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Communications Co. Continues To Grow Revenue

Source: Streetwise Reports

 

November 11, 2022 (Investorideas.com Newswire) Printing and marketing services company Data Communications Management Corp. continues to report impressive numbers with its third-quarter revenue.

Printing and marketing services company Data Communications Management Corp. (DCM:TSX; DCMDF:OTCQX) announced that its revenue for the third quarter of 2022 was up 11.4% or CA$6.5 million YOY.

Its gross profit was up 15.8%, its net income rose 175.8%, and EDITDA rose 25.7% over that time, the company said.

Over the nine months that ended Sept. 30, revenue was up 15.1%, gross profit was up 17.1%, net income was up 201%, and EDITDA was up 34.2% compared to 2021.


CliveMaund.com

The company's stock has been "nudging higher toward an upside breakout," technical analyst Clive Maund of CliveMaund.com wrote.

"With volume indicators overall positive, momentum-swinging positive again, and moving averages in quite strongly bullish alignment, it is in a position to break into another upleg imminently," he wrote shortly before its stock went up CA$0.04 this week.

Debt was also lowered by 26.2% or CA$8.9 million to CA$25.1 million, the company said.

The Catalyst

This is not the first time the company has reported impressive growth. It continues to gain momentum after COVID and posted a 23.4% increase in revenue for the second quarter of 2022 compared to Q2 2021, results which analyst Noel Atkinson of Clarus Securities called "monster."

"DCM achieved a spectacular quarter, driven by strong customer demand and the ability to start passing through some input cost increases to clients," he wrote in an August update note.

Atkinson reiterated his Buy rating for the stock then and raised his target from CA$2.50 to CA$3.

"We have now delivered three sequential quarters of year over year growth, bringing our revenue up just over 15%," DCM President and Chief Executive Officer Richard Kellam said. "This growth has been driven by a combination of expansion revenue with existing clients and new business wins of over CA$30 million through the year."

The Digital Journey

In 2021, the company launched its digital asset management (DAM) cloud solution, ASMBL, to manage corporate media files and other content. The technology has the potential to become a substantial contributor to DCM's income as it is deployed to the company's 2,500 corporate clients.

"We continue to make positive progress on our digital journey," Kellam said. "Substantially, all our new business wins are tech-enabled, and our digitally enabled subscription service and fees are pacing nicely ahead of last year."

On the print side, the company also noted that it has reforested nearly 470,000 trees, "offsetting 100% of our clients' paper use."

DCM has been in business for 60 years. It helps companies with branding, communications, and logistics and provides customer loyalty programs, data and content management, location-specific marketing, labels and asset tracking, multimedia campaign management, and workflow management. Its clients are in many industries, including financial services, health care, emerging markets, retail, non-profits, energy, hospitality, and transportation.

Ownership, Coverage, and Share Structure

DCM Directors and officers hold 31.1% of the company, and employees own close to 4 percent through an employee share program.

The company is covered by Noel Atkinson of Clarus Securities and Chris Thompson of PI Financial. Newsletter writer Clive Maund also covers the stock. Click "See More Live Data" in the data box above to read more from them.

It has a market cap of CA$62.13 million with 44.06 million shares outstanding, with 27.3 million shares free-floating. It trades in the 52-week range of CA$1.46 and CA$1.01.

Disclosures:

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Data Communications Management Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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