Data Communications Management Corp DCMDF

What part aren't investors getting?

[KnowledgeSeekr8]

I thought this was another great quarter. DCM is also generated new business from the RRD purcahse of $18 million in revenue?
They are paying down debt quickly. Sold another facility. Merger 4 more

I don't get why we are down 10%?

[lscfa]

Co avoided discussing Q2 to Q3 changes. IMO, the consulting costs incurred in SG&A for a one-time project should have been added back to adjusted ebitda.         Qtr ending Revenue Gross profit Adj. ebitda SG&A Q3 23 122,721

[lscfa]

Most data services only report revenues and eps, not ebitda or adjusted eps. Even the co. reports the minimum in its 8 qtr summary. Nothing stopping them from adding more to this table. I've seen other co.s do it.....

[lscfa]

$30 million in cost savings = $0.55 eps pre-tax, $0.38 eps after-tax

[lscfa]

  Qtr ending acquire, integrate  eps Adj eps Q3 23 7,253 ($0.08) $0.03 Q2 23 6,566 ($0.06) $0.08 Q1 23 6,118

[lscfa]

Next qtr should be breakeven eps before adjustment.   $17.5 mil/yr savings = $0.055 eps/qtr less $4 mil ($0.05 eps) for restructuring costs. 

[lscfa]

Investors are too short-sighted. Borrowing costs ($10 million annual interest payments) for the acquisition show up on the income statement immediately. The $30 million in cost synergies take time ($17.5 million starting 2024)

[Ethanbrodie123]

I agree with this. If you look at the surface level earnings report (cash per share) it does not look so great.  If you look further and actually pay attention on what is actually going on, you will see that this is similar to what happened when this stock was below 1.00. there was lots of debt but once that started getting paid down, and revenues increased with margins, there was no denying

[lscfa]

Bears repeating.....