DATA Communications Management Corp. Announces Third Quarter 2022 Financial Results

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Brampton, Ontario – Nov 08, 2022 – DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the “Company”), a provider of marketing and business communication solutions to companies across North America, is pleased to report continued momentum in the third quarter of 2022 with revenue up +11.4%, gross profit up +15.8%, net income up +175.8% and EBITDA¹ up +25.7%, compared to the third quarter of 2021, respectively. For the nine months ended September 30, 2022, revenue is up +15.1%, gross profit is up +17.1%, net income is up +201.0%, and EBITDA is up +34.2%, compared to 2021, respectively. Revenue growth has been driven by a combination of expansion revenue with existing clients, and new business wins. Gross margin growth exceeded revenue growth, reflecting the Company’s commitment to operational success and driving higher levels of net income.


THIRD QUARTER 2022 HIGHLIGHTS – BUILDING A BIGGER BUSINESS


• Revenue for Q3 2022 was up 11.4%, or +$6.5 million, vs. Q3 year ago (YA), for total revenues of $63.4 million;
• Gross profit accelerated 15.8%, or +$2.7 million, vs. YA to $19.9 million;
• Gross profit as a percentage of revenues grew 1.2 percentage points to 31.4%, vs. 30.2% YA;
• Net income increased 175.8%, or +$1.8 million, vs. YA to $2.8 million;
• EBITDA grew 25.7%, or +$1.6 million, vs. YA to $8.0 million;
• No restructuring expenses or other “adjustments” to EBITDA in the third quarter of 2022. The Company’s current
outlook anticipates no restructuring charges in the balance of fiscal 2022;
• Term debt lower by 26.2%, or -$8.9 million, vs. year end 2021 to $25.1 million;
• Basic and diluted EPS of $0.06, compared with $0.02 in third quarter of 2021.


THIRD QUARTER 2022 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER BUSINESS


• We have been awarded more than $30 million of new business year to date, a combination of expansion revenue
with existing clients and new business wins, and our tech-enabled services pipeline remains strong;
• With regards to ESG, we are pleased to report we have reforested almost 470,000 trees in connection with our PrintReleaf initiative, offsetting one hundred percent of our clients’ paper usage;
• Productivity improvements continued, with revenue per associate reaching $287,800, up more than 40% over the last five years.


1 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 November 8, 2022 for the period ended September 30, 2022.


MANAGEMENT COMMENTARY


“I’m happy to report that the positive momentum in our business has continued, with strong third quarter results,” says Richard Kellam, CEO and President of DCM.


“We continue to make positive progress on our digital journey. Substantially all our new business wins are tech-enabled solutions. And we’ve secured more than $30 million of new business, both from new clients and expansion revenue with current clients, through the first nine months of 2022. Our pipeline of business continues to be strong.”


“Our team’s focused efforts at managing a highly volatile raw material market are paying off with positive trends in gross margin, further highlighting our operational success. Our operational effectiveness initiatives are expected to continue to deliver continued improvements in productivity per associate.”


“I would like to thank the entire DCM team for a strong quarter and first nine months of 2022, and a special big thanks to the team’s continued, relentless focus on building both a better and a bigger business. Results like these only come when everyone is moving forward together. And finally, I would also like to thank our clients for continuing to trust DCM with their complex communication and workflow needs.”

THIRD QUARTER 2022 EARNINGS CALL


The Company will host a conference call and webcast on Wednesday, November 9, 2022, at 9.00 a.m. Eastern time. Mr. Kellam, and James Lorimer, CFO, will present the third 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,,52984123# Canada, Toronto
Phone Conference ID: 529 841 23#


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

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.

TABLE 1      The following table sets out selected historical consolidated financial information for the periods noted. 

For the periods ended September 30, 2022 and 2021July 1 to September 30, 2022 July 1 to September 30, 2021 January 1 to September 30, 2022 January 1 to September 30, 2021
(in thousands of Canadian dollars, except share and per share amounts, unaudited) 
   (Restated)   (Restated)
Revenues$      63,399    $      56,892    $    200,759    $    174,460   
        
Gross profit       19,904           17,187           60,670           51,822   
        
Gross profit, as a percentage of revenues31.4 % 30.2 % 30.2 % 29.7 %
        
Selling, general and administrative expenses  (1)       14,864           11,300           42,289           40,527   
As a percentage of revenues23.4 % 19.9 % 21.1 % 23.2 %
        
Adjusted EBITDA         7,988             9,437           26,914           26,016   
As a percentage of revenues12.6 % 16.6 % 13.4 % 14.9 %
        
Net income for the period         2,816             1,021           10,286             3,417   
        
Adjusted net income         2,816             3,345           10,286             7,879   
As a percentage of revenues4.4 % 5.9 % 5.1 % 4.5 %
        
Basic earnings per share$         0.06    $         0.02    $         0.23    $         0.08   
Diluted earnings per share$         0.06    $         0.02    $         0.22    $         0.08   
Weighted average number of common shares outstanding, basic44,062,831 44,056,907 44,062,831 43,970,128
Weighted average number of common shares outstanding, diluted46,501,606 46,477,944 46,516,249 46,025,059

  • SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

TABLE 2      The following table provides reconciliations of net income to EBITDA and of net income to Adjusted EBITDA for the periods noted. 

