Sales of $118M beat estimates (one analyst) by 8%. Sales rose 74% with the MMC acquisition. EBITDA rose 49%. Net debt was $93.6M, and down more than 30% since the acquisition. DCM paid down more than $60M in debt in the quarter. It raised money ($26M) and did a sales/leasback of a facility ($23M). There were some one-time acquisition costs, but overall this was a good quarter. As debt comes down valuation could increase, and rapid profit growth is expected in 2024. This has been a very good turnaround by management, and insiders still own 23% and have been net buyers in the last six months. At 10X 2024 EPS, we would consider it an attractive small cap for more aggressive investors. Management has good experience in turnarounds and it is showing again here.
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