For 2022, revenues were up 16%, gross & EBITDA margins have improved, and costs continue to be streamlined.
#WORDPRESSCOM ZOHO CLIQ INTEGRATIONS FULL#
Full year results look pretty solid as DCM continues to launch new product lines aimed at integrating themselves higher up into the workflows and tech stack of their existing customers. I’m pretty bullish on the prospects given the effectiveness of management team’s right-sizing and growth initiatives over the last few years. The big question is probably what have we paid for here? Assuming the economics are even half as good at RRD as at DCM, the net C$90M purchase price might imply somewhere in the 5-6x range (assuming 6.5% EBITDA margins on C$250M revenues) before baking in any synergies.
Beyond that they’ve not mentioned anything concrete in the way of expected synergies or existing economics of RRD. DCM disclosed a C$123M purchase price with a planned C$30M sale/lease back on 3 real estate properties and all financed on bank and private debt. To state the obvious this will effectively double DCM’s business from both a financial and human capital perspective. This is a big deal for them as RRD generates annual revenues of C$250M, roughly the size of DCM’s revs (C$274M in 2022). The stock is up ~60% YTD as I write this thanks to a huge announcement of their acquisition of competitor RR Donnelly’s Canadian printing operations. I have yet to do the full write up on DCM but it’s been a huge year for them so far. I don’t plan for this to be comprehensive, more of a chance to highlight interesting results/developments.ĭata Communication Management (DCM/DCMDF) With all the names having reported Q4 and full year 2022 results at this point there is plenty to cover. And maybe some miscellaneous thoughts here and there on other names that I might be researching at any given time.
In an effort to stay more regular with content on the blog, I am going to start writing up some (brief) thoughts on the incremental quarterly results for the portfolio holdings.
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