EBITDA and Adjusted EBITDA reconciliation

For the periods ended September 30, 2022 and 2021 July 1 to September 30, 2022July 1 to September 30, 2021January 1 to September 30, 2022January 1 to September 30, 2021
(in thousands of Canadian dollars, unaudited) 
   (Restated) (Restated)
Net income for the period  (1) $          2,816$          1,021$        10,286$          3,417
      
Interest expense, net             1,233            1,587            3,831            4,715
Amortization of transaction costs                 84              117              257438
Current income tax expense             1,143              383            3,803            2,055
Deferred income tax (recovery) expense (1)              (236)             (121)              204             (784)
Depreciation of property, plant and equipment               760              820            2,321            2,402
Amortization of intangible assets  (1)               402              445            1,213           1,308
Depreciation of the ROU Asset             1,786            2,101            4,999            6,508
EBITDA $          7,988$          6,353$        26,914$        20,059
Restructuring expenses                 —            3,084                —            7,409
Other income                 —                —                —           (1,452)
Adjusted EBITDA $          7,988$          9,437$        26,914$        26,016

  • SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

TABLE 3     The following table provides reconciliations of net income to Adjusted net income and a presentation  

 of Adjusted net income per share for the periods noted. 

Adjusted net income reconciliation

For the periods ended September 30, 2022 and 2021 July 1 to September 30, 2022July 1 to September 30, 2021January 1 to September 30, 2022January 1 to September 30, 2021
(in thousands of Canadian dollars, except share and per share amounts, unaudited)
   (Restated) (Restated)
Net income for the period (1) $          2,816            1,021$        10,286$          3,417
      
Restructuring expenses                 —            3,084                —            7,409
Other income                 —                —                —           (1,452)
Tax effect of the above adjustments                 —             (760)                —          (1,495)
Adjusted net income $          2,816$          3,345$        10,286$          7,879
      
Adjusted net income per share, basic $            0.06$            0.08$            0.230.18
Adjusted net income per share, diluted $            0.06$            0.07$            0.220.17

  • SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

       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 workflows, our goal is to make everything 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 Mr. James E. Lorimer
President and Chief Executive Officer Chief Financial Officer
DATA Communications Management Corp. DATA Communications Management Corp.
Tel: (905) 791-3151 Tel: (905) 791-3151
  [email protected]

FORWARD-LOOKING STATEMENTS

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 of future performance or results, and will not necessarily be accurate indications of whether or not such 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.  The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements include: the COVID-19 Pandemic has adversely affected, and may continue to adversely effect, our business, operating results and financial condition and this continuing adverse effect could be material; there is limited growth in the traditional printing business, which may impact our ability to grow our sales or even maintain historical levels of sales of printed business communications documents; increases in the cost of, and supply constraints related to, paper, ink and other raw material inputs used by DCM, as well as increases in freight costs, may adversely impact the availability of raw materials and our production, revenues and profitability; our ability to continue as a going concern is dependent upon management’s ability to meet forecast revenue and profitability targets for at least the next twelve months in order to comply with our financial covenants under its credit facilities or to obtain financial covenant waivers from our lenders if necessary; we may not be successful in obtaining capital to fund our business plans on satisfactory terms (or at all), including, without, limitation, with respect to investments in digital innovation (such as the development and successful marketing and sale of new digital capabilities), capital expenditures, and potential acquisitions; all of our outstanding indebtedness under our bank credit facility is subject to floating interest rates, and therefore is subject to fluctuations in interest rates; our credit agreements governing our senior indebtedness contain numerous restrictive covenants that limit us with respect to certain business matters, including, without limitation, our ability to incur additional indebtedness, re-pay certain indebtedness, pay dividends, make investments, sell or otherwise dispose of assets and merge or consolidate with another entity; we may not be able to successfully implement our digital growth strategy on a timely basis or at all; competition from competitors supplying similar products and services, some of whom have greater economic resources than us and are well-established suppliers; and our operating results are sensitive to economic conditions, which can have a significant impact on us, and uncertain economic conditions may have a material adverse effect on our business, results of operations and financial condition, including, without limitation, our ability to realize the benefits expected from restructuring and business reorganization initiatives, reducing costs, and reducing and paying our long-term debt. Additional factors are discussed elsewhere in this press release and under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM’s management’s discussion and analysis and in DCM’s 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 press release 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.

