Data Communications Management Corp T.DCM

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[Torontojay]

fordf150 May 31/23.....

• Revenue for 2022 was estimated to be a midpoint of $271 million, up at least 15% from 2021
• EBITDA was estimated to be a midpoint of $36 million, up at least 41% from the year before (actual reported results on March 21st came in slightly better than the midpoint estimates with sales of $273.8 million and EBITDA of $36.4 million)

• The company also said it would be acquiring Moore Canada, the domestic operations of US-based printing giant R.R. Donnelley & Sons

• DCM stock started to rally on the one-two punch, climbing to as high as $3.81 on May 2nd before retreating to close Monday at $2.83

• When DCM reported Q1 results on May 10th, sales grew 9.8% from a year ago to $76.1 million while acquisitions costs and some mark-to-market expenses pushed EBITDA lower

• DCM also indicated that on a pro forma basis, 2022 revenue would have been $520 million if combined with Moore Canada

• On May 25th, DCM closed a $26.1 million private placement financing priced at $3.00 where the CEO and other insiders participated.

• On May 25th, six DATA Communications Management spent a combined $305,400 buying shares in a private placement priced at $3.00

• The biggest buyer was CEO Richard Kellam who subscribed for 33,350 shares, who now holds 757,855 shares, which represents 1.6% of all shares outstanding

• We also note that Director Michael Sifton exercised 544,321 options on May 24th at $1.38 and has not subsequently sold any shares, accordingly, he now holds 5.04 million shares representing 11.0% of all shares outstanding

• On the same day, CFO James Lorimer exercised 60,374 options and has not subsequently sold, now holding 370,981 shares which represents 0.8% of all shares outstanding

• DATA Communications has above median ownership (direct & indirect holdings) by Officers and Directors compared to other small-cap stocks in the Consumer Cyclicals sector