Q: Hi 5i,
Would appreciate your thoughts on DND latest earnings.
Thank you.
Greg C
Would appreciate your thoughts on DND latest earnings.
Thank you.
Greg C
5i Research Answer:
EPS of 19c beat estimates of -20c; revenue of $107.4M missed estimates of $114M. EBITDA of $59.77M missed estimates by about 7%. Revenue rose 16%. The company announced a bid to buyback its convertible debentures. ARR is now 30% of revenue. Organic growth was 4.1%. Debt did decline $102M but remains very high at $1.3B vs only $36M cash flow. While growth is decent, its small size, large debt, and 'scattered' management make this too volatile and risky for us. We think there are better small caps for sure.