NON-IFRS MEASURES

This press release includes certain non-IFRS measures as supplementary information. Except as otherwise noted, when used in this press release, EBITDA means earnings before interest and finance costs, taxes, depreciation and amortization and Adjusted EBITDA means EBITDA adjusted for restructuring expenses, and one-time business reorganization costs. Adjusted net income (loss) means net income (loss) adjusted for restructuring expenses, onetime business reorganization costs, and the tax effects of those items. Adjusted net income (loss) per share (basic and diluted) is calculated by dividing Adjusted net income (loss) for the period by the weighted average number of common shares of DCM (basic and diluted) outstanding during the period. Adjusted EBITDA as a percentage of revenues means Adjusted EBITDA divided by revenues and Adjusted net income (loss) as a percentage of revenues means adjusted net income (loss) divided by revenue, in each case for the same period. In addition to net income (loss), DCM uses non-IFRS measures and ratios, including Adjusted net income (loss), Adjusted net income (loss) per share, Adjusted net income (loss) as a percentage of revenues, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to provide investors with supplemental measures of DCM’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.  DCM also believes that securities analysts, investors, rating agencies and other interested parties frequently use non-IFRS measures in the evaluation of issuers. DCM’s management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess its ability to meet future debt service, capital expenditure and working capital requirements.  Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA and Adjusted EBITDA are not earnings measures recognized by IFRS and do not have any standardized meanings prescribed by IFRS.  Therefore, Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA and Adjusted EBITDA are unlikely to be comparable to similar measures presented by other issuers.

Investors are cautioned that Adjusted net income (loss), Adjusted net income (loss) per share, 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 reconciliation of net income (loss) to EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA, see Table 3 in the most recent Management’s Discussion & Analysis filed on www.sedar.com.  For a reconciliation of net income (loss) to Adjusted net income (loss) and a presentation of Adjusted net income (loss) per share, see Table 4  in the Company’s most recent Management’s Discussion & Analysis filed on www.sedar.com.

Condensed interim consolidated statements of financial position    
(in thousands of Canadian dollars, unaudited)September 30, 2022 December 31, 2021
 $ $
   (Restated)
Assets   
Current assets   
Cash and cash equivalents$                         1,945 $                           901
Trade receivables                         54,332                          51,567
Inventories                         21,355                          12,133
Prepaid expenses and other current assets                          2,614                           2,580
Income taxes receivable                              14                              860
                          80,260                          68,041
Non-current assets   
Other non-current assets                             519                              625
Deferred income tax assets                          5,479                           5,465
Restricted cash                               —                              515
Property, plant and equipment                          6,899                           8,416
Right-of-use assets                         33,190                          33,476
Pension assets                             652                           2,531
Intangible assets                          2,904                           4,042
Goodwill                         16,973                          16,973
 $                     146,876 $                     140,084
    
Liabilities   
Current liabilities   
Trade payables and accrued liabilities$                       39,788 $                       37,589
Current portion of credit facilities                         13,936                          11,743
Current portion of lease liabilities                          6,803                           6,123
Provisions                          1,538                           3,280
Income taxes payable                          2,967                              841
Deferred revenue                          2,802                           3,269
                          67,834                          62,845
Non-current liabilities   
Provisions                               —                           1,196
Credit facilities                         19,719                          24,556
Lease liabilities                         32,247                          32,976
Pension obligations                          6,080                           7,499
Other post-employment benefit plans                          3,040                           2,971
 $                     128,920 $                     132,043
    
Equity   
Shareholders’ equity   
Shares$                     256,478 $                     256,478
Warrants                             869                              881
Contributed surplus                          3,041                           2,791
Translation Reserve                             210                              173
Deficit                      (242,642)                       (252,282)
 $                       17,956 $                         8,041
 $                     146,876 $                     140,084
Condensed interim consolidated statements of operations  
(in thousands of Canadian dollars, except per share amounts, unaudited)For the three months ended September 30, 2022 For the three months ended September 30, 2021
 $ $
   (Restated)
    
Revenues$                       63,399 $                       56,892
    
Cost of revenues                         43,495                          39,705
    
Gross profit                         19,904                          17,187
    
Expenses   
   Selling, commissions and expenses                          7,175                           5,516
   General and administration expenses                          7,689                           5,784
   Restructuring expenses                               —                           3,084
                          14,864                          14,384
    
Income before finance costs, other income and income taxes                          5,040                           2,803
    
Finance costs   
   Interest expense on long term debt and pensions, net                             676                              988
   Interest expense on lease liabilities                             557                              599
   Amortization of transaction costs                              84                              117
                           1,317                           1,704
Other income   
   Government grant income                               —                              184
    
Income before income taxes                          3,723                           1,283
    
Income tax expense   
   Current                          1,143                              383
   Deferred                            (236)                             (121)
                              907                              262
    
