Data Communications Management Corp T.DCM

Q4 Released After Close today..CC Friday Am

[nozzpack]

Data Communications intends to release its fourth quarter and audited fiscal 2020 results the evening of Thursday, March 18, 2021.

Management will host a conference call including a question and answer session for shareholders on Friday, March 19, 2021, at 9 a.m. ET. Additional details on the call will be released in a separate press release.

 

[knicksman]

Press release is out. No surprises. Given how cheap this stock is...no surprise is good news.  2020 EBITDA is $41.5m. Excluding CEWS, is was $30.8 million. Excluding leases, it was closer to $20 million. I expect EBITDA of $32m to $37m in 2021 (including leases). Debt repayment was $32 million in 2020. Net debt stands at $46 million. I think $15m of debt can be repaid in 2021. 

[knicksman]

DCM trades at 3x. I think it should trade at either 4x or 5x (maybe 6x if the story gets better). Every multiple turn is a $0.50 increase to the share price. And, in 2021, about $0.50 of FCF will accrue to shareholders.  So, we can see upside of anywhere from $0.50 to $1.50 to the shares (from a $0.75 base). That's as good a bet as any. And...I think I'm being pretty conservative

[lscfa]

$8.5 million / 44 million Shs = $0.19 eps increase........ "The company remains focused on achieving an incremental $8.5 million of cost savings to be delivered in 2021, comparable to those savings that were previously described in late 2020." 

[nozzpack]

Very strong year all around. Had not Covid happened, we would have seen quarterly revenues like those of Q1, which would have demonstrated that revenue shrinkage has stopped, and incipient growth has resumed. This resumption of growth ,Taken together with substantial reductions in operating costs, increased gross and net margins, and the elimination of nearly $40 million in debt, an investment

[lscfa]

All the stock filters that work on trailing 12 month eps will show a big increase......       Diluted eps Last 12 months Q4 20 0.07 0.27 Q3 20 0.05 0.02 Q2 20 0

[zalmonella]

All the stock filters that work on trailing 12 month eps will show a big increase...... That's an interesting picture.  So two more quarters of positive eps will trigger everyone's interest.  So hang on til August for a significant increase in share price.