Selling General and Admin ( SGA ) will drop below $10 m per quarter by Q4 of 2021........an operating savings of about $18 million/year versus 2020

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

3..Interest charges in 2021 will be less than 50 % of that of 2020 ( $7.3 m )

Summary

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

This debt risk overhang has already 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 accrued and increased operating savings, 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 and operating efficiency scenarios

Any putative Revenue growth in 2021 will accelerate and increase peer valuation multiples.

The current EV to Ebitda multiple is 14.1 times Ebitda..

Ebitda less CEWS was $30.2 m in 2020

Market cap = EV less net debt

https://siblisresearch.com/data/ev-ebitda-multiple/


2020 Quarter	Debt In	Debt Out	CEWS	Debt Change	SGA	debt Interest

Q1	77.1	79.4	1.6	2.3	17.3	2.1
Q2	79.4	70.1	4.6	-9.3	15.5	1.9
Q3	70.1	59.9	2.8	-10.2	13.3	1.8
Q4	59.9	46.1	1.8	-13.8	12.1	1.5

2020 Debt Change			10.8	-31.0