Net Income for the period$                         2,816 $                         1,021
Other comprehensive income:   
Items that may be reclassified subsequently to net income   
   Foreign currency translation                              24                               42
                               24                               42
Items that will not be reclassified to net income   
   Re-measurements of pension and other post-employment benefit obligations                         (1,346)                              540
   Taxes related to pension and other post-employment benefit adjustment above                             337                             (126)
                          (1,009)                              414
Other comprehensive (loss) income for the period, net of tax$                          (985) $                           456
Comprehensive income for the period$                         1,831 $                         1,477
    
Basic earnings per share$                          0.06 $                          0.02
    
Diluted earnings per share$                          0.06 $                          0.02
Condensed interim consolidated statements of operations  
(in thousands of Canadian dollars, except per share amounts, unaudited)For the nine months ended September 30, 2022 For the nine months ended September 30, 2021
 $ $
   (Restated)
    
Revenues$                     200,759 $                     174,460
    
Cost of revenues                       140,089                        122,638
    
Gross profit                         60,670                          51,822
    
Expenses   
   Selling, commissions and expenses                         21,467                          18,319
   General and administration expenses                         20,822                          22,208
   Restructuring expenses                               —                           7,409
                          42,289                          47,936
    
Income before finance costs, other income and income taxes                         18,381                           3,886
    
Finance costs   
   Interest expense on long term debt and pensions, net                          2,146                           2,794
   Interest expense on lease liabilities                          1,685                           1,921
   Amortization of transaction costs                             257                              438
                           4,088                           5,153
Other income   
   Government grant income                               —                           4,503
   Other income                               —                           1,452
    
Income before income taxes                         14,293                           4,688
    
Income tax expense   
   Current                          3,803                           2,055
   Deferred                             204                             (784)
                           4,007                           1,271
    
Net income for the period$                       10,286 $                         3,417
    
Other comprehensive income:   
Items that may be reclassified subsequently to net income   
   Foreign currency translation                              37                                (9)
                               37                                (9)
Items that will not be reclassified to net income   
Re-measurements of pension and other post-employment benefit obligations                            (864)                           2,001
Taxes related to pension and other post-employment benefit adjustment above                             218                             (488)
                             (646)                           1,513
    
Other comprehensive (loss) income for the period, net of tax$                          (609) $                         1,504
    
Comprehensive income for the period$                         9,677 $                        4,921
    
Basic earnings per share$                          0.23 $                          0.08
    
Diluted earnings per share$                          0.22 $                          0.07
Condensed interim consolidated statements of cash flows 
(in thousands of Canadian dollars, unaudited)For the nine months ended September 30, 2022 For the nine months ended September 30, 2021
 $ $
   (Restated)
Cash provided by (used in)   
    
Operating activities   
Net income for the period$                       10,286 $                         3,417
Items not affecting cash   
Depreciation of property, plant and equipment                          2,321                           2,402
Amortization of intangible assets                          1,213                           1,308
Depreciation of right-of-use-assets                          4,999                           6,508
Interest expense on lease liabilities                          1,685                           1,921
Share-based compensation expense                             238                              420
Pension expense                             327                              358
Loss on disposal of property, plant and equipment                              68                                —
Provisions                               —                           7,409
Amortization of transaction costs                             257                              438
Accretion of non-current liabilities, capitalized interest expense and accretion of debt modification losses                             120                               64
Other post-employment benefit plans expense                             204                              104
Income tax expense                          4,007                           1,271
                          25,725                          25,620
Changes in working capital                        (10,072)                           2,033
Contributions made to pension plans                            (731)                             (692)
Contributions made to other post-employment benefit plans                            (135)                                —
Provisions paid                         (2,938)                          (5,226)
Income taxes paid                            (831)                          (1,035)
                          11,018                          20,700
    
Investing activities   
Purchase of property, plant and equipment                            (928)                             (615)
Purchase of intangible assets                             (75)                          (1,076)
Proceeds on disposal of property, plant and equipment                              56                                —
                            (947)                          (1,691)
    
Financing activities   
Exercise of warrants                              —                             118
Decrease in restricted cash                             515                                —
Proceeds from credit facilities                          5,900                                —
Repayment of credit facilities                         (8,921)                         (10,277)
Repayment of promissory notes                              —                          (2,185)
Lease payments                         (6,574)                          (8,503)
                          (9,080)                         (20,847)
    
Change in Cash and cash equivalents during the period                             991                          (1,838)
Cash and cash equivalents – beginning of period$                           901 $                           578
Effects of foreign exchange on cash balances                              53                                (5)
Cash and cash equivalents (Bank overdraft) – end of period$                         1,945 $                        (1,265)


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“It’s been exciting transforming the business from printing to marketing and communications; our clients value the transparency and insights into our new strategic direction that my team has offered throughout the transition.”

James’ extensive career as an investment banker began at Midland Walwyn Capital (now Bank of America Merrill Lynch), leading small- and mid-cap, high-growth companies. He later co-founded Clarus Securities, a leading Canadian institutional-focused investment dealer, where he served as head of investment banking and as a member of the executive committee. Before joining DCM in 2015, he held a senior role with Ludwig Wessel & Associates, a boutique executive search firm specializing in the capital markets. He also advised a private equity fund and its portfolio companies on debt & equity financings and mergers & acquisitions. James holds an MBA from the Ivey Business School at Western University.

