DATA COMMUNICATIONS MANAGEMENT CORP. REPORTS Q1 2025 FINANCIAL RESULTS

FIRST QUARTER 2025 SUMMARY FINANCIAL RESULTS

• Net income was $5.1 million in the quarter vs. $1.5 million in Q1 2024
• Adjusted net income¹ was $5.2 million compared to $4.9 million in Q1 2024
• Revenues were $123.7 million in the first quarter vs. $129.3 million in Q1 2024
• Gross profit as a percentage of revenues was 29.3% compared to 28.9% in Q1 2024
• Adjusted EBITDA¹ represented 15.0% of revenue vs. 14.4% in Q1 2024
• Adjusted EBITDA was $18.6 million vs. $18.7 million in Q1 2024
• No restructuring or one-time charges incurred in the quarter
• Special dividend of $0.20 per common share paid in Q1 2025
• Regular quarterly dividend of $0.025 per common share commenced in April 2025

Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss) and Adjusted net income (loss) as a percentage of revenues are non-IFRS Accounting Standards measures.  For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information under the heading “Non-IFRS Accounting Standards Measures”, the information set forth on Table 2 and Table 3 herein, and our most recent Management Discussion & Analysis filed on www.sedarplus.ca.

Brampton, Ontario – May 12, 2025 – DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or  the “Company”), a leading Canadian provider of print and digital solutions that help simplify complex marketing  communications and workflow, today reported first quarter 2025 financial results. 

MANAGEMENT COMMENTARY

“We delivered first quarter results in line with our expectations, highlighted by adjusted EBITDA of 15.0% of revenues, and  gross profit of 29.3% of revenues, marking continued progress towards our objective of returning to pre-acquisition levels of  margin performance,” said Richard Kellam, President & CEO of DCM. “Revenues in the quarter were down 4.3% year over  year but grew 6.4% sequentially compared to Q4 2024. First quarter revenues were primarily impacted by the order activity of  a few large enterprise clients. We are encouraged about the success of our business development activities across our base  of more than 400 enterprise clients which we expect to contribute to revenue in the second half of 2025 along with a return to  modest year over year growth.”  

“Much of our attention in the first quarter focused on preparing for the expected introduction of cross-border tariffs and the  impact on our supply chain, raw material pricing and client orders. We have developed contingency plans including identifying  alternative sources of supply for several raw materials. We continue to closely monitor the uncertain economic and geopolitical  environment while navigating challenging conditions in our end markets including a potential Canada Post strike,” added  Kellam. 

DCM continues to be guided by four strategic priorities for 2025: 

• Drive profitable organic growth 
• Deliver a return on our new capital investments focused on enhancing our efficiency 
• Continue to drive gross margin improvement through top line revenue growth and operating efficiencies
• Demonstrate agility and adaptability to effectively navigate an uncertain environment.

OTHER BUSINESS HIGHLIGHTS

Sustainability Reporting 

In May 2025, DCM published its second annual corporate Sustainability Report, for the 2024 calendar year. Highlights of the  Company’s 2024 report include: 

• a reduction in our Scope 1 and Scope 2 greenhouse gas emissions by 33.3% from 2020 to 2024
• the planting of two million trees since 2021 through our partnership with PrintReleaf  
• advanced our long-term relationship with the Sustainable Green Printing Partnership  
• formally signaled DCM’s support for the UN Global Compact sustainability initiative.  

DCM’s 2024 Sustainability Report is available on the Company’s website.  

Dividend Declaration  

On May 12, 2025, DCM’s board of directors declared a second quarterly dividend of $0.025 per common share, payable on  June 30, 2025, to shareholders of record at the close of business on June 16, 2025. This dividend is designated as an  “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.

Please see the below pdf for more information.

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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 65 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, our technology-enabled solutions, and our end-to-end service offering.  Whether we are 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.

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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.  They 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.  We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements.

The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our Management Discussion and Analysis for the three months ended March 31, 2024, and include but are not limited to the following:

• Our ability to successfully integrate the DCM and MCC businesses and realize anticipated synergies from the combination of those businesses, including revenue and profitability growth from an enhanced offering of products and services, larger customer base and cost reductions;
• The expected annualized synergies that the Company expects to derive from the MCC acquisition have been estimated by the Company based on its experience integrating previously acquired businesses, other facilities and completing previous restructuring initiatives, and includes estimated benefits expected to be derived from the acquisition, including those related to facility sales and consolidations, operational improvements, eliminating redundant positions, and purchasing synergies;
• Our expected total annualized synergies estimates are principally based upon the following material factors and assumptions: (a) given the significant overlap in the nature of the two businesses, DCM will be able to eliminate duplication of overhead expenses across the combined DCM and MCC businesses in its SG&A functions; (b) given significant overlap in the nature of DCM’s and MCC’s production processes and available combined excess capacity, DCM will be able to consolidate manufacturing plants; (c) further operational and SG&A costs savings will be achievable once the above-noted initiatives are completed; (d) the combined business will achieve more favourable purchasing terms by virtue of the fact it is approximately twice the size of each of DCM and MCC pre-acquisition, and therefore able to command lower pricing from vendors based on larger volumes, and its expected ability to better harmonize purchasing strategies to leverage more favourable purchasing terms than each company had individually for similar goods or services; and (e) the combined business will be able to generate certain revenue synergies from cross-selling each other’s broader, combined, suite of capabilities; and
• Such expected annualized cost savings have not been prepared in accordance with IFRS Accounting Standards, nor has a reconciliation to IFRS Accounting Standards been provided, and the Company evaluates its financial performance on the basis of these non-IFRS Accounting Standards measures.  Therefore, the Company does not consider their most comparable IFRS Accounting Standards measures when evaluating prospective acquisitions.

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 Discussion and Analysis and in DCM’s other publicly available disclosure documents, as filed by DCM on SEDAR+ (www.sedarplus.ca).  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 accounting standards measures

This press release includes certain non-IFRS Accounting Standards measures, ratios and other financial measures as supplementary information.  This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards.  Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM’s performance.  Definitions of such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in Table 4 and Table 5 of our Management Discussion and Analysis for the three months ended March 31, 2024 and filed on SEDAR+ at www.sedarplus.ca.