Data Communications Management Corp
TSX:DCM

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Data Communications Management Corp
TSX:DCM
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Price: 2.81 CAD -1.4% Market Closed
Market Cap: 155.4m CAD
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Earnings Call Transcript

Earnings Call Transcript
2022-Q3

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Richard Kellam
executive

I'm happy to report that positive momentum continues in our business with strong quarter 3 results. Revenue grew more than 11% on the quarter to just over $63 million.

We have now delivered 3 sequential quarters of year-over-year growth, bringing our year-to-date revenue up just over 15%.

This growth has been driven by a combination of expansion revenue with existing clients and new business wins of over $30 million through the year.

Our team's focused efforts at managing a highly volatile raw material market are paying off. Gross profit grew at a faster rate than revenue, bringing our gross margin on the quarter to over 31% and year-to-date on target of north of 30%.

We also continued to improve productivity per associate, up close to 13% over a year ago.

Our strong revenue growth, gross margin expansion and operational excellence, in addition to our ongoing commitment of zero restructuring, has resulted in very positive EBITDA with clean or non-adjusted EBITDA of $8 million, up over 26% versus year ago. Year-to-date EBITDA is now almost $27 million, up close to $7 million or 35% over year ago.

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

We are pleased to report we have reforested close to 0.5 million trees, offsetting 100% of our clients' paper use.

I would like to thank the entire DCM team for a strong quarter and a first 9 months of 2022. Results like these only come when everyone is moving forward together.

And finally, I would also like to thank our clients for continuing to trust DCM with their complex communication and workflow needs. We look forward to our momentum continuing and reporting on a very strong close to the year.