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Greg Cochrane

Vice Chairman

Greg provides well-rounded oversight of DCM, having led the company from 2016 to 2021 as President and CEO. He now serves as Vice Chairman of the company, bringing his experience in marketing services, communications, event management, and private equity investment to the company and its shareholders.

As an owner of Mariposa Communications earlier in his career, he helped build it into Canada’s largest event company by the time it was sold to Mosaic. Soon after, he became lead investor and director of Pareto Corporation, a marketing services start-up that he helped go public before its sale to a private equity firm. Greg continued his career at VRG Capital, where he served as lead investor and director in a number of public and private companies. In 2016, he joined DCM as an investor and director, becoming President and then CEO. He has held his current role of Vice Chairman since April 2021. Passionate about giving back to Canadian communities, Greg was recognized with Canada’s 125th Commemorative Anniversary medal for volunteerism. He has an MBA from the Smith School of Business at Queen’s University.
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Richard Kellam

Director & Officer

Arriving with a fresh vision, an appetite for learning and growth, and more than 35 years of experience in general management, customer development and marketing communications, Richard Kellam is well set up to lead DCM into the future. His resume reads like a who’s-who of major brands. Before coming to DCM, Richard was Chief Executive Officer of Advantage Group International, a leading consulting and business development company serving major global enterprises.


Richard’s professional learning began as Brand Manager for Playtex Limited. He took his on-the-job education to higher levels with positions at Robin Hood Multifoods, Molson Breweries, Mars Inc., and The William Wrigley Company. By the time he became Senior Vice President of Global Sales and Marketing at Goodyear, he had earned the leadership expertise and industry reputation to teach a master class. Richard’s formal education was taken at the University of Western Ontario.

 

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Merri L. Jones, ICD.D

Director

The first woman in Canada to have led a schedule II bank, Merri brings over 40 years of deep experience in sales & marketing, finance, strategy, and human resources to DCM. Joining the board in 2018, Merri was previously a member of the company’s Advisory Committee. A highly accomplished senior executive, she holds an Institute of Corporate Directors Director (ICD.D) designation from the Rotman School of Management at the University of Toronto and currently sits on the board for Leith Wheeler. Since 2016, Merri has been a director of Sentry Investments Inc., where she is head of its HR & Compensation Committee. She previously held senior roles at Fiera Capital, GBC Asset Management, AGF Private Wealth Management, TAL Global Asset Management, and CIBC Trust.

Merri has served on a number of advisory boards and investment review committees. An active supporter of not-for-profit and charitable organizations, she is passionate about helping the Centre for Addiction and Mental Health (CAMH), the Sunnybrook Foundation, Institute for Private Investors, and the Victorian Order of Nurses (VON). Merri holds an Executive CFA through the Institute of Private Investors from the Wharton School of Business.

James J. Murray

James J. Murray, SIOR

Director

With a rich career spanning 50 years in the commercial brokerage industry, James has always been passionate about helping people put their ideas into action. Currently a Principal and SVP of Lennard Commercial Realty Limited, he joined DCM’s board in June 2016. As SVP and Director of Business Development at Cushman & Wakefield Ltd. Brokerage, James led major assignments across Canada, including the Mississauga and Oakville campuses of Sheridan College, Movati Health Clubs, and the TPCL head office in Calgary. Prior to that, he was the Managing Director and a Partner at J.J. Barnicke. Named “Business Person of the Year” by the Mississauga Board of Trade in 2009, James has received the Queen’s Silver Jubilee and Diamond Jubilee medals and, in 2015, the prestigious Order of Ontario.

James is a member of the Society of Industrial & Office Realtors and is President and Chair of the Hazel McCallion Foundation for Arts, Heritage and Culture. He has also served two six-year terms as a board member and vice chair of the Peel Regional Police Services Board, as well as a 12-year term on the board of governors at Credit Valley Hospital.

Mike Sifton

Mike Sifton

Director

With his long and successful career in the newspaper publishing business, Mike brings extensive experience and expertise in print operations management to DCM, where he has served as a director since 2015, and was CEO until 2018. Previously, Mike was President and CEO of Sun Media, and before that, led the formation and eventual public offering of Osprey Media Group. Prior to forming Osprey, Mike was President of Hollinger Canadian Newspapers L.P. and President and CEO of family-owned Armadale Communications.

Most recently, Mike has served as a Managing Director at Beringer Capital, a private equity firm based in Toronto that focuses on the marketing, specialty-media and advertising industries in North America. In addition to Mike’s work at DCM, he is a past Director of Yellow Pages Limited and is involved in a number of not-for-profit organizations, including serving as the former Chairman of the Board of Governors for St. Andrews College in Aurora, Ontario. Mike holds a B. Comm (Honours) from Queen’s University.

