Brampton, Ontario – May 10, 2022 – DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the “Company”), a leading provider of marketing and business communication solutions to companies across North America, is pleased to report the strongest growth in our business since 2018, with first quarter 2022 revenue up +11.1%, net income up +111% and EBITDA up +28.9%, compared to the first quarter of 2021, respectively. Details of this strong start to fiscal 2022 can be found below.
FIRST QUARTER 2022 HIGHLIGHTS – BUILDING A BIGGER BUSINESS
Revenue for the first quarter of 2022 was $69.3 million, an increase of 11.1%, compared to $62.4 million in the first quarter of 2021;
- Gross profit was $20.3 million, an increase of 8.1%, compared to $18.8 million in the first quarter of 2021;
- SG&A expenses were $13.6 million, down 8.5%, compared to $14.9 million in the first quarter of 2021;
- Net income was $3.7 million, an increase of 111.0%, compared with $1.8 million in the first quarter of 2021;
- EBITDA equal to Adjusted EBITDA of $9.4 million compared to $7.3 million and $9.3 million, respectively, in the first quarter of 2021, with EBITDA up 28.9% compared to last year; Adjusted EBITDA in the first quarter of 2021 benefited from the add-back of $3.4 million of restructuring expenses and included $1.9 million of government grant income;
- No restructuring expenses or other “adjustments” to EBITDA in the first quarter of 2022. The Company’s current outlook anticipates no restructuring charges in the balance of fiscal 2022;
- Note: EBITDA and Adjusted EBITDA are not earnings measures recognized by International Financial Reporting Standards (IFRS), do not have any standardized meanings prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. EBITDA and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS as an indicator of DCM’s performance. For a description of the composition of EBITDA and Adjusted EBITDA, why we believe such measures are useful to investors and how we use those measures in our business, together with a quantitative reconciliation of net income (loss) to EBITDA and Adjusted EBITDA, respectively, see the information under the heading “Non-IFRS Measures” and Table 3 of DCM’s management’s discussion and analysis (MD&A) dated May 10, 2022 for the period ended March 31, 2022;
- Basic and diluted EPS of $0.08 compared with $0.04 in first quarter of 2021; Adjusted EPS in the first quarter 2022 of $0.08, compared to $0.06. Please see “Non-IFRS Measures” and Table 3 below.
FIRST QUARTER 2022 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER BUSINESS
Continued progress paying down debt; total debt stood at $34.2 million as of March 31, 2022, down an additional 7.7% from December 31, 2021;
- DCM began trading on OTCQX under the symbol “DCMDF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com. “We believe that trading on the OTCQX Market will provide enhanced visibility for us in the U.S. public markets as well as improved liquidity for our shareholders,” said Richard Kellam, President & Chief Executive Officer of DCM.
- DCM hired Steve Livingstone to lead our Digital Asset Management business. Steve brings an impressive 25 years of experience selling complex enterprise software. Steve’s main focus is moving our +$10 million in ASMBL opportunities through the sales funnel while we continue to focus on our strategic shift from a “print first” to a “digital first” company.
“As demonstrated by this strong first quarter, with revenue up 11.1% compared to last year, I am very pleased with the accelerated momentum and high levels of client engagement the DCM team is delivering. We expect this positive momentum to continue through 2022,” said Mr. Kellam.
“I am also happy to report our EBITDA of $9.4 million was up 28.6% compared to the first quarter last year of $7.3 million. We had ZERO restructuring expenses this quarter, and no other one-time, non-recurring costs or adjustments. Our current outlook calls for no restructuring expenses throughout the balance of the year. In fact, this is the highest “clean” quarterly EBITDA we’ve reported for many years.”
“We are excited with our positive progress. As we have discussed on every earnings call since I joined, we remain relentlessly focused on continuing to build both a better and a bigger business.”
FIRST QUARTER 2022 EARNINGS CALL
The Company will host a conference call and webcast on Wednesday, May 11, 2022, at 9.00 a.m. Eastern time. Mr. Kellam, and James Lorimer, CFO, will present the first quarter 2022 results followed by a live Q&A period.
Instructions on how to access both the webcast and telephone call are available below. For those unable to join live, a replay of the webcast will be available on the DCM Investor Relations page.
DCM will be using Microsoft Teams to broadcast our earnings call, which will be accessible via the options below:
Join on your computer or mobile app
Click here to join the meeting
Or call in (audio only)
+1 647-749-9154, 387296132# Canada, Toronto
Phone Conference ID: 387 296 132#
The Company’s full results will be posted on its Investor Relations page and on www.sedar.com. A video message from Mr. Kellam will also be posted on the Company’s website.
Please see the below pdf for more information.
Click here to open the PDF
About DATA Communications Management Corp.
DCM is a marketing and business communications partner that helps companies simplify the complex ways they communicate and operate, so they can accomplish more with fewer steps and less effort. For over 60 years, DCM has been serving major brands in vertical markets including financial services, retail, healthcare, energy, other regulated industries, and the public sector. We integrate seamlessly into our clients’ businesses thanks to our deep understanding of their needs, transformative tech-enabled solutions, and end-to-end service offering. Whether we’re running technology platforms, sending marketing messages, or managing print pieces, our goal is to make every interaction with us surprisingly simple.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
For further information, contact:
Mr. Richard Kellam
President & Chief Executive Officer
DATA Communications Management Corp.
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
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’s 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.