Data Communications Management Corp

TSX:DCM

Earnings Call Transcript 2021-Q4

[Richard Kellam, executive]

We are pleased with the progress we made through 2021. Since starting at DCM on the 8th of March last year, we put a clear strategic direction in place to move from a print first to a digital-first company with a clear 5-year plan. As I've mentioned to our shareholders over the course of the last 9 months, we have been focused on building both a better and a bigger business.

First, I'm going to talk to you about the better business. We've continued on pace to drive productivity improvements. Since joining, we've optimized the senior leadership team, eliminating 6 positions and 2 levels. We've also driven $3.5 million in savings from operational efficiencies. In addition, we delivered $11.5 million in savings from office consolidation and overhead reduction. Our debt is down by 23% to the lowest levels we've had since before we went public in 2004. In addition, we've implemented many other key initiatives to build a better business.

Now turning to what we've done to build a bigger business. 2021 is very much a story of 2 halves. Since I've joined, we stabilized revenue in the second half and experienced revenue growth in the fourth quarter. Our core business is up over 10.3% in the second half. We've had significant new business wins. Our gross profit is also up by over 10%. And finally, digital acceleration. Our 40 years of experience has resulted in over $10 million in pipeline opportunities.

In summary, we are very well positioned for continued growth given our clarity of strategy, our positioning in the marketplace, strength of our team and importantly the positive results we delivered in the second half of 2021 and specifically the fourth quarter. One thing I've learned in my 36 years in business is that momentum builds momentum. We are very excited about the future.