Derek K. Watchhorn

Derek J. Watchorn

Director

Derek joined DCM’s board in 2016, bringing with him a wealth of global experience. Over the past six years, he was consultant and management committee member on the redevelopment of Buttonville Airport land, as well as consultant on a joint venture involving a major shopping centre in Budapest. A lawyer by trade, Derek has extensive executive experience in the real estate industry in Ontario and abroad. Currently a director of Timbercreek Financial Corp., he also served in London, England as Executive Vice President of Canary Wharf plc and Executive Director of TrizecHahn plc.

Derek joined the law firm Davies Ward Phillips & Vineberg LLP as a solicitor in 1968, becoming partner two years later. Until 2004, he was a senior advisor to the Paul Reichmann family in Toronto, a capacity in which he served on a seconded basis as Executive Director of Olympia & York Canary Wharf plc. Derek was previously a director of Patheon Inc.

James-Lorimer

James E. Lorimer

Corporate Secretary

With more than 20 years of experience as a finance professional in capital markets, James knows a thing or two about aligning business and finance strategy. As CFO, James plays a key role in guiding the long-term direction of DCM, providing the proper financial planning, analysis tools, and leadership to the organization. Previously an investment banker, private equity fund advisor, and a senior member of an executive search firm, James is all about collaborating with people to develop and implement capital markets and M&A strategies.

James’ extensive career as an investment banker began at Midland Walwyn Capital (now Bank of America Merrill Lynch), leading small- and mid-cap, high-growth companies. He later co-founded Clarus Securities, a leading Canadian institutional-focused investment dealer, where he served as head of investment banking and as a member of the executive committee. Before joining DCM in 2015, he held a senior role with Ludwig Wessel & Associates, a boutique executive search firm specializing in the capital markets. He also advised a private equity fund and its portfolio companies on debt & equity financings and mergers & acquisitions. James holds an MBA from the Ivey Business School at Western University.

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Shelly  Anwyll

Senior Vice President, North America, Retail & Emerging Markets

With her keen eye for budding opportunities, Shelly guides market strategy and oversight for DCM’s enterprise business solutions in her role as SVP, North America, Retail & Emerging Markets. Leveraging her strong background in retail, healthcare and Consumer Packaged Goods (CPG), she is especially active in positioning DCM as a leader in the cannabis space and nurturing partnerships with over a dozen of Canada’s leading cannabis producers. Recently, Shelly’s expertise helped DCM develop a full solution to meet Health Canada’s regulatory labelling requirements.
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“My entrepreneurial spirit, open mind, and appetite to win drives me to challenge my clients on the status quo and inspire them to think beyond today to new opportunities for excellence tomorrow.”

Shelly has held various VP roles over her 25-year career in outsourced marketing services, on both the client-side and at agencies including Mosaic, Match Marketing, and Consumer Impact Marketing. A proud supporter of SickKids, Shelly was the Vice President of Strategic and Corporate Partnerships at SickKids Foundation. She has a Bachelor of Arts in Economics from Laurentian University.
Richard-Kellam

Richard Kellam

President & Chief Executive Officer

Arriving with a fresh vision, an appetite for learning and growth, and more than 35 years of experience in general management, customer development and marketing communications, Richard Kellam is well set up to lead DCM into the future. His resume reads like a who’s-who of major brands. Before coming to DCM, Richard was Chief Executive Officer of Advantage Group International, a leading consulting and business development company serving major global enterprises.
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“I do this work because I’m passionate about the potential of exceptional marketing. I’ve learned something new in every position I’ve held, and I bring that to bear in every role I undertake.”
Richard’s professional learning began as Brand Manager for Playtex Limited. He took his on-the-job education to higher levels with positions at Robin Hood Multifoods, Molson Breweries, Mars Inc., and The William Wrigley Company. By the time he became Senior Vice President of Global Sales and Marketing at Goodyear, he had earned the leadership expertise and industry reputation to teach a master class. Richard’s formal education was taken at the University of Western Ontario.
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Sharad Verma

Senior Vice President, Strategy

It takes insight and foresight to assess big-picture challenges and turn them into meaningful opportunities, supported by the right solutions. Sharad is a master of interpreting complex client requirements and market trends, and responding with ideas ground in both evidence and aspiration.
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“My job is to unify our teams around one central mission: to ensure our customers get the best solutions for their business—from strategy to execution—that will improve the bottom line.”
With over 25 years of experience in digital marketing and management consulting, Sharad has helped a diverse set of clients create value through innovative marketing and consumer solutions. Backed by his own entrepreneurial experience founding and running a successful digital agency, he brings together DCM’s multi-disciplinary teams to solve problems and drive sustainable business performance for our clients.

Wednesday, December 7, 2022 at 9:30 AM EST.

