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Bullboard - Stock Discussion Forum Data Communications Management Corp T.DCM

Alternate Symbol(s):  DCMDF

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... see more

TSX:DCM - Post Discussion

Data Communications Management Corp > More restructuring????
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Post by zalmonella on Apr 07, 2021 12:27am

More restructuring????

The company also recognized $3.9 million in restructuring provisions in Q1. I would expect the number to increase to $5 million as the look to achieve the $8.5 million in cost reductions.


More?  What is this, 7 quarters?  I don't have the figures, but at  $1-5M per quarter they've burned through about $18M in "restructuring provisions" since I dont teven know when! Is there any end?

Restructuring is a crappy way of saying "we didn't get done what we said we were gonna do, but we'll keep trying."  I know the first couple of quarters were closing plants and the next coujple were ERP screwups, but what's all the rest? Are they trying new lines of bueinss that don't work? Who's left to buy out?'

I don't mind saying I'm worried - when  the company lets go of three top people and replaces them with one guy, my tendency is to say "They're just trying to raise the value short-term to get what they can out, and then let it collapse."  Those three guys didn't sit aorund all day restructuring the place.   What's so different about this new guy and his new way of doing things that will lead to an end to these restructuring costs?
Comment by nozzpack on Apr 07, 2021 6:06am
Debt is being quickly paid down from increasing cash flows, elevating book value. Digital content is being advanced and operations continue to be consolidated. And the new guy just acquired 3.5 m shares..
Comment by knicksman on Apr 07, 2021 8:58am
Restructuring is happening because DCM is a paper business undergoing a transformation. The company is reducing its variable/fixed costs not only to maintain margins, but improve them. A lot of work has been done to rightsize the footprint in the last several years and I think there is still a little bit left to do (I estimate $5 million of restructuring for 2021). I think revenues will ...more  
Comment by knicksman on Apr 07, 2021 9:00am
And nozzpack is spot on.  In 2020 and 2021...the company will generate approxiamately $1.25/share in free cash flow.  Debt will be paid down. Focus will be on further enhancing margins and targeting growth.  Debt could be sub-$30 million exiting 2021.  Margins should be solid.  And the company will be growing its $75 million DataOnline platform...
Comment by zalmonella on Apr 08, 2021 1:59pm
A lot of work has been done to rightsize the footprint in the last several years and I think there is still a little bit left to do (I estimate $5 million of restructuring for 2021). Another $5M?! Holy s***!  I mean, I can follow the businesses attempts to grow and change, I get the reduced footprint, I see evidence of all the possibility this company can do, but when they come back every ...more  
Comment by zalmonella on Apr 08, 2021 1:50pm
Debt is being quickly paid down from increasing cash flows, elevating book value. Digital content is being advanced and operations continue to be consolidated. Yes, yes,but that's been true for several quarters now. Every dollar of more restructuring comes from those cash flows and is not available to pay down that debt.  I'm not sure waht the new guy's shares have to do with ...more  
Comment by lscfa on Apr 07, 2021 11:45am
The $3.9 mil in Q1 is probably severance pay to the fired execs. One time expense to create annual recurring cost savings. 
Comment by zalmonella on Apr 08, 2021 2:01pm
The $3.9 mil in Q1 is probably severance pay to the fired execs. One time expense to create annual recurring cost savings. They only just got fired.  The m illions in restructuring are from before that. We'll see those in May.
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