Successful Integration and Synergies
DCM, under the leadership of CEO Richard Kellam, recently marked the first anniversary of its acquisition of RR Donnelly and Son’s Canadian division. This significant milestone comes after a year of intensive integration and consolidation. The acquisition was meticulously planned, leading to a well-defined post-merger integration plan. Initially identifying $25 to $30 million in synergies, DCM increased this target to $30 to $35 million post-acquisition. This achievement includes the closure of four facilities, significant wins in procurement, and additional revenue synergies.
A Diverse Client Base and Services
DCM serves 400 of Canada’s largest corporations across ten key verticals, including finance, healthcare, retail, automotive, and transportation. The company specializes in simplifying marketing operations for complex enterprises, offering tailored solutions such as retail communication for banks, personalized communication for investment advisors, and credit card penetration initiatives.
Expansion into Digital Signage
In August 2023, DCM ventured into the digital signage market, adopting a “crawl, walk, run” strategy. This approach has seen DCM secure a significant $1.2 million client in the automotive sector, with installations across 200 dealers in Canada. The company is currently in the “walk” stage and expects to enter the “run” phase by the end of the year. This digital signage solution includes both hardware and a robust software component for content management.
Strong Q1 2024 Financial Performance
DCM’s Q1 2024 financial results reflect a strong start to the year. The company reported a 70% increase in revenue compared to the previous year, totaling $130 million. Gross margins improved to 29%, and adjusted EBITDA exceeded guidance, reaching 14.4% or $18.7 million. This performance underscores DCM’s successful integration efforts and operational efficiency.
Future Outlook and Milestones
Looking ahead, DCM is focused on completing the integration of its recent acquisition, aiming to realize the full $30 to $35 million in synergies. By the end of the year, the company plans to streamline its operations and optimize its organizational structure, entering 2025 as a leaner, more efficient organization.
DCM’s achievements over the past year highlights their strategic growth and operational excellence. From a successful major acquisition to expanding into digital signage and delivering strong financial results, DCM continues to demonstrate its value and potential as a leading provider of marketing communications solutions. Investors and stakeholders can look forward to more milestones as DCM progresses through its integration plans and capitalizes on new opportunities.
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Forward-looking statements
Certain statements in this press release constitute “forward looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives, or achievements expressed or implied by such forward looking statements. When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release.
These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees that future performance or results will be achieved. Many factors could cause the actual results, performance, objectives, or achievements of DCM to be materially different from any future results, performance, objectives, or achievements that may be expressed or implied by such forward looking statements. Additional factors are discussed under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM management’s discussion and analysis, annual information form, and other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this presentation as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.