Planet MicroCap Showcase: VIRTUAL 2022

Richard Kellam, President & CEO of DCM will be hosting the presentation and answering questions at the conclusion

Event:  Planet MicroCap Showcase: VIRTUAL 2022

Date:    December 7th, 2022

Webcast:  Click Here

Please check back later for latest event information.

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Jason Sharpe​

Vice President, Commercial Acceleration​

Taking an idea from concept to commercialization requires an innate ability to balance opportunity with risk while maintaining a bird’s-eye view of constantly evolving market trends. Jason’s ability to do that, and help clients leverage their potential, is second-to-none.
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“You have to start by knowing how the client measures their success—by understanding their higher-order needs. Only then can you bring forward ideas that align with their growth strategy.”
A business development and sales professional with over 20 years of experience, Jason has a unique knack for helping clients drive value in their organizations. To that end, he pushes the DCM sales team to think not just about volume of ideas, but finding the best ideas on an enterprise-wide basis. Ideas that meet clients’ objectives, fulfill the needs of their customers, and move metrics in the right direction.
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Patrick Aussant

Vice President, IT Operations

A seasoned IT executive with extensive experience in change management, Patrick knows how to rally a team around a new path forward. As VP, IT Operations since 2009, Patrick is responsible for planning, implementing, upgrading, and maintaining the infrastructure, applications, and cyber-security at DCM. Under Patrick’s leadership, his groups consistently deliver great internal and external customer experiences—ensuring maximum uptime, stability, and security in the company’s computer systems and networks.
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“IT should be transparent. It should provide our internal teams and external customers with easy access to timely, accurate information so seamlessly they don’t even know it’s there. That is my vision for IT.”
Over the course of his 30 years in information technology, Patrick has developed a deep knowledge in acquisition, merger, and ERP implementation. Previous to DCM, he was Senior IT Director at Relizon Canada. Patrick studied Business Administration at UQAM, Montreal, and Information Technology at Control Data Institute, Montreal.
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Barbara Franovic-Wilkins

Vice President, Marketing

When our clients want to get their brand or message out into the marketplace—and when we at DCM want to share our own stories and successes—Barb provides the direction and oversight that ensure the right strategy and resources are in place. Passionate about the power of marketing and communication to inform and incent, Barb makes sure that from first spark to final execution, initiatives progress smoothly, according to plan, with the right DCM technology supporting them.
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“As the ‘face’ of your business, your brand is truly one of your most valuable assets. It’s how customers perceive you and relate to you. My goal is to help it stand out, make sure it ‘speaks’ in a relevant and compelling way, and is flawlessly expressed wherever it appears.”
Having worked for over 20 years managing campaign development and rollout in sectors such as retail, financial services, consumer goods packaging, and not-for-profit, Barb is intimately familiar with the many moving parts within marketing and what it takes to mobilize them and get results. She ensures our marketing expertise and solutions align with what clients need now, and can drive future growth.
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Geneviève Gravel

Vice President, People Experience

As VP, People & Culture, Geneviève supports DCM in all aspects of Human Resources, mentoring and motivating team members to grow and flourish personally as much as professionally. With her strategic vision, Geneviève leads her team to proactively align HR goals with the goals of the business, providing consulting expertise on HR issues, recruitment, policies, and procedures. Fueled by empowering positive change, Geneviève continues to hone her communication expertise with the latest HR courses and skill-building programs.

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“When you stop dealing with the employee and start dealing with the human being, you can figure out what really drives that person—and help them find where they need to be.”
Over her 25-year career, Geneviève negotiated labour relations between employees and unions before cultivating her passion for a more behavioural-based HR approach at Delta, AccorHotels, Rolls-Royce Canada, and, since 2014, DCM. A certified Life & Business Coach and Neuro-Linguistic Programming (NLP) Coach, Geneviève has a Bachelor’s degree in Industrial Relations from the University of Montreal.
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Karen Redfern

Vice President, Customer Technology Solutions

Technology is a tremendous enabler, but only when it truly fits the client’s needs. Karen makes certain DCM’s solutions are fully aligned with those needs, and that, from implementation to ongoing support, our clients are well looked-after.
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“At its heart, technology is about helping people solve problems. My job is to ensure we do that by taking a client-focused approach to every solution we deliver.”
Drawing from two decades of experience guiding enterprise-wide deployments and operational processes, Karen continually strives to ensure evolving market trends and client challenges are reflected in the capabilities of our platforms and services. An intuitive leader and natural problem-solver, she works closely with clients across all sectors to help them acquire and adapt the solutions that will best support their workflows and move them forward.
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Asem Moqbel

