LMN was spun out of CSU last year, LMN operates as a serial acquirer of vertical market software (VMS) companies focused on the media and communication industry. In the 1Q, LMN revenue grew 59% to $95.4M, of which organic growth came at only 1%, compared to last year of $60.2M and free cash flow increased by 193% to $11.7M compared to the same period last year of $4.0M. The strong growth resulted from the consolidation of the announced acquisition of WideOrbit Inc. Overall, We think this was an okay quarter, but would like to see organic growth higher. Investors need some time to see LMN replicates CSU’s playbook. LMN is not cheap, LMN’s Forward EV/EBITDA multiple is 33x (based on total shares outstanding of 253,104,971 and EBITDA converted from $110M USD to around $150M CDN). We do like its prospects, but it is a stock that will require some patience. We do not expect it to be a high flyer, but slow and steady.
5i Research Answer: