DCM Q2-2022 Earnings Call - Alpha Spread

Data Communications Management Corp
TSX:DCM

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Data Communications Management Corp
TSX:DCM
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Price: 2.86 CAD -1.38% Market Closed
Market Cap: 158.2m CAD
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Earnings Call Transcript

Earnings Call Transcript
2022-Q2

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Richard Kellam
executive

Our second quarter results are further evidence that our unrelenting focus on building both a better and a bigger business is paying off. I am happy to report that we had an outstanding quarter 2 with revenues up just over 23% versus last year.

Our gross profit momentum also continued to accelerate, growing 29% or up $4.6 million over a year ago. This is clear evidence of our success at growing margins despite raw materials, supply and pricing pressure. Our pipeline of business remains strong, and we expect this positive momentum to continue through the balance of 2022.

Our constant focus on cost controls continues to help us build a better business. SG&A expenses were 20.2% of revenue, a full 5.7 percentage points lower than a year ago. I'm also happy to report that we delivered almost 50% growth in clean or non-adjusted EBITDA totaling $9.5 million or roughly 14% of revenue.

We continue to focus on our strategic shift from a print-first to a digital-first company. Year-to-date, we have more than $22 million of client wins, almost all of which are attributed to our tech-enabled workflow solutions.

The positive client momentum in our business positions us for one of the best growth years ever and with a much better financial shape. I would like to thank the entire DCM team for a strong quarter and first half of 2022, and a special big thanks to the team's continued relentless focus on building both a better and a bigger business.