Vice President, Procurement

Balancing the complex supply chains that support a multi-national company like DCM requires deep knowledge and broad oversight. Asem brings plenty of both to the role, building on more than 15 years of experience leading all facets of supply chains, from planning to procurement, to contracts, to inventory management, and logistics. Always looking to increase value for DCM and for our clients, he brings to his role a wealth in business planning, process automation, system integration, and driving efficiency across the organization.
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“The more efficient our supply chains, the more efficiently we operate and the more effective our solutions for clients. It’s all part of one eco-system.”
He is currently the driving force behind DCM’s disciplined effort to influence spend and realize cost savings across all segments of our business. He is relentless in his focus on reducing total cost of ownership: He has spearheaded improved company-wide procurement practices; strengthened our strategic supplier relationships; and has been instrumental overall in continually improving the processes by which we interact with our supplier network.
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Christine Custodio

Vice President, Operations

As the person who ultimately ensures the work we do for clients comes to life in the way we’ve promised it will, Christine serves as the bridge connecting Sales and Operations—the person who guides the execution and oversees the quality of complex, national campaigns and programs for some of North America’s biggest brands.


With more than 25 years’ experience in direct marketing and business communications, Christine is, in her words, “extremely solution-oriented”. Her wealth of experience comes from extensive expertise in direct marketing: rolling out innovative client implementations across multiple channels; and integrating advanced digital workflow automation.

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“My general approach to work is: There is a solution for everything, but it takes a committed, cohesive team to deliver it. When we put our heads together and collaborate—with each other and with our clients—we prove time and again that we can do it, whatever ‘it’ happens to be.”
She combines this with a passion for working with people, and continually strives to build and motivate teams whose members not only deliver the best possible solutions, but also have the chance to develop and grow, both professionally and personally.
Christine Custodio

Christine Custodio

Vice President, Operations

As the person who ultimately ensures the work we do for clients comes to life in the way we’ve promised it will, Christine serves as the bridge connecting Sales and Operations—the person who guides the execution and oversees the quality of complex, national campaigns and programs for some of North America’s biggest brands.


With more than 25 years’ experience in direct marketing and business communications, Christine is, in her words, “extremely solution-oriented”. Her wealth of experience comes from extensive expertise in direct marketing: rolling out innovative client implementations across multiple channels; and integrating advanced digital workflow automation.

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“My general approach to work is: There is a solution for everything, but it takes a committed, cohesive team to deliver it. When we put our heads together and collaborate—with each other and with our clients—we prove time and again that we can do it, whatever ‘it’ happens to be.”
She combines this with a passion for working with people, and continually strives to build and motivate teams whose members not only deliver the best possible solutions, but also have the chance to develop and grow, both professionally and personally.

Tuesday, August 10, 2022 at 9:00 AM EDT.

DCM to Announce Second Quarter 2022 Results

The Company will host a conference call and webcast.

DCM will be using Microsoft Teams to broadcast the 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,,914477492# Canada, Toronto
Phone Conference ID: 914 477 492#

The Company’s full results will be posted on its Investor Relations page and on www.sedar.com. A video message from Richard Kellam, DCM’s President and CEO, will also be posted on the Company’s website.

Please check back later for latest event information.

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Alison Simpson

Director

An award-winning marketer with an exceptional record in business and marketing strategy, Alison is renowned for helping companies differentiate their brands in ways that inspire associates, excite customers, and grow the business. Currently CMO for Key, an innovative Toronto-based technology real estate company, she has held similar roles at Holt Renfrew, TMX Group, and Rogers Communications, as well as building a consultancy specializing in start-ups. She brings to DCM a proven knack for quickly measuring business potential against consumer needs, and driving powerful results.
Along with her support for DCM, Alison sits on the board for CNIB Foundation, and the Advisory Board at Smith School of Business Master of Management Data Analytics and Artificial Intelligence Program. As a past board director for MEC (Mountain Equipment Company), she was part of a turnaround effort and helped manage through its strategic business restructuring, sale and increased profitability. She is passionate about helping organizations thrive in today’s increasingly competitive market environments.
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J.R. Kingsley Ward

Chairman of the Board

With over 30 years of experience as an investor in, and director of, private equity and public company investments, Kingsley provides incomparable guidance to DCM. He became director of the company in 2014 and Chairman in 2016. Kingsley began his career in 1991 at Vimy Ridge Group Ltd., later serving as President of VRG Capital. He co-founded and was director of Globalive Technology Partners, an AI and blockchain technology company, and also founded IPEC (now Flint Energy Services). Later, he founded Pareto Corp., a marketing services company, and served as Director of PLM Group, a commercial printing and direct marketing company. Now Managing Partner of VRG Capital Corp., he is also Chairman on a number of boards across a wide range of industries including finance, communications, and pharma.

Passionate about giving back to Canadian communities, Kingsley has worked with Polo for Heart, a Heart & Stroke Foundation charity event, for 25 years. He is a co-chair of the Capitalize for Kids board, an investor conference in support of SickKids Hospital, and is a past director of the Special Olympics Canada Foundation. Actively involved in YPO (Young Presidents’ Organization) since 1999, Kingsley has held a number of positions, including chairman of the Ontario chapter and Canadian regional educational officer.