DATA Communications Management (DCM) Q4 2024 earnings summary

Executive summary

• Achieved record revenue, gross profit, and Adjusted EBITDA in 2024, driven by the successful, ahead-of-schedule integration of the Moore Canada Corporation (MCC) acquisition, which enhanced scale, operational efficiencies, and shareholder returns.

• Exited low-margin businesses, consolidated facilities from 14 to 10, migrated all clients and systems to a unified platform, and reduced headcount by 435.

• Introduced special and recurring dividend programs, including a $0.20/share special dividend and $0.025/share quarterly dividend, reflecting confidence in future growth and improved financial leverage.

Financial highlights

• Revenue grew 7.2% year-over-year to $480.0 million, doubling since 2021.

• Gross profit reached a record $130.1 million, up 9.4% from the prior year, with gross margin improving to 27.1% from 26.6%.

• Adjusted EBITDA hit a record $63.9 million, up 19.7% year-over-year, with margin expanding to 13.3% from 11.9%.

• Net income for 2024 was $3.6 million, reversing a $15.9 million loss in 2023.

• Net debt at year-end was $78.9 million, down 46% since the MCC acquisition.

Outlook and guidance

• 2025 priorities include driving profitable organic growth, maximizing returns on capital investments, and further improving gross margin.

• Long-term objectives reaffirmed: 5%+ revenue CAGR, gross profit margin above 30%, adjusted EBITDA margin above 14%, and net debt/adjusted EBITDA below 1.0x.

• Well-capitalized to pursue both organic growth and potential M&A opportunities.