RE:Excellent Q1...Ebitda of $9.6 m and net earnings of $0.06Q1 was the second sequential quarter to show revenue growth even under very difficult conditions.
Yet, nearly all of the financial indices continue to increase due to accumulated cost compression measures put into place in 2020.
Those indices should continue to increase going forward, reflecting the reduction in executive staff which took place in Q1.
This cost $3.4 million in cash flows in Q1 which restrained debt reduction to $6 million in Q1.
Going forward , with incipient growth beginning to grow the top line and continued cuts in G&A continuing to improve margins, debt should drop below $25 million by exit 2021 and possibly as low as $20 m.
These reductions in debt will be reflected in reduced interest costs in 2021, boosting cash flows as well.
Earlier, I estimated that $40 million in Ebitda was doable in 2021.
I see no reason to change that forecast.
I expect Kellam's video to be very positive.
I hear that it will then be placed on Utube.
Getting the share price to more realistically reflect these strong emerging fundamentals will be a focus in 2021.
Getting it to $2 means that a small PP could reduce it to nil.
I don't see that as a problem , as even at that market cap, DCM will be trading just above two times Ebitda.